The People's Bank of China has unveiled a comprehensive package of monetary and financial policies, consisting of eight key measures to bolster economic support, with further room for reserve requirement ratio (RRR) and interest rate cuts anticipated this year. The Ministry of Finance and the State Taxation Administration have announced the extension of corporate income tax and value-added tax exemptions for overseas institutions investing in China's bond market. Two government departments have issued a document aimed at expanding the coverage of enterprise annuities, thereby strengthening the "second pillar" of the pension system.
At a press conference held by the State Council Information Office on January 15, People's Bank of China Vice Governor Zou Lan announced eight policy measures designed to enhance banks' enthusiasm for lending in key sectors, increase support through structural monetary policy tools, and further facilitate the transformation and optimization of the economic structure. These measures include reducing interest rates on various structural monetary policy tools by 0.25 percentage points, increasing the relending quota for supporting agriculture and small businesses by 500 billion yuan, raising the relending quota for technological innovation and technical upgrades to 1.2 trillion yuan, and, in conjunction with the National Financial Regulatory Administration, lowering the minimum down payment ratio for commercial housing mortgages to 30%. Regarding potential RRR and interest rate cuts, Zou Lan indicated there is still some room for such adjustments this year. The current average statutory reserve requirement ratio for financial institutions stands at 6.3%, suggesting continued space for RRR reductions. Furthermore, the relative stability of the RMB exchange rate, emerging signs of stabilization in banks' net interest margins, and the recent cut in relending rates collectively contribute to lowering banks' interest payment costs and stabilizing net interest margins, thereby creating some room for potential interest rate cuts.
On January 15, the People's Bank of China announced that, effective January 19, 2026, it will lower the interest rates on relending and rediscount facilities by 0.25 percentage points. Following the adjustment, the three-month, six-month, and one-year relending rates for supporting agriculture and small businesses will be 0.95%, 1.15%, and 1.25% respectively. The rediscount rate will be set at 1.5%, the pledged supplementary lending rate at 1.75%, and the rate for special structural monetary policy tools at 1.25%.
The National Financial Regulatory Administration convened its 2026 regulatory work conference on January 15. The meeting emphasized that 2026 will focus on strictly preventing and defusing risks in relevant sectors. Efforts will be made to promote the regular operation of the urban real estate financing coordination mechanism, aiding the construction of a new model for real estate development. Support will be provided in accordance with laws and regulations for resolving debt risks associated with local government financing vehicles. There will be rigorous prevention, crackdown, and punishment of illegal financial activities.
According to the People's Bank of China, RMB loans increased by 16.27 trillion yuan throughout 2025. By sector, household loans rose by 441.7 billion yuan, while loans to enterprises (and institutions) increased by 15.47 trillion yuan. Loans to non-banking financial institutions decreased by 110.3 billion yuan. At the end of December 2025, the balance of broad money (M2) was 340.29 trillion yuan, a year-on-year increase of 8.5%. The balance of narrow money (M1) was 115.51 trillion yuan, up 3.8% year-on-year. The balance of currency in circulation (M0) was 14.13 trillion yuan, increasing by 10.2% year-on-year. Net cash injection for the full year amounted to 1.31 trillion yuan.
The Ministry of Finance and the State Taxation Administration issued a public announcement on January 15 stating that, to further promote the opening up of the bond market, bond interest income derived by overseas institutions from investments in China's bond market will be temporarily exempt from corporate income tax and value-added tax, effective from January 1, 2026, to December 31, 2027.
On January 15, the Ministry of Human Resources and Social Security and the Ministry of Finance jointly issued guidelines on further improving the work related to enterprise annuities. The aim is to enhance the inclusivity, flexibility, and convenience of the enterprise annuity system, continuously expand its coverage, and enable more employees to benefit from enterprise annuities. According to the guidelines, various types of enterprises, social organizations, foundations, private non-enterprise units, and other eligible employers and their employees can establish enterprise annuities in accordance with regulations.
The 2026 National Conference on Foreign Investment Work and the Meeting of the Task Force for Key Foreign Investment Projects were held in Beijing from January 14 to 15. The conference emphasized the need to integrate efforts to stabilize foreign investment with other economic tasks such as expanding domestic demand, boosting consumption, and promoting technological innovation, adopting comprehensive measures. It called for actively supporting foreign-invested enterprises' participation in initiatives to stimulate consumption, deeply exploring new growth points for attracting investment in the service sector, and fully implementing policies to facilitate both market "access" and subsequent "operation."
The General Administration of Customs held a press briefing on January 15, during which Xie Fang, Deputy Director of the National Port Office of the General Administration of Customs, announced a new batch of 25 measures for facilitating cross-border trade to be replicated and promoted nationwide. These measures include supporting the development of the "Air Silk Road," continuing to optimize the inspection and supervision model for exporting lithium batteries, and promoting the convenient customs clearance of imported goods classified as "medicinal and edible."
The Ministry of Finance issued the "Announcement on the Continuation of Corporate Income Tax and Value-Added Tax Policies for Overseas Institutions Investing in the Domestic Bond Market." The announcement confirms that from January 1, 2026, to December 31, 2027, bond interest income obtained by overseas institutions from investing in China's bond market will be temporarily exempt from corporate income tax and value-added tax.
The Shanghai Futures Exchange announced that, starting from the settlement after market close on Thursday, January 15, 2026, the price limit for tin futures contracts will be adjusted to 11%. The trading margin ratio for hedging positions will be adjusted to 12%, and the ratio for general positions will be adjusted to 13%. Concurrently, starting from the trading session on January 16, 2026 (i.e., the night session on January 15), the maximum daily opening position for non-futures company members, overseas special non-broker participants, and clients in all tin futures contracts will be 800 lots.
At its 2026 annual work conference held on January 15, the China Aerospace Science and Technology Corporation (CASC) outlined its plans to coordinate the implementation of major space projects with industrial transformation. It will deeply advance major projects such as manned lunar landing and deep space exploration, make all-out efforts to achieve breakthroughs in reusable rocket technology, and accelerate the building of China as a space power. The corporation will also take multiple measures to optimize its industrial layout, adjust the industrial structure, vigorously develop strategic emerging industries like commercial aerospace and the low-altitude economy, prospectively lay out future industries such as space digital intelligence, and strengthen international market expansion and high-quality contract fulfillment.
On January 16, the market will see one new stock subscription on the STAR Market and one new stock listing on the Beijing Stock Exchange. The company available for subscription is Hengyunchang, a leading domestic supplier of semiconductor radio frequency power sources. Its self-developed products include plasma RF power supply systems, plasma excitation devices, plasma DC power supplies, and accessories. The new stock listing on the Beijing Stock Exchange is Kema Materials. This company is recognized as a "Little Giant" specialized and sophisticated enterprise by the Ministry of Industry and Information Technology and a "Hidden Champion" enterprise in Zhejiang Province. Its main products are dry friction plates and wet paper-based friction plates.
US President Donald Trump stated in a media interview on January 14 that he currently has no plans to dismiss Federal Reserve Chairman Jerome Powell. On January 13, he had mentioned his intention to push for the nomination of a successor to the Fed chair within a few weeks.
The US Department of the Treasury announced sanctions on January 15 against several Iranian individuals and entities, as well as multiple foreign companies linked to Iran. Those sanctioned include Ali Larijani, Secretary of Iran's Supreme National Security Council.
Data released by the US Department of Labor on January 15 showed that initial jobless claims in the US for the previous week stood at 198,000. This figure was lower than the market consensus expectation of 212,000 and the revised figure of 207,000 from the prior week. Federal Reserve official Austan Goolsbee stated that despite a strong US job market and good economic performance, there is still "considerable" room for interest rate cuts, provided there is clear and sustained evidence of inflation falling back towards the 2% target.
Preliminary data released by the German Federal Statistical Office on January 15 indicated that, after price adjustment, Germany's gross domestic product (GDP) for 2025 grew by 0.2% in real terms compared to the previous year, ending a two-year consecutive contraction.
South Africa's National Treasury recently issued a statement welcoming the European Union's decision to remove South Africa from its list of "high-risk third countries." Previously, in October 2025, South Africa had been removed from the Financial Action Task Force's (FATF) list of jurisdictions under increased monitoring for money laundering and terrorist financing, and was also removed from the UK's list of high-risk countries related to money laundering and terrorist financing.
The World Meteorological Organization confirmed in a news bulletin that 2025 was one of the three hottest years on record, continuing the trend of record-breaking global temperatures. On the same day, the EU's Copernicus Climate Change Service stated in its annual report, "Global Climate Highlights 2025," that 2025 ranked as the third hottest year on record.
Data released by the World Gold Council showed that in 2025, gold prices set new historical records 53 times throughout the year. Global gold ETF inflows surged to $89 billion for the year, and total assets under management (AUM) for global gold ETFs grew to $559 billion, both setting new historical records. Total holdings climbed to a historical peak of 4,025 tons.
International oil prices fell sharply on January 15 as geopolitical premiums receded following US President Donald Trump's indication that he would continue to monitor developments in Iran. The price of light sweet crude oil for February delivery on the New York Mercantile Exchange dropped by $2.83 to settle at $59.19 per barrel, a decrease of 4.56%. The price of Brent crude for March delivery fell by $2.76 to settle at $63.76 per barrel, a decline of 4.15%.
TSMC's earnings report led gains in the US AI sector. The financial report released by TSMC on January 15 showed that the company achieved revenue of 1.046 trillion New Taiwan dollars and net income of 505.74 billion New Taiwan dollars in the fourth quarter of 2025, representing year-on-year increases of 20.5% and 35% respectively. The company plans capital expenditures of $52 billion to $56 billion for 2026, indicating that the wave of investment in artificial intelligence infrastructure continues. On that day, the price of TSMC's American Depositary Receipts rose significantly by 4.44%, while shares of NVIDIA Corporation and Micron Technology Inc. increased by 2.1% and 0.98% respectively.
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