Yicai:

After the investment growth rate rebounded in the first quarter, how did fixed-asset investment perform in April? What's your assessment of the investment outlook in the period ahead? Thank you.

Fu Linghui:

Thank you for your questions. I will answer them. Affected by multiple factors, investment declined again in the first four months of the year. Excluding real estate development investment, however, project investment continued to grow. From January to April, fixed-asset investment fell by 1.6% year on year, while project investment excluding real estate development grew by 1.3%. Despite a decrease in total investment, investment in key areas maintained rapid growth, driven by factors such as innovation, the expansion of new growth drivers, and stronger support for people's well-being. The investment structure continued to improve, laying a foundation for medium- and long-term economic development. Specifically, this can be seen in several areas.

First, investment aimed at building up long-term growth momentum continued to expand. Sustained economic growth momentum cannot be achieved without well-developed infrastructure. The saying "To get rich, build roads first" underscores the pioneering role infrastructure plays in economic development. Since the beginning of this year, construction of new-type infrastructure such as computing power facilities and next-generation communication networks has accelerated, driving rapid investment growth in related industries. From January to April, investment in the information transmission industry grew by 29.2%. The construction of a comprehensive and multidimensional transportation system also accelerated, driving rapid growth in investment in related facilities and industries. During the same period, investment in water transport and air transport rose by 28.4% and 27.3%, respectively, while investment in aircraft manufacturing grew by 20.9%, closely linked to the development of China's low-altitude economy. Going forward, enterprises seeking to gain a competitive market edge must anchor their strengths in technological innovation and increase investment in R&D and design. Since the beginning of this year, fueled by the innovation-driven development strategy, investment in intellectual property products has maintained rapid growth, creating favorable conditions for industrial development. From January to April, investment in IP products increased by 8.9% year on year, 1 percentage point faster than in the first quarter, contributing 1.1 percentage points to overall investment growth.

Second, development-oriented investment grew at a relatively fast pace. China is at a critical juncture of transitioning from old to new growth drivers. Industries are moving towards the mid-to-high end, digital and intelligent transformation is accelerating, and new growth drivers are expanding. Since the start of the year, investment in related industries has maintained relatively strong growth, driven by advances in AI and industrial upgrading. From January to April, investment in integrated circuit manufacturing grew by 11.6% and investment in information services rose by 18.1%. Meanwhile, supported by large-scale equipment upgrade policies, enterprises have stepped up investment in renewal and transformation, laying a solid foundation for improving the quality and efficiency of production and services. From January to April, investment in equipment and machinery purchases grew by 11.5% year on year, with a notable increase in industries related to computing power demand. From January to April, equipment purchase investment in the internet and related services sector surged 81.8%, while the telecommunications, broadcasting, television and satellite transmission services sector grew by 22.3%. The pace of the green energy transition has accelerated, with related investment continuing to grow. From January to April, investment in the lithium-ion battery manufacturing grew by 28.8%.

Third, investment in improving people's livelihoods continued to increase. China remains committed to ensuring and improving people's well-being through development. We have made solid progress in advancing all-around rural revitalization, promoted coordinated development between urban and rural areas, and continued to increase investment in public facilities, ecological and environmental protection, and other livelihood-related areas. Achieving Chinese modernization requires rural revitalization, and increasing investment in agriculture and rural areas is essential to addressing key weaknesses. From January to April, agricultural investment grew by 14.5% year on year, providing strong support for agricultural development and rural revitalization. Good public facilities and a clean environment are essential to improving people's livelihoods and meeting their aspirations for a better life. From January to April, investment in the production and supply of electricity, heat, gas and water grew by 4.4% year on year, while investment in ecological protection and environmental governance rose by 5.9%. Specifically, investment in environmental monitoring and governance services grew by 11.8%, providing continued support for improvements in people's living standards.

Looking ahead, China still has enormous investment potential and room for growth. Accelerating the development of new quality productive forces, advancing new urbanization, improving basic public services, and meeting the people's needs for a better life all require continued investment. Moving forward, we will pay more attention to optimizing the investment structure and improving investment efficiency, while leveraging government investment to guide and stimulate private investment. The aim is to better harness investment's key role in expanding domestic demand, improving supply and benefiting people's livelihoods, thereby better driving high-quality economic and social development. Thank you.

Zhou Jianshe:

Due to time constraints, we will take one last question.