Lian Weiliang, deputy director of the national development and Reform Commission, said at a press conference on the 7th that he would accelerate the reform of stabilizing growth and expanding domestic demand. Innovate the investment and financing system, promote the reform of enterprise investment project commitment system, improve the level of investment facilitation, better leverage social capital and expand effective investment. We will improve the quality and capacity of consumption, further improve the consumption environment and promote the sustained recovery of household consumption. Improve the system design of distribution according to factors and promote the expansion of the scale of middle-income groups.
Dongguan Securities believes that the government work report proposes to promote the sustained recovery of consumption. We will increase residents’ income through multiple channels, improve the income distribution system and enhance consumption capacity. Promote the deep integration of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) consumption, promote the recovery of life service consumption, and develop new consumption formats and models. In addition, for tourism and other industries, the government work report clearly mentioned that it is necessary to promote the reduction of production and operation costs of enterprises, including helping industries seriously affected by the epidemic, such as catering, accommodation and tourism, with preferential policies.
Soochow Securities Co.Ltd(601555) pointed out that it pays attention not only to consumption, but also to balance. In the 2022 work task chapter of the government work report, it is mentioned in the consumption related part that “promote the continuous recovery of consumption. Promote the increase of residents’ income through multiple channels, improve the income distribution system and enhance the consumption capacity”. Here, compared with previous years, it is emphasized to “improve the income distribution system”. At this stage, there is a certain gap between the development degree of China’s sinking market consumption and high-speed cities. The proportion of traditional channels is high, and there is a large space for development in the future. In this regard, the report has always mentioned the need to “develop rural e-commerce and express logistics distribution”. In short, the pulling effect of “consumption promotion” on essential products and optional products at appropriate prices, the necessity and broad space for the development of rural e-commerce are all directions worthy of investors’ attention.
The agency believes that it is optimistic about the continuous promotion of consumption upgrading. The report mentioned that “we will promote the deep integration of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) consumption, promote the recovery of life service consumption, and develop new consumption formats and models. We will continue to support the consumption of new energy vehicles, and encourage local governments to carry out green smart appliances to the countryside and trade the old for the new”. This is not different from the relevant statements in previous reports, indicating the country’s consistent support for consumption upgrading, quality improvement and the upgrading of durable goods. Recommended targets: targets benefiting from consumption capacity upgrading Proya Cosmetics Co.Ltd(603605) , Yunnan Botanee Bio-Technology Group Co.Ltd(300957) etc., and targets related to industrial Internet Beijing United Information Technology Co.Ltd(603613) , Milkyway Chemical Supply Chain Service Co.Ltd(603713) , etc. Suggested attention: sinking e-commerce remittance and access network, etc.
