CGS(SH:601881) Jin Rong Jie·2025-04-09 08:01Market Performance - The A-share market opened lower but closed higher, with the Shanghai Composite Index and Shenzhen Component Index both rising over 1%, while the Sci-Tech Innovation 50 Index surged by 4.31% and the North Exchange 50 Index skyrocketed by 10.27% [1][2] Economic Insights - China has significant policy reserve space compared to the U.S., which has engaged in excessive fiscal expansion in recent years. China's stable policy approach allows for adequate response capacity to current economic challenges [3] - Recent measures in China, such as the promotion of new real estate development models and the resolution of local government hidden debts, have contributed to a more stable and healthy economic development [3] - China's relatively low price levels compared to the U.S. provide room for further fiscal policy expansion without being heavily constrained by inflation [3] - The potential for consumer spending in China is substantial, with strategies focused on "investing in people" aimed at making consumption a key driver of economic growth [3] Policy Measures - The probability of increased domestic demand focus in the upcoming April Politburo meeting is high, with potential tools amounting to approximately 1.5 to 2 trillion yuan [4] - Future fiscal policies may further enhance domestic demand to counteract the negative impact of exports, with new measures potentially reaching 1.5 to 2 trillion yuan [4] - The People's Bank of China is expected to adopt a more accommodative monetary policy, with comprehensive cuts in reserve requirements and interest rates anticipated in the second quarter [4] - The central bank has already established tools to stabilize capital markets, akin to a "stabilization fund," to maintain the smooth operation of capital markets [4]