Here's the policy again! The concept of digital economy has risen sharply, and international investment banks have comprehensively turned over more Hillhouse, Gao Yi, and Qiaoshui are also adding weight Securities companies give four major investment directions

On May 18, the concept of A-share digital economy strengthened in an all-round way, as of press time, Yakang shares (301085) rose and stopped at 20%, and Infineon (002528), Ronglian Technology (002642), Guomai Technology (002093) and so on.

On the news side, on May 17, the National Committee of the Chinese People's Political Consultative Conference held a special consultation meeting on "promoting the sustained and healthy development of the digital economy" in Beijing, and Wang Yang, chairman of the National Committee of the Chinese People's Political Consultative Conference, stressed that it is necessary to dialectically view and comprehensively grasp the relationship between development and security, and constantly strengthen and optimize the digital economy, so that it can better serve and integrate into the new development pattern and promote high-quality development.

Liu He, vice premier of the State Council, pointed out that it is necessary to strive to adapt to the all-round changes brought about by the digital economy, fight a key core technology battle, support the sustained and healthy development of the platform economy and the private economy, handle the relationship between the government and the market, support the listing of digital enterprises in the capital market at home and abroad, promote competition with openness, and promote innovation with competition.

Policy stimulus continues Hong Kong stocks have rioted yesterday

Affected by the above news, yesterday's digital economy "content" of the High Hong Kong stock market has changed, the Hang Seng Technology Index rose 5.78% on the same day, JD.com, Alibaba rose more than 7%, Alibaba, Meituan rose more than 6%, Tencent, Xiaomi, Baidu rose more than 5%, yesterday the US stock Market also continued to rise, KWEB rose 3.22%.

In fact, since the beginning of this year, the mainland has repeatedly released positive signals related to the digital economy and the platform economy. On April 29, the Politburo of the CPC Central Committee held a meeting and stressed that "it is necessary to promote the healthy development of the platform economy, complete the special rectification of the platform economy, implement normalized supervision, and introduce specific measures to support the healthy development of the platform economy."

The executive meeting of the State Council held on May 5 once again pointed out that "specific measures to support the healthy development of platform economic norms should be introduced as soon as possible." On May 16, the Party Committee of the Banking and Insurance Regulatory Commission wrote an article proposing to "complete the special rectification of the platform economy, implement normalized supervision, and promote the healthy development of the platform economy".

Industry insiders pointed out that the consultation meeting released an important signal to loosen the constraints on the private economy and platform economy, laying a foundation for the healthy and sustainable development of the mainland's private economy and platform economy in the future, and will further activate the mainland's digital economy.

In the view of China Merchants Securities, since the end of 2020, the supervision of anti-monopoly and prevention of disorderly expansion of capital on Internet platforms is almost over, and the platform economy will still maintain normal supervision in the future, but will pay attention to "both standardization and development", the possibility of further increasing supervision is low, and the policy has built a bottom.

International investment banks have turned over and institutions have increased their positions in Chinese stocks

After the arrival of the policy inflection point, all kinds of capital are also re-examining the investment value of China's Internet technology companies, after all, after this wave of decline, the valuation of many Internet companies has reached a historical low, such as tencent Holdings' PE valuation is only 12 times, Alibaba's static PE valuation is as low as 10 times, and the risk has been released to a large extent.

Recently, the international investment bank JPMorgan Chase has also raised the "all-round bullish" Chinese Internet industry, collectively upgrading the rating and target price of China's Internet technology stocks. Among them, the target price of Alibaba in Hong Kong stocks was raised from HK$75 to HK$130, the target price of Us stocks of Alibaba was raised from US$75 to US$130, and the rating of Tencent Holdings was raised to over-allocation, and the target price was raised from HK$265 to HK$470.

JPMorgan Chase's wave of ratings and price targets for Chinese Internet companies has been staggering. In the March report, it drastically downgraded the ratings of these companies to sell levels, and stressed that "no investment" caused a huge stir in the short term. Now, just two months later, the attitude has changed dramatically.

According to JPMorgan Chase's original view, China's Internet industry is getting rid of various uncertainties rising, will be driven by short-term and long-term fundamental factors, so the company's stock price or will rise more than expected, in short, uncertainty is eliminated, performance fundamentals are still very good, so the valuation is low.

It is worth mentioning that JPMorgan Chase also expressed its confidence in Chinese stocks with practical actions, and its flagship China fund "JPMorgan Funds-China Fund A(acc)-USD" increased its holdings in JD.com by 12.54 times, and increased its positions by 3.38% and 2.21% for Tencent and Meituan respectively.

HHLR Advisors, a subsidiary of "Friends of Leaders", also increased the holdings of 12 stocks mainly in China, new buying and other position increase operations, including super doubling of the increase in Vipshop, a large bottom of JD.com, a new purchase of Didi, Manbang, Futu, Daquan New Energy and other Chinese stocks.

In addition, well-known investment institutions such as Fidelity International, Qiaoshui, and Gao Yi have also increased their positions in some Internet companies.

The upstream and downstream of the industrial chain are also worth paying attention to The securities companies recommend grasping the four major directions

The digital economy is based on data resources as the key element, with the modern information network as the main carrier, with the integration and application of information and communication technology and the digital transformation of all factors as an important driving force, in addition to the leading Internet platform of Hong Kong and the United States, its upstream and downstream industrial chains are also worthy of attention, in this regard, Huachuang Securities recommends grasping four directions:

Direction 1: Information infrastructure, improve wired + wireless to improve the depth and breadth of network coverage. In the future, on the one hand, it is necessary to increase the urban and rural coverage of 5G networks and accelerate the acceleration and upgrading of optical fiber networks to "10 gigabits"; on the other hand, we will vigorously develop satellite Internet and accelerate the complementary cooperation and integration of satellite scale networking and ground networks. We recommend paying attention to 5G main equipment manufacturer ZTE (000063), operators China Mobile (600941), China Telecom (601728), China Unicom (600050); optical modules/optical devices and G-PON related targets, such as Zhongji Innolux (300308), New Yisheng (300502), Huagong Technology (000988), Tianfu Communications (300394), etc.; fiber optic cable related targets, such as Changfei Fiber (601869), Zhongtian Technology (600522), Hengtong Optoelectronics (600487), etc.

Direction two: computing power infrastructure, platform economy to boost the demand for computing power, east and west to lay the cornerstone of digital economic development. "East number west calculation" guides large and super large data centers to gather in the hub, form a data center cluster, exert large-scale and intensive effects, and improve the overall scale and efficiency of computing power. We recommend paying attention to operators: China Mobile, China Telecom, China Unicom; third-party IDC manufacturers with cluster data center operation and maintenance experience and sufficient expansion capabilities in the later stage: GDS, Aofei Data (300738), Dataport (603881), Sinnet (300383), Baoxin Software (600845), etc.; data center precision temperature control and power equipment manufacturers: Invic (002837), Kehua Data (002335), Jialitu (603912) and so on. High-speed optical module or G-PON related targets: Zhongji Innolux, New Yisheng, Guangxun Technology (002281), Huagong Technology, etc.; fiber optic cable related targets: Changfei Optical Fiber, Zhongtian Technology, Hengtong Optoelectronics, etc., network equipment ZTE, Tsinghua Unigroup (000938), Xingwang Ruijie (002396), Fiberhome (600498), etc.

Direction 3: Internet of Things and Industrial Internet, improve the level of digitalization of production equipment of industrial enterprises. Internet of Things devices are the entrance to industrial digital transformation, focusing on recommending the realization of The Internet of Things connection and control of the Internet of Things modules, terminals, chips and intelligent controller plates of high-quality targets: Quectel Communications (603236), Guanghetong (300638), Taijing Technology (603738), Heertai (002402), Topband (002139), Mobile Communications (300590); industrial software is known as the "soul" of the modern industrial system, focusing on the realization of fully independent design, Baoxin Software, the industrial software leader in the localization of medium and large PLC products.

Direction 4: Digital transformation of enterprises and accelerate the integration of enterprise cloud and network. We believe that enterprise informatization and digital development are important ways for enterprises to reduce costs and increase efficiency, and highly integrated enterprise communications can meet the needs of flexible offices and become an accelerator for enterprise digital transformation, focusing on recommending the leading enterprise communications Network (300628). Driven by the digital transformation of the industry, the government and enterprises have continuously improved their demands for comprehensive solutions for cloud networks. It is recommended to focus on network equipment vendors: Tsinghua Unigroup, StarNet Ruijie.