Investment Rating - The report rates the industry as "Overweight," indicating a positive outlook for the consumption and modern service sectors, which are expected to outperform the overall market [1]. Core Insights - The government work report from the Two Sessions on March 5, 2026, sets an economic growth target of 4.5%-5.5% and introduces a systematic policy mix to boost domestic demand and improve livelihoods, including significant financial support for consumption and service sectors [1]. - The focus is on enhancing service quality in tourism, accommodation, and dining, while also promoting urbanization to drive the development of lifestyle services [1]. - The report emphasizes the dual empowerment of policies and capital markets, with the introduction of more inclusive listing standards on the ChiNext board to support new consumption and modern service enterprises [1]. Summary by Sections Policy Direction - The report highlights that the policy direction for 2026 will prioritize the expansion and quality enhancement of the cultural tourism and modern service industries, with a notable increase in policy support [2]. - It aims to release the potential of service consumption, focusing on areas such as leisure tourism, sports events, healthcare, and the silver economy, while also addressing maternity and childcare services [2]. Demand and Supply Side - On the demand side, the report outlines measures such as a CNY 250 billion special bond to support the replacement of automobiles and home appliances, and a CNY 100 billion special fund to enhance consumer credit and service financing [2]. - On the supply side, it emphasizes the need for high-quality service supply and market environment optimization, including the establishment of national standards and the promotion of "China Service" brands [2]. Capital Market Support - The report indicates that the capital market will play a crucial role in empowering consumption services, with the ChiNext board reform aimed at facilitating financing for quality innovative enterprises in the service sector [2]. - This dual approach of policy and capital support is expected to drive the expansion and quality improvement of the consumption and service industries [2]. Investment Recommendations - The report suggests specific investment opportunities in various sectors, including: - Cultural tourism: Sanxia Tourism, Santai Cableway, Songcheng Performance, Jiuhua Tourism, Lijiang Co [2]. - Hotel accommodation: Huazhu, Atour, Shoulv Hotel, Junting Hotel [2]. - AI and human resources services: Core International, Beijing Human Resources, Liepin [2]. - Tourism retail and sports industry: China Duty Free, Zhuhai Duty Free Group, Lansheng Co, Lisheng Sports [2]. - Maternity and infant consumption: Shengbeila, Kidswant [2].

Group 1 - The core viewpoint of the article highlights the introduction of the Invesco Great Wall Hengrui Selected Mixed Fund, managed by Zhou Hanying, in response to the A-share market's wide fluctuations and structural opportunities since 2026 [1] - The fund aims to achieve balanced allocation through multi-dimensional comparisons of individual stocks, industries, and sectors, focusing on cost-effectiveness in investments [1] - Zhou Hanying emphasizes that the essence of investment lies in understanding the business fundamentals and providing reasonable pricing, where cost-effectiveness is a balance of growth potential, valuation, and certainty [1] Group 2 - The recent adjustments in the A-share and Hong Kong stock markets are viewed as providing opportunities for future investments rather than indicating a trend reversal [2] - The fund's stock position is set between 60% to 95%, with a maximum of 50% of the stock assets allocated to Hong Kong Stock Connect targets, allowing for flexible investment opportunities in both A-shares and Hong Kong stocks [2]