Core Viewpoint - The recent Politburo meeting emphasizes stability over innovation for the upcoming 15th Five-Year Plan, contrasting with the previous focus on seizing opportunities during the 14th Five-Year Plan [1] Policy Direction - The urgency for macroeconomic policy has decreased, shifting from "accelerated implementation" in April to "timely reinforcement" in July, indicating less pressure to boost domestic demand due to strong external demand [2] - The meeting highlighted the need for policy continuity and stability, focusing on the implementation of existing policies rather than introducing new ones, with limited incremental policies [2] - Key areas of focus include technology innovation, boosting consumption, supporting small and micro enterprises, and stabilizing foreign trade, with major economic provinces taking a leading role [2] Fiscal and Monetary Policy - Fiscal policy aims to improve the efficiency of fund usage, gradually phasing out inefficient investments, and prohibits new hidden debts for local governments, which may pressure local infrastructure investments [3] - Monetary policy has shifted from supporting the real economy to promoting a reduction in social financing costs, benefiting residents and enterprises broadly, with a focus on interest rate transmission mechanisms [3] - Consumer demand remains a priority, with an emphasis on nurturing new growth points in service consumption and improving livelihoods rather than just increasing income [3] Market Regulation and Competition - The meeting introduced the need to standardize local investment attraction practices, continuing the "anti-involution" policy direction, and aims to reshape market competition order [5] - The approach to supply-side reform differs from 2015, focusing on market-driven measures rather than administrative shutdowns, leading to a more moderate impact on prices [5] Foreign Trade and Capital Markets - Increased support for foreign trade enterprises was noted, with a focus on enhancing financing support for those significantly impacted by tariffs [5] - The capital market is expected to further open up, with an emphasis on maintaining a healthy market trend and enhancing its attractiveness and inclusivity [6] Urban Development - The meeting underscored the transition of urban development from large-scale expansion to quality improvement, aligning with the central urban work meeting's spirit [6] Commodity Market Outlook - The supply-side reform's impact on market competition is expected to be less forceful compared to previous measures, while demand-side policies are shifting towards the implementation of existing measures, leading to a moderate overall stimulus [8] - The previous bullish sentiment in commodities may stabilize as capacity reduction and demand expansion efforts are yet to be fully realized [8]