According to the Zhitong Finance APP, China Galaxy Securities has released a research report stating that the government work report in 2025 emphasizes the vigorous development of the marine economy and the establishment of national marine economy development demonstration zones. The marine economy has been elevated to a strategic height for the first time, while the new quality productivity section mentions &#34;deep-sea technology,&#34; further enriching the connotation of the marine economy. As the final year of the 14th Five-Year Plan, the pace of marine economy project implementation is expected to accelerate. The potential of the marine economy is enormous, with comprehensive empowerment from communication infrastructure. According to data from Beizhesi Consulting, the global submarine cable market is expected to reach approximately USD 21 billion in 2024 and is projected to reach USD 68 billion by 2032, with an 8-year CAGR of about 15.8%. In addition, the rapid deployment of satellites and accelerated construction of offshore wind power are injecting a &#34;shot in the arm&#34; for the development of the marine economy.
<h2>The main points of China Galaxy Securities are as follows:</h2>
Event: On July 1, 2025, General Secretary Xi Jinping presided over the sixth meeting of the Central Financial Committee, pointing out the need to promote high-quality development of the marine economy and to embark on a path of strengthening maritime capabilities with Chinese characteristics.
Since 2025, the marine economy has been continuously catalyzed, with favorable policies in full swing
The government work report in 2025 emphasizes the vigorous development of the marine economy and the establishment of national marine economy development demonstration zones, elevating the marine economy to a strategic height for the first time, while the new quality productivity section mentions &#34;deep-sea technology,&#34; further enriching the connotation of the marine economy.
Local policies have also been continuously followed up. In May, the 18th meeting of the 14th Guangdong Provincial People's Congress Standing Committee passed the &#34;Guangdong Province Regulations on Promoting High-Quality Development of the Marine Economy,&#34; focusing on the development of emerging industries such as marine electronic information, engineering equipment, biomedicine, offshore wind power, and low-altitude economy, while optimizing fishery layout, simplifying approval for deep-sea aquaculture, supporting cold chain logistics and offshore fishery base construction, improving the traceability system for aquatic products, and promoting the expansion of service industries such as port clusters, cruise yachts, and marine cultural tourism.
In June, the Shanghai Oceanic Administration released the &#34;Shanghai Marine Industry Development Plan (2025-2035) (Draft for Comments),&#34; exploring the establishment of a marine industry development group, studying the establishment of a municipal marine industry development fund, and deepening the innovative demonstration functions of the marine economy in Pudong New Area, Lingang New Area, and Changxing Island. As the final year of the 14th Five-Year Plan, the pace of marine economy project implementation is expected to accelerate.
The marine economy has enormous potential, with comprehensive empowerment from communication infrastructure
According to data from the Ministry of Natural Resources, the domestic marine GDP in 2024 is expected to be CNY 10.54 trillion (+5.9%), accounting for 7.8% of GDP, with the added value of 15 marine industries reaching CNY 4.37 trillion (+7.5%). Marine communication is the infrastructure of the marine economy and an important part of the future 6G &#34;integrated network of land, sea, air, and space,&#34; mainly including offshore wireless communication, marine satellite communication, and shore-based mobile communication, among which marine satellite communication accounts for about 77.5%. It can empower marine fisheries, marine aquatic product processing, marine oil and gas industry, marine mining, marine power industry, marine transportation industry, and other fields, involving marine sensors, offshore mobile base stations, low-power optical fibers, submarine cables, repeaters, marine IoT, marine IDC, remote power supply, and other equipment and services, characterized by long communication distances, large capacity, complex environments, and long operational lifespans, with high technical and financial barriers
Currently, the market is dominated by foreign manufacturers such as Alcatel-Lucent from France, Tyco from the United States, NSW from Germany, and NEC from Japan. The surge in multinational data volume and the increasing importance of communication security are forcing the process of domestic substitution. According to data from Beijieshi Consulting, the global submarine cable market size is expected to reach approximately USD 21 billion in 2024 and is projected to reach USD 68 billion by 2032, with an 8-year CAGR of about 15.8%.
Satellite deployment enters the fast lane, offshore wind power construction accelerates
Taking satellite communication and offshore wind power as examples, the miniaturization of satellites and the increasingly mature rocket recovery technology have reduced launch costs, allowing satellite deployment to enter the fast lane. In 2025, at the Shanghai MWC, China Mobile will release domestically produced satellite communication chips CM6650N, CM3510, and satellite IoT modules MU329N, MU305A. According to data from the National Energy Administration, in 2024, the newly installed capacity of offshore wind power in China will be 4.04 GW, with a cumulative grid-connected capacity of 41.3 GW. The trend towards deep sea under the &#34;Single 30&#34; policy is clear, with recent projects such as China Resources' 500 MW in Shanwei Honghai Bay and CGN's 1 GW in Yangjiang Sanshan Island being intensively promoted, injecting a &#34;strong boost&#34; into the development of the marine economy.
Investment recommendations
It is recommended to pay attention to leading submarine cable companies with abundant orders on hand and a clear upward trend in medium to long-term prosperity, such as Zhongtian Technology (600522.SH) and Hengtong Optic-Electric (600487.SH). Under the background of continuous deployment of low-orbit constellations and the integration of satellite and ground, the valuation of the industrial chain is being reshaped for companies like Hytera (002583.SZ), Xinke Mobile-U (688387.SH), Tongyu (002792.SZ), Sanwei Communication (002115.SZ), M&amp;S Electronics (688311.SH), and Genew (688418.SH). Additionally, Longyingtong (688143.SH) is a potential target for laser products with differentiated competition and special materials for marine monitoring.
Risk warning
Risks include a decrease in the support intensity of industrial policies and the risk of commercialization not meeting expectations

002583

688418

399441

002792

600522

688311

China Galaxy Securities released a research report indicating that starting from 2025, the development policy for the marine economy will continue to advance, being elevated to a strategic level for the first time, emphasizing new productive forces such as deep-sea technology. The potential of the marine economy is enormous, with comprehensive empowerment in fields such as communications. It is expected that the global submarine cable market will reach USD 21 billion in 2024 and increase to USD 68 billion by 2032. Local policies are also actively following up to promote the development of emerging industries such as marine electronic information and biomedicine

Zhitong

Hytera

Genew

CNI BIOMEDICINE

Tongyu

M&S ELECTRONICS

China Galaxy Securities: The connotation of the ocean economy is further enriched, with comprehensive empowerment in communications and other areas