Telecom Stocks Surge in Morning Trading, Led by China Unicom and China Telecom

Telecommunications stocks experienced a significant rise during the early morning trading session.

As of the latest update, CHINA UNICOM (00762) saw its shares increase by 6.21% to HK$7.70.

CHINA TELECOM (00728) advanced by 5.89% to HK$5.21.

CHINA MOBILE (00941) gained 1.28%, trading at HK$83.35.

Market Drivers

The positive momentum is supported by reports that China plans to invest approximately 2 trillion yuan over the next five years to construct data centers across the country.

The goal is to establish a nationwide network of interconnected computing hubs.

State-owned enterprises, including China Mobile and China Telecom, are expected to operate the majority of these data centers and ensure their data interconnectivity.

Operator Strategies

Analysts have previously noted that the three major telecom operators are accelerating the construction of their proprietary computing power infrastructure.

China Mobile has achieved a reduction in unit token costs by about 30% and lowered resource occupancy by over 50% through centralized token operation and intelligent scheduling.

China Telecom has launched the Xingchen TokenHub operation service platform version 1.0, positioning it as an integrated token operation service hub.

China Unicom is leveraging its Yuanjing MaaS platform and AI-powered Unicom Cloud computing selection to cover diverse scenarios from individual to enterprise-level needs.