Major stock indices in China showed a mixed performance on February 11, with the ChiNext Index declining more than 1%. Trading volume across the two exchanges continued to shrink from the previous session, settling just above 2 trillion yuan. The People's Bank of China released its Monetary Policy Report for the fourth quarter of 2025, reiterating the continuation of an appropriately accommodative monetary policy. The central bank pledged to flexibly utilize various tools to maintain ample liquidity, thereby establishing a relatively stable macro liquidity foundation for the A-share market. The report also indicated that treasury bond buying and selling operations would be conducted regularly, with attention paid to changes in long-term yields. The core focus of the policy is on refining the liquidity management framework and enhancing policy coordination, rather than directly implementing large-scale quantitative easing. Furthermore, subtle changes in the report's wording suggest a greater emphasis on "targeted precision," potentially reducing the likelihood of a near-term interest rate cut.
January's inflation data was also released. The core Consumer Price Index (CPI) maintained its pattern of moderate growth, while the Producer Price Index (PPI) continued its month-on-month increase, with the year-on-year decline narrowing further. This data releases positive signals of marginal improvement in both industrial production and household consumption momentum, which should help boost corporate profit expectations and overall market confidence. From the perspective of current market behavior, capital may be gradually shifting its focus from macroeconomic expectations to microeconomic validation. The overall market is expected to sustain its structural trends amid this earnings verification process.
On the policy front, the PBOC's report sets the tone for the monetary and financial environment at the beginning of the "16th Five-Year Plan" period. The phrasing regarding the "flexible use of reserve requirement ratio (RRR) and interest rate cuts" provides the market with clear liquidity expectations, aiding in stabilizing financing costs and boosting market sentiment, thus offering macro liquidity support for A-shares overall. Simultaneously, the "regularization" of treasury bond operations is primarily aimed at improving the liquidity management framework and strengthening policy coordination, rather than acting as a direct form of large-scale quantitative easing. Its significance as a long-term "stabilizer" outweighs its effect as a short-term "stimulus."
Regarding the inflation figures, the year-on-year increase in CPI moderated, mainly influenced by the timing of the Lunar New Year holiday and a widened decline in energy prices due to changes in international oil prices. However, the underlying trend of moderate core CPI growth remains unchanged, indicating a continued recovery in consumer demand. On the other hand, factors such as the ongoing development of a national unified market and imported cost pressures driving upstream price increases contributed to the continued month-on-month rise in PPI and a further narrowing of its year-on-year decline. These combined positive changes provide evidence that the macroeconomy is on a path of mild recovery, creating a more favorable environment for maintaining an appropriately accommodative monetary policy and consolidating the foundation for an economic upturn.
Separately, five ministries, including the Ministry of Industry and Information Technology, jointly released an implementation opinion on strengthening information and communication capabilities to support the development of low-altitude infrastructure. The document sets a clear development target: by 2027, nationwide ground mobile communication network coverage for low-altitude public air routes should reach no less than 90%. To achieve this, it outlines ten key tasks, including promoting low-altitude communication network coverage, building a diverse detection and perception system, improving navigation accuracy, and supporting the construction of low-altitude intelligent connected systems. This policy marks a key step in promoting the transition of the low-altitude economy from conceptual pilots to scaled, industrialized development, providing a clear quantitative target and implementation path for building its "digital foundation."
In market trading, the three major A-share indices closed mixed. The Shanghai Composite Index finished at 4,131.99 points, up 0.09%. The Shenzhen Component Index closed at 14,160.99 points, down 0.35%. The ChiNext Index ended at 3,284.74 points, down 1.08%. The STAR 100 Index closed at 1,620.25 points, down 0.83%. Among Shenwan's primary industry sectors, Building Materials, Nonferrous Metals, and Petroleum & Petrochemicals were among the top gainers, rising 3.29%, 2.39%, and 2.18% respectively. Communications, Media, and Social Services were among the top decliners, falling 2.17%, 1.99%, and 1.74% respectively. Overall, 2,015 stocks advanced while 3,050 declined.
Total market turnover was 2,001.202 billion yuan, decreasing from the previous trading session. The balance of margin lending and short selling stood at 2,660.475 billion yuan as of the last close, also down from the prior day.
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