CITIC Securities: It is expected that during the "15th Five-Year Plan" period, the policy direction in China will still focus on the expansion of fiscal and monetary policies.

CITIC Securities recently reported that looking ahead, the resolution of hidden debts of local governments may be achieved at the end of the "14th Five-Year Plan" period to the beginning of the "15th Five-Year Plan" period. However, the leverage ratio of local governments remains high, and in an environment of significant uncertainty on the income side, it is expected that the central bank will still need to maintain low interest rates. In the future, a new round of policy financial tools will focus on eight areas including digital economy, artificial intelligence, low-altitude economy, basic infrastructure in the consumption sector, green and low-carbon transformation, agriculture and rural areas, transportation and logistics, as well as municipal and industrial parks. Incremental demand on the fiscal side is expected to remain high, and the pattern of dual easing in fiscal and monetary policy is expected to continue in the future.