Asia Pacific Equity Research

研报英文原文证据摘录

Asia Pacific Equity Research

Due to market closures, there will be no publication of China / Hong Kong First to Market on 19 June.

Publication resumes on 22 June.

This material is neither intended to be distributed to Mainland China investors nor to provide securities

investment consultancy services within the territory of Mainland China. This material or any portion hereof

may not be reprinted, sold or redistributed without the written consent of J.P. Morgan.

China/HK First to Market 18 June 2026

Top Stories

China Equity Strategy, China, Hong Kong (Erin Zhang, CFA / Tim Huang / Alex Yao / Gokul Hariharan /

Billy Feng / Olivia Xu)

Unique opportunities in the China AI ecosystem

China AI industry – a two-fold capex expansion with domestic players catching up. China’s AI sector

features a tightly imbalanced supply-demand profile with clear structural divergence across segments. On

the demand front,policy-backed domestic adoption is driving outsized, market-leading growth. JPM

forecasts China’s AI data center capital expenditure to expand c2x from US$55-69bn in 2026 to US$95-

151bn in 2029 (CAGR of c20-30%), and domestic inference token demand to grow at a 330% compound

annual rate through 2030, underpinned by 70%/90%+ AI agent application penetration by 2027/29, and 40%

industrial AI penetration by 2030, as mandated by the Chinese government. The capex estimate above

refers to AI compute spend in China vs the US$160-200bn number quoted by clients on total capex by

Chinese players both domestically and overseas and both AI and non-AI. In addition, Bloomberg’s report

that China is preparing to spend cRmb2trn over the next five years on building data centers across the

country (US$295bn in total, or US$74bn per year on average), if confirmed to be something additional to the