<div id="readability-page-1"><div>JPMorgan said in a report that the three major Chinese telecom stocks saw their H-share prices rise yesterday (18th) after launching AI Token packages targeting SMEs and retail users, reflecting investors optimism that telecom operators will become &#34;real economy&#34; beneficiaries of AI monetization. The bank maintained its positive view on CHINA MOBILE (00941.HK) +0.500 (+0.579%) Short selling $280.96M; Ratio 17.031% , CHINA TELECOM (00728.HK) -0.040 (-0.709%) Short selling $173.50M; Ratio 16.975% and CHINA UNICOM (00762.HK) +0.080 (+1.008%) Short selling $93.99M; Ratio 15.766% , assigning all three an Overweight rating. It believes AI monetization and improving competition dynamics in telecom services are expected to drive ARPU growth to resume from 2026 and earnings growth to recover from 2027, while 2026 will be affected by VAT adjustments.Among the three telecom stocks, JPMs top H-share pick remains CHINA MOBILE, followed by CHINA TELECOM and CHINA UNICOM. The bank said CHINA TELECOM serves as a proxy for the AI Token theme and is best positioned to benefit from positive sentiment surrounding Chinas AI Token theme and the launch of DeepSeek V4, as its cloud business revenue is expected to account for 25% of service revenue in 2025, higher than 12% for CHINA MOBILE and 21% for CHINA UNICOM. CHINA TELECOMs Token packages have begun pilot commercialization, targeting individual/household users, developers and SMEs, integrating its proprietary Xingchen large model, Zhipu GLM5 and other mainstream domestic models.At the 2026 Mobile Cloud Conference, CHINA MOBILE upgraded its AI Token operations from standalone packages to a platform and ecosystem level, centered on its &#34;Mobile Cloud Model-as-a-Service Platform (MoMA)&#34; and a broader Token operations ecosystem, which has connected to more than 300 mainstream AI models. CHINA UNICOMs Token plans for individual users are divided into three tiers, while its Unicom Cloud and &#34;Unicom Yuanjing&#34; MaaS platform have launched Token plans for individuals and teams. Computing power capital expenditure (for cloud/IDC/AI) of the three major telecom operators is expected to continue rising in 2026, with CHINA TELECOM and CHINA MOBILE projected to grow by 26% YoY and 62% YoY respectively, underscoring their commitment to AI. (ad/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-18 16:25.)</div></div>

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JPMorgan has rated the three major Chinese telecom stocks—CHINA MOBILE, CHINA TELECOM, and CHINA UNICOM—as Overweight, following a rise in H-share prices due to AI Token packages targeting SMEs and retail users. CHINA MOBILE is the top pick, while CHINA TELECOM is seen as a proxy for the AI Token theme, with expectations of significant revenue growth from its cloud business. The bank anticipates ARPU growth resuming in 2026 and earnings recovery in 2027, despite VAT adjustments impacting 2026.

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JPM: CHINA TELECOM  Proxy for AI Token Theme; Three Major Telecoms Rated Overweight, CHINA MOBILE Top Pick