Today's executive meeting

The Politburo meeting on April 25 analyzed and studied the current economic situation and economic work. Here are some key points:
1) The overall situation assessment: The foundation for China's sustained economic recovery and improvement still needs further consolidation, and external shocks are increasing. It is necessary to strengthen bottom-line thinking, fully prepare contingency plans, and solidly carry out economic work.
Comment: Notably, it not only emphasized the external impact of the tariff war but also acknowledged that the internal foundation is not yet solid enough.
2) The overall work approach and tone: Coordinate domestic economic work and international economic and trade struggles... Use the certainty of high-quality development to cope with the uncertainty of rapid changes in the external environment.
Comment: The use of the word "struggle" indicates a tougher approach to external challenges compared to 2018. This judgment and decision are made against the backdrop of the significant release of major domestic economic risks in recent years. The certainty of high-quality development is the main approach and work strategy, meaning that internal chaos and large-scale stimulus will not occur due to external shocks.
3) The tone on macroeconomic policies: Accelerate the implementation of more proactive and effective macroeconomic policies, make full use of more proactive fiscal policies and appropriately loose monetary policies.
Comment: The focus of this part is "accelerate implementation." The tone on fiscal and monetary policies is consistent with previous important meetings, mainly emphasizing faster implementation. There are no significant marginal changes.
4) The description on expanding domestic demand: Vigorously develop service consumption... Establish service consumption and pension relending. Increase financial support, expand and improve the implementation of the "two new" policies, and strengthen the implementation of the "two major" constructions.
Comment: This means expanding the scope of consumption subsidies and emphasizing service consumption. "Expanding the scope" is a marginal change. These are all expected policy "patches."
5) The wording on real estate: Strengthen the implementation of urban renewal actions, and advance the renovation of urban villages and old and dangerous houses in a forceful and orderly manner. Accelerate the construction of a new model for real estate development, increase the supply of high-quality housing, optimize the policy for acquiring existing commercial housing, and continuously consolidate the stable situation of the real estate market.
Comment: The word "consolidate" is key, indicating that the real estate market is already considered "stable" and only needs consolidation, rather than further efforts to promote stability.
6) Others. Other aspects mentioned include supporting technological development, accelerating the construction of a unified domestic market, continuing debt resolution, and ensuring people's livelihoods.
Overall comment: The first quarter started well, facing external challenges head-on with a "struggle" mindset. Respond to changes with constancy, where the constancy is the certainty of the high-quality development strategy. The real estate sector is in good shape and has stabilized, needing further consolidation. No major moves.

$SSE Index(000001.SH)

$Huatai-PB CSOP Hang Seng Technology ETF(QDII)(513130.SH)

$S&P 500(.SPX.US)

$NASDAQ Composite Index(.IXIC.US)

$Dow Jones Industrial Average(.DJI.US)