Morgan Stanley published a report indicating that, according to news from the National Development and Reform Commission, China will expand the scope of Consumer subsidies to include more product categories, including Smart Phones, tablets, and smartwatches and fitness bands will be included in the plan.

The institution believes that Consumer subsidies will become a short-term positive catalyst for Smart Phone OEMs and supply chain companies, and believes that Xiaomi-W (01810.HK), Sunny Optical (02382.HK), AAC TECH (02018.HK), BYD Electronics (00285.HK), and Q TECH (01478.HK) may become major beneficiaries.