SCS(SH:601555) Ge Long Hui A P P·2025-11-04 06:41Core Viewpoint - The recovery of prices is crucial for economic growth and the capital market, supported by favorable conditions in consumption demand, monetary liquidity, and exchange rates [1] Group 1: Consumption Demand - Long-term demographic, industrial, and fiscal transformations are expected to enhance residents' income [1] - The simultaneous movement of the population peak and consumption peak over the next decade suggests a more optimistic total consumption outlook [1] Group 2: Monetary Liquidity - The central bank's initiation of government bond trading and the fiscal policy of "debt conversion" are facilitating the transfer of fiscal deposits to residents and enterprises [1] - The significant rebound in M1 growth over the past year is anticipated to drive a rebound in PPI [1] Group 3: Exchange Rates - The RMB is likely to enter a new appreciation cycle, benefiting from a solid export base, the return of foreign capital to RMB financial assets, and early signs of a long-term weakening of the US dollar [1]