Core view: the recovery of the national economy in the first quarter was generally stable
Industrial production achieved rapid growth. In the first quarter, the added value of industries above designated size increased by 6.5% year-on-year, of which the added value of high-tech manufacturing and equipment manufacturing increased by 14.2% and 8.1% respectively, 7.7 and 1.6 percentage points faster than that of industries above designated size. Although the current epidemic situation is severe, especially in the eastern coastal areas, the epidemic has not been effectively controlled, the traffic and logistics are not smooth, the capacity utilization rate has been reduced, the commencement of some industrial enterprises has been affected, and some unexpected factors exceeded expectations, China's industrial production still achieved rapid growth in the first quarter. Under the innovation driven development strategy, China's scientific and technological innovation ability has been continuously improved, and the industrial technology intensity has been steadily increased. Looking forward to the follow-up, the steady growth strategy will continue to work, and the RRR reduction in April can further increase the financial support to the real economy, especially the industries seriously affected by the epidemic, small, medium-sized and micro enterprises and individual industrial and commercial households, which can significantly help enterprises rescue, create a more suitable financing environment, stabilize the business expectations of small, medium-sized and micro enterprises, and finally help enterprises tide over the difficulties.
Investment in fixed assets increased steadily, and investment in high-tech industries increased rapidly. In the first quarter, the national fixed asset investment (excluding farmers) was 104872 billion yuan, a year-on-year increase of 9.3%, including infrastructure investment, which increased by 8.5% year-on-year. At present, the downward pressure on China's economy has increased. China's economic work is dominated by steady growth. A large number of infrastructure projects will be implemented in succession in the follow-up, and it is expected to work on infrastructure throughout the year. In the high-tech manufacturing industry, the investment in electronic and communication equipment manufacturing, medical equipment and instrument manufacturing increased by 37.5% and 35.4% respectively; In the high-tech service industry, the investment in information service industry and scientific and technological achievement transformation service industry increased by 21.3% and 19.0% respectively. With the help of manufacturing industry, the growth rate of fixed asset investment in 2022 has a strong repair power.
Market Overview
The A-share market performed poorly this week. The Shanghai Composite Index fell by 3.87%, the Shanghai 50 index fell by 3.97%, the Shanghai and Shenzhen 300 index fell by 4.19%, the China Securities 500 index fell by 5.43%, the small and medium-sized board index fell by 4.32% and the gem index fell by 6.66%. Only the textile and clothing section rose, with an increase of 4.09%; Real estate, steel and non-ferrous metals led the decline, with declines of 9.20%, 9.05% and 8.08% respectively.
Macro dynamics
Yi Gang, governor of the central bank, said at the G20 finance ministers' and central bank governors' meeting that China's prudent monetary policy is flexible and appropriate, and the policy force is appropriately advanced to support the development of the real economy. The central bank will flexibly use a variety of monetary policy tools, give full play to the dual functions of the total and structure of monetary policy tools, and increase its support for the real economy. （Wind）
Risk warning: the macro economy is less than expected, there are serious credit events, and the policy changes are less than expected.
