The State Council meeting, policy measures came as expected like raindrops, and the market started to react in the afternoon.

The meeting emphasized the need to strengthen counter-cyclical adjustments in fiscal and monetary policies, ensure necessary fiscal expenditures, and effectively implement the "three guarantees" at the grassroots level. It called for the proper issuance and utilization of ultra-long-term special treasury bonds and local government special bonds to better leverage the driving role of government investment. It also proposed to lower the reserve requirement ratio and implement forceful interest rate cuts. To stabilize the real estate market, it suggested strictly controlling new supply, optimizing existing inventory, improving quality, increasing loan disbursements for projects on the "whitelist," and supporting the revitalization of idle land. The meeting also highlighted the need to address public concerns by adjusting home purchase restrictions, lowering mortgage rates for existing loans, and promptly improving policies on land, taxation, and finance to promote a new model for real estate development. Efforts should be made to boost the capital market, vigorously guide medium- and long-term funds into the market, and remove obstacles for funds from social security, insurance, and wealth management to enter the market. Support should be given to mergers and acquisitions of listed companies, steady progress in public fund reforms, and the study and introduction of policies to protect small and medium investors.

$Kweichow Moutai(SH600519)$ $SSE Composite Index(SH000001)$ $China Merchants Bank(SH600036)$