According to the CITIC Securities Research Report, economic data for November generally declined on both the supply and demand sides. Among them, the effects of the policy to expand domestic demand were initially reflected on the investment side, but the consumption temperature was still low. On the production side, industrial value added continued to be low in November, mainly due to insufficient demand and fewer working days. The service sector production index also declined somewhat under the influence of a high base and slowing consumption. From the demand side, the effects of the policy to expand domestic demand are somewhat divided. The monthly growth rate of fixed asset investment rebounded slightly in November, and the effects of the incremental fiscal policy were initially evident. However, consumer consumption performance was slightly poor in November. Due to the rapid use of consumer subsidies in some regions and categories, and the overdraft effect of earlier subsidies became more apparent, the zero growth rate in November was lower than expected and previous values. Looking ahead, we judge that the fundamentals of domestic and foreign trade exports are still supported this year. Fixed asset investment is expected to improve moderately, driven by strong policies such as policy financial instruments and incremental local debt amounts, but the consumption temperature in December may still be low. The Central Economic Work Conference was held in Beijing in December. It called for continued implementation of a more active fiscal policy and a moderately loose monetary policy, and pointed out “making full use of the integrated effects of stock policies and incremental policies”. We believe that policies will focus more on policy coordination and implementation effects to enhance the vitality of high-quality economic development.

According to the CITIC Securities Research Report, economic data for November generally declined on both the supply and demand sides. Among them, the effects of the policy to expand domestic demand were initially reflected on the investment side, but the consumption temperature was still low. On the production side, industrial value added continued to be low in November, mainly due to insufficient demand and fewer working days. The service sector production index also declined somewhat under the influence of a high base and slowing consumption. From the demand side, the effects of the policy to expand domestic demand are somewhat divided. The monthly growth rate of fixed asset investment rebounded slightly in November, and the effects of the incremental fiscal policy were initially evident. However, consumer consumption performance was slightly poor in November. Due to the rapid use of consumer subsidies in some regions and categories, and the overdraft effect of earlier subsidies became more apparent, the zero growth rate in November was lower than expected and previous values. Looking ahead, we judge that the fundamentals of domestic and foreign trade exports are still supported this year. Fixed asset investment is expected to improve moderately, driven by strong policies such as policy financial instruments and incremental local debt amounts, but the consumption temperature in December may still be low. The Central Economic Work Conference was held in Beijing in December. It called for continued implementation of a more active fiscal policy and a moderately loose monetary policy, and pointed out “making full use of the integrated effects of stock policies and incremental policies”. We believe that policies will focus more on policy coordination and implementation effects to enhance the vitality of high-quality economic development.