Morgan Stanley published a research report indicating that Jiangxi Province announced a subsidy for individual consumers purchasing Smart Phones and tablets at participating merchants, providing a subsidy of 15% of the final Fill Price of the product, with each subsidy not exceeding 1,000 yuan. The bank noted that Jiangxi Province is the third province in mainland China to announce such a policy, and believes that other provinces may follow suit.

Morgan Stanley stated that for Smart Phone OEM production and the supply chain, the subsidy policy will serve as a short-term Bullish catalyst, believing that Xiaomi (01810.HK), Sunny Optical (02382.HK), AAC Technologies (02018.HK), BYD Electronic (00285.HK), and QK Titanium (01478.HK) will become the main beneficiaries.