After obtaining the IPO approval from the CSRC, China Mobile officially launched online and offline subscription from the 22nd, and the A-share listing is just around the corner. In addition, China Telecom, which returned to the A-share market in August this year, the three leaders in the mobile communication field will gather in the A-share market. The prospectus shows that before exercising the over allotment option, China Mobile raised about 48.7 billion yuan, and after exercising the over allotment option, it will be close to 56 billion yuan. This amount slightly exceeds the previous fund-raising amount of 53.7 billion yuan of China Telecom, and is expected to become the largest IPO of a shares in recent ten years. Economic account behind investment in 5g From the perspective of the fund-raising projects in the prospectus, half of the fund-raising amount - 28 billion yuan will be invested in the 5g boutique network construction project. This is part of the world's largest and most advanced 5g independent networking network. The latest data show that China has built more than 1.15 million 5g base stations, accounting for more than 70% of the world; 5g end users reached 450 million, accounting for more than 80% of the world; 5g network coverage has been realized in all prefecture level city districts, more than 97% of county districts and 40% of township towns and townships in China. For China Mobile, investing in 5g is the key to continuously improve user experience and promote user consumption in the future. "The average monthly income of 5g users is 88.9 yuan, an increase of 10.0% over 4G customers." The semi annual report shows that as of the first half of 2021, China Mobile's 5g network customers have reached 127 million. "With the improvement of living standards, users' demand for information such as entertainment, health, education and safety will continue to grow, which will drive the upgrading demand of network quality and speed." Huatai Securities Research Report predicts that the construction of smart home will bring more opportunities for operators to create value in the 5g industrial chain and further help operators open new market space. In addition to the C-end consumer market, the broader application scenario of 5g is the b-end enterprise market. Based on 5g reliable and high-quality basic network and rich and diverse value-added functions, China Mobile can provide enterprise users with more convenient and flexible customized services represented by industrial Internet, so as to achieve higher added value. What is more important is the spillover effect of 5g network on industrial development, economic growth and people's good life, which is also an important reason why 5g is called a new infrastructure. In recent years, 5g construction has not only set off a new wave of mobile communication network investment, promoted the continuous innovation of new infrastructure construction and the transformation and upgrading of user information consumption, but also opened a new space for economic and social innovation and development. In the industrial Internet, 5g enables traditional industries to continuously realize digital transformation; Combined with AI, 5g helps to realize high-precision real-time detection and flexible production; Focusing on the construction of smart city, 5g provides new possibilities for social governance and public service reform. According to the prediction of the white paper on China's 5g development and economic and social impact (2020) released by China Institute of information and communications, the economic and social impact potential of 5g business in the past year has been preliminarily released. It is expected that in 2020, 5g will directly drive the total economic output of 810.9 billion yuan, directly drive the economic added value of 189.7 billion yuan, indirectly drive the total output of about 2.1 trillion yuan and indirectly drive the economic added value of 760.6 billion yuan. "Dark horse" outside the Tokyo Olympic Games The 10 billion yuan raised will be invested in new generation information technology R & D and digital intelligence ecological construction projects. This project will focus on key areas and key links such as artificial intelligence, Internet of things, cloud computing, big data and edge computing, carry out forward-looking research on new generation mobile communication technologies such as 6G, and carry out business platform research and development around scenario applications in mobile market, home market, government enterprise market and emerging markets. Continuous research and development of cutting-edge technologies related to 5g strength and forward-looking layout of the next generation of 6G technology are long-term measures to adhere to innovation driven and build the company's competitiveness and moat; Building digital intelligence ecology around 5g use scenarios is a realistic move to complement the current 5g application weakness. At the just concluded Tokyo Olympic Games, China Mobile's 5g technology made a small test in the field of sports ultra-high definition live broadcasting, demonstrating the ability of the "broken bureau" Internet platform to dominate the long video industry. In the "empty field" of the Tokyo Olympic Games shrouded by the epidemic, China Mobile Migu has become a dark horse outside the field with "combination boxing" such as full-scale ultra-high-definition live broadcast and 5g watching black technology. It has won the popularity of the audience with a cloud "full" full scene immersive Olympic feast, and has become a new media platform with the first evaluation score of Tokyo Olympic relay app. "Focus on the copyright cooperation of head events such as the Olympic Games, the European Cup and the secondary vocational basketball, take the lead in applying HDR video technology to large-scale international sports events, and provide users with 360 degree immersive and ultra-high definition live broadcasting services." In June 2021, the number of active users of Migu video reached 242 million. In the long video field dominated by iqiyi, Youku, Tencent and other Internet companies, it is not easy to make this breakthrough. Last year, mango super media began to break the market from the content side through self-made variety shows; This year, with exclusive sports events and performance rights, combined with China Mobile's 5g cutting-edge HD live broadcasting technology, Migu seems to have found a broken "password". What is more worth looking forward to is whether China Mobile, which has accumulated low-level communication technology for many years, can achieve "dimensionality reduction attack" in the 5g era, break through the current situation of oligarchy in the video industry and provide consumers with better video content and audio-visual experience. Perhaps it will be known in the near future. Capital market test 5g boutique network construction project, cloud resources new infrastructure construction project, Gigabit smart home construction project, smart middle platform construction project, new generation information technology R & D and digital intelligence ecological construction project... It is not difficult to see from the investment direction of the funds raised by China Mobile's A-share listing that the new infrastructure is an important investment direction in the future. If the government investment dominated by financial funds has played a key role in the construction of traditional infrastructure, the development of new infrastructure with new technologies and new industries as the core will rely more on the strength of the capital market. Fundamentally, traditional infrastructure projects such as railways, highways and bridges have large investment scale, high demand for raw materials and ordinary labor, and long upstream supply chain. Expanding traditional infrastructure is easy to revitalize the production and operation of relevant enterprises in a short cycle, stabilize social employment and stimulate economic growth. Therefore, it has also become an important policy means for the government to regulate economic growth against the cycle, and the use of financial funds for public affairs expenditure is also in line with its due meaning of capital quality. The characteristics of new infrastructure are different from those of traditional infrastructure. Its supply chain is relatively short, and its short-term pulling effect on the economy is not as obvious as that of traditional infrastructure. Moreover, new infrastructure involves the research and development of new technologies, which is often accompanied by certain risks. Therefore, the introduction of venture capital pursuing "high risk and high return" has become an objective need for new infrastructure to broaden financing sources. Through the capital market, investors invest their funds in promising and potential enterprises, which bring long-term investment income and property income to investors. Under the incentive of positive feedback, the capital market can attract more funds to invest in new infrastructure fields. To make investment more "effective" and avoid "investing for investment", we need to improve the accuracy of investment. The openness and transparency of investment income and the evaluation and feedback of investment results are powerful means to improve accuracy. In the capital market with confidence disclosure as the core, the company's performance and stock price are the investment answers of enterprises and the voting results of investors. Effective investment can stand the long-term test of the capital market. Facing the broad development space of China's digital economy, China Mobile after returning to the local capital market is worth looking forward to. (outlook new era)