Core Viewpoint - The global trend is shifting towards a diversified asset allocation, with an increasing emphasis on Chinese assets as a long-term strategy for international investors [2][8]. Group 1: Global Economic Landscape - The world is evolving towards a diversified structure, with the dominance of the US dollar being challenged due to geopolitical events and changing economic dynamics [6][7]. - The US dollar's long-term stability is uncertain, and its role as a global anchor currency is diminishing, suggesting a need for the Chinese yuan to be more flexible and not solely tied to the dollar [7][9]. Group 2: Chinese Asset Allocation - There is a significant policy shift in China towards supporting economic growth and private enterprises, which has led to a positive turning point in the stock market [9]. - The proportion of global asset allocation towards Chinese assets is expected to increase if China maintains growth and regulatory stability, marking a long-term trend [9][10]. Group 3: Policy and Economic Outlook - The recent Central Political Bureau meeting indicated a balanced policy approach, with a focus on stabilizing the capital market and addressing real estate pressures without immediate strong interventions [10][11]. - The meeting emphasized maintaining liquidity and promoting lower financing costs, while also tightening regulations on local government debt [10][11]. Group 4: Investment Strategies - Caution is advised regarding excessive investment in gold, as its status as a safe-haven asset may be compromised if valuations remain high [14][15]. - The recent trade agreements between the US and its allies have reduced tariff concerns, which may stabilize market conditions and support long-term strategic planning for businesses [16][17].

Report Industry Investment Rating No information provided regarding the report industry investment rating. Core Viewpoint In 2025, the central government's focus on local debt supervision is more on the implementation of the 1 trillion yuan debt - resolution policy and strict control of new implicit debts. The exchanges have also clarified regulations on bond issuance by urban investment entities in line with the latest debt - resolution policies. It is expected that the supervision of urban investment financing will remain strict this year, and the supply of urban investment bonds may stay at a low level [4][11]. Section Summaries 1. Urban Investment Bond Financing Supervision - First, the "335 indicators" for urban investment bond issuance are publicly and explicitly included in the information disclosure scope, making the regulatory system for bond issuance review of urban investment entities clearer [2][5]. - Second, well - qualified urban investment entities can use the raised funds for project construction with proper procedures and good returns, but the incremental amount may be relatively limited [2][6]. - Third, when urban investment bond funds are used to repay existing debts, the details of the debts to be repaid should be disclosed in principle, and a commitment should be made that the debts do not involve local government implicit debts, indicating stricter supervision of implicit debts at the exchange level [2][6]. 2. Local Debt Supervision - Continue to improve and implement the package debt - resolution plan, emphasizing the solid implementation and refinement of implicit debt replacement work. For example, the Ministry of Finance and relevant departments have made a series of requirements and arrangements [8]. - Maintain high - pressure supervision on implicit debts and take "no new implicit debts" as an "iron - clad discipline". Relevant departments have repeatedly emphasized strict punishment for illegal debt - raising and false debt - resolution [9]. - Promote the market - oriented transformation of urban investment entities, requiring not to set up new financing platforms in any name and cut off the "tentacles" of borrowing through other channels. The government work report and relevant departments have put forward corresponding requirements [9].