Core Viewpoint - The modernization of the industrial system is the material and technical foundation for China's modernization, emphasizing the importance of a robust real economy and a modernized industrial system as key to building a socialist modernized strong country [1][2][3]. Group 1: Importance of Modern Industrial System - The establishment and development of any social economic system are supported by a corresponding material foundation, with a modern industrial system being crucial for modernization [2]. - Successful modernization in various countries has been linked to the process of industrial system modernization, which provides a strong material basis for economic development [2]. - The lack of a modern industrial system in some developing countries has led to insufficient and unsustainable modernization [2]. Group 2: Strategic Tasks and Goals - The "14th Five-Year Plan" prioritizes the construction of a modern industrial system and the consolidation of the real economy as the first strategic task [1]. - The construction of a modern industrial system is a long-term and complex systemic project that requires a focus on the real economy and the continuous upgrading of traditional industries alongside the cultivation of emerging industries [4][12]. Group 3: Key Directions for Development - The modernization of the industrial system should focus on three main directions: intelligent, green, and integrated development [5][7][8]. - Intelligent development involves deep transformation across the entire production chain, utilizing data and AI technologies to create a smart industrial ecosystem [6]. - Green transformation aims to integrate low-carbon and circular economy principles throughout the industrial process, emphasizing the importance of green technology innovation [7]. Group 4: Enhancing Traditional Industries - Traditional industries play a crucial role in maintaining a reasonable proportion of manufacturing and ensuring the integrity of the industrial system [12]. - The optimization and upgrading of traditional industries are essential to avoid the structural dilemmas faced by developed countries due to deindustrialization [12]. - New technologies, particularly digital and green technologies, are reshaping traditional production models and development paths [12]. Group 5: Fostering New and Future Industries - The intersection of the new technological revolution and industrial transformation presents significant opportunities for building a modern industrial system [13]. - China has made notable advancements in sectors like renewable energy, establishing competitive supply chains and leading in technology innovation [13]. - Future industries driven by cutting-edge technologies require a robust mechanism for disruptive innovation and risk-sharing [13]. Group 6: Service Industry Development - The service industry is a vital component of the modern industrial system, with its share of GDP expected to increase as industrialization progresses [14]. - Enhancing the quality and efficiency of the service industry can drive industrial transformation and meet the evolving needs of society [14]. - There is significant potential for growth in China's service sector, particularly in high-end and quality service offerings [14]. Group 7: Infrastructure Development - A modernized infrastructure system is essential for the efficient operation of the industrial system, influencing resource allocation and economic efficiency [15][16]. - China has made substantial progress in infrastructure development, including extensive transportation networks and digital infrastructure [16]. - Addressing existing imbalances and enhancing the adaptability of infrastructure is crucial for supporting the modernization of the industrial system [16].

Group 1: Core Concepts of New Quality Productivity - The 20th Central Committee of the Communist Party emphasizes accelerating high-level technological self-reliance and leading the development of new quality productivity, which is essential for enhancing the internal driving force of economic development and reshaping competitive advantages in a global context [1][2] - New quality productivity is characterized by revolutionary technological breakthroughs, innovative allocation of production factors, and deep industrial transformation, focusing on the quality of productivity rather than just quantity [2][3] - The development of new quality productivity is crucial for achieving high-quality economic growth and requires a focus on technological innovation, integration of education and talent development, and enhancing the overall effectiveness of the national innovation system [2][3] Group 2: Innovation and Industrial Transformation - Technological innovation is the core element driving the development of new quality productivity, which emphasizes high technology, high efficiency, and high quality [2][3] - There is a need to address bottlenecks in core technologies that are currently constrained, as these represent significant opportunities for building new competitive advantages [2][3] - The transformation and upgrading of traditional industries through new technologies are vital for enhancing productivity and achieving sustainable economic growth [6][7] Group 3: Market Dynamics and Demand Expansion - The establishment of a unified national market is fundamental for promoting new quality productivity, facilitating the smooth flow and efficient combination of production factors [10][11] - The current market system in China is not fully developed, with issues such as segmented competition and local protectionism hindering overall efficiency [9][11] - Expanding domestic demand and creating a favorable environment for consumption and investment are essential for driving the development of new quality productivity [10][12] Group 4: Green Development and Ecological Sustainability - Green development is a foundational aspect of high-quality development, with new quality productivity representing a shift towards more innovative, sustainable, and competitive growth [13][14] - The integration of ecological considerations into production processes is crucial for enhancing resource efficiency and promoting sustainable development [14][15] - Strengthening ecological security is essential for ensuring the long-term viability of new quality productivity, necessitating a comprehensive approach to ecological protection and risk management [15]

Core Insights - The "15th Five-Year Plan" is positioned as a critical period for achieving socialist modernization, emphasizing the importance of foundational work and comprehensive efforts [2][3] - The plan acknowledges complex changes in the development environment, highlighting both strategic opportunities and risks, while showcasing the advantages of the socialist system and large-scale market [3] Group 1: Focus on Technological Innovation and Modernization of the Industrial System - The inclusion of "new quality productivity" in the planning framework reflects an upgrade in value orientation, emphasizing the role of technological innovation in fostering new industrial forms and dynamics [5] - The plan prioritizes the construction of a modern industrial system, reinforcing the foundation of the real economy, and calls for the acceleration of the transformation and upgrading of traditional industries [5][9] Group 2: Emphasis on Market and Government Complementarity - The plan highlights the combination of "effective market + proactive government," marking a shift towards a complementary division of labor between market and government in macro governance [6] - This change will influence future policy directions, including initiatives to boost consumption and support enterprises [6] Group 3: Evolution of Policy Concepts in Five-Year Plans - The evolution of the five-year planning approach reflects a shift in policy concepts, moving from quantity expansion to a balanced focus on quality and reasonable growth [7][8] - The "15th Five-Year Plan" emphasizes qualitative improvements and the integration of innovation, ecology, and security as key themes for future development [7][8] Group 4: Key Transformations in Economic Growth and Supply-Demand Relations - The plan emphasizes the construction of a modern industrial system and the solidification of the real economy as primary objectives, with a focus on upgrading traditional industries and expanding modern services [9][10] - It also stresses the importance of expanding domestic demand and integrating investments in both physical and human capital [10] Group 5: Risk Prevention and Bottom-Line Thinking - The plan aims to promote high-quality development in the real estate sector while addressing local debt risks through systematic and forward-looking management [11] - It emphasizes enhancing resilience against external shocks and internal transformation pains, with a focus on public safety and social governance [11][12] Group 6: Macro Policy Approach - The macro policy strategy will continue to balance "precise support and risk control," with a focus on maintaining growth while ensuring quality and safety in economic operations [12] - The plan aims to effectively address existing risks in real estate and local debt while releasing long-term growth potential [12]

Core Viewpoint - The "14th Five-Year Plan" prioritizes high-quality development, emphasizing technological self-reliance and modernization of the industrial system, which will accelerate the development of strategic emerging industries like new materials, potentially creating a trillion-yuan market [1] Industry Summary - The chemical new materials industry is entering a period of accelerated development, particularly in segments such as photoresists, high-end engineering plastics, thermal interface materials, and high-end additives [1] - China's chemical industry chain is expected to reshape the global chemical industry landscape due to significant cost advantages and continuous technological breakthroughs [1] - In the refrigerant sector, adjustments to the quota scheme in 2026 are anticipated to ensure healthy industry development, maintaining a positive outlook on its long-term prosperity cycle [1] - Supply-side structural optimization is expected, with recommendations to focus on sectors with significant supply compression elasticity, such as organic silicon and membrane materials, as well as varieties with relative advantages [1] Investment Product Summary - The New Materials 50 ETF (159761) tracks the New Materials Index (H30597), which selects listed companies involved in advanced basic materials, key strategic materials, and cutting-edge new materials to reflect the overall performance of high-tech barrier and innovative capability enterprises in the new materials sector [1] - The industry allocation primarily covers high-tech manufacturing sectors such as chemicals, electronics, and new energy [1]