--- title: "Inside China Tower's AI Pivot, and SmarTone's 3G Sunset" type: "News" locale: "en" url: "https://longbridge.com/en/news/295998437.md" description: "Legacy infrastructure is getting an AI overhaul. China Tower leverages its massive footprint for custom LLMs while booking surging H1 2026 profits, and SmarTone finally pulls the plug on 3G." datetime: "2026-08-15T10:12:21.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/295998437.md) - [en](https://longbridge.com/en/news/295998437.md) - [zh-HK](https://longbridge.com/zh-HK/news/295998437.md) generator: "portal-rs" --- # Inside China Tower's AI Pivot, and SmarTone's 3G Sunset If you want to know where the telecommunications and infrastructure sectors are heading this year, just follow the aggressive clear-out of legacy tech. The playbook for 2026 is simple: dump the old networks and go all-in on artificial intelligence. Take **China Tower (7588.HK)** as the prime example. The infrastructure giant just reported its H1 2026 earnings, and while top-line revenue saw a minor dip, its profit surged over 30%. But the real story isn't just the financials. At the 2026 World Artificial Intelligence Conference, China Tower showed off its full-stack AI capabilities, including a proprietary large language model. The company is actively transforming its vast network of base stations into a distributed AI and energy-service powerhouse. Over in Hong Kong, **SmarTone Telecommunications (354.HK)** is finally doing some housecleaning. The carrier announced it will completely shut down its 3G network by October 2026. Given that 3G users now make up a microscopic fraction of its base, freeing up that spectrum is a no-brainer. This allows SmarTone—which posted a solid 8% profit bump in its latest mid-term results—to aggressively push its 5G infrastructure and new AI Connect services. **Here is what else is happening across the broader sector:** - **VF Corp (752.HK) catches a tailwind:** The apparel conglomerate behind Vans and The North Face delivered a major Q2 earnings beat and raised its full-year outlook. The internal optimism is real—CEO Bracken Darrell recently scooped up roughly USD 500,000 worth of company shares, sparking a sharp rebound in its recent market performance. - **China Lesso (867.HK) expands its map:** The building materials heavyweight is heavily pushing its localized global manufacturing strategy in 2026, aiming to fire up 10 overseas production bases across regions like Texas and Nigeria to offset domestic cyclical risks. - **Inspur International (596.HK) stays the course:** The enterprise software arm continues to quietly build out its cloud and IoT solutions, leaning on its parent group's dominant server market position. - **Quiet periods:** It has been notably silent on the news front for **China Huarong (290.HK)** as investors await fresh signs of financial restructuring progress, while **China Star Entertainment (326.HK)** continues to hold steady with its Macau property and film production portfolios without major recent strategic shifts. ### Related Stocks - [00354.HK](https://longbridge.com/en/quote/00354.HK.md) - [00867.HK](https://longbridge.com/en/quote/00867.HK.md) - [00596.HK](https://longbridge.com/en/quote/00596.HK.md) - [00290.HK](https://longbridge.com/en/quote/00290.HK.md) - [00752.HK](https://longbridge.com/en/quote/00752.HK.md) - [00326.HK](https://longbridge.com/en/quote/00326.HK.md) ## Related News & Research - [China Medical System wins China approval for ruxolitinib cream in atopic dermatitis](https://longbridge.com/en/news/297894031.md) - [Shein just went public at about 25% of its peak valuation](https://longbridge.com/en/news/297610649.md) - [Shein founder Xu true to form with minimalist presence at Hong Kong listing](https://longbridge.com/en/news/297615292.md) - [Shein shares slide in Hong Kong debut on worries about trade and regulatory risks](https://longbridge.com/en/news/297604392.md) - [Oil prices rise as latest fighting resurrects Middle East supply disruption risks](https://longbridge.com/en/news/297575875.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**