分析师杨成：中国5G产业和企业投资

This case describes the activities of Private Equity Analyst Yang Cheng on the day of February 15, 2018, as he compiles an investment analysis report and recommended investment opportunities to investment managers for the telecommunications industry over the next year. Yang Cheng regards 5G as a key new business, believing that the technological changes brought by 5G will lead to more disruptive applications. China has made the 5G industry part of its national strategy. However, there are many uncertainties in the current investments of the 5G industry. First, it is not yet settled that 5G will be the standard, and all countries in the world are actively developing 5G core technology in order to take the lead. A wrong bet on the winning standard could mean disaster. Second, the communication industry has a clear cycle: although 4G has already peaked, 5G is still in its early stages. Investing prematurely runs the risk that companies cannot deliver the required performance in time. Third, 5G is a strategic technology related to national security for all countries. In the changing international political situation, ZTE and other Telecom companies could be banned from foreign markets. At this point, if you were in Yang Cheng's shoes, would you recommend China 5G industry sector and ZTE to the investment manager of the fund? Why? If you suggest investing, how should the above risks be managed?