― As COVID controls ease, we expect an accelerated economic recovery, ushered in by a return to growth for airlines, highways, airports and other industries. Demand for thermal power, chemicals and nonferrous metals should gradually recover, with demand for coal, clean energy and passenger vehicles set to stay stable. ― Ongoing pressure in the real estate industry may see further differentiation in credit quality among LGFVs, construction companies, small and medium-sized banks and other industries. Major turbulence among property developers has intensified credit quality differentiation in the real estate sector itself. ― State-owned corporates should regain access to financing channels, with liquidity remaining at a good level. We expect LGFV financing policy to remain tight, with potential refinancing and liquidity pressure among weaker LGFVs. Some leading POEs may receive more policy support.