According to the National Data Bureau on March 16, Liu Liehong, party group secretary and director of the National Data Bureau, published a signed article in “Qiushi” stating that the road is simple; practical work is essential. Currently, digital and intelligent development is booming, providing a rare historical opportunity for China to comprehensively promote Chinese-style modernization through high-quality development.

Relevant research shows that for every 1 percentage point increase in the computational power index, the digital economy and gross domestic product (GDP) will grow by 3.3 per cent and 1.8 per cent, respectively.

On January 4, 17 departments including the National Data Administration jointly issued the “Data Elements ×” Three-Year Action Plan (2024-2026). As a top-level design, it focuses on the scenario-based implementation of 12 industries to promote the multiplier effect of data elements and release the value of data elements. Public data licensing operations are expected to be liberalized, and data operators will play an important role.

The Action Plan proposes: 1) improving the data resource system; 2) increasing the supply of public data resources; 3) guiding enterprises to open up data. 4) Improve the standard system; 5) Strengthen supply incentives.

CITIC Securities pointed out that data elements are the “oil” of the digital economy. Driven by policies such as the “20 Rules of Data”, the mining, storage, authorization, transaction, and application of data elements are continuously improved, and the value and application potential of data elements is expected to be released at an accelerated pace.

According to the CITIC Construction Investment Research Report, considering the policy direction and pace of implementation, it is recommended to focus on the two major directions and the three major types of enterprises. Direction 1. Enterprises that operate public data are expected to take the lead in benefiting from the development of the public data element market; direction 2. Companies that organize data assets to serve central state-owned enterprises and are listed with data elements are expected to be the first to prove their ability to meet the new needs of a series of industries such as authorization, evaluation, and listing; the three major types of enterprises: 1) data production enterprises; 2) platform service enterprises; 3) endorsement service enterprises.

Huaxi Securities said: The digital economy is leading the global industry towards higher efficiency. Artificial intelligence, as the core driving force of industrial digitalization, is expected to develop at a compound growth rate of more than 25% over the next three years. The research report places special emphasis on the rise of big model technology, such as the advent of ChatGPT, which marks the entry of AI technology into the “iPhone moment”. The big model application ecosystem is becoming more and more prosperous, heralding the emergence of the prototype of general artificial intelligence and the acceleration of digitalization of the physical world.

Conceptual enterprises related to data elements:

The top three telecom operators+internet platforms are preferred. The Hong Kong stock industry segments include:

GDS - SW (09698): GDS recently announced that Hong Kong's first self-built data center “Hong Kong No. 1” has successfully settled in for all customers. Located in Kwai Chung District, the data center has a total construction area of about 22,931 square meters and can provide 18.8 megawatts (MW) of IT power capacity. As the largest third-party data center operator in China, WDS has always adhered to the “domestic+international” two-wheel drive development strategy. During the reporting period, the company's domestic business progressed steadily. While receiving two more large-scale orders, the new data center in Langfang has already been put into operation, and construction of the second phase of the project has already begun. The net construction area is 6,328 square meters, and 100% of the reservations have already been made.

Fubo Group (03738): While mastering core patented technologies such as digital fingerprinting and watermarking for film and television genes, Fubo conforms to the development trends of Web3.0 and AI, and actively explores application opportunities for digital content authorization, digital content asset protection, and trading in new scenarios. With the rapid development of China's digital culture industry, demand for digital asset authorization, circulation and transaction is becoming more and more strong. Media asset management technology products with superimposed particle technology are widely used in Fubo's business, and Fubo will maintain a leading position in the Web3.0 & AI development wave.

Reading Text Group (00772): In 2023, about 380,000 writers and 670,000 novels were added to the Reading Text online reading platform, adding more than 39 billion words. Among them, new writers performed brilliantly. The number of new writers with total revenue exceeding 100,000 yuan in 2023 increased 60% year on year; among the new books that earned more than 1 million yuan in 2023, works by new writers accounted for nearly 1/3; while the number of works ordered by post-00s writers for 10,000 yuan increased 230% year over year. Reading paper optimized online business channels last year, and the related impact is expected to gradually weaken. With the optimization of distribution channels and the shift in business focus to a high-spending and high-quality user base, the organization believes that the company's revenue will grow again this year.