Xiaomo published a report stating that a meeting with domestic 5G experts was held recently. Participants expect that after experiencing last year's peak, 5G base station growth will slow down in the next few years; it is also expected that even if China Unicom (00762.HK) redevelops the 900 MHz spectrum for 5G, China Mobile (00941.HK) will still be more competitive in the sub-1GHz spectrum. Even if there is a potential shortage of advanced process chips in the future, experts expect that Huawei will maintain the supply of 5G base stations to telecommunications carriers by regulating base transceiver stations (BTS) until more mature process chips can be used. Even though Telecom has increased by about 20% this year so far, outperforming the Hang Seng Index by 13% over the same period, it remains the bank's first choice for Chinese telecommunications companies. It has the largest cloud business exposure among the three major Chinese telecommunications companies. It is expected to become the largest cloud provider in China by 2024, and valuation attraction is only equivalent to predicting that the enterprise value will be less than 2 times EBITDA and the dividend rate is 8%. The average annual compound annual growth rate per share from 2022 to 2024 is expected to reach 18%. The bank's preferences are telecommunications, mobile, and Unicom in that order.