China Galaxy Securities released a research report stating that the State Council Information Office recently held a press conference under the "Opening Up and Starting the 15th Five-Year Plan" series, outlining the progress of building a strong science and technology nation during the 15th Five-Year Plan period.
The introduction of supporting industrial policies for the 15th Five-Year Plan continues to advance the construction of a science and technology powerhouse, with AI computing infrastructure laying a solid foundation and improving in quality, the telecommunications emerging industry ecosystem continuing to take shape, and broad growth potential across the sector.
The report recommends focusing on three main industrial investment themes: (1) telecom operators deeply involved in 6G research and development and the implementation of satellite-terrestrial integrated services; (2) 6G main equipment vendors and satellite internet providers benefiting from network iteration and growing demand for integrated sensing, communication, computing, and intelligence equipment, with terminal satellite convergence services accelerating; (3) AI optical communications with high technical barriers; (4) frontier quantum technology.
China Galaxy Securities Co., Ltd. (ASX: 601881) outlines its main views as follows.
International standing in science and technology rising year by year, self-reliance expected to improve substantially
The national 15th Five-Year Plan Outline sets "substantially raising the level of scientific and technological self-reliance" as one of the main goals of economic and social development, making systematic arrangements for scientific and technological innovation.
Adhering to the "four orientations," firmly grasping the historic opportunity of the new round of scientific and technological revolution and industrial transformation, with accelerating high-level scientific and technological self-reliance and leading the development of new quality productive forces as the main thread, and with original and leading scientific and technological breakthroughs as the main direction, the construction of a science and technology powerhouse is being pushed to new heights.
Computing network construction continues, information infrastructure upgraded, AI empowers paradigm shifts in research
From the perspective of new computing infrastructure, China's computing foundation continues to be consolidated. As of the first half of 2026, intelligent computing capacity reached 2,185 EFLOPS, with over 70 major computing corridors built around computing hubs.
The construction of a national integrated computing network is being accelerated, building a multi-level computing facility system of "hub-region-edge," orderly deploying intelligent computing clusters of ten thousand cards, one hundred thousand cards and above, deploying inference computing facilities on demand for specific scenarios, and intensifying efforts to adapt domestic computing chips.
Deepening automated monitoring and supply-demand matching of computing resources to improve computing resource utilization. From an application perspective, artificial intelligence has basically permeated the entire chain including research and design, production and manufacturing, and quality inspection and maintenance, accelerating the intelligent transformation and upgrading of industries.
Domestic open-source models have achieved innovative breakthroughs with high cost-effectiveness, becoming the preferred choice for more global users. Overall, China's information infrastructure is being upgraded in quality, strengthening the standard system construction in key information and communication fields such as 5G-A/6G, optical communications, computing networks, quantum communications, satellite internet/internet of things, and direct-to-satellite mobile connections, raising the level of universalization of military and civilian standards, with the level of standards internationalization expected to continue improving.
Seizing the high ground in scientific and technological development, continuing to tackle core technologies, providing strong support for high-level security
The investment field focuses on hard technology and future industry tracks such as artificial intelligence and quantum technology, supporting breakthroughs in key core technologies and industrialization of achievements.
In quantum technology, quantum computing possesses supercomputing power surpassing traditional computers, capable of achieving disruptive breakthroughs in areas such as new drug development, materials design, and financial modeling. Quantum communication, based on the quantum no-cloning theorem, can provide theoretically absolutely secure information transmission, serving as an important guarantee for the future digital economy and national information security.
Globally, quantum technology is being designated as a frontier strategy, driving the rapid concentration of talent, capital, and infrastructure into the quantum industry.
Overall, during the 15th Five-Year Plan period, scientific and technological self-reliance will strengthen basic research and original innovation, achieve full-chain breakthroughs in key core technologies, promote deep integration of scientific and technological innovation with industrial innovation, and frontier technology is expected to become a booster for economic growth in emerging markets including China.
Risk warnings: Risks of new technologies such as 6G falling short of research and development expectations; risks of satellite internet networking progress falling short of expectations; risks of intensified industry competition; risks of uncertainty in domestic and international policies.
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