The global quantum technology race is witnessing unprecedented momentum,signaling a significant shift in the competitive landscape of the tech industry.This evolution is highlighted by recent developments in the stock market,particularly with companies linked to the social media platform Xiaohongshu (Little Red Book),which has been making headlines for its soaring popularity and expanding reach.

On January 16,shares of various Xiaohongshu-related companies surged,with prominent names like Yiwan Yichuang,Tianxia Xiu,and Yaowang Technology all experiencing a three-day consecutive stock price increase.Other companies such as Laiyifen and Haoxiangni enjoyed a remarkable six-day price run-up.This trend indicates a growing interest in Xiaohongshu's potential as a profitable platform for e-commerce and advertising,especially as TikTok users begin to migrate over to Xiaohongshu.Analysts have suggested that this user migration will broaden the commercial avenues for the platform,enabling it to realize its internationalization objectives more rapidly.

Several A-share listed companies,including Geelis and Aimer,have recently announced their plans to establish stores and accounts on Xiaohongshu or promote their products through the platform.This strategic move reflects a broader commitment among businesses to tap into the emerging market for influencer marketing and product promotion that Xiaohongshu offers.Zheshang Securities has pointed out that we are currently in the early phases of Xiaohongshu's expansion into international markets,with the primary beneficiaries likely to be advertising agencies and e-commerce operators.

The platform is currently experiencing a significant surge in user traffic,as evidenced by its recent ascent to the top of the download charts in multiple countries' App Store rankings since January 14.On January 16,social media users reported widespread issues accessing Xiaohongshu,driving the topic to the top of Weibo's trending searches.This phenomenon underscores the growing cultural significance of the platform in China's digital ecosystem.

Adding to the excitement,reports have surfaced regarding negotiations involving Xiaohongshu's major shareholders who are considering partial sales of their stakes,with estimates placing the company's valuation at a staggering $20 billion.Notable investors such as GGV Capital,GSR Ventures,and Tiantu Capital are engaged in these discussions,with interest also coming from existing shareholders like Sequoia Capital China and Hillhouse Capital,as well as tech giant Tencent,which is contemplating an increase in its share holdings.

Overall,the escalating enthusiasm surrounding Xiaohongshu is seen as a precursor to a new wave of investment opportunities in the social media sector,potentially leading the charge in an evolving landscape.

In parallel with developments in the social media realm,the tech industry is poised for another significant breakthrough with the announcement of "Quantum Day" by Nvidia,set for March 20 of this year.Announced on January 16,this initiative aims to boost collaboration with partners to advance the development of quantum computing technology.Nvidia's CEO,Jensen Huang,is slated to engage with top executives from leading quantum technology companies during the event to discuss the present state and future potential of quantum technologies.

Concurrently,Microsoft is providing a glimpse into the future,with its SMT division expressing optimism about the imminent arrival of reliable quantum computing systems.Google has also made headlines by launching its latest quantum chip,Willow,claiming it has successfully addressed a critical challenge that has bedeviled the field of quantum technology for nearly three decades.As these tech giants ramp up their efforts,it becomes evident that the global quantum technology race is garnering urgency.

In an analysis of patent filings for quantum computers,China appears to be leading the way with an impressive total of 3,217 patents by 2024,surpassing the United States,which has 2,740 patents.This is indicative of China's commitment to pioneering advancements in quantum technology.Notably,China Telecom's Quantum Group has developed the Tianyan-504,a superconducting quantum computer boasting the highest qubit count in China,further cementing the country's place in this technological landscape.

Additionally,the Tianyan cloud platform is witnessing a dual upgrade in terms of computing capabilities,offering world-class performance through five types of advanced simulation machines and a quantum programming framework,Cqlib.The Chinese University of Science and Technology has developed the "Jiuzhang" optical quantum computing prototype,along with the "Zuchongzhi" series of superconducting quantum computing prototypes,showcasing China's ongoing quest for "quantum supremacy." In January of last year,the company Benyuan Quantum launched its third-generation superconducting quantum computer,"Benyuan Wukong," which became operational and was made available for free to global users for a limited time,showcasing a production localization rate of over 80%.

The outlook for the quantum industry appears highly promising.Since September 24 of the previous year,stocks in the quantum technology sector have experienced an average increase of nearly 52%.For instance,stocks like Airoon Software and Hexin Instruments have seen gains of 568.18% and 233.5%,respectively,with Hexin's stock price surging due to its acquisition of a quantum technology company.The company aims to challenge competitors in the quantum field by merging with a leading quantum computing laboratory in China.

Recent trends show that while many stocks experienced a pullback this month,a few such as Xingguang Co.,Airoon Software,Bichuang Technology,and Guangdian Measurement still posted gains exceeding 10%.Currently,nine companies within the quantum sector have released guidance for performance in 2024,with two companies anticipating earnings growth.Tengjing Technology estimates a net profit of between 63 million to 75 million yuan,representing a year-on-year growth of 51.24% to 80.05%,while Guangdian Measurement predicts a net profit in the range of 300 million to 360 million yuan,also reflecting significant growth.

Market analysts forecast that by 2030,the global quantum industry could reach a market size of $239.1 billion,with segments in quantum computing,communication,and measurement expected to grow to $215.5 billion,$19.7 billion,and $3.87 billion,respectively.Furthermore,the consulting firm CCID expects that the scale of China's quantum computing industry will reach 11.56 billion yuan by 2025,with continued strong growth anticipated.

Given the wide-ranging prospects of the quantum market,the growth potential for several stocks appears promising as well.Consensus projections from various institutions indicate that there are 17 stocks expected to experience net profit growth rates exceeding 20% in the coming two years.Among them,companies like iFlytek,Puyuan Precision Electric,Sanwei Security,Guangku Technology,and China Great Wall are predicted to see net profit growth rates surpassing 30%.