The Zhitong Finance App learned that Shouchuang Securities published a research report saying that on November 10, the Hengyang Public Resources Exchange Network published the “Hengyang Municipal Affairs Data Resources and Smart City Franchise Project Transaction Notice”, and the starting price of the project was about 1,802 billion yuan. The bank believes that the accelerated implementation of public data licensing operations is expected to promote the development of industrial chain companies, and at the same time, the promotion of data factorization will also bring opportunities to related companies. Since this year, the official draft of “Data Asset Entry” has been released, and various regions have also formulated rules and regulations relating to data elements. The policy framework has been improved, and it is expected that implementation of data factorization will accelerate in the future.

Relevant targets: government data and state-owned cloud providers Shenzhen Sangda A (000032.SZ), Yunsai Zhilian (600602.SH), Yi Hualu (300212.SZ), Tongniu Information (300895.SZ), health insurance data service providers Guoxin Health (000503.SZ), Jiuyuan Yinhai (002777.SZ), Shandatiwei (688579.SH), commodity data provider Shanghai Steel Union (300226.SZ), Zhuochuang Information (301299.SZ), other data software providers, 3D world (301299.SZ) 301159.SZ), daily interaction (300766.SZ), etc.

The views of Capital Securities are as follows:

Hengyang relinquished the right to manage government data, and the industrialization of government data elements was implemented. According to the announcement,

1) The transaction was approved by the Hengyang Municipal People's Government to license tangible or intangible assets such as data resources generated after the construction of smart cities or other financial investment information systems;

2) During the franchise period, the franchisee may charge users fees within the scope of the franchise;

3) According to the asset evaluation results, the value of the project is about 1,805 million yuan. The Hengyang municipal affairs data auction is of great significance. It has opened up a paid licensing method for local government data. It is expected that all regions will accelerate progress, and the factorization of government data is expected to take the lead.

Public data comes first, social data is at the back, and data element space can be expected.

Compared to social data, public data has the characteristics of clear data sources, easy data authorization, large and complete data, etc., and it is easier to materialize data. Therefore, the bank believes that public data will take the lead in factorization and drive social data for factorization. Since this year, Qingdao, Beijing, Zhejiang and other places have issued administrative measures relating to the authorized operation of public data, and exploration has been accelerated in various regions. The Hengyang municipal affairs data management rights auction has provided reference examples for various regions. According to an announcement from the Hengyang Public Resources Exchange Network, the starting price of Hengyang municipal affairs data resources and smart city concessions reached about 1,802 billion yuan. There are a total of 293 prefecture-level cities nationwide, and the operational value of subsequent government data elements can be expected. In addition to public data, there are many types of social data such as enterprises and individuals, and the space is even wider.

Policies and management systems related to data elements continue to be improved, and implementation is yet to be implemented.

In terms of policy, in December 2022, the “Twenty Rules for Data” and “Data Asset Entry” solicitation drafts were issued. Since this year, the “Data Asset Entry” official draft has been published, and various regions have also formulated rules and regulations relating to data elements, and the policy framework has been improved. In terms of management mechanisms, the National Bureau of Data was established in March 2023, and a director was welcomed in July. The bank believes that the framework for the data element management system has been completed, the policy rules have been gradually improved, and it is expected that the implementation of data factorization will accelerate in the future.

Risk factors: The risk that public data licensing operations will not progress as expected, industry competition will intensify, and policy progress will fall short of expectations.