Core Insights - The Consumer Price Index (CPI) increased by 0.1% month-on-month in April, while year-on-year it decreased by 0.1%. The Producer Price Index (PPI) decreased by 0.4% month-on-month and by 2.7% year-on-year [1][2]. CPI Analysis - The month-on-month CPI change shifted from decline to increase, with a core CPI increase of 0.2% month-on-month and a stable year-on-year increase of 0.5%. This reflects the resilience of the economy [2][4]. - Food prices rose by 0.2%, and service prices increased by 0.3%, driven by seasonal factors and demand recovery during the holiday period [3][4]. PPI Analysis - The PPI's month-on-month decline of 0.4% was consistent with the previous month, influenced by international factors and seasonal declines in energy prices [8][10]. - Certain industrial sectors showed signs of price recovery, with reduced year-on-year declines in sectors such as black metal smelting and non-metallic mineral products [5][6]. Sector Performance - High-tech industries and construction activities contributed to a positive trend in some industrial prices, with specific sectors like wearable smart devices and aircraft manufacturing showing price increases [5][6]. - The international oil price decline negatively impacted domestic oil-related industries, leading to price drops in sectors such as petroleum extraction and refining [10]. Economic Outlook - The People's Bank of China anticipates that policies aimed at expanding domestic demand will support a moderate recovery in price levels [2][11]. - Recent monetary policies, including interest rate cuts and structural tools, are expected to stimulate domestic demand and support price stability [11].

Core Viewpoint - The meeting of the Central Political Bureau emphasizes the importance of cultivating new productive forces and developing emerging pillar industries to enhance economic stability and growth [1] Economic Performance Highlights - In Q1 2025, China's GDP grew by 5.4% year-on-year, with industrial added value increasing by 6.5% and high-tech manufacturing added value rising by 9.7% [1] - The digital economy and productive service industries are accelerating growth, indicating a shift towards high-tech and high-value exports, with a 6.9% increase in exports and a 4.6% rise in retail sales [2] Policy Support for New Productive Forces - Central government fiscal allocations for manufacturing reached 11.878 billion yuan, a 14.5% increase, with expanded loan scales for technological innovation [2] - The development of new productive forces is supported by policies that encourage digital transformation, green upgrades, and service extensions in traditional industries [3] Empowering Traditional Industries - The manufacturing sector remains a core engine of economic growth, with digital transformation and green modifications being key areas of focus [3] - The industrial internet platform's penetration is expected to reach 45% by 2025, with significant advancements in digital tools and automation in traditional manufacturing [3] Resilience Against External Pressures - Breakthroughs in key technologies in sectors like renewable energy enhance the resilience of supply chains against external shocks [4] - The development of new productive forces is crucial for maintaining economic stability amid increasing geopolitical risks [4] Role of Securities Companies - Securities companies play a vital role in financing, mergers and acquisitions, and research services to support the development of new productive forces and the transformation of traditional industries [5] - Future strategies include establishing industry funds, exploring intellectual property securitization, and enhancing cross-border services for Chinese tech firms [6] Supporting Traditional Industry Upgrades - Securities companies can promote green finance, innovate supply chain finance, and enhance digital services to facilitate the transition of traditional industries [6] - Effective market management and compliance in mergers and acquisitions are essential for achieving high-quality development in traditional sectors [6]