incident. On April 1, 2016, “Yicai.com” reported that the Shanghai Data Exchange Center was established, and the Bank of Shanghai granted it a credit line of 2 billion yuan. The Shibei High-tech Service Industry Park, where the data trading center is located, was also listed as the “Shanghai Big Data Industry Base.” On the same day, the Jing'an District Government issued the “Jing'an District Implementation Measures on Promoting the Development of the Big Data Industry (Trial)”. The basic functions, operation mode, and data characteristics of the Shanghai Data Exchange Center are becoming increasingly clear, and the medium- to long-term plans for big data are gradually taking shape. First, the trading center's function is to promote commercial data market circulation, cross-regional institutional cooperation and data interconnection, and integrated application of government data and commercial data. Second, the trading center's operating model uses a “rules+technology” dual structure, using virtual identification of independent intellectual property rights and secondary encrypted data distribution technology. Third, big data in Shanghai has the characteristics of rich data resources, initial sharing of resources, and high added value of data. Fourthly, looking at the near future, the development of big data in Shanghai will focus on advancing the “12345” work. Among them, special mention was made of focusing on the construction of 3-5 big data industrial bases in Shanghai, including Shibei Hi-Tech. Fifth, by 2020, Shanghai will form 3-5 big data industrial bases, introduce and nurture more than 50 leading big data enterprises, and the economic output value of the data-driven industry will reach the level of 100 billion dollars. Jing'an District issued measures to promote the development of the big data industry, focusing on the big data industry base in Shibei High-tech Park. First, the “Measures” mainly provide comprehensive support for big data talents, big data enterprises, and big data projects in Jing'an District from seven aspects. Second, the Jing'an district government specifically proposed to “focus on the big data industrial base in the Shibei High-tech Park, and give priority to supporting infrastructure-related projects around the big data industrial base within the park.” At present, the Shibei High-tech Park has formed a full-chain big data industry development system, from incubators to accelerators to industrial clusters. More than 150 cloud computing enterprises have settled in, making it the region with the highest data center density in Shanghai. The company is the sole developer of the Shibei High-tech Park. It owns the Juneng Bay Incubator, which will fully benefit from the benefits brought by the construction of the Shanghai Data Exchange Center. Investment advice: Benefiting from the construction of data trading centers and science and innovation centers, equity investment is expected to grow rapidly. The company is positioned as a “boutique park” integrated operator, service integrator and investor. It has already laid out a 3.13 square kilometer North High-tech Industrial Park in Zhabei City, Shanghai, and a 5.2 square kilometer Nantong Science and Technology City Industrial Park. Currently, the economy of the Shibei High-tech Park is growing at a high rate of 30% every year, and the share of the park's productive services has already exceeded 90%. The company has a total equity of 1.18 million square meters. Meanwhile, in the next five years, the Shibei High-tech Park can develop a surface area of 2.6 million square meters, and Nantong will reserve 4,200 acres of land. In recent years, the company has increased its investment in venture capital business, and future development can be expected. We expect the company's EPS for 2016 and 2017 to be 0.31 yuan and 0.39 yuan. As of April 7, the company closed at 28.78 yuan, corresponding to PE 92.8 times and 73.8 times, respectively. Considering that the company is within the Dazhang River, it is expected to enjoy favorable policies such as the construction of a Shanghai Science and Technology Innovation Center and a data trading center (with market uniqueness) in the future, while also benefiting from the merger of the two districts of Jing'an and Zhabei, we gave the company 120 times PE in 2016, corresponding to the target price of 37.2 yuan for the next 6 months, and gave it a “buy” rating. Risk warning: The industry faces two major risks: interest rate hikes and policy regulation.