Economic Outlook - The goal for GDP per capita by 2035 is set at $29,000, necessitating a shift in China's economic logic from solely pursuing GDP growth to a new paradigm focusing on productivity enhancement, moderate inflation, and currency appreciation[1] - The new growth paradigm emphasizes the importance of nominal GDP growth and inflation levels, which directly impacts corporate profitability and capital returns[1] Market Dynamics - The equity market is positioned for a systematic revaluation, supported by three main factors: profit foundation, valuation environment, and relative returns[1] - The expectation of RMB appreciation is a significant driver for valuation improvements, enhancing the attractiveness of RMB assets and drawing global capital to Chinese assets[2] Asset Allocation Trends - There is a notable shift in asset preference from real estate and bonds to equities, driven by the changing yield characteristics of various asset classes in a moderate inflation environment[2] - Bonds, while still a stabilizing component, are expected to see diminishing capital gains potential, while real estate is facing downward pressure due to income and price expectations[2] Consumption and Production Insights - Recent data indicates a recovery in consumption, with metro passenger flow increasing by 5.9% year-on-year and logistics delivery volume rising by 5.8%[12] - Production shows structural improvement, particularly in real estate-related sectors, with a narrowing decline in rebar production and a continued decrease in inventory levels[14] Trade and External Factors - Port cargo throughput has decreased to 266 million tons, reflecting a structural adjustment in external demand, while the export container freight index has risen to 1094.03 points[25] - Geopolitical tensions, particularly with Japan, have introduced new uncertainties into the external trade environment, impacting market sentiment[25] Fiscal and Monetary Policy - The broad deficit for the week ending November 23 reached 204.3 billion, with a cumulative total of 11.2 trillion, indicating a slower pace compared to the previous year[35] - The monetary market remains in a loose state, with indicators suggesting continued low interest rates and a high willingness to leverage in the bond market[44]