Beijing Sinnet Technology Co Ltd (GHXW) Rides the Wave of China’s AI and Cloud Computing Surge
Beijing Sinnet Technology Co Ltd (ticker: GHXW) has positioned itself at the crossroads of China’s rapidly expanding artificial‑intelligence (AI) and cloud‑computing ecosystems. The company’s broad portfolio—spanning internet data center (IDC), internet service provider (ISP) infrastructure, content delivery network (CDN), network security, and cloud hosting—has become increasingly relevant as domestic AI giants push the envelope of large‑model deployment.
1. Market Context: A Surge in AI‑Driven Capital Allocation
The past week has witnessed a pronounced acceleration in AI‑related capital outflows into the Chinese equities market. On February 10, the AI‑focused China AI ETF (512930) climbed nearly 1 %, while the China Artificial Intelligence Theme Index (930713) posted a double‑digit rally. Investors are re‑allocating resources into “算力” (compute‑power) and “算力租赁” (compute‑leasing) segments, driven by the rapid commercialization of large‑model technology.
The broader market reaction is evident in the Shanghai Composite and Shenzhen Composite, both of which advanced modestly on February 10. A notable outlier is the communication services sector, which, despite a net outflow of 108.98 billion CNY on February 11, saw individual names such as Sinnet Technology (GHXW) attract attention due to its extensive ISP and CDN offerings—critical components for delivering AI services at scale.
2. Why Sinnet’s Services Matter in the AI Ecosystem
Sinnet’s core competencies align tightly with the infrastructural demands of large‑model AI. The company operates a network of IDC facilities and optical‑fiber access points that serve as the backbone for:
- Content Delivery: The CDN services mitigate latency for AI‑intensive applications, ensuring swift data delivery to end users.
- Load Balancing & Network Security: These services are essential for safeguarding the integrity and availability of AI workloads.
- Cloud Hosting & Storage: Sinnet’s cloud solutions provide the scalable, high‑throughput compute environments required for training and inference.
Recent AI breakthroughs—such as Seedance 2.0 (video generation) and Seedream 5.0 Lite (image generation) from domestic tech firms—have underscored the need for robust, low‑latency networking. Sinnet’s infrastructure positions it to capture a share of the ensuing demand.
3. Financial Snapshot
| Metric | Value |
|---|---|
| Closing Price (2026‑02‑10) | 17.58 CNY |
| 52‑Week High | 24 CNY |
| 52‑Week Low | 12.13 CNY |
| Market Cap | 31,601,684,099 CNY |
| P/E Ratio | 189.59 |
The high price‑to‑earnings ratio reflects market expectations of significant revenue growth driven by AI and cloud expansion. With a market cap exceeding 31 billion CNY, Sinnet is a substantial player in China’s IT services landscape.
4. Recent Investor Activity
Despite a general withdrawal from the communication services sector, Sinnet has benefited from the 算力租赁 rally on February 10. The day’s heightened volatility saw several compute‑related stocks reach price limits, including Sinnet’s peers 光环新网 and 光速新网, both of which gained momentum. The sector’s performance suggests that investors are increasingly recognizing the strategic value of robust network infrastructures for AI workloads.
5. Outlook
With China’s AI policy framework actively encouraging the development of domestic large‑model capabilities, the demand for high‑performance, low‑latency networking is poised to grow. Sinnet’s diversified service offering—encompassing IDC, ISP, CDN, cloud hosting, and security—provides a strong foundation to capture this expanding market.
While the company’s current valuation indicates aggressive growth expectations, the alignment of its services with the national AI strategy positions Sinnet Technology to potentially capitalize on the next wave of digital transformation in China.
