Policy Signals Focus on “Increments” During Two Sessions: Huachuang Securities
Policy signals were intensively released during the two sessions, with a focus on “incremental” information in five major aspects, according to a research report from Huachuang Securities.
The first major aspect highlighted in the report is the general tone set by senior management, which emphasizes demands for stable growth. The general secretary’s attitude has shifted from caution to urgency, signaling a change in approach to economic development.
Fiscal and monetary policies are another key focus, aimed at both protection and suppression. Measures such as ultra-long-term special government bonds and localized debt management are part of the strategy to navigate economic challenges.
The capital market is also in the spotlight, with an emphasis on strong supervision to ensure stability and growth. Efforts to attract long-term funds and increase dividends are part of the plan.
The digital economy is identified as a key area for industrial policy, with support for sectors such as artificial intelligence and digital infrastructure. Other industries, such as innovative drugs and hydrogen energy, are also receiving attention.
Lastly, reforms are a priority, with a focus on state-owned enterprises, financial systems, fiscal and taxation systems, market reforms, and income distribution. This comprehensive approach aims to address structural issues and drive sustainable growth.
Recent policy developments, such as large-scale equipment upgrades and trade-ins, industrial development initiatives, real estate market regulations, and efforts to stabilize foreign investment, are evidence of the government’s commitment to driving economic growth and reform.
Overall, Huachuang Securities sees a clear commitment to incremental change and comprehensive reforms in China’s economic policies, signaling a proactive approach to managing challenges and fostering long-term growth.