Guangfa Macro: Ten key pieces of information from the March 6 Economic Theme Press Conference.

On March 6th, the Economic Theme Press Conference of the Fourth Session of the Fourteenth National People's Congress was held, with the National Development and Reform Commission, Ministry of Finance, Ministry of Commerce, People's Bank of China, and China Securities Regulatory Commission answering questions from domestic and foreign journalists on issues related to development reform, fiscal budget, commerce, finance, and securities. Point one: What are the major projects during the "14th Five-Year Plan" period? The "14th Five-Year Plan" outlines 109 major projects, including 28 projects leading the development of new productive forces, 23 projects to build a modern infrastructure system, 9 projects to promote urban-rural integration, 25 projects to ensure and improve people's livelihoods, 18 projects to promote green low-carbon transition, and 6 projects in key areas of security. Key projects include: (1) a series of energy major projects with investments of trillions of yuan, such as the Yaduhydropower project, "Shagohuang" new energy base, and offshore wind power base; (2) projects in key industries like energy conservation and carbon reduction; (3) a series of transportation major projects like the Three Gorges waterway new channel and the southern section of the Beijing-Guangzhou high-speed rail new channel; (4) a series of future industrial projects like artificial intelligence super-large-scale smart computing clusters, satellite internet, and controllable nuclear fusion; (5) major projects in fields like education, healthcare, elderly care, and support for children in difficult situations. Overall, the projects include traditional infrastructure projects as well as energy, environmental protection, and people's livelihood projects. There is also a higher proportion of Shenzhen New Industries Biomedical Engineering projects, aiming to guide investments to both quantity and quality improvement. The "14th Five-Year Plan" outlines 109 major projects, including six aspects: leading the development of new productive forces, building a modern infrastructure system, promoting urban-rural integration, ensuring and improving people's livelihoods, promoting green low-carbon transition, and ensuring security in key areas. Firstly, considering long-term planning, a number of strategic projects will be implemented. We will continue to advance a series of energy major projects with investments of trillions of yuan, such as the Yaduhydropower project, "Shagohuang" new energy base, and offshore wind power base, to ensure the country's modernization and the happiness of the people. Implementing projects in key industries like energy conservation and carbon reduction is important, focusing on both increasing and decreasing emissions. We will also push forward a series of transportation major projects like the Three Gorges waterway new channel and the Beijing-Guangzhou high-speed rail new channel, aiming to complete the main channels of the "Eight Verticals and Eight Horizontals" high-speed railway and the national expressway network, connecting the main trunk roads of the country and reducing social logistics costs, supporting people's convenient travel, and promoting a close integration of investment in infrastructure and investment in human resources. Secondly, considering future development, we will promote a series of leading future industrial projects. As mentioned earlier, we will plan a series of ShenZhen New Industries Biomedical Engineering projects; during the "14th Five-Year Plan" period, we will also advance projects like artificial intelligence super-large-scale smart computing clusters, satellite internet, and controllable nuclear fusion. Thirdly, considering the actual needs of thousands of households, we will implement a number of warm and tangible people's livelihood projects. Addressing common social issues, we will implement significant systemic projects and cluster projects in fields like education, healthcare, elderly care, and support for children in difficult situations, enhancing the government's investment in people's livelihoods and improving the quality of public services. Point two: The "six networks" and key area construction will be the main focuses of expanding effective investment by 2026. The National Development and Reform Commission stated that this year, the expansion of effective investment will mainly focus on advancing the 109 major projects in the "14th Five-Year Plan," especially the "six networks" (water network, electricity network, computing power network, new communication network, urban underground pipeline network, and logistics network) and key areas (comprehensive stereoscopic transportation facilities, consumption, low-altitude, "artificial intelligence +", education, medical care, and other basic infrastructure and public service facilities), with an estimated total investment scale exceeding 7 trillion yuan. Ensuring the stabilization of fixed-asset investment is one of the key incremental factors in domestic demand by 2026, and the clear focus on the "six networks" and key area construction will make investment stabilization more tangible. About how China plans to achieve the 4.5%-5% growth target this year, the National Development and Reform Commission said, "This year's work will focus on consumption and investment. In terms of investment, we will coordinate resources and continue to promote the construction of the "two major" projects. In terms of subjects, we will further increase the scale of government investment, stimulate the vitality of private investment, and promote the joint efforts of state-owned and private enterprises. In terms of investment direction, we will advance the 109 major projects and actions in the "14th Five-Year Plan," and carry out a series of actions to expand effective investment. For example, we will advance the "six networks" and key area construction to continuously improve production conditions and living environments for everyone. The 'six networks' include water network, electricity network, computing power network, new communication network, urban underground pipeline network, and logistics network. Key areas include comprehensive stereoscopic transportation facilities, consumption, low-altitude, "artificial intelligence +", education, medical care, and other basic infrastructure and public service facilities. An initial estimate suggests that investments in these areas will exceed 7 trillion yuan this year." Point three: Details of the 100 billion yuan "financial and financial coordinated promotion of internal demand policy tools" mentioned in the government's work report have been released. (1) Policy measures include "interest rate subsidies, financing guarantees, risk compensation, etc."; (2) Details of inter-departmental cooperation include "financial establishment mechanism, provision of capital, financial providing liquidity, Ministry of Industry and Information Technology and other departments proposing project lists to form a transmission chain of financial guidance, financial amplification, and market operation"; (3) Policy tools include a total of 6 policies including 4 policies specifically supporting private investment and 2 policies supporting consumer spending; (4) The 4 policies supporting private investment include a special guarantee plan for private investment, an interest rate subsidy of 1.5 percentage points for small and micro-enterprise loans, an interest rate subsidy of 1.5 percentage points for equipment renewal loans, and a risk-sharing mechanism for private enterprise bonds; (5) The 2 policies supporting consumer spending include optimization and upgrading of personal consumer loan interest subsidies (removal of consumption sector restrictions, increase of interest subsidy cap, expansion to new consumption scenarios such as online consumption credit), and service industry entity loan interest subsidies (10-fold increase in loan ceiling to 10 million yuan, with each enterprise eligible for up to 100,000 yuan in subsidies). In simple terms, the coordinated tools focus on supporting private investment and consumer spending as a comprehensive policy to increase demand. Currently, China's economy is moving towards a new direction and better quality, but the contradiction of "strong supply and weak demand" still exists, with inadequate consumer vitality and weak growth in private investment. To address this issue, the central government has set aside 100 billion yuan to implement the "financial and financial coordinated promotion of internal demand" package of six policy tools, with 4 policies specifically supporting private investment and 2 policies supporting consumer spending. These policy tools comprehensively use interest rate subsidies, financing guarantees, risk compensation, etc., with key coordination between financial, monetary, and industrial policies. By establishing mechanisms for financial institutions, providing capital, proposing project lists, and forming a transmission chain of financial guidance, financial amplification, and market operation, a larger scale of social resources is leveraged, flowing into key areas to expand internal demand. Firstly, giving consumers more choices. The policy optimizing and upgrading personal consumer loan interest subsidies aims to shift from government "meal pairing" to consumer self-selection. This includes lifting restrictions on daily consumer spending at LBX Pharmacy Chain Joint Stock, providing a 1% interest subsidy on actual consumption, raising the maximum subsidy per consumer loan transaction to 3,000 yuan, expanding consumer scenarios to include online credit for popular products like Huabei and Weilidai, and extending credit card installment payments and car finance to enjoy subsidies. Secondly, enhancing corporate credit and reducing costs. The central government is providing real financial support to lower the financing threshold and costs for private enterprises. This includes setting up a special guarantee program for private investment, granting a 1.5% interest subsidy for loans to small and micro-enterprises and equipment upgrades, and including eligible fixed asset loans under the subsidy range. Service industry entity loans are tenfold higher, reaching 10 million yuan, with each company eligible for a subsidy of up to 100,000 yuan. A risk-sharing mechanism for private enterprise bonds will provide support for bond issuance to improve market recognition and acceptance. Point four: "6+3" special policy support for service consumption, expansion of service areas, and removal of unreasonable restrictions are the three major policy directions to boost consumption. The Ministry of Commerce highlighted the "6+3" service consumption strategy, with "6" including transportation, housekeeping, online audio-visual, lodging, aftermarket car services, and inbound consumption, and "3" including performances, sporting events, and experiential services. Specific support policies are being developed to directly benefit consumers and businesses, while expanding service areas to include enhanced telecommunications, biotechnology, and wholly foreign-owned hospitals. The main focus is to encourage innovation and investment in new areas and scenarios to unleash incremental potential. Regarding how to boost service consumption through the "Deepening Implementation of the Special Action to Boost Consumption," the Ministry of Commerce said, "In January of this year, the State Council issued the 'Working Plan for Accelerating the Cultivation of New Growth Points in Service Consumption,' which specifies the key sectors of '6+3.' The '6' refers to key areas such as transportation, housekeeping, online audio-visual, lodging, aftermarket car services, and inbound consumption, as well as performances, sporting events, and experiential services as three potential areas. We will work with relevant departments to focus on these key areas, improve specific support policies, and directly benefit consumers and businesses. At the same time, we will continue to promote the 'opening-up to the outside and relaxing inside' in the service consumption sector, with a focus on expanding market access and openness in the service industry to promote key areas like enhanced telecommunications, biotechnology, and wholly foreign-owned hospitals. We will also clean up unreasonable restrictions in the domestic service sector to increase the supply of quality services." Point five: The industry policy map of the "Six Major Emerging Pillar Industries" and the "Six Major Future Industries" has been clarified. The National Development and Reform Commission outlined six major emerging pillar industries, including integrated circuits, aerospace, biomedicine, low-altitude economy, new energy storage, and intelligent Siasun Robot & Automation, with an estimated total output value of nearly 6 trillion yuan by 2025 and expected to reach over 10 trillion yuan by 2030. This data indicates that the conversion of old and new driving forces in China will accelerate during the "14th Five-Year Plan" period, and the second growth curve of ShenZhen New Industries Biomedical Engineering will take shape. The focus will be on building six major emerging pillar industries and six major future industries. The six major emerging pillar industries include integrated circuits, aerospace, biomedicine, low-altitude economy, new energy storage, and intelligent Siasun Robot & Automation. It is estimated that the output value of these six industries will have reached nearly 6 trillion yuan by 2025 and is expected to double by 2030 to exceed 10 trillion yuan. The six major future industries include quantum technology, bio-manufacturing, green hydrogen and fusion energy, brain-computer interfaces, embodied intelligence, and the emerging 6G technology, all of which are on the brink of technological breakthroughs. These industries represent the future industries that will become the new emerging pillar industries. Point six: The key focus areas for new pillar industries are the Beidou scale application project and the "AI +" action. In fostering and expanding new pillar industries, the National Development and Reform Commission emphasized the continued implementation of the Beidou scale application project and the "AI +" action, aiming to break through the trillion-yuan scale in the Beidou industry within five years and grow the AI-related industry to over 10 trillion yuan by the end of the "14th Five-Year Plan." Beidou and AI are both in fields with broad potential applications, and achieving a "trillion-yuan Beidou application" and an "AI+ over 10 trillion yuan" by the end of the "14th Five-Year Plan" signals the construction of two fundamental infrastructure-level industrial chains. Strengthening the modern industrial system is also a key focus area for achieving economic growth targets. "We will coordinate technological innovation and industrial innovation, deepen the integration of advanced manufacturing and modern services, and accelerate the renewal of old driving forces and the growth of new driving forces. Fostering and expanding new pillar industries means implementing industrial innovation projects and supporting the development of emerging and future industries. For example, the Beidou system may seem distant but is actually within reach, with common services like smartphone navigation, emergency rescue, and deep-sea operations all using Beidou services. We will continue to implement the Beidou scale application project to push the Beidou industry scale to break through 1 trillion yuan within five years. Additionally, we will deepen the 'AI +' action to empower various industries and services, with the AI-related industry scale expected to grow to over 10 trillion yuan by the end of the '14th Five-Year Plan.'" Point seven: Establishing a national-level merger fund to provide "element protection" for innovation support. After establishing the National Venture Capital Guidance Fund in 2025, the National Development and Reform Commission announced the creation of a national-level merger fund in 2026 to facilitate entrepreneurship investment exits, with an expected scale of over 1 trillion yuan. Setting up a merger fund can address the problem of difficulty in venture capital exits, invigorate the venture capital market, and improve industry concentration in new areas to optimize competition. To further support innovation, last year we established the National Venture Capital Guidance Fund; this year we will work with the Ministry of Finance, the People's Bank of China, and other departments to establish a national-level merger fund to facilitate entrepreneurship investment exits, improve the efficiency of venture capital turnover, and leverage a variety of funds with a total scale exceeding 1 trillion yuan. Point eight: Supporting the China Investment Corporation to play a role similar to a "stabilization fund." Regarding maintaining financial market stability, the central bank announced that in 2026, it will work with the China Securities Regulatory Commission to implement structural monetary policy tools to support the capital markets, enabling the China Investment Corporation to function as a stabilization fund. Additionally, research will be done to establish a mechanism to provide liquidity support to non-banking institutions in specific cases, which is an important measure. These three components will constitute a more comprehensive capital market liquidity support structure. In safeguarding the stable operation of financial markets, the central bank announced, "In terms of capital markets, we will work with the China Securities Regulatory Commission to implement effective structural monetary policy tools to support the capital markets. Support the China Investment Corporation to function as a stabilization fund, strengthening the inherent stability and vitality of the capital market. Research is also underway to establish a mechanism to provide liquidity support for non-banking institutions in specific circumstances." Point nine: The deepening of the ChiNext reformpart of which is set to introduce more precise and inclusive listing standards, with a focus on actively supporting high-quality innovative enterprises in sectors like new consumption and modern services to list on ChiNext. This indicates a shift toward technological innovation in addition to focusing on hard technology, underscoring the importance of model and format innovation that will support technological innovation in the application and scenario ends, deepening the ChiNext reforms to more actively support ShenZhen New Industries Biomedical Engineering, and expanding capital market inclusiveness and adaptiveness to further enhance the ability to serve new quality production. Deepening ChiNext reform. The overall plan is to further highlight the role of ChiNext, better supporting the development of the real economy, particularly in emerging and future industries. This will involve expanding the market's inclusiveness and coverage through more precise and inclusive listing standards and increased support for ShenZhen New Industries Biomedical Engineering, new business models, and new technology enterprises. Actively supporting high-quality innovation and entrepreneurship enterprises in new consumer goods, modern services, and other key innovation sectors to list on ChiNext. Copying and promoting the beneficial experiences of the Sci-Tech Innovation Board reform onto ChiNext, focusing on introducing IPO pre-approval for qualified high-quality innovative enterprises, especially those with breakthroughs in core technologies, enabling eligible companies under review to increase capital through share expansion with existing shareholders, optimizing new stock offerings. This will further enhance the quality of ChiNext-listed companies. Establishing a complete system from recommended listings, review acceptance, listing approval to the supervision of fundraising use, better serving regional and private sector development. Currently, the overall ChiNext reform plan has been largely finalized and will be further improved before being implemented. Point ten: Improving refinancing mechanisms with a focus on supporting and directing innovation in science and technology. The National Development and Reform Commission emphasized the need for improvements in refinancing systems. These include optimizing strategic investor identification standards, introducing shelf issuances, and improving price lock-in mechanisms. Furthermore, there will be a greater emphasis on supporting and directing innovation in science and technology, expanding the criteria for the Science and Technology Innovation Board and ChiNext's "light assets, high R&D investment" standards to the Main Board to back high-quality tech enterprises in refinancing. This effort represents a crucial part of "continuously deepening comprehensive reform in capital market investment and financing," signifying a shift towards balancing market value discovery with long-term innovation capabilities and driving societal capital towards enterprises with strong innovation capabilities. Please note that there may be deviations in the understanding of policy content, some policy details requiring further clarification, policies not meeting expectations in implementation, actual industry development exceeding or falling short of expectations, and international geopolitical risks or changes in trade tariffs exceeding expectations.