《关于完善价格治理机制的意见》出台，公用事业市场化改革持续推进

Investment Rating - The industry investment rating is "Positive" and maintained [9] Core Viewpoints - The issuance of the "Opinions on Improving the Price Governance Mechanism" by the Central Committee and the State Council aims to enhance the sustainable development price mechanism for public utilities, including water prices, waste treatment fees, natural gas, and heating. This market-oriented reform in public utilities is expected to benefit the profitability and cash flow of related companies, indicating a valuation recovery logic. The report is optimistic about high-quality targets in the waste incineration, water, and gas sectors [2][12] Summary by Sections Policy Background - The report outlines the background of the policy, highlighting that since 2015, significant progress has been made in price reform, with 97.5% of goods and services prices determined by the market. The average annual CPI increase has stabilized at 1.6%. The need for a more responsive price signal in a high-level socialist market economy is emphasized, along with the necessity to ensure stable prices for public utilities and services [12] Price Mechanism Improvements - The report details improvements in the price mechanism for sustainable development in public utilities, including: 1. Water prices: Optimization of residential tiered water pricing and implementation of progressive pricing for non-residential water usage. 2. Waste treatment fees: Introduction of metered waste treatment fees. 3. Natural gas: Deepening market-oriented reforms in natural gas pricing and enhancing price regulation in pipeline transportation. 4. Heating: Reforming urban heating pricing. 5. Carbon market and green certificates: Improving carbon pricing mechanisms and exploring supportive pricing policies for carbon reduction [12] Market Opportunities - The ongoing market-oriented reform in public utilities is expected to drive valuation recovery in related industries. Specific opportunities include: 1. Water sector: Price adjustments in major cities are expected to enhance the profitability of water companies. 2. Waste incineration: Collaboration with data centers and the expansion of carbon market quotas are anticipated to improve cash flow for waste incineration companies. 3. Gas sector: The implementation of price linkage is expected to enhance the profit margins of urban gas companies [12]