Monetary Policy Actions - In Q2 2025, the central bank lowered the re-lending rate by 0.25 percentage points and increased the re-lending quota for agriculture and small enterprises by CNY 300 billion each[2] - The central bank also reduced the policy interest rate by 0.1 percentage points and the reserve requirement ratio by 0.5 percentage points for most financial institutions[2] - The one-year Loan Prime Rate (LPR) was set at 3.0%, and the five-year LPR at 3.5%, both down by 10 basis points[2] Economic Outlook - The report indicates a cautious stance on the external economic environment, highlighting weakened global growth and increased trade barriers[2] - Domestic economic conditions are described as stable, with strengths in market size, industrial systems, and talent resources, emphasizing the need for strategic focus[2] - The policy goals include maintaining stability in employment, enterprises, markets, and expectations, aligning with the "14th Five-Year Plan" objectives[2] Future Policy Directions - The emphasis on "implementing and refining" the moderately loose monetary policy suggests a shift towards more precise and effective policy measures[3] - Structural monetary policy tools are expected to be enhanced to support technology innovation, consumption, and small enterprises[2] - The report anticipates that the monetary policy will remain moderately loose in the second half of 2025, influenced by domestic fiscal policies and the stability of financial institutions[2] Risk Factors - Potential risks include a resurgence of overseas inflation, rapid economic downturns in Europe and the U.S., and increasing complexity in international relations[2]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The Politburo meeting on July 30, 2025, emphasized the key node of the "15th Five - Year Plan" and continued the "Four Stabilities" policy line. The macro - policy was updated to "continue to exert force and add force in a timely manner", and for the first time proposed to "strengthen the consistency of macro - policy orientation" [1]. - Fiscal policy continued with a more proactive stance, with a more precise requirement on the pace of force exertion. The fiscal acceleration had shown multi - dimensional boosting effects on the economic fundamentals, and the GDP growth rate in the second quarter reached 5.2%. Monetary policy maintained a "moderately loose" stance and focused on precise investment through structural policy tools [2]. - In terms of domestic demand, it emphasized the linkage between people's livelihood and consumption and the cultivation of new growth points in service consumption. In the aspect of deepening reform, it continued to focus on "anti - involution" and related work. The meeting's tone on the bond market was focused on policy continuity and structural optimization, and the 10 - year Treasury bond yield was expected to return to rationality, possibly back to the 1.7% central level [1][3]. 3. Summary by Related Catalogs 3.1 Policy Background and General Tone - The meeting on July 30, 2025, not only deployed the economic work for the second half of the year but also emphasized the key node of the "15th Five - Year Plan". It continued the "Four Stabilities" policy line of the April meeting and emphasized maintaining policy continuity and stability. The macro - policy was updated from "continue to exert force and be more powerful" to "continue to exert force and add force in a timely manner" and proposed to strengthen the consistency of macro - policy orientation [1]. 3.2 Fiscal Policy - Continued the "more proactive fiscal policy" tone, and required to speed up the issuance and use of government bonds and improve capital use efficiency. From January to June 2025, the national issuance of new local government bonds was 2.6 trillion yuan, of which 2.16 trillion yuan was special bonds; the total issuance of local government bonds was 5.49 trillion yuan, of which 4.31 trillion yuan was special bonds. The progress of the 4.4 - trillion - yuan special bond quota arranged in the "Government Work Report" had exceeded 90%. The fiscal acceleration had boosted the economic fundamentals, and the second - quarter GDP growth rate reached 5.2% [2]. 3.3 Monetary Policy - Maintained a "moderately loose" stance, aiming to keep liquidity abundant and drive down the comprehensive social financing cost, especially supporting industries such as "technological innovation, boosting consumption, small and micro - enterprises, and stabilizing foreign trade". This year, it relied more on structural policy tools for more precise investment [2]. 3.4 Domestic Demand and Reform - In terms of domestic demand, it emphasized the linkage between people's livelihood and consumption, and the need to "cultivate new growth points in service consumption". In the aspect of deepening reform, it continued to focus on "anti - involution", requiring in - depth promotion of the construction of a unified national market, improvement of market competition order, and governance of disorderly competition among enterprises and over - capacity in key industries [3]. 3.5 Impact on the Bond Market - The meeting's tone was focused on policy continuity and structural optimization, and the incremental stimulus layout met market expectations. The short - term expectation disturbance to the bond market might come to an end, and the 10 - year Treasury bond yield was expected to return to rationality. Without new interest - rate cut expectations, it might return to the 1.7% central level, or even be in the range of 1.65% - 1.7% when funds were loose [3].

Core Viewpoint - The draft law on national development planning aims to enhance the macroeconomic governance system, promote high-quality development, and modernize the national governance system and capacity [1][3]. Group 1: Legislative Purpose and Framework - The draft consists of 4 chapters and 31 articles, addressing the formulation, implementation, and relationship of national development planning with other plans [1]. - The legislation is intended to standardize and ensure the scientific formulation and effective execution of national development plans [3][8]. - The draft law aims to resolve issues in the current planning system, such as uncoordinated goals and policy tools, by clarifying the roles and functions of various plans [4][6]. Group 2: Implementation and Coordination - The draft emphasizes the need for consistency in macroeconomic policy orientation, integrating economic and non-economic policies into a unified assessment [1][6]. - It outlines that the State Council will organize the implementation of national development plans, with specific departments responsible for drafting implementation plans [7]. - The legislation includes provisions for dynamic monitoring and evaluation of the implementation of national development plans, enhancing coordination among various levels of planning [7][8]. Group 3: Expert Insights - Experts believe that the legislation will help improve the scientific nature of planning and reduce randomness and uncertainty in the planning process [4][8]. - The law is expected to strengthen the guiding role of national development planning in resource allocation and market behavior, thereby promoting high-quality development [4][6].