Core Viewpoint - The new policy financial tool, with an initial scale of 500 billion yuan, aims to support projects across eight key sectors, with a portion of the funds allocated specifically for private enterprises, indicating a strong governmental commitment to bolster the private economy [1][3]. Group 1: Financial Tool Characteristics - The new policy financial tool is characterized by its fiscal support nature, with funding potentially sourced from the central bank's pledged supplementary lending (PSL) at a low interest rate of 2%, and possibly even lower than 1% due to central government subsidies [2][3]. - This tool is designed to address the capital shortage in local projects, which has been a bottleneck for the effective use of special bonds [1][2]. Group 2: Investment Potential - The 500 billion yuan financial tool is expected to leverage investments up to 5 trillion yuan, significantly enhancing the funding available for various projects [2][3]. - The tool's implementation could lead to a broad expansion of credit, potentially increasing infrastructure investment growth by approximately 2 percentage points within the year [7]. Group 3: Focus Areas - The financial tool will prioritize eight sectors, including digital economy, artificial intelligence, low-altitude economy, consumer infrastructure, green and low-carbon transition, agriculture, transportation and logistics, and municipal and industrial parks [3][5]. - A specific allocation of 100 billion yuan is designated to support private enterprises, reflecting the government's commitment to fostering private sector growth [3]. Group 4: Implementation Timeline - The preparation for the new financial tool has progressed significantly, with project applications and local government initiatives underway, indicating a potential rollout in the third quarter [6][8]. - If launched in the third quarter, the tool could play a crucial role in stimulating economic growth amid a challenging economic environment [6][7].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - Policy - based financial tools are carriers of policy - based finance, aiming to provide capital for national strategic projects, with a strong "quasi - fiscal" attribute. Historical practices include the special construction funds from 2015 - 2017 and the policy - based and development financial tools in 2022. The upcoming new policy - based financial tools may continue the feature of monetary - fiscal coordination [14][18][108]. - If the new policy - based financial tools are established in the third quarter of 2025 and fully invested within the year, they are expected to boost RMB credit growth by 0.33 - 1.00 percentage points and infrastructure investment growth by 5.67 - 12.38 percentage points in 2025 [4][101]. 3. Summary by Relevant Catalogs 3.1 What are Policy - based Financial Tools? - "Policy - based finance" emphasizes government macro - control. Policy - based financial tools are carriers of policy - based finance, providing capital for national strategic projects and having a "quasi - fiscal" attribute. The concept of new policy - based financial tools was first proposed in 2025, which may inject new vitality into infrastructure investment and help stabilize economic growth in the second half of the year [13][14]. 3.2 Looking Back at the Historical Practice and Evolution of Policy - based Financial Tools 3.2.1 Special Construction Funds with "Second Fiscal" Characteristics - **Establishment Background**: In 2015, to expand effective investment and relieve economic downward pressure, the NDRC proposed to issue special bonds to raise funds for special construction funds. Externally, the Fed tightened liquidity, and internally, the economy was in the "three - phase superposition" new normal, with domestic investment in real estate, infrastructure, and manufacturing declining [19]. - **Funding Sources**: Initially, policy banks issued special bonds to the Postal Savings Bank, with 90% central fiscal discount. Later, it was changed to public issuance in the market, and the discount was adjusted to different levels [22]. - **Investment Areas**: It mainly supported key construction projects, covering five major categories and 33 special projects such as people's livelihood improvement, "three rural" construction, and infrastructure. It also began to expand to transformation and upgrading fields [26]. - **Operation Mode**: Policy banks established special construction fund companies. Local governments and state - owned enterprises submitted project applications to the NDRC, which formed a project list. The funds were invested in an equity form, with a fixed return and an exit mechanism such as equity transfer or repurchase [30][32][33]. - **Investment Effect**: Theoretically, it could leverage 4 - 6.67 times the investment scale, and in practice, it could leverage 3.45 - 4.29 times. It played a role in stabilizing infrastructure investment, and the growth rate of fixed - asset investment in industries such as water conservancy increased significantly [40][41]. 3.2.2 Policy - based and Development Financial Tools Highlighting "Monetary - Fiscal Coordination" - **Establishment Background**: In 2022, due to the impact of the pandemic, the economy faced triple pressures. The government introduced a series of policies, including setting up policy - based and development financial tools to support economic growth. A total of about 7399 billion yuan was invested [44][48]. - **Funding Sources**: The first batch was mainly from market - based bond issuance, and the subsequent batches might have PSL funds as a supplement, reflecting the synergy between currency and finance [51]. - **Investment Areas**: The scope was further expanded to include some new infrastructure and green energy projects. However, in practice, traditional infrastructure fields were still the main focus [53][54]. - **Operation Mode**: Similar to special construction funds, policy banks established infrastructure fund investment companies. The central government provided appropriate interest subsidies for 2 years. The investment period was 15 - 20 years [59][60]. - **Investment Effect**: It significantly promoted infrastructure investment, boosting the growth of large - scale project investment and total fixed - asset investment. It also repaired the loan demand in the infrastructure industry [68][69]. 3.2.3 Comparison of the Two Types of Policy - based Financial Tools - Although there are differences in details such as funding sources, subsidy policies, and investment ratios, their core function is to provide project capital for major projects, essentially "capital loans" [71]. 3.3 Understanding the New Policy - based Financial Tools - The core function may still be to supplement project capital, but the investment areas may include new infrastructure such as digital economy and artificial intelligence, and the support may be tilted towards private enterprises [78][79]. - The funding sources may be market - based bond issuance by policy banks, supplemented by PSL funds and central fiscal subsidies. The total scale is about 50 billion yuan [80][81]. - The operation process is similar to the previous two rounds. It may participate in the form of equity investment, shareholder loans, and special bond capital bridging loans, with shareholder loans being the main form [85]. - The establishment speed is relatively slow, possibly to reserve policy space and allow sufficient time for project application. It is expected to be established and put into use in September - October 2025 to stabilize infrastructure growth [90][98]. 3.4 Calculation of the Stimulative Effect of New Policy - based Financial Tools on Stable Growth - **Credit Demand Stimulative Effect**: Referring to the 2022 experience, policy - based financial tools can leverage 1.55 - 4.73 times of credit demand. If 50 billion yuan of new policy - based financial tools are invested within the year, they can boost credit growth by 0.33 - 1.00 percentage points [102][104]. - **Infrastructure Investment Stimulative Effect**: They can leverage 10 - 13.2 times of total infrastructure investment. About 50 billion yuan of new policy - based financial tools can boost infrastructure investment growth by 5.67 - 12.38 percentage points in 2025 [105][106]. 3.5 Summary - Policy - based financial tools play a crucial role in providing capital for major projects. The upcoming new tools may continue the feature of monetary - fiscal coordination, with innovations in investment areas and participating subjects. Attention should be paid to the possibility of the central bank adjusting PSL interest rates [108].

Macro News - The Ministry of Commerce spokesperson stated that despite increased risks and challenges in international trade, China's foreign trade has shown steady growth, with a cumulative import and export growth of 3.5% in the first seven months of the year [1] - New policy financial tools with a funding scale of 500 billion yuan are being developed, focusing on emerging industries and infrastructure, including digital economy, artificial intelligence, and green low-carbon sectors [1] - The global focus is on the Jackson Hole central bank conference, where the Federal Reserve Chairman Powell is expected to deliver a key speech regarding future monetary policy [2] Industry News - The National Medical Products Administration announced comprehensive measures to ensure drug safety, including 100% coverage of inspections for selected products in national procurement [3] - A national hydrogen energy vehicle industry measurement testing center is being established to enhance the competitiveness of the hydrogen energy vehicle industry [3] - Titanium dioxide companies are announcing price increases, with Longbai Group raising prices by 500 yuan per ton for domestic customers and 70 USD per ton for international customers starting August 18, 2025 [3][4] Sector Insights - CITIC Securities reports that the market for high-frequency and high-speed resins for AI servers is projected to reach 2.28 billion yuan by 2026, with a CAGR of 85% from 2024 to 2026, indicating significant demand growth [5] - Guojin Securities highlights the rising demand for liquid cooling solutions in AI servers, suggesting opportunities in upstream materials such as fluorinated refrigerants and electronic fluorinated liquids [6] - Huatai Securities notes that the liquor sector is stabilizing, with strong fundamentals among leading companies, suggesting a favorable environment for bottom-fishing investments [6]

Core Viewpoint - The article discusses the anticipation surrounding the upcoming announcement of a new type of policy financial tool, which is expected to be officially revealed soon, as local governments have already begun preparatory meetings for project applications [1][2]. Group 1: Policy Financial Tools - As of June 11, 2023, 12 provinces, including Shandong, Hunan, and Hubei, have held meetings to interpret policies and facilitate project applications for the new financial tools, aiming to seize opportunities in policy-driven development finance [2]. - In 2022, three policy financial institutions created and deployed approximately 740 billion yuan (about 740 billion) in policy and development financial tools to support major project capital and bridge funding for special bond projects [2]. - The new financial tools are expected to be officially launched in the second quarter of 2023, with local governments actively preparing for their implementation [2]. Group 2: Support Areas and Mechanisms - The new financial tools are likely to target significant projects in areas such as new urbanization, agriculture, artificial intelligence, digital economy, and infrastructure for consumer sectors [3]. - Local governments are focusing on specific sectors for project applications, such as industrial, cultural tourism, agriculture, and urban construction, to align with the new financial tools [3]. - The tools are designed to address capital shortages in key project areas, with support from the central bank's policy loans (PSL) to supplement fiscal efforts [3]. Group 3: Implementation and Coordination - Key policy financial institutions, including the China Development Bank, Agricultural Development Bank, and China Export-Import Bank, are actively involved in the promotion and explanation of the new financial tools [4]. - Local governments are conducting project scheduling meetings to prepare and reserve projects ahead of the official announcement of the new tools, emphasizing the importance of timely project applications [4]. - The new financial tools are seen as crucial for leveraging social capital and expanding effective investment, with local officials urging the identification and implementation of high-quality projects [4].