Galaxy Securities in China: Incremental funds expected to accelerate into place.

China Galaxy Securities pointed out that the fiscal data for January-October has been released. Overall, in the context of proactive fiscal efforts in the first half of the year, there have been signs of a slowdown in fiscal expenditure pace since the third quarter. On one hand, the high base number from the same period last year is the main reason for the decline in expenditure growth compared to last year, and on the other hand, a large amount of newly issued government bonds were used in the first half of the year, leading to a lack of momentum in the later period. Tax revenue growth has been restored for eight consecutive months, with cumulative growth reaching 1.7%, and it is expected that the annual tax revenue budget growth target will be achieved; a slowdown in the issuance pace of new special bonds has dragged down the growth of off-budgetary expenditures significantly. Since the third quarter, there have been signs of a weakening of domestic economic momentum, with demand in October continuing to be weak while supply-side weakness is also becoming apparent. With the activation of local debt ceiling quotas and the resumption of issuance of special bonds, the issuance pace of special bonds is expected to accelerate again in November-December, and the fiscal expenditure for the remaining two months of the year is expected to maintain a certain level of strength, supporting continued economic recovery and improvement.