Bank of China Securities·2026-03-08 23:47Core Insights - The report emphasizes the importance of expanding domestic demand and enhancing quality in economic development, with a GDP growth target set at 4.5%-5% for 2026, down from around 5% in 2025 [7][35] - The government aims to implement more proactive fiscal policies, including a deficit target of 4% and an increase in special bonds to support infrastructure and investment projects [20][36] - The focus on new industries and future industries is highlighted, with specific mention of sectors such as integrated circuits, aerospace, biomedicine, and future energy [19][24] Industry Performance - The report indicates that the basic chemical industry is expected to benefit from government support for traditional industry upgrades and new material development, with a focus on enhancing competitiveness [12][16] - The machinery and equipment sector is projected to see increased demand due to ongoing large-scale equipment updates and infrastructure investments [18][20] - The electric power equipment industry is highlighted for its potential in future energy investments, particularly in hydrogen and fusion energy, marking a strategic shift towards green fuels [24][25] Investment Recommendations - The report suggests investing in traditional chemical leaders that are enhancing their competitiveness and exploring new materials, as well as sectors benefiting from the "anti-involution" trend, such as refining and pesticides [16][22] - For the machinery sector, companies involved in core components for humanoid robots and commercial aerospace are recommended, as these areas are expected to see significant growth [22][19] - In the green energy sector, companies involved in hydrogen and green fuel production are highlighted as key investment opportunities, especially with the anticipated acceleration of industrialization in 2026 [27][25]