BOCOM INTL released a research report indicating that the Central Economic Work Conference was held recently in Peking. Following the active signaling at the Central Political Bureau meeting, the Central Economic Work Conference released more details on overall and industrial policies. In line with a moderately loose MMF policy tone, it further proposed timely reserve requirement and interest rate cuts, as well as more proactive fiscal policies that provided a three-pronged approach involving deficits, special bonds, and ultra-long-term special government bonds. At the same time, the conference placed consumer spending as a top priority, reflecting a strong emphasis on expanding domestic demand. BOCOM INTL pointed out that for the Capital Markets, the Central Economic Work Conference continued the positive tone of ongoing policy efforts since September. With the continued implementation of a subsequent package of incremental policies and the gradual recovery of the economic fundamentals, the A-share and Hong Kong stock markets are expected to stabilize from previous policy bottoms, continue valuation recovery, and gradually transition to being driven by fundamentals. The industrial policy emphasizes innovation-driven growth, with themes such as AI+ promising clearer investment lines and certain structural opportunities for the market.