CITIC Construction Investment: The Chinese manufacturing industry will move towards a new round of high-quality development by curbing disorderly expansion, guiding high-quality production capacity, and optimizing resource allocation.

CICC's research report believes that there is a structural imbalance in the overall manufacturing industry in China, and the differentiation between different industries is significant. We sorted out various industries according to production capacity, company profitability, and price levels, observed the potential focus areas for anti-"involution," and conducted in-depth analysis of the coal, steel, photovoltaic, and automotive sectors. Looking ahead, China's manufacturing industry will move towards a new round of high-quality development by curbing disorderly expansion, guiding high-quality capacity, and optimizing resource allocation. We believe that transitioning from capacity reduction to quality improvement, establishing a high-quality supply system based on technology, supported by institutions, and guided by the market, may be the focus of this anti-"involution."