China Equity Strategy: Focus on "Six Networks", Policy Optionality Supports Our Constructive View

研报英文原文证据摘录

China Equity Strategy: Focus on "Six Networks", Policy Optionality Supports Our Constructive View

Global Markets Strategy

31 July 2026

China Equity Strategy

Focus on "Six Networks", Policy Optionality Supports

Our Constructive View

We view the July Politburo readout as incrementally positive for China Equity Macro Research

equities. JPM views the key message as focusing on fiscal execution in the near- AC Erin Zhang, CFA

term, while pledging greater counter-cyclical support. While not yet a large-scale

(86-21) 6106 6328

stimulus, such intention to cushion macro downside should provide meaningful erin.zhang@jpmorgan.com

support to EPS growth for Chinese stocks (consensus 2026/27 EPS y-y for SAC Registration Number: S1730521090002

MXCN: 13%/15%; CSI-300: 24%/16%). On stock implications, the centerpiece J.P. Morgan Securities (China) Company

of the policy agenda is the "six networks" initiative, an Rmb7trn-plus Limited

investment program this year to improve domestic infrastructure of AI, grid, Tim Huang

telecom, water supply, urban underground pipeline and logistics (Figure 1). The (852) 2800-4323

NDRC has framed these networks as the backbone of China's 15th Five-Year Plan tim.huang@jpmorgan.com

(2026–2030) modern infrastructure system. The companies shown in Figure 2- J.P. Morgan Securities (Asia Pacific) Limited/

Figure 7 are exposed to the “six networks” theme, based on market cap and J.P. Morgan Broking (Hong Kong) Limited

3m ADT. Rajiv Batra

(65) 6882-8151

• The AI computing network: reaffirms domestic AI capex certainty. As of rajiv.j.batra@jpmorgan.com

March 2026, China's total intelligent computing scale reached 1.88 million J.P. Morgan Securities Singapore Private Limited

PFLOPS; over 70 computing power corridors have been established, initially