CITIC SEC: Acceleration of Quantum Information Landing, Policy Likely to Continue Support

CITIC SEC released a research report stating that domestic cutting-edge scientific research leads the way, driving the application scenarios to be implemented. Scientific research achievements represented by the "Zuchongzhi No.3" continue to maintain a world-leading position, while companies such as Quantumctek Co., Ltd. have made key progress in industrial applications and core hardware. The global quantum competition is accelerating, with quantum information being included as a new production force in government work reports since 2024. "Quantum technology" is expected to be directly defined as a "future industry" that needs to be cultivated in the 2025 government work report, with a series of more specific policies expected to follow. Both domestic and foreign commercialization of quantum computing, quantum communication, and quantum precision measurement are accelerating. Investment opportunities in the field of quantum information are recommended as follows: 1) In the field of quantum computing, it is recommended to focus on companies that layout quantum computing hardware and components. 2) In the field of quantum communication, it is recommended to focus on companies that layout quantum and anti-quantum cryptographic algorithm. 3) In the field of quantum precision measurement, it is recommended to focus on companies that layout quantum software and quantum sensors. On October 7, 2025, John Clark, Michelle Devoire, and John Martinez were awarded the 2025 Nobel Prize in Physics for "Discovering Macroscopic Quantum Tunneling Effects and Energy Quantization in Circuits." Their discovery directly proves that building quantum bits using artificial and designable macroscopic circuits is feasible, opening up the most important and mainstream technological path for quantum computing from theory to engineering. Different from previous awards for purely theoretical or basic phenomena, the 2025 award directly recognizes "the practical application of quantum physics on a chip," and the awarded scientists work at the Google Quantum AI team, leading the development of the quantum information industry for a long time, indicating a verified and leadership-driven engineering direction that is investable for the capital market. The commercial competition for quantum information is expected to enter a new accelerated stage. CITIC SEC's main points are as follows: Overseas: Different routes for quantum computing, and acceleration in commercialization of quantum communication and measurement. In the field of quantum computing, Google and IBM focus on superconducting routes. According to Google Quantum AI, in December 2024, Google's Willow processor with 105 quantum bits was released, proving the exponential increase in quantum error correction capability for the first time. In September 2025, Google experimentally proved "generative quantum advantage" for the first time, opening up new possibilities for quantum machine learning. According to IBM's official website, in June 2025, IBM introduced the Loon processor, reducing the bit overhead of advanced qLDPC error correction technology by 90%. IonQ focuses on ion traps and claims to already demonstrate "commercial advantage" in certain specific applications. According to Securities Times, NVIDIA completed investments in Quantinuum (ion trap) and PsiQuantum (photonic quantum technology) in May and September 2025, respectively. In the field of quantum communication, in February 2025, IDQ collaborated with the telecommunications giant Turkcell to complete the world's first terrestrial intercontinental QKD transmission, according to ID Quantique's official website. In April 2025, Toshiba successfully demonstrated coherent quantum communication on an existing commercial optical fiber network without the need for complex low-temperature cooling equipment, greatly reducing deployment costs. In June, the first commercial quantum secure network service was launched in France. In the field of quantum measurement, in October 2025, Bosch Quantum Sensing showcased a prototype magnetometer, according to Quantiki's official website. In June 2025, Infleqtion raised $100 million in Series C financing and established cooperation with SAIC to apply quantum measurement technology (including atomic clocks, inertial sensors, etc.) in the fields of defense and aerospace. Domestically: Leading edge scientific research verification and driving the implementation of application scenarios. According to the official website of the Chinese Academy of Sciences, the superconducting quantum computer "Zuchongzhi No.3" developed by the team led by Academician Pan Jianwei of the University of Science and Technology of China has the strongest quantum computing superiority publicly announced in the superconducting system to date (the speed of solving random circuit sampling tasks is 10^15 times faster than the fastest supercomputer). In terms of application scenarios, quantum computing and core hardware, as the only enterprise unit involved in the development of "Zuchongzhi No.3," according to Xinhua News Agency, Quantumctek Co., Ltd. launched the first domestically usable and mass-producible dilution refrigeration machine in 2024, winning a 60 million computing contract in September 2025. In the construction and operation of quantum communication networks, according to the official website of the SASAC, China Telecom Corporation globally launched the QKD and PQC distributed cryptographic system, where its "Tianyan" ultra-converged cloud platform was connected to "Tianyan 504" with 504 bits by the end of 2024, and a 280+ bit superconducting quantum computer was added in September 2025. According to the operator financial website, in October 2025, China Mobile Limited released the "Four Layers and Five Integration" quantum communication technology system, aiming to reduce the deployment and operation costs of quantum networks, with some achievements already in commercial use. In the field of quantum precision measurement, in October 2025, Quantumctek Co., Ltd. announced the mass production of the world's first "four-channel ultra-low-noise semiconductor single-photon detector," breaking world records in key indicators such as detection efficiency and noise control. With technology and application driving together, the industrialization of quantum information is expected to accelerate further. The global quantum competition is accelerating, and support in the "Fifteen-Five" policies is expected to increase. According to the official website of the Chinese government, the 2025 government work report directly defines "quantum technology" as a "future industry" to be cultivated, with the Ministry of Industry and Information Technology including quantum technology in key areas and implementing a 15% income tax rate for quantum enterprises, and increasing the R&D expense deduction ratio to 150%. In terms of specific directions, according to the guidelines for major research projects for constructing and controlling the second-generation quantum system in 2025, "Entanglement preparation, quantum simulation, and error correction of hundred-qubit superconducting quantum chips" were identified as one of the core integration projects, directly supporting the industrialization path of companies such as Quantumctek Co., Ltd., and actively benchmarking cutting-edge technologies to establish funding directions for semiconductor spin qubits, Majorana/topological systems, and new quantum materials. Quantum information as a planned direction in the "Fifteen-Five" frontier technology field planning is expected to be included in a separate chapter for the first time, upgraded from the "strengthening basic research" in the "Fourteen-Five" to "emphasis on technological breakthroughs and scenario applications in addition," with an estimated special R&D fund scale of no less than 30 billion yuan, focusing on engineering projects such as complete quantum computing and quantum communication networks. Risk factors: R&D of technology routes is slower than expected; industrial development is slower than expected; policy support is lower than expected.