1. Report Industry Investment Rating No information about the industry investment rating is provided in the report. 2. Core Viewpoints of the Report - In December, the economic operation was in the traditional off - season, but factors such as the late Spring Festival and the extended stocking cycle might boost industrial production. The export growth rate might decline slightly but still be better than that in October. The GDP growth rate in the fourth quarter was expected to reach around 4.5%, and the whole - year GDP was likely to achieve 5% and end smoothly [3][6]. - For the bond market, there was little suspense about the economic data in December. The market mainly focused on the verification of the "good start" of the economy at the beginning of the year. With the concentrated implementation of macro - policies to stabilize growth at the end of the year, the "two new" policies were issued one week earlier than in 2025, and the support amount for the early - batch "two important" and central budget - investment plan projects also increased compared with the previous year. January 2026 was expected to be the window for the concentrated effect of the "good start" policies, and high - frequency verification during the data "vacuum period" should be concerned [3]. 3. Summary According to the Directory 3.1 Inflation - CPI: It was expected that the CPI in December would rise to around 0.9% year - on - year. Fruit and vegetable prices supported the food price to rise above the seasonal level, and the non - food item was in line with the seasonality. The CPI was expected to increase by about 0.2% month - on - month [3][6][8]. - PPI: It was predicted that the PPI in December would rise to around - 1.9% year - on - year. The non - ferrous industry faced imported inflation pressure, and the prices of domestic bulk commodities such as steel and PTA improved. The PPI was expected to increase by about 0.2% month - on - month [3][6][14]. 3.2 Export - The export growth rate was expected to be around 5.0% in December. The export momentum in December was not weak, although the year - on - year growth rate of container throughput at ports was lower than that in November but better than that in October. The import was expected to increase by around 1.5% year - on - year, with the price support continuing to expand [3][21]. 3.3 Industrial The industrial growth rate in December was expected to be around 5.1%. The PMI in December returned above the boom - bust line, and the production sub - item further expanded. The late Spring Festival in 2026 extended the stocking cycle, which had a certain driving effect on production [3][6][24]. 3.4 Investment - The cumulative growth rate of fixed - asset investment from January to December was expected to be around - 3.0%. The cumulative year - on - year growth rate of infrastructure investment (excluding electricity) was about - 1.5%, the cumulative year - on - year growth rate of real estate investment was about - 16.7%, and the cumulative year - on - year growth rate of manufacturing investment was about + 1.2% [3][6][33]. 3.5 Social Retail The year - on - year growth rate of social retail in December was expected to be around 1.0%. As the national subsidy funds were approaching the end, the marginal boost to automobile consumption from the subsidy decline weakened. The year - on - year decline in gasoline prices widened, and the drag on social retail from petroleum product consumption continued to increase [3][6][36]. 3.6 Financial Data - In December, the bill interest rate declined against the trend, reflecting the weak credit impulse at the end of the year. The new credit in December was expected to be about 80 billion yuan, slightly lower than the level of 99 billion yuan in the same period of the previous year. The new social financing was about 1.7 trillion yuan, a year - on - year decrease of 58.85 billion yuan [3][6][45]. - The M2 growth rate was expected to remain around 8.0%. The new deposits were close to the seasonal level. From the asset side, the year - on - year growth rate of the credit balance might slightly decline to 6.3%, and the social financing growth rate might decline to around 8.4% affected by the high base of government bonds. From the liability side, the M2 in December might increase by 1.5 trillion yuan [3][48].

Group 1: Manufacturing and Industrial Performance - The national manufacturing PMI rose to 50.5% in March, indicating an increase in new orders and production indices, although most industries showed a slight decline in year-on-year growth rates [1] - Industrial added value is expected to grow by 5.6% year-on-year in March, reflecting stable industrial production [1] Group 2: Fixed Asset Investment - Fixed asset investment is projected to maintain a cumulative year-on-year growth rate of 4.1% in March, with infrastructure and real estate investments showing an increase, while manufacturing investment growth is slowing [2] - High-frequency data indicates a slight increase in flat glass production and a widening decline in asphalt operating rates, suggesting a rise in infrastructure investment [2] Group 3: Consumer Retail and Spending - Social retail sales are expected to grow by 4.5% year-on-year in March, driven by consumption stimulus policies and a low base effect [3] - The automotive sector is experiencing a significant increase in retail sales, with a projected 9.1% growth in passenger vehicle sales in March [3] Group 4: Trade Performance - Exports are expected to increase by 7% year-on-year in March, supported by low base effects and "export rush" due to complex trade policies [4] - Imports are projected to decline by 3% year-on-year, with a trade surplus estimated at approximately $84.8 billion [4] Group 5: Monetary and Credit Conditions - New credit is anticipated to reach 2.8 trillion yuan in March, with total social financing expected to be around 5.3 trillion yuan, and M2 growth rebounding to 7.2% [5] - The government bond financing remains high, contributing to the increase in social financing [5] Group 6: Inflation Indicators - The Consumer Price Index (CPI) is expected to decline by 0.2% year-on-year in March, while the Producer Price Index (PPI) is projected to decrease by 2.3% [6] - Price declines in meat, eggs, and vegetables are contributing to the expected CPI drop [6] Group 7: Economic Forecasts - GDP growth is projected to be 5.2% year-on-year in the first quarter of 2025, with industrial added value growth at 5.6% [7] - Fixed asset investment growth is expected to stabilize at 4.1% in March 2025 [7]