Investment Logic of Institutional Funds' Concentrated Buying in the Communication Sector and Analysis of Sector Rotation

Based on the January 15, 2026 Dragon and Tiger List data and market information, I conducted a systematic analysis of the investment logic behind institutional funds’ concentrated buying in the communication sector and the sustainability of sector rotation.

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On January 15, 2026, Dragon and Tiger List data shows that institutions made net purchases of 24 stocks and net sales of 31 stocks on the day.

[1]:

Stock	Ticker	Net Institutional Purchase (CNY 100 million)	Daily Price Change	5-Day Price Change
China Satellite Communications Co., Ltd.	601698.SS	5.85	-9.99%	-12.73%
Provincial Media Group Co., Ltd.	002400.SZ	4.94	-7.31%	+35.74%
Sunwave Communications Co., Ltd.	002115.SZ	2.79	-0.26%	+46.15%

• The 15th Five-Year Plan has for the first time incorporated “Aerospace Power” into national strategic goals, and the satellite industry, as the core carrier of the space-air economy, has been clearly identified as a core grasp for cultivating new-quality productive forces[2]
• In December 2025, China applied to the International Telecommunication Union (ITU) for
  over 200,000 satellites
  of frequency-orbit resources, covering 14 satellite constellations, and the application for frequency-orbit resources has risen to the national strategic level[2]
• The Action Plan for Promoting High-Quality and Safe Development of Commercial Aerospace (2025–2027) proposes key measures such as opening national-level scientific research facilities and establishing special guidance funds[2]

• As of November 2025, the global aerospace industry has entered the “Weekly Launch Era”, with an average of more than 26 launches per month[2]
• The scale of China’s commercial aerospace industry reached
  2.5-2.8 trillion yuan
  in 2025, with a compound annual growth rate (CAGR) of over 20%[2]
• Satellite communication is the technical foundation of 6G communication, and also provides necessary basic support for autonomous driving, low-altitude economy, Internet of Things (IoT), and space computing power[2]

• The total scale of satellite industry-related ETFs and linked products has
  exceeded 11 billion yuan
  , a substantial increase of over 140% compared to 4.491 billion yuan at the end of November 2025[2]
• Institutions have increased positions in AI application concept stocks countercyclically, with Provincial Media Group Co., Ltd. (AI applications + communication) and Sunwave Communications Co., Ltd. (satellite communication + AI applications) continuing to be sought after by capital[1]

• All three stocks have seen price increases of over 40% in the past year, with Sunwave Communications Co., Ltd. up 158.12% and China Satellite Communications Co., Ltd. up 101.44%[3]
• Although a correction occurred on the day, institutional funds have shown the characteristic of countercyclical buying (buying more as prices fall), indicating long-term optimistic intentions

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• Business Positioning
  : Satellite communication operation service provider, core beneficiary of satellite Internet construction
• Financial Characteristics
  : Current PE is as high as 639.75x, PB is 10.46x, in a high valuation state[3]
• Capital Behavior
  : Despite a nearly 10% drop on the day, it still received 585 million yuan in net institutional purchases, indicating active position building by institutions during the correction
• Risk Warning
  : Excessive short-term price increase, pressure from profit-taking

• Business Positioning
  : Dual main businesses of advertising media + AI applications, beneficiary of AI commercialization implementation
• Financial Characteristics
  : PE 210.92x, PB 4.47x, net profit margin only 0.49%[3]
• Capital Behavior
  : Corrected after 4 consecutive daily limit-ups, but institutions bought 494 million yuan countercyclically, catalyzed by Google’s cooperation with global top retailers[1]
• Investment Highlights
  : The AI application track continues to receive capital attention, with accelerated commercialization progress

• Business Positioning
  : Telecommunications equipment manufacturing + Internet advertising media + satellite communication
• Financial Characteristics
  : Currently loss-making (negative PE), but up 126.95% in 6 months and 158.12% in 1 year[3]
• Capital Behavior
  : Hit a record intraday high, still received 279 million yuan in institutional purchases on the day, with continuous inflow of main capital[1]
• Investment Highlights
  : Although satellite communication business accounts for only 2.12% of total revenue, it has thematic scarcity

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Dimension	Rating (1-10)	Analysis
Policy Support Intensity	9	National strategic level support, perfect top-level design
Industrial Prosperity	8.5	Industry scale of 2.5-2.8 trillion yuan, annual growth rate of over 20%
Capital Attention	9	ETF scale exceeds 11 billion yuan, continuous institutional buying
Technological Catalysis	8	6G, direct satellite connection from mobile phones, space data centers, etc.

Dimension	Rating (1-10)	Analysis
Valuation Rationality	3.5	The price-to-earnings ratios of the three stocks are generally over 100x, with high valuations
Short-Term Correction Pressure	6.5	The communication services sector fell 0.43% on the day, with short-term sentiment differentiation

: ⚠️

• Excessive short-term price gains, demand for profit-taking
• Severe internal differentiation within the sector, obvious correction pressure on stocks with large previous gains
• The commercial aerospace concept was hit hard on the day, with Goldwind Science & Technology hitting the daily limit down, indicating sentiment fluctuations[1]

: ✅

• Period of intensive policy catalysis, with intensive event catalysis for the commercial aerospace sector in 2026
• Satellite launches have entered a normalized stage, with substantial acceleration
• Continuous inflow of industrial capital and government funds, supporting sector valuations

: ✅

• The satellite industry is the core infrastructure of 6G and the space-air economy
• Continuous expansion of industry scale, with a compound annual growth rate of over 20%
• The general trend of domestic substitution and independent controllability is irreversible

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1. Layout on Corrections
   : Institutions are buying countercyclically during corrections; you can gradually build positions when the stock price pulls back to the 20-day/50-day moving average
2. Focus on Segment Leaders
   : China Satellite Communications Co., Ltd. (satellite operation) and Sunwave Communications Co., Ltd. (dual-drive of equipment + satellite) are representative of the industry
3. Diversified Allocation
   : Avoid over-concentration in a single target; you can allocate satellite industry ETFs to diversify risks

1. Valuation Risk
   : The price-to-earnings ratios of the three stocks are generally over 100x; if performance falls short of expectations, they will face valuation corrections
2. Market Sentiment Risk
   : Thematic stocks are highly volatile; stop-loss levels should be set to control drawdowns
3. Policy Implementation Risk
   : The development progress of commercial aerospace may fall short of expectations
4. Technological Iteration Risk
   : There is uncertainty in the satellite technology route

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The concentrated buying of the communication sector by institutional funds is not short-term speculation, but a

. Although there has been a correction in the short term due to excessive price gains, policy support is unprecedented, industrial prosperity continues to rise, and capital attention is high, so the . It is recommended that investors , focusing on segment leaders with core competitiveness.

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Chart Description: Historical performance of the three institutional heavyweight stocks in the communication sector, institutional capital movements, investment logic framework, and sustainability assessment of sector rotation

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[1] Cailianshe - “Data Market Watch: Top Hot Money Flees Goldwind Science & Technology Collectively, Institutions Increase Positions in AI Application Concept Stocks Countercyclically” (https://finance.sina.com.cn/roll/2026-01-15/doc-inhhkrvp7599339.shtml)

[2] Securities Times Network - “China Files Application for Over 200,000 New Satellites! Global Aerospace Has Entered the ‘Weekly Launch Era’” (https://www.stcn.com/article/detail/3568630.html)

[3] Jinling API Market Data - Company Profiles and Price Performance of 601698.SS, 002400.SZ, 002115.SZ