Two government departments have jointly issued a notice regarding the 2026 central fiscal support program for urban renewal initiatives. The central government will provide fixed subsidies to cities implementing urban renewal actions based on regional classifications. For eastern regions, each city's subsidy will not exceed 800 million yuan; central regions will receive up to 1 billion yuan per city, while western regions will obtain maximum subsidies of 1.2 billion yuan per city. Funds will be disbursed annually according to project progress.

The notice specifically identifies urban water supply, heating systems, sewage and waste treatment, and underground pipeline renovations as key focus areas. This creates clear market demand for companies involved in pipe manufacturing, water treatment, sewage processing, and environmental sanitation services. The Hong Kong-listed China Lesso (02128) stands to benefit from these developments.