1、 Watchlist the stock on Insights Direct to receive prompt updates ed-JS/sa-CS/MK China/HK Market Strategy View our full data-driven analysis and more at DBS Insights Direct ANALYSTANALYST Moxy Ying +852 36684175 Vanessa Lee +852 36684161 Sectoral impact of Chinas Anti-Involution campaign China has s

2、tepped up efforts to curb price wars and address overcapacity via its Anti-Involution campaign This round of reform may take longer to show results vs supply-side reform in 2015-18 due to lack of demand-side policy support,lower local govt incentive,and complexity in pushing through the initiative a

3、mong private firms We outline potential impact on the sectors that have been targeted Prefer Alibaba(9988 HK),BYD(1211 HK),CALB(3931 HK),CATL(3750 HK),Chalco(2600 HK),GCL Tech(3800 HK),Geely(175 HK),Hongqiao(1378 HK)and Xpeng(9868 HK)under the theme Whats NewWhats New Chinas CSI 300 rebounded 4.6%MT

4、D as of July 22,reaching its highest level since Nov 2024 and slightly outperforming HK stocks.The rebound was driven by cyclical sectors,partly thanks to the optimism around Chinas stronger commitment to push through its“Anti-Involution”campaign-an initiative aimed at regulating disorderly price co

5、mpetition and reducing excessive capacity.On 1 July,the Central Financial and Economic Affairs Commission called for action to rectify disorderly price competition and to phase out outdated production capacity.This echoed an earlier article in Qiushi,which urged industries to deeply reflect on and t

6、ake comprehensive steps against involution-style competition.Following these developments,various government departments and industry groups have held meetings to discuss implementation strategies.A A sentiment boostsentiment boost for nowfor now,asas it may take longer time to it may take longer ti