Galaxy Securities: Scale development of emerging and future industries can be expected, and support for quantum technology is expected to increase.

Galaxy Securities released a research report stating that emerging industries are improving in quality and efficiency, the future development trends of industries are accelerating, and there is a trend of domestic substitution in the computing power industry chain. In the government work report this time, the main guidance for the communication industry is reflected in the further refinement of the future development direction of emerging industries (scaling up + high-quality development), as well as the establishment and investment growth in future industries; for the computing power sector, domestic substitution, optimization of computing power, and resource allocation are still the main development directions for the future computing power sector. In summary, at the current point in time, the key focuses are: gradual breakthroughs in 6G frontier technology, continuous expansion of quantum technology application areas and scale, rapid development of commercial aviation and low-altitude economy, and gradual enhancement of the trend towards domestic substitution in the computing power industry. Event: The 3rd session of the 14th National People's Congress opened, with the Premier delivering the government work report. In the section on government work tasks for 2025, it mentioned "establishing a mechanism for increasing investment in future industries, nurturing bio-manufacturing, quantum technology, embodied intelligence, 6G, and other future industries," and "expanding the scaled application of 5G, accelerating innovation and development in industrial Internet, optimizing the national computing power resource allocation, and building a digitally industrially competitive cluster with international competitiveness." Galaxy Securities main viewpoints are as follows: The positioning of the commercial aerospace and low-altitude economy industry is further deepened, with hopes for high-quality scaling development: By 2024, China's economy steadily expanded, with the gross domestic product reaching 134.9 trillion yuan, a 5% growth rate, ranking among the leading economies in the world. In this government work report, it proposed "implementing large-scale application demonstrations of new technologies, new products, and new scenarios, promoting the safe and healthy development of emerging industries such as commercial aerospace, low-altitude economy." The statements in this government work report compared to the 2024 government work report have further deepened its positioning on "actively building bio-manufacturing, commercial aerospace, low-altitude economy, and other new growth engines," emphasizing more on scaling and high-quality development. By 2025, the commercial aerospace and low-altitude economy fields are expected to achieve a scaled development from 1 to 100 and open up high-quality business models. Future industries: direction established, mentioning 6G, quantum technology industry support is expected to increase: In this government work report, it mentioned establishing a mechanism for increasing investment in future industries, nurturing bio-manufacturing, quantum technology, embodied intelligence, 6G, and other future industries. The statements in this government work report compared to the 2024 government work report, which mentioned "formulating future industrial development plans, opening up new paths such as quantum technology, life science," show that China's support for future industries has shifted from mainly planning and exploring new paths to a period of established direction and investment. 6G was mentioned for the first time as one of the future industry development directions, indicating that China has established that the development of the 6G industry will be a key direction in the future. At the same time, the quantum technology industry has also been established as one of China's future development directions, with expectations that the support for its development will further increase. Risk warning: Risks of AI+ and 6G development falling short of expectations; risks of global political and economic changes.