GUOTAI HAITONG SECURITIES·2025-08-13 05:28Investment Rating - The report assigns an "Overweight" rating for the industry, indicating an expected performance that exceeds the Shanghai and Shenzhen 300 Index by more than 15% [4][11]. Core Insights - The implementation of the "Personal Consumption Loan Interest Subsidy Policy" is expected to enhance consumer demand and improve the consumption finance and insurance sectors. The subsidy reflects a downward trend in interest rates, which may be lower than anticipated [2][4]. Summary by Sections Policy Overview - The policy aims to stimulate consumption and expand domestic demand by providing interest subsidies for eligible personal consumption loans. The subsidy is set at 1 percentage point and applies to key consumption areas such as household vehicles and general consumption below 50,000 yuan [4]. Implementation Details - The policy will be effective from September 1, 2025, to August 31, 2026. It covers two categories of consumption: general consumption below 50,000 yuan and key consumption of 50,000 yuan and above, with a maximum subsidy of 3,000 yuan per individual [4]. Impact on Financial Institutions - The subsidy is expected to stimulate demand for consumer credit, benefiting consumer finance companies directly. It will lower borrowing costs for consumers, potentially leading to an expansion in the scale of consumer loans and an increase in business volume and revenue for consumer finance institutions [4]. Recommendations - The report recommends investing in leading companies in the automotive finance sector, such as Yixin Group, which is well-positioned to benefit from the policy's support for household vehicle consumption. Additionally, it suggests insurance sector stocks like New China Life Insurance and China Life Insurance due to improved interest rate expectations [4][5].