Recently, the new policy on relaxing household registration restrictions has been announced, which could be a significant signal for the A-shares market. Let's analyze how this policy might impact various industries.

The core content of the policy is quite clear—except for those in very large cities, other regions are generally easing restrictions:

Cities with a population below 3 million basically eliminate household registration barriers; cities with 3 to 5 million residents have relaxed conditions like rental-based household registration; although super-large cities still have restrictions, they are optimizing the points system, giving more weight to social security contributions and years of residence. Most importantly, supporting policies ensure new residents can enjoy public services equivalent to existing residents, which directly releases a large wave of urbanization demand.

So, what does this mean for the stock market? Let's look at the potentially benefiting sectors one by one—

**Real Estate Development Sector** is undoubtedly the first to benefit. New residents mean immediate housing demand, and leading developers like China Merchants Shekou, Poly Developments, and Sunac Holdings are expected to gain.

**Building Materials and Infrastructure** should not be underestimated. Policy implementation will inevitably be followed by infrastructure projects, which is directly positive for upstream companies like Conch Cement, China State Construction Engineering, and Oriental Yuhong.

**Home Appliances and Furniture** may seem small but hold many opportunities. An increase in households means demand for refrigerators, washing machines, sofas, beds, and other items. Companies like Midea Group, KUKA Home, and Robam Appliances may see their sales orders grow.

**Healthcare and Medical Fields** also warrant attention. The influx of new residents will expand medical insurance coverage, benefiting companies like Aier Eye Hospital and Yuwell Medical.

**Education Services** cannot be overlooked. The educational needs of children moving with their families will rise significantly, providing opportunities for companies like China Public Education and Gymboree.

**Banks and Financial Institutions** are often overlooked but will also see increased demand for financial services from new residents. Banks like China Merchants Bank and Ping An Bank are expected to benefit.

**Property Management Companies** will also gain. As community service demands grow, leading property service providers like China Resources Vientiane Life and Greentown Service will see increased business.

From an investment perspective, the key points are:

First, the accelerated urbanization will bring the scale of new residents to 280 million, whose housing consumption and other spending will be long-term and predictable.

Second, the upward shift in consumption levels. Transitioning from temporary to permanent residence will significantly increase investments in durable goods and various lifestyle services.

Third, the optimization and renovation of existing stock. Urban village renovations and old community upgrades will drive demand across the entire industry chain.

In practical terms, the focus should be on industry leaders with solid financial foundations that can align with this wave of policies. Pay attention to regional targets deeply involved in reform pilot cities. For deployment, consider a chain of real estate → building materials → home appliances → community services.

However, honestly, while this policy is a long-term positive for the A-shares market, the scope of affected industries is broad, and significant short-term gains may not be immediately visible. The real opportunities will gradually materialize as policies are implemented, ultimately depending on the performance data of benefiting companies. Therefore, focus on the long term but stay flexible with capital flows, and avoid overhype of short-term surges.