Morgan Stanley: Xiaomi's AIoT business to benefit from state subsidies in 2026.

Morgan Stanley released a research report stating that the Chinese government has specified the scope of support and subsidy standards for the "Two New" policy in 2026. Smartphones, tablets, smart watches, and smart glasses will continue to receive a 15% discount, with a maximum subsidy of 500 RMB per unit. On the other hand, refrigerators, washing machines, TVs, air conditioners, computers, and water heaters will receive a maximum subsidy of 1,500 RMB per unit. The bank believes that the newly announced policy is a positive catalyst for the technology hardware industry, as the market expects subsidies to decrease rather than remain unchanged. For consumer electronics products, the 15% subsidy is still favorable for XIAOMI-W (01810)'s AIoT business next year. Morgan Stanley mentioned that the national subsidy policy for 2026 is almost the same as that for 2025 in terms of technology hardware products, but smart glasses have been added to the subsidy list. For consumer electronics products, the subsidy has decreased slightly from 20% in 2025 to 15% in 2026, with the maximum amount also decreasing from 2,000 RMB to 1,500 RMB.