Recent good news in the computing power sector has emerged. On October 16, the Ministry of Industry and Information Technology issued a notice on the launch of the urban "millisecond computation" initiative. The initiative aims to accelerate the deployment of high-performance networks between computing power centers and orderly promote the application of high-speed optical transmission system equipment, such as urban networks with 400Gbps and above, by 2027. The goal is to achieve a deployment rate of no less than 50% for mid-sized and larger computing power centers' 400Gbps exit rates in urban areas, as well as a deployment rate of no less than 50% for full optical interconnections at important urban nodes. Additionally, the initiative emphasizes the validation of new technologies for computing networks, such as small-particle Optical Transport Network (OTN) and deterministic networks, guiding basic telecom companies to improve the service experience for specialized computation lines. The evaluation of millisecond access capability for computing resources will be carried out, aiming to establish a monitoring mechanism for the coverage capability of 1-millisecond latency for mid-sized and larger computing power centers in urban areas. By 2027, the goal is to achieve a coverage rate of no less than 70% for urban computing power within the 1-millisecond latency circle, thus creating a high-quality millisecond access foundation. Recently, there have been continuous favorable policies in the computing power sector. On October 11, the Ministry of Industry and Information Technology, the Ministry of Human Resources and Social Security, and the Ministry of Commerce, among others, jointly issued the "Implementation Plan for Deepening the Innovation and Development of Service-oriented Manufacturing (2025-2028)." This plan emphasizes the strengthening of new information infrastructure construction, deepening the integration and large-scale application of "5G + industrial internet," and accelerating the integration of computing power and industry applications by optimizing the layout of computing infrastructure. It aims to enhance the supply of industrial data elements, promote the resourceization, assetization, and elementization of data, and develop high-quality industry datasets. Further, it encourages the innovation and integration of artificial intelligence technologies with service-oriented manufacturing, guiding the application of general large models, industry large models, and intelligent agents in key scenarios while improving network and data security capabilities. On September 26, the National Development and Reform Commission and five other departments issued "Several Measures to Strengthen the Cultivation of Innovative Enterprises in the Digital Economy." This included detailed implementation of the "Eastern Data, Western Computation" project, adhering to the relevant policy document requirements, ensuring that national computing scale deployment adheres to hub nodes, and continuously optimizing demand assurance in hot application areas. The aim is to speed up the construction of a national integrated computing network, support local collaboration and joint construction, enhance the pooling and networked operation of national computing resources under unified national standards, and develop a new type of computing network infrastructure integrating resource scheduling, unified dispatch, flexible supply, and security guarantees. Notably, during the 2025 National Day holiday period, the domestic AI computing power ecosystem continues to evolve. According to a research report from CITIC Securities, developments during the 2025 National Day highlight this evolution: regarding server orders, Industrial and Commercial Bank of China and China Unicom jointly announced record-high server tenders, with domestic computing power suppliers winning over 90% of the bids; on the large model front, Alibaba's newly launched model Qwen3-VL-30B-A3B and Huawei Ascend achieving 0-day support, while Tencent's latest visual model ranks third globally in the LMArena leaderboard. The research report suggests that the current acceleration of domestic computing power evolution merits attention towards leading companies. Huaxi Securities also recommends focusing on the closed-loop domestic computing power industry chain at this time. Since the third quarter, along with Alibaba Cloud's unexpected growth and Huawei's launch of super-node cluster products, domestic computing power and AI applications have gained increasing attention. Following the approval of Moore Threads' IPO listing, Huaxi Securities believes that domestic AI computing scales and applications are likely to accelerate in growth and penetration. It continues to favor advancements in manufacturing processes and chip architecture upgrades that could boost overall domestic computing levels, likely enhancing the market share of domestic computing resources, with beneficiaries including Cambrian Technologies, Moore Threads, and SMIC; at the same time, with the expansion of super-node and cluster computing capabilities, related beneficiaries in LPO, CPO, PCB, switches, OCS, and multimode fibers are also expected to benefit, including beneficiaries in switches: ZTE, Unisoc, Shengke Communication, and Ruijie Networks; optical devices & OCS: Opotech, Huagong Tech, Neway, Zhongji Xuchuang, Tianfu Communication, Tachyon, Yujie Technology, Dekol, Lingyun Light, Shijia Photon, Tengjing Technology, and Changxin Bochuan; PCB: Shenghong Technology, HUIDIAN Co., Ltd; others: Changfei Optical Fiber and Cable, Weishijiajie, and Tuowei Information. Related concept stocks include the Asia-Pacific Select ETF (159687): the Southern Fund Asia-Pacific Select ETF, mainly combining two asset types: "Asia-Pacific quality dividend assets and Asia-Pacific semiconductor leading enterprises." This ETF includes high-quality dividend assets from the Asia-Pacific region (represented by Japan and China), such as Toyota Motor, Tencent, Alibaba, and Mitsubishi Group. These companies maintain strong cash flows and stable profitability, offering relatively robust returns for the portfolio. The Asia-Pacific Select ETF also includes high-quality semiconductor companies like TSMC, Samsung, Tokyo Electron, and MediaTek, with TSMC representing more than 8% of the index weight. The Asia-Pacific region is a core area of the global semiconductor supply chain. According to the 2024 Deloitte & GSA report, the Asia-Pacific semiconductor industry accounted for 57.6% of global semiconductor industry revenue in 2022. Weichai Power (02338): Weichai Power announced its half-year report for 2025, which showcased striking figures—specifically, nearly 600 units sold for its data center products in the first half of 2025, reflecting a year-on-year increase of 491%, marking a new growth point for the business. Weichai has become a strategic partner for several top telecommunications and internet enterprises. ZTE (00763): According to ZTE's official website, under the accelerated evolution of the digital economy, ZTE has established "connection + computing power" as its strategic core, positioning data centers as critical carriers of computing power infrastructure. In conjunction with the wide applications of AI large models and cloud computing technologies, the demand for computing power in data centers has surged. The latest data from the Ministry of Industry and Information Technology indicates that by 2024, the number of usable standard racks in computing power centers will exceed 8.8 million units, with a 16.5% year-on-year growth in computing scale, and the power of individual cabinets moving toward increased density, as traditional cooling technologies struggle to meet extreme efficiency, flexible deployment, and intelligent operation requirements. To address these challenges, ZTE has developed a comprehensive cooling system that synchronizes multiple technologies ("wind-liquid-evaporation") built around its self-developed temperature control product matrix, optimizing energy efficiency for computing power infrastructure through intelligent connection technologies and iterating cooling solutions driven by computing demand, aiding clients in constructing green, efficient data centers. Zhonggan Communication (02545): As the first publicly listed "computing power infrastructure stock" in Hong Kong, Zhonggan Communication's prospectus shows that it has established long-term stable business relations with major telecom players in China (including the three major telecom operators) and the world's largest telecommunications tower infrastructure service providers. Its two core business areas include telecommunications infrastructure construction and digital solution services. China Telecom (00728): Tianyi Cloud, backed by China Telecom, has developed its self-researched integrated intelligent computing service platform "Xirang," addressing the "world-class challenge" of power dispatching. The impressive feature of the so-called "first technology" platform "Xirang" lies in its integration of ChinaNet, CN2, and computer dedicated networks, forming a "large bandwidth, high elasticity" network system that allows for "one-hop direct access" between East and West hubs.
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