Dim Sum Express

A-Share Market

    Sports: Mid/long-term football development plan signals strengthening policy support

    The NDRC has recently issued a Mid/Long-Term Football Development Plan (2016-2050), anothermajor policy document for the sports industry following the Overall Football Reform and DevelopmentPlan issued earlier by the State Council. According to the development plan, the football industry ispositioned to improve public health and provide a new growth driver for the economy. The documentprovides detailed quantitative targets to be met by 2020, 2030and 2050regarding footballdevelopment in China. We reiterate our view that the commercial value created by sports industryreform will first be seen in the football industry chain, driving long-term re-ratings.

    Machinery: Plan for 2016smart manufacturing pilot projects unveiled

    Both the number and scope of this year’s smart manufacturing pilot projects are larger than thosefor 2015. In the execution of this year’s pilot projects, existing financing vehicles such as the industrialupgrade fund and special construction fund, as well as favorable tax policies, will be fully utilized. Ontop of that, other smart manufacturing development funds are encouraged to be set up, whileinnovative financial products and services can also be used, so as to make the preferential policiesmore effective. Please see text for our ideas for stock selection.