★Macro★
01
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【Ministry of Finance: Implement a Comprehensive Debt Resolution Policy in 2025, Resolutely Curb New Hidden Debt, and Effectively Prevent and Resolve Local Government Debt Risks】
The Ministry of Finance released the 2024 China Fiscal Policy Implementation Report. In 2025, fiscal policy will be more proactive, with sustained efforts and greater effectiveness. Strengthening scientific fiscal management, comprehensively deepening the reform of the fiscal and taxation system, and formulating opinions on improving the modern budget system. Enhancing the systematic integration and coordinated efficiency of various budget management measures. Promoting zero-based budgeting reform, the construction of expenditure standards, fiscal affordability assessment, and performance management. Implementing a comprehensive debt resolution policy, resolutely curbing new hidden debt, and effectively preventing and resolving local government debt risks. Accelerating the reform and transformation of local government financing platforms, increasing financial supervision, and enhancing fiscal governance efficiency.
02
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【Ministry of Finance: Increase Fiscal Deficit Ratio in 2025, Arrange for Larger-Scale Government Bonds】
The Ministry of Finance released the 2024 China Fiscal Policy Implementation Report. In 2025, fiscal policy will be more proactive, with sustained efforts and greater effectiveness, specifically reflected in five aspects: First, increase the fiscal deficit ratio, strengthen spending intensity, and accelerate spending progress. Second, arrange for larger-scale government bonds to provide more support for stable growth and structural adjustment. Third, vigorously optimize the spending structure, enhance precise allocation, and focus more on benefiting people's livelihoods, promoting consumption, and boosting future potential. Fourth, continuously prevent and resolve risks in key areas, promoting stable and sustainable fiscal operations. Fifth, further increase transfer payments to local governments, enhancing local financial strength and ensuring the bottom line of "three guarantees."
03
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【Ministry of Finance: Support Comprehensive Expansion of Domestic Demand, Vigorously Boost Consumption】
The Ministry of Finance released the 2024 China Fiscal Policy Implementation Report. The report proposes that in 2025, fiscal policy will be more proactive, supporting the comprehensive expansion of domestic demand. Vigorously boost consumption. Increase the intensity of livelihood protection and diversify channels to increase residents' income. Promote the implementation of a special action plan to boost consumption, and increase support for trade-in policies for consumer goods. Appropriately raise the basic pension for retirees, and increase the fiscal subsidy standards for basic pensions and basic medical insurance for urban and rural residents. Promote the implementation of the national integrated freight hub chain strengthening and upgrading actions, and the digital transformation and upgrading of road and waterway transportation infrastructure, to reduce overall logistics costs. Actively expand effective investment. Make good use of various government investment funds, focusing on key areas and weak links. Reasonably arrange the issuance of government bonds, expedite the budget allocation of bond funds, and form physical work as soon as possible.
04
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【Ministry of Human Resources and Social Security: Include Micro-Enterprise Owners, Individual Business Owners, and Other Individuals in the Scope of Special Loans for Job Stabilization and Expansion, with a Maximum Credit Line of 10 Million Yuan for Individuals】
The Ministry of Human Resources and Social Security recently issued a notice to further increase financial support for job stabilization and expansion. On the basis of existing micro-enterprises, it includes micro-enterprise owners, individual business owners, and other individuals in the scope of special loans for job stabilization and expansion. It also increases the credit limit, raising the maximum credit for micro-enterprises from 30 million yuan to 50 million yuan, and setting the maximum credit for individuals at 10 million yuan.
★Industry and Downstream★
01
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【Bayi Steel to Cut Crude Steel Production by 10% Starting Today】
It is reported that several steel enterprises in Xinjiang began implementing production cuts today. A representative from Bayi Steel confirmed this information, stating that the marketing center has received a notice to reduce daily crude steel production by 10%, starting today. The notice did not specify the duration of the production cuts. However, company officials said they were unsure if other steel enterprises in the region had taken similar measures.
02
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【Ningbo: Allow Eligible Depositors to Withdraw Housing Provident Fund to Pay for Second-Hand Home Down Payments】
The Ningbo Housing Provident Fund Management Center introduced a new policy allowing eligible depositors to withdraw their housing provident fund to pay for down payments on second-hand homes. Depositors who have paid into the housing provident fund in Ningbo and have completed the online signing of a second-hand home purchase contract within the city's administrative area, along with their spouses, parents, and children (collectively referred to as applicants), can apply to the local housing provident fund management center to withdraw their personal housing provident fund account balances to pay for the down payment. If the depositor and their spouse's housing provident fund is not enough to cover the down payment, they can withdraw the housing provident fund of their parents and children. This policy will take effect on March 28, 2025.
03
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【Shenyang Adds 20 Million Yuan in Car Consumption Subsidies】
The Shenyang Municipal Bureau of Commerce conducted a car consumption subsidy activity from March 10 to March 31, 2025. As of March 15, 30 million yuan in subsidies had been claimed. To further stimulate the car market, encourage the consumption of NEVs, and fully release the subsidy benefits for stable growth, promoting transformation, and benefiting the people, the Shenyang Municipal Government decided to add 20 million yuan in subsidies, continuing the car consumption subsidy activity from March 25 to March 31, 2025.
04
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【Foshan: Fully Investigate the Willingness and Funding Needs of Ongoing and Unstarted Real Estate Projects to Apply for the "Whitelist"】
The Foshan Real Estate Financing Coordination Mechanism Office issued a notice to further improve the review of the "whitelist." Each district's financing coordination mechanism should proactively connect with local real estate developers to fully investigate the willingness and funding needs of ongoing and unstarted real estate projects to apply for the "whitelist." For real estate projects with financing needs, guide the developers to actively match the "whitelist" "5+5" criteria, and apply through the district's financing coordination mechanism to enter the "whitelist," ensuring "all applications are submitted." The project scope includes those already on the "whitelist" with additional financing or loan extension needs, and ongoing projects not yet on the "whitelist" but with financing needs. Application materials must be true, complete, and accurate, and any falsification is strictly prohibited.
★Other Hot Topics★
⭕【Zhejiang: Provincial Units to Conduct Inventory and Usage Surveys of Real Estate and Land, Formulate Plans for Activating Assets】
The Zhejiang Provincial Department of Finance recently issued a notice on strengthening the implementation of systems to further improve the quality and efficiency of administrative and public asset management. The notice states that all levels of finance departments, supervisory authorities, and administrative and public institutions should enhance their awareness of asset activation, firmly implement the requirement of frugal government, and standardize the work of activating state-owned assets based on actual conditions. All regions should conduct a comprehensive inventory of water conservancy infrastructure assets, establish a list of inventories and activation needs, and promptly report activation demands, actively promoting market-based methods for activation. Provincial units will conduct an inventory of real estate and land, formulate plans for activating these assets, and promote the optimal allocation and enhanced efficiency of real estate and land. All levels of finance departments, supervisory authorities, and administrative and public institutions should summarize and timely report replicable and referential cases of activation, which the provincial finance department will select and promote.
⭕【CICC: Consumer Sector Expected to Gradually See Trending Performance】
A CICC research report indicates that since the beginning of the year, the consumer and broad consumer indices have risen 0.5% and 1.4%, respectively, showing a mild performance, slightly better than the overall market (the CSI 300 index fell 0.5% during the same period). Recently, with policy incentives in the consumer sector and improved expectations for China's economic growth, the attention on the consumer sector has increased, though the market remains volatile. Given the current macro environment, the overall allocation to the consumer sector may still be in an early stage, and in the short to medium term (3-6 months), it may present phased and structural opportunities. It is recommended to focus on sub-sectors with high growth. In the medium term (6-12 months), with further intensified pro-growth policies and the recovery of effective demand, the consumer sector is expected to gradually see trending performance.
⭕【Nippon Steel: US Tariffs May Cause Japan's Crude Steel Production to Fall Below 80 Million mt】
Nippon Steel President Masashi Imai stated at a press conference that the tariffs imposed by the Trump administration on steel, aluminum, and automobiles might reduce Japan's annual crude steel production by several million tons, potentially bringing the total output below 80 million mt.
