Since the outbreak of COVID-19, global industrial and supply chains have been significantly impacted. The demand for cloud-based solutions such as remote work, entertainment, education, and consumption has surged, accelerating market development. To meet new demands in this evolving environment, corporate digital transformation has become imperative. Meanwhile, new infrastructure has become a key focus for governments, with initiatives like "East Data West Computing" advancing steadily. The pace and scale of 5G construction have exceeded expectations, driving the integration of cloud computing and big data technologies into vertical industries such as manufacturing, government, and finance. Driven by these factors, the cloud computing and big data industry chains are rapidly developing, presenting strong investment value.
01 The Cornerstone of the Digital Economy Era
The "14th Five-Year Plan for Digital Economy Development" outlines eight key tasks: 1) Optimizing and upgrading digital infrastructure; 2) Leveraging the role of data as a production factor; 3) Advancing industrial digital transformation; 4) Accelerating the industrialization of digital technologies; 5) Continuously improving the digitization of public services; 6) Refining the governance system for the digital economy; 7) Strengthening the security framework for the digital economy; and 8) Expanding international cooperation in the digital economy. The plan also sets clear development goals, aiming for the added value of core digital economy industries to account for 10% of GDP by 2025, with significantly enhanced capabilities in digital innovation. The cloud computing and big data industry chains are poised to benefit sustainably.
Cloud computing utilizes distributed computing and virtual resource management technologies to pool decentralized ICT resources (including computing, storage, application platforms, and software) into a shared resource pool via networks. It delivers services dynamically, on-demand, and measurably, improving corporate efficiency, reducing energy consumption, and enhancing data security. By advancing societal informatization and transforming production methods, cloud computing serves as the cornerstone of the digital economy era.
The CSI Cloud Computing and Big Data Theme Index selects 50 A-share listed companies engaged in providing cloud computing services, big data services, or related hardware equipment, reflecting the overall performance of stocks in this theme. It exhibits high overlap with concepts like "East Data West Computing" and the digital economy theme index.
02 Full Launch of "East Data West Computing" to Promote High-Quality Development of Cloud Computing
The cloud computing industry is growing rapidly, with vast market potential. Global and domestic markets for private, public, and hybrid clouds are expanding at high rates. With the full launch of the "East Data West Computing" project and strong government support, the cloud computing market is poised for significant growth. In recent years, data volumes in sectors like internet, transportation, logistics, finance, telecommunications, and government have steadily increased, prompting industries to adopt cloud computing over traditional IT architectures, further driving demand.
03 Long-Term Advantages and Relatively Attractive Valuation
With the ongoing stimulus of online business demand due to COVID-19 and the government's push for digital economy development, the "East Data West Computing" project has been fully launched. Enterprises are expected to increase infrastructure investments, creating substantial market potential. China's cloud computing industry is set to seize this development opportunity.
Currently, the CSI Cloud Computing and Big Data Theme Index's PE-TTM stands at just 42.75, at a relatively low level over the past two years, making it an attractive investment in the digital economy era.
