Citi published a research report, citing Bloomberg, stating that the Chinese government plans to invest approximately RMB2 trillion (about USD295 billion) over the next five years to build a nationwide data center network. The plan, led by the National Development and Reform Commission, will be primarily operated by large state-owned telecom operators and mandates that reliance on domestic AI chips must reach at least 80%. The bank believes this will serve as a significant catalyst for China’s digital infrastructure. Among beneficiaries, GDS-SW (09698.HK) +0.520 (+1.540%) Short selling $89.33M; Ratio 47.031% and VNET Group, Inc. (VNET.US) are capturing momentum with record wholesale bookings in 1Q26, while state-owned telecom operators are set to solidify their positions as foundational operators in China’s AI economy.

The bank noted that under the strategic directive requiring at least 80% reliance on local suppliers for key technologies, such as AI chips from Huawei, domestic semiconductor growth will accelerate rapidly. Citi views IEIT (000977.SZ) -0.090 (-0.151%) , LENOVO GROUP (00992.HK) -2.440 (-9.614%) Short selling $1.28B; Ratio 26.983% , and ZTE (00763.HK) -1.140 (-4.074%) Short selling $31.64M; Ratio 3.279% as key beneficiaries within the localized AI server ecosystem. The mandatory use of domestic chips will drive demand for AI servers in their supply-constrained server businesses. In addition, the initiative will create a substantial addressable market for CHINASOFT INT'L (00354.HK) -0.030 (-0.767%) Short selling $16.09M; Ratio 11.683% in domestic computing power and token-based AI services, as the company is an ITS and ISV partner of Huawei. (ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-06-09 16:25.) (A Shares quote is delayed for at least 15 mins.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)