Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **China Economics** sector, particularly analyzing the economic indicators and trends in the Asia Pacific region [1] Core Insights and Arguments - **Economic Performance**: In 4Q25, real GDP softened to **4.5% YoY**, attributed to weaker consumption and capital expenditure (capex) offsetting improved exports [9] - **Industrial Production**: Year-on-year industrial production increased by **5.2%**, driven by export strength and quarter-end window dressing [2] - **Retail Sales**: Retail sales hit a post-COVID low, declining further by **0.9% YoY**, reflecting a high base and negative wealth effects from the ongoing housing downturn [2] - **Fixed Asset Investment (FAI)**: There was a significant decline in FAI, down **3.8% YoY**, which may have exaggerated the perception of investment weakness [6][9] - **Infrastructure Push**: Despite the decline in FAI, there is evidence of an accelerated infrastructure push since December, indicated by stabilized upstream production and stronger-than-seasonal cement shipments [3][9] - **GDP Deflator**: The GDP deflator remained subdued at **-0.7% YoY** in 4Q, compared to **-1%** in 3Q, contributing to a nominal GDP growth of **3.8% YoY** [2] Outlook - The outlook suggests that real GDP could be pulled towards **5% YoY** in 1Q26 due to front-loaded infrastructure spending. However, this momentum is expected to be unsustainable due to ongoing weaknesses in consumption and the property sector [4][9] Additional Important Points - **Government Bond Issuance**: There has been strong government bond issuance year-to-date, indicating a push for infrastructure investment [9] - **Sector-Specific Performance**: The manufacturing sector saw a decline in FAI by **10.6% YoY**, while infrastructure investment dropped by **16.0% YoY** [6] - **Property Sector**: The property sector continues to be a weak link, with property sales down **17.6% YoY** and new starts declining by **18.7%** [6] This summary encapsulates the key findings and insights from the conference call, highlighting the current state and outlook of the Chinese economy and its sectors.