Fiscal Revenue and Expenditure - In the first half of the year, the national general public budget revenue reached 11.56 trillion yuan, a year-on-year decrease of 0.3%, with the decline narrowing by 0.8 percentage points compared to the first quarter [1] - National general public budget expenditure was 14.13 trillion yuan, showing a year-on-year increase of 3.4% [1] - Overall, fiscal operations have remained stable, characterized by a gradual recovery in tax revenue, a decline in non-tax revenue growth, income growth in most regions, and increased fiscal spending in key areas [1] Employment and Social Security - The Ministry of Finance has allocated 667.4 billion yuan in employment support funds, emphasizing social security as a priority area for fiscal spending [2] - Policies include reducing unemployment and work injury insurance rates, increasing unemployment insurance subsidies, and expanding social insurance subsidies to stabilize jobs and support employment for college graduates [2] - The basic pension for retirees has been increased by 2%, and the minimum standard for urban and rural residents' basic pensions has been raised by 20 yuan [2] Healthcare and Public Health - The per capita fiscal subsidy standard for basic public health services has been increased by 5 yuan, reaching 99 yuan per person per year [3] - The per capita fiscal subsidy for urban and rural residents' medical insurance has been raised by 30 yuan, totaling 700 yuan per person per year [3] - A total of 552.2 billion yuan has been allocated for related subsidies this year to enhance medical assistance and reduce the financial burden on vulnerable groups [3] Consumer Spending Initiatives - The "old-for-new" consumption policy has been a key initiative to boost consumer spending, with 1.6 trillion yuan in sales for items like automobiles and home appliances [4] - Retail sales of household appliances and audio-visual equipment, cultural office supplies, communication equipment, and furniture have seen year-on-year growth rates of 30.7%, 25.4%, 24.1%, and 22.9% respectively [4] - The Ministry of Finance plans to accelerate the introduction of policies to stimulate consumer spending and improve the consumption environment [4][5]

Investment Rating - The report indicates a positive outlook on the consumption sector, suggesting an "Overweight" rating for the industry based on expected performance relative to benchmarks [19]. Core Insights - The "Special Action Plan to Boost Consumption" is a comprehensive initiative aimed at enhancing consumer spending through various measures, including income support and targeted subsidies [2][5]. - The implementation of policies such as "trade-in" incentives is expected to significantly boost retail sales growth, particularly in the second quarter of 2025 [2][4]. - The effectiveness of these policies largely depends on the acceleration of income growth and improvements in future income expectations related to asset prices [2]. Summary by Sections Macro Perspective - The government is focusing on a multi-faceted approach to stimulate consumption, involving various departments and a range of financial incentives [2][5]. - The "trade-in" policy is projected to increase annual retail sales growth by approximately 1 percentage point, with a total subsidy of 1,500 billion yuan expected to generate 1.3 trillion yuan in sales [4]. Policy Measures - Specific measures include lowering housing provident fund loan rates and providing interest subsidies on consumer loans, which are anticipated to improve residents' cash flow [4]. - The plan also emphasizes stabilizing asset prices in the housing and stock markets to enhance future income expectations for residents [4]. Consumer Support - The report highlights the importance of increasing support for childbirth and childcare, with various regions already implementing substantial subsidies [7]. - Employment support measures are also being enhanced, with a budget of 667.4 billion yuan allocated for employment assistance in 2025 [8]. Supply-Side Initiatives - The plan aims to stimulate effective demand through high-quality supply, focusing on optimizing service consumption and developing new consumption scenarios [5]. - There is a push for innovation in consumption, including the integration of artificial intelligence and the expansion of digital and green consumption [5].