Core Viewpoint - Shanghai's government has launched a comprehensive action plan to boost consumption, which is expected to positively impact the city's consumer market [1][2]. Group 1: Consumption Support Policies - The action plan outlines six major initiatives aimed at enhancing consumer spending, including income growth for residents, support for consumption capacity, upgrading service consumption, promoting large-scale consumption updates, fostering new consumption types, and improving the consumption environment [2][3]. - The plan emphasizes the cultivation of new consumption types, particularly through the integration of technologies like artificial intelligence and virtual reality, as well as expanding offerings for senior consumers and enhancing self-care consumption [2][3]. Group 2: Employment and Income Measures - The action plan includes measures related to employment, skills training, and income growth, addressing consumer confidence and reducing concerns about spending [3]. - These measures are expected to significantly boost local consumption by providing a safety net for consumers [3]. Group 3: Trade-in Policies - The plan promotes a "large-scale consumption update action," which includes expanding trade-in programs for consumer goods, particularly in the automotive sector, and implementing subsidies for vehicle replacements [4][5]. - The trade-in policies have shown positive results, with significant increases in automotive sales and consumer engagement in the trade-in programs [4][5]. - In 2024, the trade-in policies are projected to stimulate over 6.8 million vehicle exchanges, with an expected total vehicle sales of around 32 million in China [4]. Group 4: Home Appliances and Digital Products - The action plan also supports the home appliance sector through trade-in incentives, with optimistic projections for domestic sales in 2025 [5]. - The implementation of trade-in policies in Shanghai has resulted in substantial financial support, with over 1.8 billion yuan in subsidies leading to approximately 12 billion yuan in related product sales [5].

Core Viewpoint - The "Shanghai Consumption Promotion Action Plan" aims to enhance consumer demand and service quality through various initiatives, focusing on new consumption models and technological integration in the consumer sector [1][3][4]. Group 1: Action Plan Overview - The action plan consists of seven parts, including six major actions and a section on support policies, emphasizing demand-side, service-side, and environmental efforts [3]. - Key initiatives include enhancing service consumption, improving consumer capacity, and fostering new consumption types [3][4]. Group 2: Service Consumption Enhancement - Shanghai plans to develop a cultural consumption hub, promote tourism, and enhance the quality of life services through seven specific measures [4]. - The city aims to leverage its strong commercial foundation to boost its consumption market, which is already leading in market scale and innovation [4][5]. Group 3: New Consumption Models - The plan promotes "artificial intelligence + consumption," focusing on integrating advanced technologies like AI, virtual reality, and big data into the consumer landscape [6]. - New consumption trends include the rise of personalized and diversified service demands, with a growing interest in domestic brands and cultural products [5][6]. Group 4: Policy Coordination and Support - The action plan emphasizes policy coordination to enhance the effectiveness of consumption-related macro policies and support various consumption assistance initiatives [9]. - Specific measures include implementing a three-year action plan to optimize the consumption environment and enhance consumer rights protection [9][10]. Group 5: Investment and Economic Growth - The plan outlines five support policies aimed at strengthening investment in sectors like education, healthcare, and cultural tourism to stimulate domestic demand [10]. - The continuation of the "old-for-new" consumption policy is expected to further drive consumption growth and economic stability [9][10].

Group 1 - The core viewpoint of the news is the introduction of the "Shanghai Consumption Promotion Special Action Plan," which aims to enhance consumption's role in economic growth through six major actions, including expanding employment and implementing childcare subsidies [1][3] - The plan emphasizes the importance of consumption as a key driver of economic growth, linking macroeconomic factors with household spending [3] - Various regions, including Jiangsu, Zhejiang, and Anhui, are implementing measures to stimulate consumption, particularly through the "trade-in" policy for consumer goods, which has shown positive results in sales growth [4][6][7] Group 2 - The "trade-in" policy has been effective in driving consumption and accelerating the pace of consumer spending, with Jiangsu reporting a retail sales total of 15,991.9 billion yuan, a year-on-year increase of 5.5% [4][6] - Zhejiang's approach includes expanding the categories eligible for subsidies from 12 to 85, increasing subsidy rates, and involving over 18,000 businesses in the program [6] - The integration of "artificial intelligence + consumption" is highlighted as a new trend, with various regions promoting the application of advanced technologies in the consumer sector to stimulate new consumption patterns [8][10][11]

Core Viewpoint - The Shanghai Municipal Government has introduced a comprehensive "Consumption Promotion Action Plan" aimed at boosting consumer spending and enhancing the overall consumption environment in the city, aligning with national strategies to stimulate domestic demand and economic growth [1][5][10]. Group 1: Six Major Actions - The plan includes six major actions: increasing urban and rural residents' income, ensuring consumer capacity support, upgrading service consumption quality, renewing bulk consumption, cultivating new types of consumption, and enhancing the consumption environment [1][12]. Group 2: Urban and Rural Residents' Income Increase - The action plan emphasizes an employment-first strategy, enhancing skills training, and promoting reasonable income growth through targeted support for key sectors and small businesses [2][13]. Group 3: Consumer Capacity Support - Measures include increasing support for childbirth and childcare, optimizing elderly care services, and improving the social security system to enhance consumer capacity [2][15]. Group 4: Service Consumption Quality Upgrade - The plan aims to create a cultural consumption hub, develop a world-renowned tourism city, and promote the integration of cultural, tourism, and sports sectors to enhance service consumption quality [2][16]. Group 5: Bulk Consumption Renewal - Shanghai will implement initiatives for trade-in programs for consumer goods and better meet housing consumption needs through updated policies [3][17]. Group 6: New Type of Consumption Cultivation - The plan focuses on fostering cutting-edge digital consumption, including the development of "AI + consumption" scenarios and enhancing the supply for the aging population [3][18]. Group 7: Consumption Environment Enhancement - Key initiatives include strengthening consumer rights protection, optimizing consumption facilities, and creating a tourist-friendly city to improve the overall consumption environment [3][20]. Group 8: Support Policies - The action plan outlines the need for coordinated policies to support consumption, emphasizing the role of fiscal and financial measures in driving consumer spending [5][21].

Group 1 - The event "Shenzhen New Consumption Season Innovation Competition" and the first "Baoan Quality Products and Enterprises" list were launched in Baoan District, focusing on new consumption experiences and innovations [1][2] - The competition encourages shopping centers, chain brands, and platform enterprises to innovate in consumption practices, resulting in 18 outstanding cases being selected [1] - Notable selected cases include "Relax Life Festival" and "Limited Bread Community 5.0" from Baoan, as well as "Dream Island Forest" from Qianhai One Square [1] Group 2 - The first "Baoan Quality Products and Enterprises" list revealed 25 outstanding companies across five sectors: consumer goods, life services, commercial channels, wholesale and supply chain, and catering [2] - The list features global leaders like "Baoan Manufacturing" products, including folding bikes and ergonomic chairs, as well as well-known companies like SF Express and local brands like Jasmine Milk Tea [2]

Summary of Key Points from the Conference Call Industry Insights New Consumption Trends - **Driving Factors**: As of May 20, 2025, the stock price of Pop Mart in Hong Kong reached 208.2 HKD per share, with a market capitalization exceeding 280 billion HKD, marking a historical high. Emerging sectors like the "Guzi Economy" and "Pet Economy" are expected to drive investment upgrades in various industries [4][3]. Guzi Economy - **Market Growth**: The domestic market size is projected to reach 168.9 billion CNY in 2024, reflecting a 41% year-on-year growth, with expectations to surpass 200 billion CNY in 2025 [4][3]. - **Industry Distribution**: The industry is segmented into upstream (IP and content production), midstream (IP operation and dissemination), and downstream (retail of peripheral products) [4][3]. Beauty and Personal Care - **Market Dynamics**: Domestic beauty brands are increasingly capturing market share from Japanese and Korean brands, with the market size estimated at around 1 trillion CNY. The 618 shopping festival is anticipated to boost sales in this sector [5][5]. Pet Economy - **Market Size**: The domestic market is expected to reach 345.3 billion CNY in 2024, with segments including pet food (48%), pet medical services (27%), pet supplies (15%), and pet services (10%). By 2027, the pet consumption market for dogs and cats is projected to reach 404.2 billion CNY [7][6]. Amusement Economy - **Trends**: Theme parks like Shanghai Disneyland are becoming popular gathering spots for young people, with the Shanghai Lego Park set to open on July 5, 2025, becoming the largest Lego theme park globally [7][6]. Core Companies in Emerging Sectors Guzi Economy - **Key Players**: - **Mankalon**: Collaborating with the popular IP "Zhen Huan Zhuan" to launch a jewelry series. - **Chuangyuan Co.**: Partnering with card game operators for IP collaborations. - **Guangbo Co.**: Engaged in the full industry chain of the Guzi economy, collaborating with various well-known IPs [8][8]. Beauty and Personal Care - **Leading Companies**: - **Liren Liyang**: Acquired the VNK makeup brand and reported a Q1 2025 sales figure of approximately 30 million CNY on Douyin, a year-on-year increase of over 1034% [10][10]. Pet Economy - **Key Players**: - **Yuanfei Pet**: Focused on pet supplies and food production. - **Tianyuan Pet**: Collaborating with major pet food brands and covering over 50,000 pet stores through B2B platforms [12][12]. Amusement Economy - **Core Companies**: - **Huali Technology**: Leading in commercial amusement equipment, with exclusive IP rights for popular franchises [11][11]. Financial Highlights and Market Opportunities Xiaoma Zhixing - **Q1 2025 Financials**: Reported revenue of 12.3 million CNY from robotaxi services, a 200% year-on-year increase, with passenger revenue up 800%. The operational area has expanded to over 2,000 square kilometers, with expectations to grow the fleet to over 1,000 vehicles by year-end [13][13]. Market Potential for Robotaxi - **Profitability Outlook**: If robotaxi services capture 30% of the Chinese ride-hailing market, projected profits could reach approximately 15 billion CNY by 2025 [14][14]. Sports Consumption - **Market Growth**: The global weight management market is expected to reach 234 billion USD by 2025, with China accounting for 15% of this market [16][16]. Pharmaceutical Developments - **Sanofi Collaboration**: Sanofi has licensed overseas rights for SSGJ-707, with an upfront payment of 1.25 billion USD and potential milestone payments of 4.8 billion USD [20][20]. Market Trends in Food and Beverage - **Zunming Co.**: The company is capitalizing on the rising trend of low-sugar and low-calorie beverages, with corn juice sales exceeding 200,000 bottles in a week [25][25]. Additional Insights - **Regulatory Changes**: The recent amendments to the major asset restructuring management measures by the China Securities Regulatory Commission may lead to significant mergers and acquisitions in various sectors [26][26]. - **Emerging Technologies**: Companies like Dongtu Technology are advancing in the robotics sector, with a focus on reducing costs and energy consumption through innovative operating systems [40][40]. This summary encapsulates the key insights and developments across various industries, highlighting growth opportunities and potential risks for investors.

Core Viewpoint - The consumption market in central China is showing significant vitality, driven by various factors including government policies aimed at boosting consumption and the popularity of cultural tourism [2][3]. Group 1: Consumption Trends in Central Cities - Wuhan leads the central region with a retail sales total exceeding 200 billion yuan in Q1 2025, while Zhengzhou, Hefei, and Changsha also surpass 100 billion yuan [5]. - The overall retail sales growth in central cities outpaced the national average, with eight out of eleven cities achieving higher growth rates [5]. - The "old-for-new" consumption policy has significantly boosted sales in various categories, with notable increases in electronics and home appliances [8][13]. Group 2: Cultural Tourism Impact - Cultural tourism has become a major driver of consumption, with cities like Wuhan, Changsha, and Luoyang seeing substantial increases in tourist numbers and spending [9][15]. - During the Spring Festival, Changsha received nearly 950,000 visitors, marking a 26% increase in tourist spending [9]. - Luoyang's tourism revenue reached 6.515 billion yuan during the "May Day" holiday, reflecting a 9.37% year-on-year growth [15]. Group 3: E-commerce and New Consumption Models - Online sales have surged, with cities like Zhengzhou and Hefei reporting significant growth in e-commerce retail [9][12]. - The rise of new consumption models, including live-streaming and short video commerce, has diversified the supply of goods available to consumers [9][12]. Group 4: Policy Initiatives and Economic Goals - Central provinces have implemented policies to stimulate consumption, with cities like Wuhan and Zhengzhou aiming to become international consumption centers [12][13]. - The focus on service consumption and the integration of cultural and commercial activities are key strategies for enhancing local economies [14][15]. - The "first-store economy" is being promoted, with financial incentives for brands to establish their first outlets in these cities [16][17].

Group 1 - The Chinese consumer market is showing strong vitality with a 6.3% year-on-year increase in sales for key retail and catering enterprises during the "May Day" holiday [1] - In the first quarter, the total retail sales of consumer goods increased by 4.6% year-on-year, contributing 51.7% to China's economic growth [1] - The emergence of new consumer groups and business models is revitalizing the Chinese market, attracting global enterprises to seek growth opportunities [1] Group 2 - The Hong Kong stock market saw significant gains in consumer sectors such as automobiles, national trend clothing, consumer electronics, gold jewelry, and food and beverages [1] - Notable stock performances include Smoore International rising over 8%, and several other companies like Bosideng, Leap Motor, and Wan Zhou International increasing by over 4% [1] - The Hong Kong Consumption ETF (159735) recorded a trading volume of 142 million yuan over the past 20 trading days, ranking first among its index [1] Group 3 - The Hong Kong Consumption ETF (159735) tracks the Hong Kong Consumption Index, which has a higher proportion of new consumption categories compared to A-shares, including e-commerce, consumer electronics, new energy vehicles, and cultural entertainment [2] - The introduction of the "Special Action Plan to Boost Consumption" indicates a systematic push from the policy level to enhance consumer capacity, focusing on income growth, employment stability, and housing support [2] - Adjustments to minimum wage standards are moving towards a more regularized approach, with increases in regions like Guangdong and Xinjiang ranging from 6.8% to 8.9%, which is expected to boost consumer confidence [2]

2025 年 05 月 13 日 证券研究报告 | 金融工程周报 关税下调之后，市场分歧仍存 市场环境因子跟踪周报（2025.05.09） 分析师：柏逸凡 分析师登记编码：S0890524100001 电话：021-20321081 邮箱：baiyifan@cnhbstock.com 分析师登记编码：S0890522110001 电话：021-20321297 邮箱：chengbingzhe@cnhbstock.com 021-20515355 相关研究报告 向 — 市 场 环 境 因 子 跟 踪 周 报 （2025.04.30）》2025-05-07 2、《关税问题反复，大盘延续稳健—市场 中 观 因 子 跟 踪 周 报 （ 2025.04.27 ）》 2025-04-29 3、《市场进入降波阶段，风格稳定性上升 —量化数据看板跟踪周报（2025.04.20）》 2025-04-23 风 险 特 征 解 析 — 量 化 策 略 视 点 》 2024-12-17 投资要点 报告统计时间为 2025.05.05-2025.05.09。 分析师：程秉哲 静观其变，谋而后动。关税下调之后，可适度控制仓位，静观其变， ...

Group 1 - The People's Bank of China emphasizes the importance of boosting consumption to stabilize growth and expand domestic demand, with financial institutions encouraged to meet diverse funding needs [1] - A new initiative has been launched to establish a 500 billion yuan service consumption and elderly care relending program, aimed at increasing financial support for key service sectors [2] - The report highlights the need for a comprehensive approach to reduce overall financing costs and enhance the supply capacity of consumer finance institutions [1][3] Group 2 - There is a growing focus on supporting improved and new types of consumption, as traditional consumption growth faces challenges due to market saturation [3] - The government aims to guide financial institutions in optimizing credit products and providing differentiated services to support service consumption and new consumption models [3][4] - A systemic approach to financial support for consumption is necessary to avoid fragmented policies, with a call for coordinated efforts from the central bank and fiscal departments [4][5]