Core Viewpoint - The basic conditions for boosting consumer confidence in China are gradually forming, supported by economic recovery and improved household balance sheets. The government is encouraged to raise growth targets to signal confidence, which could significantly impact consumer behavior [2][5][10]. Group 1: Economic Recovery and Consumer Confidence - The recovery of household balance sheets is crucial for consumer confidence, as previous asset depreciation led to reduced spending [5][12]. - The government has implemented measures to stabilize the real estate and stock markets, contributing to a more favorable economic environment [12][18]. - A significant amount of household savings, approximately 160 trillion RMB, exceeds the GDP, indicating potential for consumer spending if confidence is restored [8][9]. Group 2: Real Estate Market Dynamics - The real estate market's stabilization is essential for restoring household wealth, as property constitutes a significant portion of family assets [16][18]. - Current housing prices are declining, which dampens consumer sentiment; government intervention, such as purchasing unsold properties, could help stabilize prices [17][18]. - The long-term demand for housing remains strong due to urbanization, suggesting that the market is not oversaturated [17][18]. Group 3: Corporate Competition and Market Behavior - The phenomenon of "involution" in the market stems from soft constraints on corporate resources, leading to irrational competition [19][21]. - When resources become hard constraints, companies are likely to engage in more rational competitive behavior, moving away from loss-leading strategies [21]. Group 4: Technological Advancement and Global Positioning - China has made significant strides in basic scientific fields and is on track to become a global technology center, meeting essential conditions such as talent aggregation and strong manufacturing capabilities [22][24]. - The country is now positioned to achieve continuous breakthroughs in basic science, supported by a large pool of engineering graduates [24]. Group 5: International Capital and Market Attractiveness - The Hong Kong market has become one of the best-performing markets globally, attracting international capital due to its potential for returns [7][25]. - A smooth exit mechanism is critical for attracting long-term foreign investment, as investors prioritize both entry and exit strategies [26][27].