Ministry of Finance releases major industry signal

　　On October 12, at a press conference held by the State Council, Finance Minister Lan Fo'an and three deputy finance ministers announced a package of incremental fiscal policies on the spot to resolve the existing hidden debt and support the property market to stop falling and stabilize. The market focuses on stabilizing growth, expanding domestic demand, minimizing risks, implementing precise policies, and making targeted efforts.

　　Strive for the stable development of real estate and anticipate the outbreak of the Hongmeng Concept. The Ministry of Finance still retains large incremental policy space, mentioning that the central government still has large room for borrowing and deficit increase.

　　Image source: Photo Network

Strengthen hidden debt replacement

　　On October 14, the bond concept stocks collectively strengthened, with more than 10 stocks including Mengcao Ecology, Everbright Jiabao, Cinda Real Estate, Shaanxi Guotou A, and Yinbaoshan New reaching their daily limit. According to the news, Finance Minister Lan Fo'an believes that the plan to increase the large-scale debt limit at one time and replace the existing local implicit debt is the largest debt reduction measure the Ministry of Finance will introduce in recent years.

　　Guotai Ming'an believes that debt reduction will open up the government's fiscal space. On the one hand, the rebound in government spending will benefit companies such as New Point Software and businesses directly related to government procurement. On the other hand, the prosperity of the government IT field that has been accumulated in the early stage will be improved. Will return to the upward channel.

Promote stable development of real estate

　　The Ministry of Finance stated that it will actively study and introduce policies and measures that are conducive to the stable development of real estate. Incremental fiscal policies introduce incremental funds for local governments to recycle idle land and acquire existing commercial housing to support the supply of affordable housing. The state has used local government special bonds, special funds, tax policies, and other tools to support and promote the real estate market to stop falling and stabilize. The government will insist on strictly controlling increment, optimizing stock, and improving quality.

　　Tianfeng Securities believes that the relevant measures show that the core of real estate policy focuses on “destocking” on the supply side, “reducing costs” on the demand side, and “debt reduction” on the corporate side. It continues to be optimistic about the balance sheet repair and debt resolution of real estate companies under the acceleration of purchasing and storage. And the industry's “volume and price stabilization” under the continued supply and demand adjustment on the policy side. It is recommended to pay attention to: Urban Investment Holdings, Jintou Urban Development, Yunnan Urban Investment, etc.

Hongmeng concept breaks out

　　Hongmengs native application ecosystem is maturing, and large-scale commercialization is imminent. On October 14, the Hongmeng Concept broke out again. Changshan Beiming had 10 boards in 18 days, and more than ten stocks such as Runhe Software and New Point Software hit their daily limits. On October 15, the three major indexes collectively opened lower, Hongmeng Concept repeatedly strengthened, and the CSI Software Index rose by more than 3% as of press time.

　　At the OpenHarmony Technology Conference on October 12, Huawei stated that the number of Hongmeng ecological devices has exceeded 900 million. According to Huawei, as of now, 10,000 applications and meta-services have been put on the HarmonyOS NEXT application market, which can meet 99.9% of users usage time.

　　In addition, Ping An Securities pointed out that the Ministry of Finance has expressed support for localized bonds, and the demand side of the computer industry is expected to accelerate recovery. The alleviation of local debt problems is conducive to the increase in government IT expenditures, and the demand side of the computer industry will usher in a recovery.

　　Soochow Securities: Harmony Next was released, and many head applications began to be developed based on Harmony native. At the same time, with the further advancement of industry innovation and the continuous increase in Huawei's core hardware terminal shipments, 2024 is expected to be the first year of Hongmeng's rapid development. It is recommended to pay attention to: iSoftStone, ChinaSoft International, Runhe Software, etc.