Guotai Junan Securities Macro Team: Boosting consumption is the key direction for expanding domestic demand this year.

The Central Political Bureau of the Communist Party of China held a meeting on April 25 to analyze and study the current economic situation and economic work. Zhang Hao, head of the macro team at Debon Securities, believes that this political bureau meeting is more of a directional guide, and there is still space for policy response and contingency plans. Looking ahead, China still has sufficient policy space to deal with internal economic conditions and external shocks. Zhang Hao also said that boosting consumption is the key direction for expanding domestic demand this year, with two main focuses: "improving quality" and "unleashing potential." Zhang Hao pointed out that relatively targeted income subsidy policies can be used to support this, such as providing income subsidies and consumption vouchers to urbanization groups. This group has a high marginal propensity to consume, and there are rigid expenses related to "settling down", so income improvement can have a significant impact on consumption.