China's Financial Highlights: Social Financing Surpasses Last Year's Total in First 11 Months

1. November Financial Data Released: Social Financing Growth Exceeds Full-Year 2024 Key Highlights: ★★★★★ The People's Bank of China (PBOC) disclosed on December 12 that by end-November, outstanding social financing, broad money supply (M2), and RMB loans grew 8.5%, 8%, and 7.7% YoY, respectively. Cumulative social financing in Jan-Nov reached 33.39 trillion yuan, up 3.99 trillion yuan YoY, with government bonds being a major driver. Experts note the high growth rates reflect accommodative monetary policy, supporting economic quality development. Loan growth moderation stems from debt resolution, NPL disposals, and diversified financing channels. Key metrics: - Jan-Nov social financing: 33.39 trillion yuan (+3.99 trillion YoY) - RMB loans: +15.36 trillion yuan - November M2: 336.99 trillion yuan (+8% YoY) - Corporate/new mortgage loan rates: ~3.1%

2. Multi-Ministry Policy Signals: Monetary Easing, Property Market Support Key Highlights: ★★★★ Following the Central Economic Work Conference, PBOC, CBIRC, and MIIT emphasized: - PBOC: Maintain prudent monetary policy, flexible use of RRR/interest rate tools - CBIRC: Address systemic risks, stabilize property market - MIIT: Bolster industrial base via policy synergy - Customs: Optimize trade structure, advance Hainan Free Trade Port

3. PBOC Announces 600B Yuan 6-Month Reverse Repo for Dec 15 Key Highlights: ★★★ To ensure liquidity, PBOC will conduct 600 billion yuan 6-month reverse repos via multi-price bidding.

4. False Rumor: No Online Testing for BSE Market-Value IPO System Key Highlights: ★★★ Sources confirm recent claims about Beijing Stock Exchange’s IPO system testing are inaccurate.

5. Record 35.25M Yuan Fine & Lifetime Ban for Private Fund Violations Key Highlights: ★★★ CSRC penalized Zhejiang Youce Investment Management and its controllers for breaches, revoking its AM license—the harshest penalty in私募 history.

6. Nvidia’s Closed-Door Summit Tackles AI Power Bottleneck Key Highlights: ★★★ Nvidia will host industry leaders to address electricity shortages threatening AI expansion, as Goldman Sachs warns data center growth hinges on innovative power financing.

7. Steel Export Licensing to Begin Jan 2026 Key Highlights: ★★★ New regulations aim to standardize steel exports, aligning with China’s commitment to global trade balance.

8. China Responds to US-Led Rare Earth Pact Key Highlights: ★★★ Foreign Ministry urged adherence to market principles after 8 nations signed a rare earth supply chain agreement targeting AI competition.

9. Moore Threads Plans 7.5B Yuan Cash Management Key Highlights: ★★★ The firm will invest idle capital in low-risk instruments like deposits and structured products.

**Market Opportunities**: - **Precious Metals**: Silver hits record $64/oz; gold tops $4,300. CITIC Futures maintains bullish outlook. - **Lithium Batteries**: Streamlined import/export rules for lithium-thionyl chloride batteries. - **Autos**: Price behavior regulations forthcoming. - **Metaverse**: Draft standards open for public feedback. - **Travel**: New Year bookings surge on major platforms.

**Corporate Updates**: *Positive*: 1. Shouyao Holdings plans HKEX listing. 2. China Hi-Tech Group halts trading for control change. 3. Enjie to acquire Zhongke Hualian (resumes trading).

*Negative*: 1. Humanwell to face ST risk alert (trading halt Dec 15). 2. Sanxia New Material receives CSRC warning. 3. *ST Huke under investigation for disclosure violations.