CITIC Bank held its 2025 half-year performance conference today. Deputy President Hu Gang stated that the current round of "anti-involution" measures will drive industry ecosystem restructuring through market mechanisms, and the bank has achieved asset safety and controllable risks through precise industry research and targeted policies.

Hu Gang highlighted key differences between current "anti-involution" measures and previous supply-side reforms: First, the goal focuses on "quality improvement," with the core being to promote high-quality industry development; second, coverage extends from traditional industries to emerging sectors including solar and new energy vehicles; third, it primarily relies on industry self-discipline and market-based clearing rather than administrative measures. "While market-based approaches may take longer to show results, they are more likely to achieve long-term industry balance," he emphasized. These measures will bring "significant and far-reaching impact" to related industry ecosystems.

Regarding potential overcapacity in emerging industries, Hu Gang identified "two types of excess": One is "supply-exceeding-demand overcapacity" in sectors like solar and new energy vehicles, where despite positive long-term demand outlook, short-term supply growth far exceeds demand, leading to redundant investment and disorderly competition. The other is "structural mismatch overcapacity" in areas like medical devices and electronic information, characterized by "excess low-end capacity and insufficient high-end supply."

Hu Gang emphasized that emerging industries overall still have broad prospects, with the key being to distinguish overcapacity types and implement targeted policies. "Industries like solar and new energy vehicles have fast-growing demand, but supply expansion is even faster; while sectors like aerospace need to break through high-end technology bottlenecks."

For different types of overcapacity industries, the bank has developed differentiated management strategies: For industries with short-term supply excess but clear long-term demand, it implements a "three precision" strategy—precisely grasping policy changes and technological iterations, accurately judging industry cycles, and precisely identifying corporate competitive advantages, maintaining "engagement" with leading companies while "withdrawing" from struggling tail-end clients; for structural mismatch areas, it increases support for independent R&D and import substitution companies while decisively exiting low-end manufacturing segments; for traditional industries, it focuses on high-end, intelligent, and green upgrade themes, supporting leading companies in resource integration through M&A and firmly exiting inefficient capacity.

According to Hu Gang, China Citic Bank Corporation Limited has proactively positioned itself through a professional industry research team of over 600 people, controlling the proportion of projects in industries affected by "anti-involution" policies to 12%. "Our client selection focuses on leading enterprises and quality customers, ensuring asset safety and controllable risks."