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” at the same time. 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 medium- to long-term plans for big data are gradually taking shape. First, the functions of this trading center are 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 dual “rules+technology” architecture, using virtual identification with independent intellectual property rights and secondary encrypted data distribution technology. Third, Shanghai Big Data has the characteristics of rich data resources, initial sharing of resources, and high added value of data. Fourth, looking at the near future, the development of big data in Shanghai will focus on advancing the “12345” work. Among them, it was specifically mentioned that the focus should be on building 3-5 big data industrial bases in Shanghai, including Shibei Hi-Tech. Fifth, by 2020, Shanghai will have formed 3-5 big data industrial bases, introduced and nurtured more than 50 leading big data enterprises, and the data-driven industry will have an economic output value 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 the Shibei High-tech Park. First, the “Measures” mainly provide full 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 only developer in the Shibei High-tech Park. It owns the Juneng Bay Incubator and 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 technology 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 laid out the 3.13 square kilometer North High-tech Industrial Park in Zhabei City, Shanghai, and the 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 proportion of the park's productive service industry has exceeded 90%. The company holds a total of 1.18 million square meters of equity. Meanwhile, in the next 5 years, the Shibei High-tech Park can develop 2.6 million square meters and reserve 4,200 acres of land in Nantong. 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 to be $0.31 and $0.39 in 2016 and 2017. As of April 7, the company closed at 28.78 yuan, corresponding PE was 92.8 times and 73.8 times, respectively. Considering that the company is within the Greater Zhangjiang River, it is expected to enjoy favorable policies such as the construction of the Shanghai Science and Technology Innovation Center and data trading center (with market uniqueness) in the future, and at the same time benefit from the merger of Jing'an and Zhabei regions, we gave the company 120 times PE in 2016, corresponding to a 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.