Lubao Fund: A package of policies is progressing faster than expected, giving confidence to the market.

On the morning of May 7, the State Council Information Office held a press conference to introduce the relevant situation of the "package of financial policies to support market stability and expectations" by the People's Bank of China, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission. In response, Lombard Funds stated that the pace of this package of policies is faster than expected, reflecting the early layout and timely feedback of policies this year, as well as the characteristics of maintaining the capital market. Wu Qing, chairman of the China Securities Regulatory Commission, stated that they fully support the role of the Central Huijin Investment Company as a "stabilization fund," which has also given the market certain confidence. Lombard Funds believes that the stabilization of domestic enterprise profits is expected to occur at the end of this year or early next year, catalyzing more sustained market performance. In terms of market structure, technology remains a highlight. The policy inclination towards the technology industry at the meeting is strong, with new types of refinancing and bond risk-sharing tools reflecting the determination for high-quality development. In the short term, growth-style stocks in AI, robotics, autonomous controllable, and defense sectors are favored.