Recently, many regions have held planning or coordination meetings for new policy based financial instrument projects. Industry insiders indicate that this round of new policy based financial instruments is expected to be implemented as early as the second quarter, and the investment will further focus on "new" areas such as new quality productivity and new urbanization. Recently, the Development and Reform Commission of Weihai City organized a special symposium to interpret the policies of new policy based financial instruments and connect their businesses. The focus was on clarifying the direction and practical requirements of tools in supplementing project capital, leveraging social investment, supporting technological innovation, expanding consumption, stabilizing foreign trade, and other fields. Since April, many cities such as Tongchuan, Suining, and Dezhou have also held intensive meetings with government banks and enterprises to plan and reserve or finance such projects, interpreting the policy changes of new policy based financial instruments in 2026, and clarifying the support areas and project application requirements. This year, China will continue to issue new policy financial instruments with a capital scale of 800 billion yuan, an increase of 300 billion yuan from last year. At the recent press conference of the State Council Information Office, Wang Changlin, Deputy Director of the National Development and Reform Commission, stated that efforts will be made to accelerate the orderly deployment of 800 billion yuan of new policy based financial instruments. Several interviewed experts have stated that new policy based financial instruments are expected to be implemented as early as the second quarter of this year and will be launched as soon as possible. Based on the current demand for stable investment and referring to the process from announcement to deployment of the 500 billion yuan new policy financial instruments by 2025, we estimate that the 800 billion yuan new policy financial instruments are expected to be fully deployed in the first half of the year, "said Wang Qing, Chief Macro Analyst of Dongfang Jincheng. From the perspective of investment direction, it is expected that new areas of productivity such as artificial intelligence and new urbanization will become the focus. The Development and Reform Commission of Dezhou City revealed that it will work with enterprises to plan projects in advance and accelerate project construction around support directions such as digital economy, artificial intelligence, low altitude economy, consumption, transportation, energy, agriculture, forestry and water conservancy, and municipal administration. The Development and Reform Commission of Zhangzhou City stated that it will focus on policy support areas such as digital economy, artificial intelligence, and infrastructure, and select a batch of high-quality projects that are in line with policy guidance, have both social benefits and development potential. Wang Qing stated that in terms of investment direction, the key investment areas for new policy based financial instruments this year are infrastructure investment, including urban renewal projects such as underground pipeline network renovation, projects to fill the gaps in people's livelihoods such as elderly care and childcare facilities, upgrading hard facilities in the consumer sector, and major transportation and energy engineering projects across regions and watersheds; The second is investment in the manufacturing industry, with a focus on areas such as digital economy, artificial intelligence, new energy, and low altitude economy, to promote technological innovation and the development of new quality productivity. The investment of policy financial instruments in the past has gone through a transformation process from focusing on traditional infrastructure to emphasizing both traditional and new infrastructure, and then to focusing on new quality productivity. ”Yuan Haixia, Executive Director of China Chengxin International Research Institute, said that under the requirement of "enhancing effective investment growth driven by the market", this round of new policy based financial instruments may further focus on key areas such as new quality productivity and new urbanization, combined with the "15th Five Year Plan" outline and this year's government work report, or further increase the tilt towards related projects in artificial intelligence, computing infrastructure, low altitude economy, commercial aerospace, green low-carbon, consumption upgrading, urban upgrading and transformation, and other fields. In terms of regional layout, Yuan Haixia stated that it is expected to continue to tilt towards places where investment projects are well prepared and funds are well utilized, especially in economically active provinces with more active social capital. Last year, 500 billion yuan of new policy based financial instrument funds supported over 2300 projects, with a total investment of approximately 7 trillion yuan. Based on the actual leverage effect of policy oriented development financial instruments in 2022 and the expected investment pull effect of 500 billion yuan of new policy oriented financial instruments in 2025, it is expected that the 800 billion yuan new policy oriented financial instruments will leverage an overall project investment of about 900 trillion yuan in the next 3 to 4 years, "said Wang Qing. (Looking into the New Era)