CITIC Securities: Under the pressure of the federal budget deficit in the United States, privatizing "Fannie Mae and Freddie Mac" will bring more benefits than drawbacks to the US Treasury.

CITIC Securities stated that under the pressure of the federal budget deficit in the United States, privatizing Fannie Mae and Freddie Mac would be more beneficial than harmful to the US Treasury Department. Given that the Republican Party still holds political advantage in both houses of Congress and with the approaching midterm elections in the United States, it is expected that policy uncertainty will significantly increase. Therefore, whether through administrative means or congressional legislation, we expect that the privatization of Fannie Mae and Freddie Mac will make substantial progress as early as the fourth quarter of this year. Privatization will not only create valuation restructuring space for Fannie Mae and Freddie Mac, but it will also bring substantial non-tax revenue to the US Treasury Department, making a substantial contribution to easing federal fiscal pressure.