Overview

• The Communist Party Central Committee and State Council issued detailed rules mandating frugality across government bodies, effective nationwide.
• Banned expenditures include luxury alcohol, cigarettes, lavish meals, decorative flower arrangements, and white elephant projects.
• The campaign revives Xi Jinping’s 2012 anti-corruption initiative, reflecting concerns over slowing economic growth and mounting local government debt.
• State media promotes slogans like 'waste is shameful and frugality is glorious,' emphasizing the cultural shift towards thrift and discipline.
• Consumer staples stocks, including Kweichow Moutai, saw notable declines following the announcement, signaling market sensitivity to the austerity measures.