Since the historical policy innovation combination proposed by Pan Gongsheng at the State Council Information Office press conference on September 24 this year, A-share market has witnessed an unprecedented continuous surge in trading volume, with the SSE Composite Index soaring high to 3674 points, and the daily trading volume of the two markets continuously expanding, reaching over 3.45 trillion, setting a new historical record.

From the market where the SSE Composite Index violently broke through 3600 points, with nearly 3.5 trillion trading volume, and the background of continuous limit-up trading of initial mainstream stocks in finance, consumer, and technology sectors, the bull market seems promising.

Even as the market swiftly adjusts after the rapid surge, such as last Friday when the SSE Composite Index, Shenzhen Component Index, and Chinext Price Index all fell below their five-day moving average closing prices, while the trading volume of the two markets continued to decline to below 2 trillion, this cannot change the objective fact that the market and sentiments have already transitioned.

Over the weekend, the overall policy stance of the Ministry of Finance exceeded expectations, with a clear signal of incremental fiscal policy, most stocks stabilizing, off-exchange funds flowing back in, and the market possibly transitioning from a 'crazy bull' to a 'slow bull' scenario in a gradual manner.

The main theme of this bull market is closely related to 'new quality productivity'.

Looking back at history, every major bull market in China's stock market has been closely linked to the policy direction and national strategy at that time.

So, what might be the main theme of the current bull market? We need to think from the perspective of the current national demands. From the 'new quality productivity' first proposed in the top-level design in September 2023, we can find some clues.

New quality productivity, as a key driving force for promoting high-quality economic development, is receiving high-level attention at the national level. At the national policy and strategic level, new quality productivity is seen as an important strategic lever to meet the growing needs of the people for a better life, as well as a major strategic planning balancing both domestic and international considerations.

From the perspective of national strategy and the inherent deep-level needs, the development of new quality productivity is not only an inevitable choice for economic transformation and upgrading, but also a strategic choice to build new competitive advantages and win the initiative of development. The sectors and industries involved in new quality productivity are quite extensive, including but not limited to low-altitude economy, digital economy, commercial aerospace, and csi sws health care index, all of which are the core and soul of the transformation of old and new driving forces. With the current traditional growth model reaching a bottleneck, the proposal of new quality productivity is based on the inherent requirements of China's own economic transformation and upgrading.

National policies are guiding the convergence of resources towards new quality productivity and supporting listed companies in the transformation and upgrading towards new quality productivity. For example, the China Securities Regulatory Commission issued the Opinions on Deepening the Market Reform of Mergers and Acquisitions of Listed Companies, proposing to guide more resources towards new quality productivity.

In addition, the development of new quality productivity also requires the correct handling of a series of significant relationships, including the relationship between productivity and production relations, the relationship between various elements of new quality productivity, the relationship between independent innovation and open innovation, and the relationship between new quality productivity and traditional productivity. Through these measures, efforts can be made to empower the development of new quality productivity, promote the integration of technological innovation and industrial innovation, and shape new driving forces and advantages for development.

In summary, the development of new quality productivity is an important part of the national strategy. It is not only an inherent requirement for high-quality economic development, but also a key for the country to address external challenges and seize the initiative for future development. With the support and guidance of national policies, new quality productivity is becoming the core driving force for promoting China's economic transformation and upgrading as well as the formation of a bull market.

Although new quality productivity focuses on the 'new', its core is productivity, representing the development of strategic emerging industries and future industries. It is essentially a new type of manufacturing industry driven by technological breakthroughs or innovation in models.

As a major manufacturing country, China is known as the 'world's factory', and its huge annual trade surplus in goods proves the international competitiveness of our manufacturing industry. However, many excellent companies in China's manufacturing industry have long been undervalued, which is also unreasonable on a global scale.

Therefore, the core theme of this round of bull market is likely to be the repricing opportunity for competitive new type manufacturing assets and state-owned assets.

Representative new type manufacturing companies embodying new quality productivity - cimc vehicles

The new quality production capacity is not only a manifestation of technological innovation, but also a comprehensive reflection of various aspects such as structural reform of enterprise organization and optimization of resource allocation. As a leader in high-end manufacturing, CIMC Vehicles firmly grasps the core of new quality production capacity, leading the industry to break through and providing more valuable references for the transformation of traditional manufacturing industry.

Looking back on CIMC Vehicles' development over more than 20 years, since entering the semi-trailer industry in 2002, CIMC Vehicles has evolved from being rooted in China to global operation, from a newcomer in the industry to a global leader in high-end manufacturing of semi-trailers and specialty vehicles, which cannot be separated from two key elements: breaking through with the "new" and seeking change with "quality".

In the first entrepreneurial stage, CIMC Vehicles embarked on the semi-trailer business, also initiating the regularization, industrialization, and scale development of China's semi-trailer industry. By maintaining an innovative vitality, CIMC Vehicles foresaw the urgent need for transformation and upgrade in traditional manufacturing industries, taking the lead in exploring and constructing a high-end manufacturing system.

CIMC Vehicles has established intelligent manufacturing factories globally, known as the 'Lighthouse Factory'. These factories, through automation, digitization, and intelligent construction, have not only improved production efficiency and product quality, but also reduced costs and pollution emissions, representing a high level of intelligent manufacturing and digitization in the Chinese and even global manufacturing sector.

Subsequently, facing the situation of weak overseas business, complex domestic operations, and overall size without strength, in order to support the comprehensive construction and development of the high-end manufacturing system, CIMC Vehicles embarked on a second entrepreneurial journey, undergoing a transformation from 'global operation, local wisdom' to 'transoceanic operation, local manufacturing'.

Through the second entrepreneurial venture, CIMC Vehicles has established a transoceanic operational pattern and global supply chain management for the semi-trailer business. Its overseas entities are based on local manufacturing and sales, while utilizing the global supply chain and the production organization of core components of global semi-trailers for co-construction and sharing, achieving a more efficient level of productivity.

Currently, as China's economy enters a phase of high-quality development, the manufacturing industry is also facing the urgent task of transformation and upgrade. Only by continuously innovating, deepening reforms, optimizing resource allocation, and creating new quality production capabilities through various means, can manufacturing enterprises achieve high-quality development in the tide of the times and gain the initiative in market competition.

CIMC Vehicles actively seizes market trends, with an entrepreneurial spirit of forging ahead and overcoming obstacles, comprehensively promoting the third entrepreneurial venture, and creating new quality production capacity.

In 2023, CIMC Vehicles launched the 'Starlink Plan,' aiming to create new productive forces by innovative design and production technology, structural transformation of production organization, and reconfiguration of production capacity in internal and external cycles, promoting the fundamental establishment of a new development pattern for the entire industry. CIMC Vehicles, with the 'Starlink Plan' as a symbol, focuses on the structural reform of semi-trailer production organization, improves the management processes of transoceanic operations, and significantly enhances the efficiency of transoceanic operations.

CIMC Vehicles' third entrepreneurship reflects its forward-thinking trajectory and innovative activities in new productive forces, not only effectively promoting the high-quality development of the enterprise itself but also providing beneficial reference and demonstration effects for the transformation and upgrading of the entire manufacturing industry.

During a recent public roadshow, CIMC Vehicles also stated that in terms of performance improvement, the company will continue to promote the 'Starlink Plan' for the semi-trailer business, gradually unleashing the profit improvement brought by new productive forces, actively layout overseas markets, integrate and optimize overseas LoM networks to achieve growth. Thus, it is evident that the application and aggregation of new productive forces remain the basis and focus of its development.

Within the past 20 trading days, with a calculation based on the daily closing price, CIMC Vehicles' highest stage increase has exceeded 41%, meeting the technical analysis standards for bull-bear conversion. Whether it can become a leading manufacturer in the bull market of new productive forces remains to be seen.