Zhongxin Securities Mingming: The highlights of China's incremental policies in the second half of the year may come from policy tool innovations.

Chief economist Ming Ming of CITIC Securities stated that in the first half of the year, the total volume of the Chinese economy remained stable and improved, with the structure continuously optimized. Achieving a growth rate of 5.3% significantly exceeded market expectations. Ming Ming said that in the past two years, the Chinese government has used some volume expansion policies in the second half of the year to effectively support growth. Considering the impressive overall macroeconomic results in the first half of this year, and the full utilization of the annual policy funding, incremental policies in the second half of the year may come from innovative policy tools. The main channels and directions for innovative policy tools are still focused on the weak links in the current macroeconomy, including areas that need continuous support in the second half of the year, such as real estate inventory replenishment, the service industry and consumption, as well as the continuity of the "14th Five-Year Plan" and the upcoming "15th Five-Year Plan." These areas may be the ultimate direction for innovative policy tools.