The People's Bank of China announced that, effective January 19, it will lower the interest rates for relending and rediscount facilities by 0.25 percentage points. This move aims to enhance the incentivizing role of structural monetary policy tools and guide financial institutions to increase support for major national strategies, key sectors, and weaker economic links. Post-adjustment, the relending rates for supporting agriculture and small businesses for 3-month, 6-month, and 1-year tenors will be 0.95%, 1.15%, and 1.25%, respectively. The rediscount rate is set at 1.5%, the Pledged Supplemental Lending rate at 1.75%, and the rate for special structural monetary policy tools at 1.25%.
U.S. stock indices closed broadly higher overnight, with chip stocks buoyed by strong earnings from Taiwan Semiconductor Manufacturing Company. The Dow Jones Industrial Average rose 292.81 points, or 0.6%, to close at 49,442.44. The S&P 500 gained 17.87 points, or 0.26%, ending at 6,944.47. The Nasdaq Composite increased by 58.27 points, or 0.25%, finishing at 23,530.02. Major tech stocks were mixed, while chipmakers advanced; ASML hit a new high, rising over 5%, TSMC reached a new peak with a gain exceeding 4%, and Nvidia climbed over 2%. Most popular Chinese ADRs declined, with the Nasdaq Golden Dragon China Index dropping 0.6%; Trip.com fell over 2%. The Hang Seng Index ADR edged down marginally.
PBOC Deputy Governor Zou Lan stated that the quota for sci-tech innovation and technological upgrades relending will be increased by 400 billion yuan to 1.2 trillion yuan. The support scope will also be expanded to include privately-owned small and medium-sized enterprises with high levels of R&D investment.
The PBOC, together with the National Financial Regulatory Administration, has lowered the minimum down payment ratio for commercial property mortgages to 30%. This policy is designed to support the reduction of inventory in the commercial and office real estate market.
The National Medical Products Administration announced that starting March 1, China will fully implement electronic submissions for chemical drugs and biological products. Applications for clinical trials, marketing authorization, supplementary applications, re-registration of drugs manufactured overseas, and generic drug consistency evaluations can be submitted via the electronic Common Technical Document format. Applications submitted via eCTD will receive prioritized acceptance services and undergo a separate review queue, with acceptance reviews completed within three days.
According to China Electric Power News, State Grid's investment plan for the "16th Five-Year Plan" period has been revealed. The company expects fixed-asset investment to reach 4 trillion yuan, a 40% increase compared to the "14th Five-Year Plan" period. The focus will be on green transformation, building a new type of power system, and enhancing technological capabilities.
CK Hutchison Holdings is seeking a valuation of approximately $30 billion for its retail subsidiary, A.S. Watson Group, in a dual listing in Hong Kong and London potentially as early as the second quarter, according to people familiar with the matter. The group aims to complete the listing by mid-year. Temasek Holdings, which holds a 25% stake in A.S. Watson, is seeking to exit its investment through the IPO.
NIO Inc. CEO William Li, in a recent internal speech, expressed confidence that the company's profitability target for the fourth quarter of 2025 is achievable. He also outlined an ambition for NIO to achieve stable annual growth of 40% to 50% over the next three to five years and to promote the implementation of AI across the entire business chain.
Lopal Tech announced that its board reviewed several proposals. One involves signing a continuing connected transaction agreement with Contemporary Amperex Technology Co., Limited, with estimated procurement transactions not exceeding 70 billion yuan in 2026. Another proposal is to change the use of H share proceeds, reallocating 198 million Hong Kong dollars originally intended for a new LMFP production line in Xiangyang to a high-performance cathode material project in Jintan, subject to shareholder approval. The board also approved convening an extraordinary general meeting.
CMOC Group announced that it expects its net profit attributable to shareholders for 2025 to be between 20 billion yuan and 20.8 billion yuan, representing a year-on-year increase of 47.80% to 53.71%. The significant rise in performance is attributed to increased volume and prices of its main products and effective cost control.
Zylox-Tonbridge announced it has entered into a share purchase agreement to acquire a 49% stake in Optimed Holding GmbH for approximately 18.375 million euros. The acquisition is seen as a key milestone for the company's entry into the European and global markets. The buyer was also granted an option to acquire the remaining shares.
S.F. Holding announced a significant strategic cooperation with J&T Global Express, involving a mutual subscription of new shares issued by the other party. S.F. will hold a 10% stake in J&T, while J&T will hold a 4.29% stake in S.F., with both stakes subject to a five-year lock-up period. The collaboration aims to leverage S.F.'s cross-border trunk line advantages and J&T's overseas last-mile delivery capabilities for mutual benefit.
Remegen announced an adjustment to its share repurchase plan, increasing the maximum repurchase price per share from 95 yuan to 116 yuan. The company noted that its recent share price has consistently exceeded the previous upper limit, potentially risking the implementation of the repurchase plan if the trend continues.
CNGR Advanced Material stated during an institutional research session that it has business collaborations with leading domestic and international solid-state battery customers and has shipped nearly 50 tons of solid-state battery materials. The company also secured a thousand-ton level order for sodium-ion battery materials in 2025 and expects shipment volumes to increase significantly in 2026 as industrialization accelerates.
Comments