Core Viewpoint - The "Two New" policy continues to show effects, with the specialized equipment industry experiencing a profit increase of 13.2% year-on-year in the first four months of the year [1] Group 1: Policy Impact - The implementation of ultra-long-term special bond funds has effectively supported the "Two New" policy, leading to significant growth in specialized and general equipment industries [1] - The specialized equipment and general equipment industries' profits increased by 13.2% and 11.7% respectively, contributing to a 0.9 percentage point increase in industrial profits above designated size [1] Group 2: Sector Performance - The electronic and electrical machinery specialized equipment manufacturing sector saw a remarkable profit growth of 69.8% [1] - The general component manufacturing sector experienced a profit increase of 24.7% [1] - The mining, metallurgy, and construction specialized equipment manufacturing sector reported a profit growth of 18.3% [1] Group 3: Consumer Goods Sector - The effects of the consumption upgrade policy are evident, with significant profit increases in various consumer goods sectors [1] - The manufacturing of specialized parts for household electrical appliances, kitchen appliances, and non-electric household appliances saw profit growths of 17.2%, 17.1%, and 15.1% respectively [1]

Core Viewpoint - The "Two New" policy is crucial for boosting consumption, expanding domestic demand, and strengthening the domestic circulation, showing significant multiplier effects since its full implementation in 2024 [1][22]. Group 1: Impact on Consumer Behavior - The "Two New" policy has effectively enhanced consumer vitality, with reports of a 50% increase in foot traffic and a 60% rise in sales at a JD Super Experience Store in Chongqing compared to the previous year [3]. - High-tech and energy-efficient products are increasingly favored, with AI smart products seeing a threefold increase in sales in Henan province due to government subsidies [5][13]. - The "old-for-new" subsidy policy has made it easier for consumers to upgrade their appliances, with over 55 million units of home appliances and 41 million digital products sold under this initiative [13]. Group 2: Economic Growth and Investment - In the first four months, investment in equipment and tools rose by 18.2%, contributing 64.5% to overall investment growth, with related sectors like computer manufacturing and consumer goods seeing significant increases [15]. - The upgrade of production lines in companies like Yili and Zhejiang Chaowei has improved production efficiency and reduced labor costs, enhancing the overall competitiveness of the industry [17][20]. - The "Two New" policy is seen as a driver for economic transformation, creating a closed loop of investment, production, and consumption, which is essential for long-term competitiveness [22].

Core Viewpoint - The Chinese machinery industry has shown stable growth in production and investment during the first four months of the year, with significant increases in various sectors [1] Production Growth - The value added in five major sectors of the machinery industry has maintained a growth trend year-on-year: - General equipment manufacturing increased by 9% - Specialized equipment manufacturing grew by 4% - Automobile manufacturing rose by 11.2% - Electrical machinery and equipment manufacturing increased by 12.7% - Instrumentation manufacturing grew by 9.2% [1] Investment Trends - Fixed asset investment in the machinery industry showed varied results: - General equipment manufacturing investment increased by 17.9% - Specialized equipment manufacturing investment grew by 8.4% - Automobile manufacturing investment surged by 23.6% - Electrical machinery and equipment investment decreased by 7.5% - Instrumentation manufacturing investment fell by 15.1% [1] Production of Key Products - The cumulative production of representative products in the machinery industry has shown strong growth: - Metal cutting machine tools reached a cumulative production of 260,000 units, up by 16.8% - Industrial robots reached a cumulative production of 221,000 sets, up by 34.1% [1] Policy Impact - The macro policy combination effect continues to release, maintaining rapid growth in production supply. The "Two New" policy and industrial upgrades are driving sustained growth in the equipment manufacturing sector. The effects of the consumer goods replacement policy are steadily expanding domestic demand [1]

Group 1 - The Ministry of Commerce reported that as of May 11, 2025, the number of applications for the vehicle trade-in subsidy reached 3.225 million, with 1.035 million for scrapping and 2.19 million for replacement [1] - Since the implementation of the vehicle trade-in policy in 2024, the cumulative number of subsidy applications has exceeded 10 million [1] - Local governments are enhancing the "two new" policies to optimize processes and upgrade services, stimulating market activity and providing consumers with more benefits [1] Group 2 - In Hunan, the 2025 "two new" implementation plan has been adjusted to expand categories and lower thresholds, resulting in over 4.58 million applications for consumer goods trade-in subsidies, with a total subsidy amount of 3.947 billion yuan, driving sales exceeding 30.6 billion yuan [1] - In Xi'an, a new financial product called "National Subsidy Loan" has been launched, offering high credit limits and low interest rates to merchants applying for national subsidies, with an initial special quota of 2 billion yuan planned for this year [1] - Gansu has established a comprehensive subsidy area on its mobile government platform, achieving an average daily application volume of 10,000 since the beginning of the year, with daily sales exceeding 90 million yuan [1] Group 3 - In Sichuan, the vehicle trade-in program has surpassed 170,000 units, driving over 30 billion yuan in automotive consumption [2] - In Deyang, a combination of government subsidies and corporate discounts has led to the issuance of 20 million yuan in automotive consumption vouchers [2] - Anhui is implementing a "one-stop" application process for consumer goods trade-in subsidies, with over 12,000 participating merchants and 23,000 stores, of which approximately 51% are county-level merchants [2] Group 4 - Hebei has issued a subsidy implementation plan for scrapping old operating trucks, with a maximum subsidy of 140,000 yuan per vehicle based on vehicle type and scrapping time [2] - Chongqing is optimizing its manufacturing industry technology transformation loan policy, expanding interest subsidy support and lowering investment thresholds, with plans to implement over 1,500 technology transformation projects this year [2]

Group 1 - Xiamen Huaxia International Power Development Co., Ltd. is advancing the construction of its 5th unit, a 660,000 kW ultra-supercritical reheat steam turbine generator, to replace aging coal-fired units 1 and 2, which will transition to emergency backup status [1] - The new unit is expected to reduce coal consumption by approximately 17%, saving about 139,000 tons of standard coal annually and decreasing carbon dioxide emissions by around 361,000 tons [1] - The project is supported by favorable financing conditions, significantly alleviating the financial burden of equipment upgrades for Huaxia Power [1] Group 2 - The China Development Bank (CDB) Xiamen Branch is actively utilizing the People's Bank of China's re-lending policy to provide preferential credit support for technology innovation and equipment upgrades, facilitating a smoother transition for enterprises [2] - Since the implementation of the large-scale equipment update policy in March 2022, CDB has issued over 50 billion yuan in special loans to support advanced equipment production and capacity construction [2] Group 3 - The CDB Tianjin Branch is supporting Sinopec's Tianjin Nangang 1.2 million tons/year ethylene project, which aims to achieve full localization of key equipment and enhance the production capacity of high-end new materials [3] - The project is expected to increase the ethylene production capacity at the Tianjin base to 2.5 million tons/year upon completion in November 2024, significantly benefiting the downstream industry [3] Group 4 - Nanjing Process Equipment Manufacturing Co., Ltd. is advancing the industrial application of high-end manufacturing equipment, focusing on upgrading rolling functional components essential for CNC machine tools [4] - The CDB Jiangsu Branch is providing financial support to enhance the intelligence and efficiency of production lines, with an expected capacity increase of over 100% [4] - CDB plans to continue strengthening financing support for technology upgrades and equipment renewal to promote high-end, intelligent, and green development in the industry [4]

Core Viewpoint - The National Development and Reform Commission (NDRC) emphasizes the implementation of the Private Economy Promotion Law and outlines various measures to stabilize foreign investment, enhance economic growth, and optimize the business environment in response to complex external conditions [1][3]. Economic Performance - In the first four months of the year, China's total retail sales of consumer goods reached 16.2 trillion yuan, a year-on-year increase of 4.7%, indicating a stable growth in consumption and investment despite external pressures [3]. - The retail sales of home appliances, cultural and office supplies, furniture, and communication equipment saw significant year-on-year growth rates of 38.8%, 33.5%, 26.9%, and 19.9% respectively in April [28]. Two Major Construction Projects - The "Two Major" construction projects focus on critical areas such as technological self-reliance, urban-rural integration, regional coordinated development, and food security, aiming to address long-standing issues that require central government intervention [7][28]. Foreign Investment Stability - The NDRC is committed to creating a stable environment for foreign investment, emphasizing that policies to attract foreign capital remain unchanged despite global uncertainties [9]. Artificial Intelligence Integration - The NDRC highlights the role of artificial intelligence in transforming various industries, with examples showing significant improvements in production efficiency and cost reductions, such as a 30% increase in product quality and a 70% decrease in R&D costs [11]. Market Access Barrier Removal - The NDRC, in collaboration with other departments, has initiated actions to clear market access barriers, focusing on eliminating unreasonable regulations and practices that hinder market entry [18]. Business Environment Optimization - The NDRC reports improvements in the overall business environment, with over 90% of provincial administrative licensing matters now processed online, enhancing efficiency and accessibility for businesses [22]. Credit Reporting Policy - The NDRC has implemented a policy to replace the requirement for proof of no violations with a specialized credit report, streamlining administrative processes for businesses [23]. Low-altitude Economy Development - The NDRC is focused on the safe and healthy development of the low-altitude economy, emphasizing the importance of safety in expanding low-altitude tourism and related activities [28].

Production - In April, the industrial added value year-on-year growth rate was 6.1%, lower than the previous value but higher than the consensus expectation of 5.2%[11] - The export delivery value year-on-year growth rate was 0.9%, a significant decrease of 6.8 percentage points from the previous month[11] - Cumulative industrial added value growth for April was 6.4%, exceeding the full-year growth rate for 2024 by 0.6 percentage points[3] Investment - Fixed asset investment growth rate in April was 4.0%, down 0.2 percentage points from the first quarter but still 0.8 percentage points higher than the full-year growth for 2024[19] - Broad infrastructure cumulative growth rate was 10.9%, slightly lower than the previous month but still strong, with a year-on-year growth of 26.0% in electric heating and water projects[4] - Real estate investment growth rate in April was -11.3%, with a decline of 1.3 percentage points from the previous month, indicating a weakening trend in the sector[21] Consumption - In April, the year-on-year growth rate of social retail sales was 5.1%, down 0.8 percentage points from the previous month, reflecting a decrease in consumer willingness due to external uncertainties[35] - Essential consumption grew at a rate of 14.8%, while optional consumption saw a slight decline, with automotive consumption growth at only 0.7%[35] - Jewelry consumption surged by 19.3%, driven by gold price fluctuations, while home improvement materials benefited from the renovation season with a growth rate of 9.7%[35] Outlook - External demand may recover as the U.S. reduces tariffs on Chinese goods from 145% to 30%, potentially boosting production confidence[7] - Domestic demand is expected to remain stable, supported by recent monetary policy easing measures such as interest rate cuts and increased issuance of special bonds[7]

Group 1 - The core viewpoint emphasizes the importance of stabilizing the market as a foundation for economic growth, highlighting the need for targeted, precise, and effective policies to strengthen market stability [1][2][3] - The "old-for-new" policy is expanding, with the number of eligible home appliance categories increasing from 8 to 12 by 2025, and local initiatives in Shenyang further expanding the categories to 35, indicating a robust consumer market [1][2] - The "Two New" policies have led to significant investment growth, with equipment and tool purchases increasing by 18.2% year-on-year in the first four months of this year, and retail sales of consumer goods rising by 4.7% [2][3] Group 2 - The approach to market stability involves a gradual and methodical implementation of policies, ensuring that measures are adjusted dynamically based on current conditions [3][4] - The real estate sector is receiving focused support through coordinated financing mechanisms and lowered mortgage rates, with a notable increase in housing loans by over 750 billion yuan in the first quarter [4] - The overall market has ample space for growth, with expectations for more effective policies to enhance market vitality and stimulate demand [4]

对于内卷式竞争，李超表示，整治内卷式竞争是大家都非常关注的一件事，当前中国经济正处于新旧动 能转换时期，新产业、新业态和新模式不断涌现。当前传统产业正在加快转型升级，这个过程中部分行 业出现结构性问题，突破了市场竞争边界和底线，扭曲了市场机制，扰乱了公平竞争秩序，必须加以整 治。"国家发改委针对内卷式竞争问题症结，因业施策、对症下药、标本兼治，化解重点产业结构性矛 盾，促进产业健康发展和升级。"李超说。 李超表示，今年以来，"两新"政策加力扩围、持续显效。在增强消费活力方面，截至5月5日，汽车、家 电、数码产品、家装厨卫、电动自行车等五大类产品带动销售额约8300亿元。在拉动投资增长方面，1- 4月，设备工器具购置投资同比增长18.2%，对全部投资增长的贡献率为64.5%。 "国家发改委力争在6月底前下达完毕今年全部的'两重'建设项目清单，高标准抓好组织实施。"李超表 示，国家发改委将会同财政部加快消费品以旧换新的资金下达工作，尽快做好2024年消费品换新资金清 算工作，下达后续资金额度。同时，提高资金使用效率，建立超长期特别国债资金直达快享机制，抓紧 推出加力实施设备更新贷款贴息政策，降低各类经营主体设备更 ...

Core Viewpoint - The utilization of long-term special government bond funds is driving the implementation of the "Two New" policy, which is crucial for expanding consumption, stabilizing investment, promoting transformation, and improving people's livelihoods [1][2][3] Group 1: Consumption Enhancement - In April, retail sales of home appliances, cultural office supplies, furniture, and communication equipment increased by 38.8%, 33.5%, 26.9%, and 19.9% year-on-year respectively, with the renovation season and replacement subsidies contributing to a 9.7% growth in building and decoration materials retail sales [1] - The sales of five major product categories, including automobiles and home appliances, reached approximately 830 billion yuan [1] Group 2: Investment Growth - From January to April, investment in equipment and tools increased by 18.2% year-on-year, contributing 64.5% to overall investment growth [1] - Investment in sectors closely related to the "Two New" policy, such as computer and office equipment manufacturing, consumer goods manufacturing, and equipment manufacturing, saw increases of 28.9%, 13.4%, and 8.2% respectively [1] Group 3: Transformation and Upgrading - The demand for green, intelligent, and high-quality products is driving production efficiency improvements, with high-tech manufacturing and digital product manufacturing value-added increasing by 10.0% year-on-year in April [2] - Retail sales of new energy vehicles reached 905,000 units, growing by 33.9%, with a penetration rate of 51.5%, up 7 percentage points year-on-year [2] Group 4: Social Welfare Improvement - The trade-in program for consumer goods has effectively met residents' demand for high-quality living, with over 3 million applications for vehicle trade-in subsidies and more than 55 million units of 12 categories of home appliances traded in [2] Group 5: Future Actions - The National Development and Reform Commission plans to accelerate fund allocation and improve fund utilization efficiency, including implementing loan interest subsidies for equipment updates and simplifying subsidy application processes [3] - There will be a focus on policy reserves and timely evaluation of progress in the "Two New" areas to ensure effective implementation [3]