Core Viewpoint - The Chinese government is promoting a new work plan to accelerate the cultivation of new growth points in service consumption, aiming to optimize and expand service supply, enhance service quality, and meet the high-quality service consumption needs of the public [1][2]. Group 1: Policy Framework - The work plan includes systematic deployments to stimulate development in key areas, cultivate potential growth areas, and strengthen support measures [1]. - Specific innovative support measures are proposed for various sectors, including transportation services, domestic services, online audio-visual services, tourism services, automotive aftermarket services, and inbound consumption [1]. - The plan emphasizes the need to relax market access, eliminate unreasonable restrictions, cultivate quality brands and operators, and optimize the consumption environment [1]. Group 2: Economic Impact - Service consumption has become a crucial engine for high-quality economic development, with per capita service consumption expenditure in China projected to grow at an annual rate of 8.5% from 2020 to 2025 [2]. - By 2025, per capita service consumption expenditure is expected to account for 46.1% of total per capita consumption expenditure [2]. - There is a shift in consumer focus from mere availability of services to the quality and personalization of service offerings, indicating a strong demand for diverse and high-quality service products [2]. Group 3: Social Relevance - The work plan is closely related to the well-being of the public, with many sectors directly impacting daily life, thereby enhancing residents' happiness and sense of gain [2]. - The government plans to leverage a service consumption coordination mechanism to ensure the implementation of the work plan and to accelerate the cultivation of new growth points in service consumption [2].

Investment Rating - The industry investment rating is "Outperform the Market," indicating an expected relative increase of over 10% in the industry index compared to the broader market within the next six months [4][7]. Core Insights - Service consumption is experiencing rapid growth and its importance is continuously increasing. The "Work Plan" released by the State Council on January 29, 2026, aims to optimize and expand service supply, focusing on key and potential areas to cultivate new growth points in service consumption. By 2025, service consumption expenditure is projected to account for 46.15% of per capita household consumption expenditure, showing a steady increase from 2024. Service retail sales are expected to grow by 5.5% year-on-year, outpacing the overall retail sales growth by 1.8 percentage points, indicating strong growth momentum [2]. - The "Work Plan" categorizes supported areas into key and potential sectors, each with distinct characteristics and targeted policies. Key sectors focus on current main service consumption areas, aiming to enhance quality supply to directly stimulate demand, covering transportation services, domestic services, online audio-visual services, travel services, automotive aftermarket, and inbound consumption. This is beneficial for the travel chain and duty-free related sectors within the social service segment. Potential sectors emphasize emerging business formats with strong synergy effects and significant growth potential, including performance services, sports event services, and experiential services, creating long-term investment opportunities in new consumption sectors [2]. Summary by Relevant Sections - The investment suggestion indicates that China's consumption structure is shifting from a product-led model to a balanced approach between goods and service consumption, with experience-based service consumption expected to become a major growth engine. The outlook for 2026 suggests that consumption promotion policies will remain stable, but recovery in the fundamentals will take time due to adjustments in household balance sheets. The social service sector is expected to focus on structural opportunities in the first half of the year. The upcoming 9-day holiday during the Spring Festival is anticipated to further boost the tourism market [3]. - Specific investment opportunities include: (1) companies in the travel chain benefiting from policy catalysts and gradually recovering consumer confidence; (2) duty-free leaders poised to take advantage of the Hainan Free Trade Port's operational opportunities and the new airport duty-free landscape; (3) chain restaurant leaders in a critical phase of scaling and market share growth; (4) early-stage investment value in emerging experiential sectors such as sports events and concerts [3].