【Key Highlights】 • China's CPI in November showed a year-on-year increase, with core CPI continuing to rise. • The Ministry of Finance issued the sixth tranche of RMB 7 billion yuan in government bonds in Hong Kong for 2025. • The IMF has raised its 2025 economic growth forecast for China.
【Domestic News】 • In November, consumer demand continued to recover. The Consumer Price Index (CPI) edged down 0.1% month-on-month but rose 0.7% year-on-year. The core CPI, excluding food and energy prices, increased by 1.2% year-on-year. Influenced by supply-demand optimization in certain domestic industries and international commodity price transmission, the Producer Price Index (PPI) rose 0.1% month-on-month but declined 2.2% year-on-year.
• On December 10, China's Ministry of Finance successfully issued RMB 7 billion yuan in government bonds in Hong Kong, targeting institutional investors. The issuance was well-received, with a bid-to-cover ratio of 5.22 times. The bonds included RMB 2 billion with a 2-year maturity (yield: 1.43%), RMB 3 billion with a 3-year maturity (yield: 1.45%), and RMB 2 billion with a 5-year maturity (yield: 1.65%).
• The National Retail Industry Innovation and Development Conference was held in Beijing on December 9-10. The conference emphasized balancing tradition and innovation, revitalizing existing resources while optimizing new growth, and integrating online and offline strategies. Retailers were urged to focus on quality goods and services, transitioning from space leasing to scenario-based operations and ecosystem development. The event also highlighted successful case studies, such as Pang Dong Lai, to accelerate industry transformation.
• The IMF stated on December 10 that China's economy has demonstrated notable resilience despite multiple challenges. The IMF revised its 2025 growth forecast for China to 5%, up 0.2 percentage points from its October World Economic Outlook report.
• China’s State Administration for Market Regulation released the "Quality Certification Professional Capability Enhancement Action Plan (2025–2030)," aiming to strengthen the certification industry. By 2030, at least 320 certification agencies are expected to obtain high-tech enterprise recognition, addressing issues such as weak international influence and insufficient professionalism.
• Shanghai has introduced a childcare subsidy program, offering RMB 3,600 per child annually to eligible families with children under three years old. The policy applies to births or adoptions registered in Shanghai from January 1, 2025, or children born earlier who remain under three by that date.
• On December 10, China Vanke held a creditor meeting to discuss extending the maturity of its bond "22 Vanke MTN004." Market sentiment improved, with Vanke's A-shares hitting the daily limit and its bonds trading actively. Analysts noted the meeting's significance for Vanke's financial stability.
【International News】 • South Korea added 225,000 jobs in November, up from 193,000 in October. The seasonally adjusted unemployment rate edged up to 2.7% from 2.6%.
• A Bank of Korea official warned that currency intervention may be needed to curb the won's depreciation, which could reignite inflation and weaken consumer purchasing power.
• European Central Bank policymaker Šimkus indicated that rates would likely remain at 2% in upcoming meetings, as inflation aligns with targets.
• Sweden’s GDP contracted 0.3% month-on-month in October, marking the fifth monthly decline this year. Year-on-year growth slowed to 2.1% from September’s revised 2.8%.
• Australia implemented a social media ban for users under 16 on December 10, becoming the first country to legislate age restrictions. Ten major platforms have committed to compliance.
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