Recently, China's three major telecom operators have officially launched nationwide trial commercial Token plans. As the "digital fuel" of the AI era, Token is now transitioning from enterprise clients to the general consumer market, potentially marking a pivotal transformation point for the telecommunications industry. How should investors position themselves?

The implementation of the "Token economy" may reshape the industry's value logic. The shift from "data GB" to "Token," where AI services are packaged as a "new foundational unit for settlement and commercialization," is expected to become a new growth driver, accelerating the development of the telecom industry chain.

For communication infrastructure, the surge in Token consumption is driving large-scale AIDC (Artificial Intelligence Data Center) construction, benefiting sub-sectors like optical modules and fiber optic cables. On one hand, fiber optic cables are being upgraded from "standard connectivity consumables" to the "core foundation of computing power networks," ushering in a high-growth cycle with both volume and price increases. On the other hand, optical modules are advancing from the current mainstream 400G/800G to higher speeds like 1.6T and 3.2T, with new technologies such as CPO gradually entering commercial use. This creates a period of simultaneous technological upgrade and demand explosion for high-speed optical modules.

Regarding the industry ecosystem, business model innovation and ecosystem development centered around Token are equally crucial. Making Token "more usable" and "affordable" may accelerate the formation of a commercial closed loop. This implies that different segments of the industry chain based on the Token economy—such as network transmission, cloud deployment, data processing, AI enablement, and end-user services—will see clearer division of labor and establish more stable distribution mechanisms, sharing in the growth dividends of the AI era.

Simultaneously, as the internal dynamics of the telecom industry strengthen, the external macro-environment has also received a significant boost. On May 16, China's Ministry of Commerce announced that Sino-US trade consultations had achieved preliminary results in five areas. Institutional analysis suggests that within the framework of a "constructively stable strategic relationship," the US and Chinese industrial chains are entering a phase of long-term coexistence marked by both competition and cooperation. Domestic substitution and opening-up are proceeding in parallel, with "new quality productive forces" and globalized layouts potentially becoming dual themes permeating the market.

As a key component of new infrastructure, China's telecom industry demonstrates strong global competitiveness and may directly benefit from recovering overseas demand and improved risk appetite. In Q1 2026, Chinese fiber optic cables and optical modules became new export "hot sellers," with export volumes growing by double-digit percentages year-over-year. Many companies have export orders scheduled through 2028.

Thirdly, Q1 earnings reports show profit recovery, further solidifying the sector's high growth trajectory. Statistics indicate that in 2025, 91 sample companies in the communications sector achieved total revenue of 3.75 trillion yuan, a year-over-year increase of 13.4%, with net profit attributable to shareholders of 286.5 billion yuan, also up 13.4%. In Q1 of this year, industry revenue reached 989.3 billion yuan, up 17.4% year-over-year, while net profit rose 18.4% to 73.1 billion yuan, accelerating from the previous year's growth rate.

By segment, sub-sectors related to computing power have entered a phase of realization. For instance, in Q1 2026, optical modules, communication PCBs, the laser industry, fiber optic cables, and network equipment vendors all reported strong earnings growth. Institutional analysis suggests that, looking ahead, computing power infrastructure construction will continue to advance steadily. The fulfillment of orders for high-end products with technical advantages like large bandwidth and high speeds across various sub-sectors may further drive earnings growth for these segments.

Investors optimistic about the long-term opportunities in the communications sector may consider the Communication ETF Yinhua (159994) and its feeder funds (Class A: 008889; Class C: 010524). This fund closely tracks the CSI 5G Communication Theme Index (931079.CSI) and may continue to benefit from the high growth of AI computing power infrastructure and the implementation of the Token economy.

Risk Disclosure: Fee structure for Communication ETF Yinhua (159994): Subscription/Redemption Fee: Brokerage firms acting as agents may charge a commission of up to 0.50%. Management Fee: 0.50% per annum. Custody Fee: 0.10% per annum. Estimated Annual Fund Operating Expense: 0.64%. Please refer to the fund product summary for details. Data as of Jan 30, 2026; subject to the latest fund announcements and legal documents.

Fee structure for Yinhua CSI 5G Communication Theme ETF Feeder Fund: Class A Subscription Fee: For amounts below 1 million yuan: 1.20%; for 1-3 million yuan: 1.00%; for 3-5 million yuan: 0.60%; for 5 million yuan and above: a fixed fee of 1,000 yuan per transaction. Class A Redemption Fee: For holdings under 7 days: 1.50%; 7-30 days: 0.75%; 30-365 days: 0.50%; 365-730 days: 0.25%; 730 days and above: 0%. Class C Redemption Fee: For holdings under 7 days: 1.50%; 7 days and above: 0%. Management Fee: 0.50% per annum. Custody Fee: 0.10% per annum. Class C Sales Service Fee: 0.30% per annum. Estimated Annual Fund Operating Expense: Class A: 0.62%; Class C: 0.92%. Please refer to the fund product summary for details. Data as of April 10, 2026; subject to the latest fund announcements and legal documents.