【Top News】China Securities Regulatory Commission (CSRC): Increase Efforts to Guide Various Medium- to Long-Term Funds Including Insurance Funds, Social Security Funds, and Annuity Funds into the Market. According to the CSRC website, the "Notice on Promoting the High-Quality Development of the Real Estate Investment Trust Fund (REITs) Market" was released. It mentions strengthening secondary market development. Enrich the index system covering REITs, support fund managers in developing fund products linked to relevant indices, support eligible public funds in including REITs in their investment scope, research and explore innovative products such as exchange-traded funds tracking REITs indices (REITs ETFs), to further diversify investors' asset allocation choices. Increase efforts to guide various medium- to long-term funds, including insurance funds, social security funds, and annuity funds, into the market, leveraging their role as stabilizers and ballast. Promote the inclusion of REITs in the scope of the Shanghai-Shenzhen-Hong Kong Stock Connect, expanding high-level opening up of the market. Encourage professional investment institutions to enhance their REITs investment research capabilities and advocate for investors to focus on asset fundamentals and long-term investment value.
【Market Outlook】U.S. Large-Cap Tech Stocks Generally Rose in 2025; Google Slightly Down but Gained About 66% for the Year. Overnight, the Dow Jones Industrial Average fell 303.77 points to close at 48,063.29, down 0.63% for the session. It gained 0.73% in December, recording an eight-month winning streak, and rose 12.97% for 2025. The S&P 500 index dropped 50.74 points to close at 6,845.5, down 0.74% for the day. It fell 0.05% in December, ending a seven-month winning streak, but climbed 16.39% for 2025. The Nasdaq Composite Index decreased 177.09 points to close at 23,241.99, down 0.76% for the session. It declined 0.53% in December but advanced 20.36% for 2025. Large-cap technology stocks generally rose for the year. Google edged down slightly but accumulated a gain of approximately 66% in 2025. Nvidia also dipped slightly, finishing the year up about 39%. Apple saw a minor decline but rose over 9% for 2025. The Nasdaq Golden Dragon China Index closed down 1.13%, accumulating an 11.33% gain for the full year 2025. The Hang Seng Index ADR fell, proportionally calculated to close at 25,609.60 points, down 20.94 points or 0.08% from the Hong Kong close. Spot gold fell 0.65%, gained nearly 2% in December, and rose over 64% in 2025. COMEX silver futures fell 8.91% to $70.98 per ounce, surged over 24% in December, and skyrocketed over 140% in 2025. Spot silver dropped 6.91%, climbed about 26% in December, and soared over 145% in 2025.
【Hotspot Preview】Six Major State-Owned Banks Announce: Interest on e-CNY Wallet Balances to be Calculated Based on Demand Deposit Rates. On December 31, 2025, the six major state-owned banks - Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, and Postal Savings Bank of China - successively announced that starting January 1, 2026, they will pay interest on the balances of verified e-CNY (digital yuan) wallets based on the listed demand deposit interest rate, with interest calculation and payment rules consistent with demand deposits. Industry insiders pointed out that after paying interest on e-CNY wallet balances, China will become the first major economy to pay interest on a central bank digital currency.
U.S. Dollar Records Worst Annual Performance in Eight Years; Analysis Suggests Dovish Fed Chair Could Worsen Decline. The U.S. dollar is facing its worst annual performance in eight years, with analysts warning it could weaken further if the next Fed Chair, as expected, opts for more significant interest rate cuts. The U.S. dollar index has fallen over 9% this year, plummeting significantly after U.S. President Trump announced the so-called "Liberation Day" tariff policy in April. Since then, with Trump repeatedly pressuring the Fed and pushing for the appointment of a more dovish Fed Chair next year, the dollar has remained under pressure.
Offshore Yuan Strengthens Against Dollar, Up 165 Points from Tuesday's New York Close. The offshore yuan traded at 6.9757 against the U.S. dollar, up 165 points from Tuesday's New York close, with intraday trading ranging between 6.9945 and 6.9752. In December, the offshore yuan accumulated a gain of approximately 950 points, a 1.35% increase. For the fourth quarter, it rose about 1500 points, up 2.14%. For the full year 2025, it gained approximately 3600 points, an increase exceeding 4.93%.
Trump's Pressure Fails to Halt Price Hikes: Drugmakers Plan to Raise U.S. Prices for at Least 350 Drugs. According to data exclusively provided by healthcare research firm 3 Axis Advisors, pharmaceutical manufacturers plan to increase U.S. prices for at least 350 branded drugs. These include vaccines for COVID-19, respiratory syncytial virus (RSV), and shingles, as well as the blockbuster cancer treatment Ibrance. This move comes as the Trump administration pressures them to lower prices.
Biren Technology (06082) Public Offering Oversubscribed by 2347.53 Times; Net Proceeds from Global Offering Approximately HK$5.3745 Billion. Biren Technology announced its allotment results. The company globally offered approximately 285 million H shares, with the public offering comprising 17.39% and the international offering 82.61%. The final offer price was HK$19.6 per share, with net proceeds from the global offering amounting to approximately HK$5.3745 billion. Each board lot consists of 200 shares. The H shares are expected to commence trading on the Stock Exchange at 9:00 a.m. on Friday, January 2, 2026. The grey market closed up 80.41%, with a profit of HK$3,152 per board lot.
CITIC Securities: 2026 Home Appliance National Subsidy Policy Meets Expectations; Estimates Full-Year Subsidy Scale at 70 Billion Yuan. CITIC Securities released a research report stating that the 2026 national home appliance subsidy policy narrows the product categories, focusing on major white goods and brown goods, and only subsidizes products meeting the Grade 1 energy/water efficiency standards, which was somewhat anticipated by the market. The bank estimates the 2026 home appliance subsidy funds to be around 70 billion yuan, effectively supporting domestic sales demand. Considering the continuation of the replacement policy in 2026, with a focus on white and brown goods and subsidies only for Grade 1 efficiency products, the bank suggests focusing on leading white and brown goods manufacturers: 1) White goods leaders: Benefiting from national subsidy support and global layout; 2) Brown goods leaders: Leading globally in Mini LED, with ongoing optimization of the competitive landscape.
Tongcheng Travel (00780): First Day of New Year Holiday Sees Domestic Hotel Booking Heat Surge Over 3-Fold. On the first day of the 2026 New Year holiday, major domestic airports, railway stations, and highways saw peak passenger flows. Data from Tongcheng Travel on January 1 showed that, driven by a combination of tourism vacation demand, returning home visits, and rich New Year's Eve activities, domestic hotel booking heat surged over threefold compared to the same period last year.
Black Sesame Technologies (02533) Plans to Acquire 60% Stake in Zhuhai Yizhi Electronics Technology via Acquisition and Capital Increase to Build Full-Scenario AI Chip Ecosystem. Black Sesame Technologies announced that on December 31, 2025, Black Sesame Wuhan and an SPV proposed to acquire a 32.8435% equity stake in Zhuhai Yizhi Electronics Technology, equivalent to 19.5623% of the enlarged share capital post-capital increase, for a total consideration of RMB 457.8 million. The buyer is also required to pay the corresponding unpaid registered capital of RMB 133,088 to the target company.
Snapshot of New Auto Makers' December 2025 and Full-Year Delivery "Report Cards". As of now, several new energy vehicle manufacturers have released their December 2025 and full-year delivery data: 1. Li Auto (02015): Delivered 44,246 vehicles in December, with total Q4 deliveries reaching 109,194. Cumulative deliveries reached 1,540,215 vehicles by December 31, 2025. 2. NIO (09866): Delivered 48,135 vehicles in December 2025, up 54.6% year-on-year; Q4 deliveries were 124,807, up 71.7% YoY. For full-year 2025, NIO delivered 326,028 new vehicles, a record high, up 46.9% YoY. 3. XPeng (09868): Delivered 37,508 vehicles in December 2025, up 2% YoY; delivered 429,445 vehicles in 2025, up 126% YoY. 4. Xiaomi Auto: Delivered over 50,000 vehicles in December. 5. Leapmotor (09863): Delivered 60,423 vehicles across its lineup in December, up 42% YoY; delivered 596,555 vehicles in 2025, up 103% YoY. 6. Zeekr: Delivered 30,267 new vehicles in December 2025, a record high, up 11.3% YoY. Total 2025 deliveries reached 224,133 vehicles. 7. Voyah Auto: Cumulative 2025 deliveries reached 150,169 vehicles, achieving "ten consecutive months of growth", up 87% YoY. 8. Harmony Intelligent Driving Alliance: Cumulative annual deliveries reached 589,107 units, up 32% year-on-year; December monthly deliveries were 89,611 units, setting a new monthly record for the third consecutive month. 9. Seres (09927): Delivered over 57,000 new vehicles in December, setting another monthly record. 2025 new vehicle deliveries exceeded 420,000 units. 10. IM Motors: 2025 sales reached 81,017 units, setting a new annual sales record. 11. GAC Aion: Hyper Aion BU December 2025 sales reached 40,066 units, a new high, with the i60 achieving over 10,000 units in its first month.
【Stock Focus】CNGR (02579): Following Rising Metal Prices, Company's Profits Recover. The company's ternary precursor shipments have significantly recovered. With the recent sharp rise in nickel prices, the company is expected to achieve self-supply of 30,000 metric tons of nickel metal on an equity basis in 2026, with a self-supply ratio exceeding 25%, potentially boosting profits. The company's cobalt-based and phosphorus-based products performed steadily. Against the backdrop of recovering consumer electronics demand, its cobaltosic oxide business developed steadily, with shipment volumes continuing to improve. CNGR disclosed an investor relations activity record on December 30, discussing the company's capital expenditure plans. CNGR stated that over the next three years, the company's investment direction will mainly focus on three areas: first, resource-end layout, such as the construction of the Guizhou phosphate mine and subsequent investments in lithium mines; second, continuous construction of overseas production capacity; third, R&D investment, focusing on areas such as solid-state batteries, phosphorus-based high-compaction products, and sodium-ion battery materials. CNGR indicated that in terms of capital reserves, the company currently has sufficient cash reserves, which, combined with the funds raised from its 2025 Hong Kong listing, can support project investments. Furthermore, the company maintains good cooperation with major domestic and international banks, with smooth equity and debt financing channels.
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