[East Money Macro] Towards Innovation and Optimization - Study and Understanding of the July Politburo Meeting Spirit

English summary

1. The current economic situation is characterized as 'momentum shifting to innovation, structure shifting to optimization,' with greater emphasis on the development of new momentum. 2. The economic work objectives newly added 'accelerate the conversion of old and new momentum,' indicating increased urgency to cultivate new momentum. 3. Following the 2025 Central Economic Work Conference, 'increase counter-cyclical adjustment' was reiterated, with a clear signal of stronger policy efforts. 4. Fiscal policy wording changed from 'continuously optimize fiscal expenditure structure' in April to 'accelerate the pace of fiscal expenditure and bond fund usage,' suggesting notably faster pace, with key directions still being the 'two major' and 'two new.' 5. Monetary policy remains moderately loose, proposing to 'comprehensively use and timely adjust monetary policy tools,' emphasizing coordination with fiscal policy. 6. Propose to 'effectively expand domestic demand,' emphasizing efficiency of domestic demand policies, with focus on consumption supply, service consumption, and investment in the 'six networks.' 7. Industrial policy tilts toward new momentum, continuing to 'deeply implement the AI+ action.' 8. ...