Hong Kong Stock Concept Tracking | The National Standing Committee will deploy next-generation communication networks to build the telecommunications industry's prosperity is expected to continue to improve (with concept stocks)

The Zhitong Finance App learned that Premier Li Qiang of the State Council presided over an executive meeting of the State Council on August 21. The meeting clearly proposed that it is necessary to actively adapt to the new round of scientific and technological revolution and industrial transformation trends, firmly grasp the opportunities for next-generation communication network construction, adhere to application guidance and moderately advance, promote the construction of basic networks, spatial networks, international networks, and integrated networks in an integrated manner, and consolidate and enhance the competitive advantage of China's information and communication industry. Analysts believe that the construction of next-generation communication networks will provide structural opportunities upstream and downstream of the industrial chain and drive the entire communications industry to evolve in the direction of higher added value.

Next-generation communication networks (covering 5G-A, 6G, 10-gigabit optical networks, satellite Internet, industrial Internet, etc.) are shifting from traditional “connecting pipes” to “smart docks”, becoming one of the “six networks” of digital China and the core engine for cultivating new quality productivity.

According to reports, China has launched a 10,000 gigabit optical network pilot project in 2025, and has now built 136 pilot projects. Since this year, 5G base stations have also been fully upgraded to 5G-A, supporting the connectivity needs of emerging industries such as intelligent connected new energy vehicles and physical intelligence. By the end of April 2026, there were more than 5 million 5G base stations, and 5G-A covered more than 330 cities; by the end of 2025, the total length of optical cable lines nationwide was 74.99 million kilometers, and there were more than 23,000 “5G+ industrial Internet” projects.

6G is also speeding up technology deployment. Recently, the Ministry of Industry and Information Technology organized and launched the 6G Innovation and Development Ministry's provincial collaborative pilot project. It is planned to form a number of independently innovative 6G technology solutions by 2029 to provide support for 6G commercial implementation. At the same time, the construction of satellite internet support is also speeding up. The National Star Network Low Orbit Constellation and the Qianfan Commercial Constellation continued to launch and network in batches, and the mobile phone was directly connected to the satellite technology to complete actual measurement and verification.

The next-generation communication network is not only a network upgrade in the traditional sense, but also a key innovation in digital information infrastructure for the intelligent era. It is mainly reflected in four aspects: First, the target of connectivity has expanded from traditional individual users to diverse subjects such as people, machines, objects, and physical intelligence. Second, the coverage area broke through traditional ground restrictions and expanded to cover the entire area of the integration of space, earth, and sea. Third, connectivity capabilities have been greatly improved in certainty, stability, etc., to better meet the differentiated needs of industry applications. Fourth, network functions evolved from simple information transmission to deep integration of multiple capabilities such as communication, perception, computing, intelligence, and security.

According to estimates, the total investment of “Liuzhang Network” during the “15th Five-Year Plan” period was about 26.9 trillion yuan, an average annual increase of about 21% over the “14th Five-Year Plan” period; among them, the total investment of next-generation communication networks during the “15th Five-Year Plan” period was about 1.3 trillion yuan, an average annual average of about 0.3 trillion yuan, accounting for about 5% of the total investment of “Liuzhang Network”. It mainly invests in fields such as 5G, 5G-A, gigabit, 10 gigabit optical networks, 6G, mobile IoT, national blockchain networks, satellite communication, navigation and remote sensing, and low-orbit satellite internet.

Cui Kai, assistant research director at IDC China, said that the investment opportunities for next-generation communication networks are huge and fall in the direction of a “sea of stars.” Take satellite internet as an example. Look at satellite manufacturing, phased array antennas, RF chips, ground stations, measurement and control systems, and test instruments in the short term; look at constellation operations, industry terminals, and scenario applications in the medium to long term. China Mobile said earlier that for the “15th Five-Year Plan,” it will promote the evolution of “dual gigabit” networks to “double 10 gigabit”, strengthen research on key core technologies of communication networks such as 5G-A, 6G, and satellite internet, and accelerate the construction of next-generation information infrastructure that integrates sensing, computing, space, earth and sea, and is safe and controllable.

Wanlian Securities said that judging from industry trends, the construction of high-speed optical modules, satellite internet networking, and computing power networks is accelerating, and the industry's prosperity is expected to continue to rise. With policy support, the construction of next-generation communication networks will make a qualitative leap forward in both scale and application. It is expected that it will continue to spread from the investment side to the industrial chain and capital market, and become an important intersection for steady growth and transformation.

Changjiang Securities pointed out that the next-generation communication network, as the backbone transmission layer of the “six networks,” is accelerating construction around the four main lines of 5G-A/6G evolution, gigabit optical networks and computing power interconnection trunks, low-orbit satellite constellation networking, industrial private networks, and the decline in IoT sensing. High-speed optical modules are iterating to 800G/1.6T, RF devices are migrating to compound semiconductors, satellite payloads are being upgraded to phased arrays, and network chips are moving closer to autonomy and control, and the core device sector continues to benefit. Communications networks drive infrastructure expansion through technological iteration and anchor supply chain security with autonomy and control. It is expected to open up a new round of capital expenditure and performance implementation cycles under the “15th Five-Year Plan” policy catalyst resonates with the needs of space, earth and sea integration.

Related concept stocks:

Zhongji Xuchuang (03308): Global leader in high-speed optical modules, the main force in 800G/1.6T optical modules, serving next-generation communication backbone networks and computing power transmission upgrades. Benefiting from a significant increase in demand for high-end optical module products, Zhongji Xuchuang's revenue and net profit continued to grow rapidly. Net profit for the first half of 2026 increased 241.70% year-on-year to 13.651 billion yuan.

Changfei Optical Fiber Cable (06869): The world's leading optical fiber prefabricated rod, ultra-low loss optical fiber, directly benefiting from 10 gigabit optical networks and 5G A/6G fiber expansion and collection. The company's revenue for the first half of 2026 was 9.81 billion yuan, up 53.6% year on year; net profit to mother was 2.92 billion yuan, up 888.9% year on year.

ZTE (00763): Communication equipment leader, deeply involved in the construction of 5G A/6G test networks, covering base stations, core networks, optical transmission, industrial private networks, and laying out an integrated space-space network.

China Mobile (00941): In the first half of the year, China Mobile launched 2.94 million 5G base stations, and the gigabit network covered 560 million households. China Mobile promoted the completion of NTN technology verification for mobile phones directly connected to satellites, completed the Internet of Things capabilities of low-orbit satellites, achieved 5G ocean coverage through satellite and terrestrial integration, and built an “sky, earth, sea” integrated information and communication network covering the entire area, full time, and all scenarios.