on August 21, xinchuang plate opened stronger, and yakang shares (301085.SZ) gained a 20CM trading limit. By noon, Huashi Technology (301218.SZ) was up 16.76, Zhongyi Technology (301208.SZ) was up 14.2, Jiuqi Software (002279.SZ), Nantian Information (000948.SZ), Yingfei Tuo (002528.SZ) and other stocks had a 10CM trading limit.

On the news side, Dongxing Securities analyzed that the upward trend of this round of trust creation industry is an independent main line under the general trend of independent development of China's science and technology industry. The industry is expected to deliver some of its results in the second half of the year, and the investment opportunities it contains are expected to continue.

Policy support efforts continue to strengthen

Xinchuang industry is the core foundation of China's digital economy development and the driving engine of the country's digital transformation. In 2022, China's letter industry to open large-scale applications, content gradually rich, ecological more mature.

At the same time, the national level issued a number of policies to improve the letter creation landing top-level planning. In September last year, the State-owned Assets Supervision and Administration Commission issued Document No. 79, stipulating that all state-owned enterprises and central enterprises must complete the full replacement of letter creation in 2027, and continue to open up the market space of letter creation, "2+8 + N" landing system fully opened.

In the near term, the heat of the trust market is gradually picking up. In early August this year, the Ministry of Finance and the Ministry of Industry and Information Technology jointly issued government procurement demand standards for operating systems and portable computers, and government departments continued to pay more attention to the Xinchuang industry.

2023 is the year for the credit creation industry to carry forward the past and open up the future. the application of credit creation in the fields of party and government, finance and medical treatment continues to expand.

In the long run, the next five years will be a critical period for the development of "Da Xin Chuang", with broad development space. According to the forecast of the organization, the scale of China's Xinchuang industry is expected to exceed 3.7 trillion yuan by 2027.

Dongxing Securities analysts said that with the changes in the international situation and the introduction of relevant domestic policies, central enterprises have begun to land, and the development logic of my country's credit industry has been further verified. This round of the upward trend of the letter creation industry is not the concept of speculation is not the downstream business climate extension, but China's science and technology industry under the trend of independent development of independent main line. In the second half of 2023, the trust industry is expected to gradually deliver some of its performance.

Since the 20th National Congress of the Communist Party of China, the Xinchuang policy has been continuously implemented, reflecting that the main line of big security is gradually being fulfilled, the Xinchuang market is gradually deepening, and the localization of science and technology, basic software and operating system is still the main theme of future development. Overall, the policy accelerated landing will continue to catalyze the heat of the letter.

the market demand is strong, and the credit industry will welcome the release of performance in the second half of the year

In terms of market demand, Xinchuang industry continues to harvest large orders. On August 9, China CITIC Bank announced the bidding results of the 6.5 billion general infrastructure centralized procurement project, and a total of 6 enterprises successfully won the bid. On August 17, China Unicom announced the results of bid section 2: general server-domestic chip collection for the international server collection project from 2023 to 2025. ZTE (000063.SZ) and China Communications were successfully shortlisted.

In the second and third quarters of this year, the number of winning bids in the Xinchuang field continued to increase, which also proved the strong demand for domestic Xinchuang products in related industries.

West China Securities pointed out in the research report that the field of domestic credit products landing is more and more extensive, the total number of ecological adaptation continues to increase, and the improvement of domestic ecology continues to accelerate. At the same time, downstream customers generally in accordance with the annual budget plan, the second half of the year is expected to enter the credit order performance release period. This view is also basically consistent with the view of brokerage institutions in the previous article.

Objectively speaking, the technological progress and product iterative upgrades of technology companies will boost the localization of China's information technology and accelerate the digitalization of governments and enterprises. On the contrary, the government of these enterprises will increase the demand, which will give birth to and accelerate the development of trust enterprises.

Which companies are expected to benefit?

China's Xinchuang industry is huge, in the policy and market two-wheel drive, Xinchuang project will usher in a new round of rapid development cycle, domestic software and hardware manufacturers are expected to benefit. With the release of the semi-annual reports of relevant listed companies at the end of August, high-quality enterprises whose performance meets or even exceeds expectations can keep an eye on.

China Software (600536.SH) is a large-scale high-tech listed enterprise controlled by China Electronic Information Industry Group Co., Ltd., is the core enterprise of CEC network security and information technology sector, and undertakes the responsibility and mission of the national team of software industry. Its subsidiary, Zhongruan System, is mainly engaged in system integration, software development, information security and other businesses of government and enterprise information construction. Recently, China Software intends to transfer a 100 per cent stake in its subsidiary Great Wall Software to a related party data industry group, a transaction that will help revitalize the company's resources, optimize its business structure and asset structure, improve asset liquidity and focus on the development of key core businesses.

Digital China (000034.SZ) pioneered the "digital cloud convergence" strategy and technology system framework to comprehensively enhance the cloud native, digital native, digital cloud convergence key technologies and trust industry architecture products and services capabilities. The company expects to achieve a net profit of 0.43 billion to 0.44 billion yuan in the first half of 2023, up 10.32 to 12.88 percent year-on-year. Since the second quarter of 2022, the company has achieved year-on-year growth in net profit for five consecutive quarters, and the company's overall profit margin is expected to continue to improve in the future.

Baoland (688058.SH) is a high-tech software enterprise focusing on basic software research and development and promotion. The company attaches great importance to technological innovation and has broken through the technical difficulties of performance, concurrency and stability in middleware, and the relevant indicators are in the forefront of the industry. At the same time, the company's business card financial credit field, domestic middleware demand is expected to continue to rise. After years of hard work, the company has continuously improved its product matrix, and has emerged in the party, government and financial fields, becoming one of the leading enterprises in the field of domestic middleware.