Huayuan Securities: The main expected goals set in the government work report balance stable growth with risk prevention.

On March 5th, the government work report proposed the main expected goals for development in 2026. The report put forward a target of 4.5%-5% for economic growth for the whole year, and specifically added "strive for better results in actual work." Sun Suyu, chief analyst of the Macro Economic Group at Huayuan Securities Research Institute, believes that this strategic adjustment coordinates stable growth and risk prevention, demonstrating China's firm confidence and strong momentum in the stable and far-reaching development of the economy. Sun Suyu believes that macroeconomic policies continue to be proactive and effective, with significant enhancement of the coordinated linkage of fiscal and monetary tools. On the fiscal side, the focus is on increasing efficiency and effectiveness, with a planned deficit rate of around 4% for the year, ensuring livelihoods while also considering debt risks; at the same time, plans to issue 1.3 trillion yuan of ultra-long-term special national bonds to accurately support the "two sessions" construction and "two new" work. Monetary policy uses a variety of structural policy tools such as flexible and efficient use of RRR cuts and interest rate cuts, and implements targeted irrigation to support further stable and positive development of the real economy.