Bank of China International released a report stating that on September 25, the National Development and Reform Commission held a meeting, emphasizing the coordinated arrangement of 300 billion yuan long-term national bonds to support consumer goods for trade-ins. The policy of trading in old appliances for new ones has been fully implemented in all 31 provinces and regions across the country, with actual implementation at the local level since early August.

The report points out that although the 150 billion subsidy for trading in old appliances for new ones may not have a significant direct impact on boosting social retail, as the retail sales of appliances accounted for only 1.8% of social retail last year, it is believed to help boost consumer confidence. The bank mentioned that JD.com and Alibaba are preferred in the Chinese internet industry, and is expected that they will be the primary beneficiaries of the policy of trading in old appliances for new ones and the increased liquidity from the Shanghai-Hong Kong Stock Connect.

Furthermore, the report points out that Chinese telecommunications stocks are still attractive. China Telecom and China Mobile, with their closing prices in Hong Kong on October 7th, maintain dividend yields of 5.7% and 6.5% respectively. On the other hand, although ZTE's short-term performance is better than the broader market, and its estimated PE ratio for the 2025 fiscal year is 11.2 times which is relatively attractive, it has a higher beta ratio.