China Galaxy Securities has released a research report indicating that the pace of 6G technology development in China is accelerating, supported by a steady stream of supportive industrial policies. The sector is being driven forward by satellite communications, space-air-ground integrated networks, and ubiquitous connectivity, presenting expansive long-term growth opportunities. The report recommends focusing on three primary investment tracks along the industrial chain.
These tracks include: (1) Telecom operators who are deeply engaged in 6G research and the deployment of satellite-terrestrial integrated services, with increasing capital expenditure; (2) Core 6G equipment manufacturers poised to benefit from network upgrades and the rising demand for integrated communication, sensing, computing, and intelligence devices; and (3) The space-air-ground integrated network and satellite internet sector, where infrastructure construction is speeding up and the integration of terminal devices with satellite services is rapidly advancing.
Key viewpoints from China Galaxy Securities are highlighted below. On August 26, the State Council Information Office held a press conference themed "A Strong Start for the 15th Five-Year Plan." The Ministry of Industry and Information Technology (MIIT) outlined its strategy for the information and communication technology industry during this period. The MIIT stated its focus on driving high-quality industry development, aiming for comprehensive infrastructure upgrades, agile and efficient regulation, comprehensive security coverage, and deeper integration of technology with various sectors through "four key enhancements." One of these enhancements involves strengthening innovation-driven development, accelerating technology research, and promoting application adoption. On the supply side, efforts will be intensified on core technology breakthroughs, including research on mobile communications, optical communications, and satellite communications. 6G is identified as a top priority for the "15th Five-Year Plan" period, with plans to accelerate research on core 6G technologies, continue technology trials, and develop standards to foster industry maturity and ecosystem building, all in preparation for commercial deployment.
Furthermore, on August 20, the State-owned Assets Supervision and Administration Commission (SASAC) held a conference on advancing the 6G future industry among central state-owned enterprises, where collaborative tasks for developing 6G future industry scenarios were released. Attendees included officials from relevant SASAC departments and representatives from 31 central enterprises involved in the 6G sector. Previously, in June, the MIIT issued a notice on launching a special pilot action for 6G innovation and development in collaboration with provincial authorities. The MIIT has set a goal that by 2029, this pilot initiative will produce a series of independently innovative 6G technology solutions, cultivate a number of promising new business application scenarios, and bring forth a variety of new terminal products, thereby providing robust support for the commercial launch of 6G. The conference underscored that pushing forward the 6G future industry is a necessary step for central enterprises to implement national strategic deployments and fulfill their strategic missions. It was emphasized that these enterprises should proactively align with national, local, and industry plans to quickly achieve industrial development goals. This includes addressing technological shortcomings, strengthening fundamental theoretical innovation, achieving breakthroughs in key technology components at a foundational level, and building a secure and stable 6G industrial and supply chain. To solidify the industry's foundation, efforts must be made to enhance innovation platforms, cultivate market players, and develop talent. Accelerating international cooperation to build a diversified partnership system is also deemed critical for enhancing global influence. Finally, nurturing application scenarios and actively integrating 6G technology with the real economy will be key to establishing a first-mover advantage and swiftly realising a commercial cycle for 6G.
There are potential risks, including the possibility that 6G technology research and development may progress slower than expected, satellite internet network construction could fall behind schedule, industry competition might intensify, and uncertainties in domestic and foreign policies could arise.
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