CITIC Securities: Equity Fiscal Revenue Could Boost A-Share Long-Term Value

China's equity fiscal revenue model could become a new funding source as land fiscal revenue declines, according to a CITIC Securities research report cited by 36Kr. The model operates through primary and secondary market channels: local government guidance funds invest in primary markets for long-term capital gains, while central and state-owned enterprise dividends and market value reassessment provide near-term contributions. Drawing on international experience, the report noted that significantly higher equity market valuations are needed for the model to play a larger role, making a sustained bull market a strategic priority. The growing importance of equity fiscal revenue enhances the long-term allocation value of A-shares, the report said.