Core Insights - The Shenzhen Municipal Committee emphasizes the need to tap into domestic demand potential to boost and expand consumption in the construction of a strong domestic market [1] - The focus is on combining investments in physical assets and human capital to continuously expand effective investments [1] - There is a commitment to cultivate and strengthen new growth drivers, accelerate the development of emerging industries, and optimize traditional industries to build a modern industrial system with Shenzhen characteristics and international competitiveness [1] - The meeting highlights the importance of deepening reforms and enhancing the market-oriented, legal, and international business environment to boost high-quality development [1] - There is a call to expand high-level opening up, promoting integrated trade and investment, and developing a new system for a more open economy [1] Investment and Economic Strategy - The strategy includes a focus on effective investments that combine physical and human capital [1] - Emphasis on the development of emerging industries and the optimization of traditional industries to enhance competitiveness [1] - The goal is to create a modern industrial system that reflects Shenzhen's unique advantages [1] Reform and Business Environment - The meeting stresses the need for comprehensive reforms to improve the business environment [1] - A focus on creating a market-oriented, legal, and international business environment is highlighted [1] - Continuous efforts to enhance the dynamism and vitality of high-quality development are emphasized [1] Trade and Global Integration - The strategy includes promoting the integration of trade and investment [1] - There is a focus on developing a new system for a higher level of openness in the economy [1] - The aim is to serve as a base, platform, channel, and hub in the dual circulation of domestic and international markets [1]

Market Overview - The Shanghai Composite Index experienced a fluctuation with a weekly trading volume exceeding 1.7 trillion yuan, reaching over 2 trillion yuan on Monday and Friday. The index fell by 0.34% while the Shenzhen Component Index rose by 0.84%, the ChiNext Index increased by 2.74%, and the STAR 50 Index gained 1.72% [1][3][5] Economic Outlook - The Central Political Bureau and the Central Economic Work Conference held in December set the direction for economic work in 2026, emphasizing the expansion of domestic demand, fostering new growth drivers, and mitigating risks as key tasks to ensure a good start for the 14th Five-Year Plan [2][3][8] - November exports showed resilience with a year-on-year growth rate of 5.9%, while the Consumer Price Index (CPI) continued to recover, increasing by 0.7% year-on-year, marking the highest level since March 2024 [11][12] Policy Insights - The Central Economic Work Conference highlighted the importance of stabilizing employment, enterprises, markets, and expectations, with a focus on quality improvement and effective growth. The policy framework aims to transition from scale growth to quality enhancement, emphasizing the need for better coordination between domestic economic work and international trade challenges [9][10][20] - The meeting introduced new policy measures, including flexible use of monetary tools like reserve requirement ratio cuts and interest rate reductions, to maintain liquidity and support investment recovery [10][20] Sector Recommendations - The report suggests focusing on sectors such as Technology, Media, Telecommunications (TMT), public utilities, finance, and electric power equipment for potential investment opportunities [15][20] Export and Import Dynamics - The report notes that while exports to the U.S. have decreased, exports to emerging markets remain robust, with significant growth in automobile exports, which surged by 53% year-on-year. However, imports showed a modest increase of 1.9% year-on-year, influenced by weak energy prices and sluggish domestic demand [11][12]