A-Shares Maintain Upward Momentum Amid Fluctuations
Entering May, China’s A-share market has sustained a volatile rebound. Although increasing fluctuations accompany the rising indices, the market bottom continues to edge higher. Bolstered by positive news, investor enthusiasm has steadily recovered, enhancing profitability in recent sessions.
Analysts note that structural opportunities are becoming prominent during this rebound phase, recommending focused attention on high-interest sectors such as cross-border payments and emerging tech fields like 5G-Advanced (5G-A).
Cross-Border Payments: Policy Support Drives Industry Transformation
Dual Forces Reshaping Global Payment Systems
The cross-border payment industry is undergoing significant transformation, driven by the restructuring of global trade and breakthroughs in digital currency technology. Industry experts highlight that rapid advancements in internet technology have accelerated the global digital economy, creating expansive opportunities in e-commerce and digital finance—key drivers for cross-border payment expansion.
Regulatory Tailwinds Strengthen Sector Growth
Policymakers are intensifying support for cross-border financial flows. Recent initiatives include:
The Ministry of Commerce’s Work Plan for Accelerating the Pilot Program of Expanding Service Sector Openness, broadening financial institutions’ operational scope.
The PBOC and five other agencies’ Compliance Guidelines for Promoting and Standardizing Cross-Border Data Flows in Finance, clarifying rules for data出境.
Shanghai’s Action Plan to Enhance Cross-Border Financial Services, proposing 18 measures to improve settlement efficiency, risk hedging, and financing services.
Market Expansion and Key Players
As compliance accelerates, firms specializing in cross-border payments are poised for growth. Huaxi Securities analyst Liu Zejing identifies four growth catalysts:
Central bank digital currencies (CBDCs) and multilateral currency bridge projects.
Renminbi internationalization and CIPS system adoption (covering 185 countries with ¥175 trillion processed in 2024, up 43% YoY).
Global payment networks with localized services (e.g., Stripe-WeChat Pay partnership serving 50M overseas Chinese).
Blockchain applications enhancing transaction security (e.g., Shenzhen’s digital RMB cross-border大豆 trade settled in minutes).
SWS Research’s Huang Zhonghuang emphasizes that policy tailwinds for跨境电商 and payment systems will persist, benefiting clearing institutions, banks, and third-party payment providers. Top picks include Newland Digital, Global Payment, and LianLian DigiTech.
5G-Advanced: Commercial Deployment Gains Momentum
From Theory to Reality
5G-A (5G-Advanced), offering 10x faster speeds and millisecond-level latency than standard 5G, is capturing market attention. The MIIT’s 2024 5G Scale-Up “Sail” Upgrade Plan mandates 5G-A network coverage in all prefecture-level cities, signaling accelerated infrastructure investment.
Policy Catalysts and Industry Roadmap
At an April 2025 press conference, MIIT officials outlined plans to expand 5G/千兆光网 coverage and advance compute-power networks. Analysts observe growing policy support for 5G-A as a bridge to 6G, with telecom operators ramping up trials nationwide. Key advantages over baseline 5G include:
- 10x uplink/downlink speed improvements.
- 10x connection density.
- Ultra-low latency enhancements.
Investment Opportunities Across the Value Chain
CICC notes 2024 as 5G-A’s commercial元年, with investments projected to surge in 2025 (e.g., China Mobile’s ¥9.8B budget, up 227% YoY). Three-tier opportunities emerge:
| Sector | Beneficiaries | Catalysts |
|---|---|---|
| Upstream Equipment | ZTE, FiberHome | Base station upgrades |
| Midstream Carriers | China Telecom, China Unicom | Ecosystem development |
| Downstream Apps | Satellite firms (e.g., China Satcom) | 2025-26 adoption wave |
Satellite communication plays a complementary role, with analysts recommending China Satellite and UniStrong for exposure to this synergistic trend.
Conclusion: Strategic Positioning for the Next Phase
While market volatility persists, cross-border payments and 5G-A represent high-conviction themes backed by policy tailwinds and measurable growth metrics. Investors should monitor:
- PBOC’s next-phase digital currency pilots.
- Q3 2025 5G-A spectrum allocations.
- Progress in RMB-denominated commodity settlements.
With structural shifts underway, adopting a tiered investment approach across these sectors could capture upside while managing risk.
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