Monday

The Central Political Bureau Meeting: Stabilize the real estate and stock markets, prevent and resolve risks in key areas and external shocks.

The Central Political Bureau met on December 9 to analyze and study the economic work for 2025. The meeting pointed out that next year, efforts should be made to vigorously stimulate consumption, enhance investment efficiency, and comprehensively expand domestic demand. It is necessary to lead the development of new productive forces with technological innovation and build a modern industrial system. The meeting emphasized the importance of economic system reform in driving progress, and the need to implement landmark reform measures effectively. It also stressed expanding high-level opening up to stabilize foreign trade and foreign investment, effectively preventing and resolving risks in key areas, and firmly maintaining the bottom line against systemic risks. The meeting called for coordinated efforts to promote carbon reduction, pollution reduction, and green growth, accelerating the comprehensive green transformation of economic and social development. It also emphasized implementing a more proactive fiscal policy and moderately loose monetary policy, enriching and improving the policy toolbox, strengthening extraordinary counter-cyclical adjustments, and increasing the foresight, targeting, and effectiveness of macro-control measures. The meeting highlighted the need to stabilize the real estate and stock markets and prevent and resolve risks in key areas and external shocks, stabilize expectations, stimulate vitality, and promote the continuous recovery and improvement of the economy.

National Bureau of Statistics: In November, the price of pork rose by 13.7% year-on-year, with the growth rate declining.

The National Bureau of Statistics stated that in November, the CPI rose by 0.2% year-on-year, a decrease of 0.1 percentage points from the previous month, primarily driven by a decline in food prices. Among them, food prices increased by 1.0%, a decrease of 1.9 percentage points from the previous month. Within food, prices of pork and fresh vegetables rose by 13.7% and 10.0%, respectively, with both growth rates declining. In non-food categories, energy prices fell by 3.8%, a decrease of 1.3 percentage points from the previous month, with gasoline prices declining by 8.2%. The core CPI, excluding food and energy prices, continued to rebound, rising by 0.3% year-on-year, with the growth rate expanding by 0.1 percentage points from the previous month. In November, a series of stock and incremental policies worked together, restoring demand for domestic industrial products, with the PPI turning from a 0.1% decline in the previous month to a 0.1% increase, narrowing the year-on-year decline.

Tuesday

The Ministry of Agriculture and Rural Affairs: A slight upward adjustment has been made to China's soybean production forecast for the 2024/25 fiscal year, with demand data remaining unchanged.

The Ministry of Agriculture and Rural Affairs released a December analysis on China's agricultural product supply and demand situation: This month, a slight upward adjustment was made to the soybean production forecast for the 2024/25 fiscal year, while demand data remains unchanged. Domestic soybeans are in a concentrated listing period, with sufficient supplies in major production areas, high-protein domestic soybeans being of good quality and low price, and sales progressing faster than in previous years; the number of high-oil, low-protein soybeans from Northeast China entering the crushing sector has increased compared to previous years, with active buying and selling, and overall spot market prices remain stable.

Russia's Nornickel: The global nickel market will be in surplus by 150,000 tons in 2024-25.

Nornickel, the world's largest palladium and leading nickel producer, forecasted on Tuesday that the global nickel market will remain in surplus by 150,000 tons in 2024-25. The company stated that the palladium market will approach supply-demand balance in 2024 and achieve balance in 2025. It indicated that it has revised its previous estimate of a 900,000-ton shortage in the palladium market in 2024 (excluding investment). The company noted that the surplus in the high-grade nickel market is primarily due to inflows from China's cathode nickel. Nornickel is not directly subject to Western sanctions, but sanctions against Russia have led some Western producers to avoid purchasing Russian metals, and complex payment issues have prevented Nornickel from shifting sales to Asia.

Yang Yang from the Guangzhou Futures Exchange: The exchange has jointly developed and released a photovoltaic meteorological index with the National Meteorological Center, which is expected to serve as the underlying for futures, insurance, and other financial products.

Yang Yang, director of the research department of the Guangzhou Futures Exchange, stated that the exchange is closely cooperating with the National Meteorological Center to jointly explore new paths for managing weather risks and serving the new energy power generation industry by developing photovoltaic meteorological indices. The Central Meteorological Station-Guangzhou Futures Exchange photovoltaic meteorological index focuses on the meteorological changes faced by the photovoltaic power generation industry, and the first batch of indices has been released for Shandong, Xinjiang, and Inner Mongolia provinces based on installed photovoltaic capacity. The index selects irradiance as the main factor and introduces temperature as a regulating factor to reflect the attenuation effect of high temperatures on photovoltaic power generation efficiency. In the financial market, the existence of meteorological indices enriches risk management tools in the photovoltaic field. The photovoltaic meteorological index can serve as an 'input value' for photovoltaic power generation forecasting, providing reference for the production and operational decision-making of power companies; it can be used for assessing the revenue of photovoltaic power plants and determining credit limits for enterprises; it can also serve as the underlying for futures and insurance products, developing relevant financial products to meet enterprises' risk management needs.

Customs data analysis: China's soybean import volume in November decreased by 9%, but the total import volume for the year is still expected to hit a historical high.

According to foreign media reports, data from the General Administration of Customs shows that China imported 7.15 million tons of soybeans in November. Due to a decrease in the volume of Brazilian soybeans arriving, imports were below expectations. However, as the world's largest oilseed buyer, China is still expected to achieve a historical high in annual import volume. The arrival of soybeans in China in November decreased by 9% compared to 7.92 million tons during the same period last year, falling short of analysts' expectations of 7.5 to 8.5 million tons. Analysts from Chuangxin Kyoto Futures stated that the unexpected decline was due to the reduced arrival of old Brazilian soybeans. In recent months, farmers and traders have been eager to ship soybeans to China before Trump’s inauguration on January 20, due to concerns that Sino-US relations might once again affect agricultural trade. Most US soybeans were shipped to China in October. Considering shipping times, US soybeans purchased in October will arrive in China around December, so the import volume in December is expected to be higher than in November. From January to November, China's total soybean imports increased by 9.4% year-on-year, reaching 97.09 million tons. China imported a record 100.31 million tons of soybeans in 2020.

MPOB data released: Malaysian palm oil stocks in November exceeded market expectations.

The Malaysian Palm Oil Board (MPOB) released the supply and demand report for November 2024. Detailed data from the MPOB monthly report shows that Malaysia's palm oil stock in November was 1,836,167 tons, a decrease of 2.60% compared to the previous month. This is higher than Reuters' expectation of 1.7885 million tons. Palm oil imports were 22,081 tons, an increase of 35.08% compared to the previous month. Palm oil exports were 1,487,212 tons, a decrease of 14.74%, falling below Reuters' expectation of 1.5242 million tons. Palm oil production was 1,621,294 tons, a decrease of 9.80%, also lower than Reuters' expectation of 1.6872 million tons.

The General Administration of Customs: Monthly imports and exports have maintained growth for eight consecutive months, and foreign trade is expected to finish the year smoothly.

On December 10, the General Administration of Customs released data showing that in the first 11 months of this year, the total value of China's goods trade imports and exports reached 39.79 trillion yuan, an increase of 4.9% year-on-year, achieving stable growth. Among them, exports amounted to 23.04 trillion yuan, a year-on-year increase of 6.7%; imports totaled 16.75 trillion yuan, a year-on-year increase of 2.4%. In November, the total import and export value was 3.75 trillion yuan, a year-on-year increase of 1.2%, marking eight consecutive months of growth in monthly imports and exports. Recently, the State Council's executive meeting reviewed and approved several policy measures to promote stable growth in foreign trade. The Ministry of Commerce, the General Administration of Customs, and other departments have also launched specific measures to accelerate the integrated development of domestic and foreign trade, further optimize the business environment at ports, and facilitate enterprise customs clearance. The synergy between stock and incremental policies in the foreign trade sector is expected to ensure a smooth conclusion of the year, achieving the goals of quality improvement and stable volume.

Wednesday

USDA Monthly Report: Upgraded Argentina's soybean production forecast to 52 million tons.

The USDA's December supply and demand monthly report shows that the expected soybean production in the United States for the 2024/2025 fiscal year is 4.461 billion bushels, with an expected ending stock of 470 million bushels, and the market expectation is 469 million bushels; the expected yield is 51.7 bushels per acre. The forecast for Argentina's soybean production for the 2024/2025 fiscal year has been raised from the previous 51 million tons to 52 million tons, with the market expectation at 51.35 million tons; Brazil's soybean production forecast for the 2024/2025 fiscal year remains unchanged at 169 million tons, with the market expectation at 169.3 million tons.

The magnesium futures listing cultivation and market seminar concluded with a consensus on three measures: production reduction, stockpiling, and establishing mechanisms.

On December 10, the 2024 magnesium futures listing cultivation and market seminar was held in Yuncheng, Shanxi Province. The meeting reached a consensus that industry enterprises should unify their efforts, strengthen self-discipline, and keep prices within a reasonable range. In the short term, it is necessary to reduce market supply, while in the long term, a standardized market mechanism needs to be established. The meeting unanimously agreed to take three measures: first, magnesium smelting enterprises will collectively reduce production to rationally match supply and demand; second, Yulin Magnesium Group will continue to stockpile to alleviate producers' financial pressure; third, explore a guiding price mechanism linked to aluminum and establish a raw magnesium quotation and trading platform to standardize market behavior (China Nonferrous Metals News).

As the Fed becomes cautious about rate cuts, the US inflation rate rose to 2.7% in November.

US inflation rate rose to 2.7% in November, a figure that meets economists' expectations and is higher than October's 2.6%. The data highlights concerns about sticky inflation following the rise in October. There is widespread expectation that the Federal Reserve will cut rates by 25 basis points for the third consecutive time next week, but the pace of cuts next year remains uncertain, as the Fed is trying to achieve its dual mandate of keeping inflation close to 2% while maintaining a healthy labor market. As rates reach a more 'neutral' level—high enough to suppress inflation but low enough to protect the labor market—officials have discussed slowing the pace of cuts. They note that if actions are taken too quickly, inflation may stay above the 2% target, but acting too slowly could lead to a sharp rise in unemployment.

Traders have intensified bets on the Federal Reserve cutting interest rates.

According to foreign media reports, following the release of the CPI report, swap traders have increased their bets on the Federal Reserve cutting rates by the end of 2025. They now expect a cumulative cut of 87 basis points by then, which means that the Fed will cut rates by 25 basis points next week; there will also be around two more cuts in 2025, each by 25 basis points, which is fewer than the four cuts proposed by Fed officials in the latest quarterly dot plot in September.

OPEC has lowered its forecast for global crude oil demand growth for the fifth consecutive month.

OPEC's monthly report shows that the forecast for global crude oil demand growth in 2024 has been revised down from 1.82 million barrels per day to 1.61 million barrels per day; the forecast for global crude oil demand growth in 2025 has been revised down from 1.54 million barrels per day to 1.45 million barrels per day; this marks the fifth consecutive month of downward revisions for global crude oil demand growth forecasts for this year and next.

Thursday

Central Economic Work Conference: Implement a moderately loose monetary policy and timely reduce the reserve requirement ratio and interest rates.

According to CCTV News, the Central Economic Work Conference was held in Beijing from December 11 to 12. The meeting indicated that a moderately loose monetary policy should be implemented next year, with timely reductions in the reserve requirement ratio and interest rates to maintain ample liquidity, ensuring that the growth of social financing scale and money supply aligns with economic growth and general price level expectations. It emphasized exploring the expansion of the macro-prudential and financial stability functions of the central bank. The meeting aims to strengthen coordination among fiscal, monetary, employment, industrial, regional, trade, environmental protection, supervision, and reform and opening-up policies, improve the effective communication and feedback mechanism among departments, and unify economic policies and non-economic policies into consistent macro policy orientation to enhance overall policy effectiveness (Pengpai).

The central government has set the fiscal policy for next year: increase the deficit, special bonds, and special debt quotas.

According to CCTV News, from December 11 to 12, the Central Economic Work Conference was held in Beijing. The conference noted that in deploying next year's fiscal policy, a more proactive fiscal policy should be implemented, increasing the fiscal deficit rate and issuing ultra-long-term special bonds, increasing the issuance and use of local government special bonds, optimizing the fiscal expenditure structure, and ensuring the basic 'three guarantees' at the grassroots level. According to the deployment of this meeting, the deficit rate will exceed 3% in 2025, and ultra-long-term special bonds will exceed 1 trillion yuan, with the new special debt quota expected to exceed 3.9 trillion yuan. This means that next year's fiscal policy will be more proactive, which also aligns with previous market expectations. Several fiscal experts interviewed by Yicai expect the deficit rate next year to be around 3.5% to 4%, ultra-long-term special bonds likely between 1.5 trillion and 2 trillion yuan, and special debt quotas expected to be around 4.5 trillion yuan. However, these are just expert predictions or suggestions, and the actual related data will still need to be revealed during the National People's Congress in March next year (Yicai).

This year's 2 trillion yuan of special bonds for replacing hidden debts have been fully disclosed, with six provinces planning to issue amounts exceeding 10 million yuan.

Documents disclosed by Beijing on the China Bond Information Network show that it plans to issue 4.7 billion yuan of refinancing special bonds to replace existing hidden debts, with issuance scales of 800 million yuan, 2.725 billion yuan, and 1.175 billion yuan for 3-year, 7-year, and 10-year refinancing special bonds, respectively. Notably, since November 12, the total amount of refinancing special bonds intended to replace existing hidden debts disclosed by various regions across the country has reached 2 trillion yuan. This means that the refinancing special bonds used for local government replacement of existing hidden debts have all been disclosed this year (Pengpai).

IEA Monthly Report: Despite rising demand, the oil market will be adequately supplied in 2025.

The International Energy Agency (IEA) stated on Thursday that although OPEC+ has extended oil supply cuts and demand forecasts are slightly above expectations, the global oil market will see ample supply in 2025. In its monthly oil market report, the agency raised its forecast for global oil demand growth in 2025 from 990,000 barrels per day last month to 1.1 million barrels per day, 'mainly driven by Asian countries, especially influenced by China's recent stimulus measures.' It lowered the 2024 global oil demand growth forecast from last month's 920,000 barrels per day to 840,000 barrels per day. If OPEC+ does indeed cancel voluntary production cuts starting at the end of March 2025, the surplus capacity will increase to 1.4 million barrels per day.

Ministry of Commerce: Open to communication and contact with the new US government's economic and trade team.

On December 12, the Ministry of Commerce held a regular press conference. Spokesperson He Yadong stated that China has been maintaining close communication with the US Commerce Department team through the Sino-US communication mechanism. We are also open to contacting and communicating with the new US government's economic and trade team. China's position against unilateral tariff increases has been consistent. China is willing to strengthen dialogue and coordination with the US on the basis of mutual respect, peaceful coexistence, and win-win cooperation, to properly manage differences and promote the stable and long-term development of bilateral economic and trade relations (Jiemian).

Another black hand! The US will raise import tariffs on China's solar polysilicon, silicon wafers, and certain tungsten products starting early next year.

The Office of the United States Trade Representative issued a statement saying that following a four-year review by the Biden administration, the US will begin increasing import tariffs on solar silicon wafers, polysilicon, and certain tungsten products imported from China starting early next year. The tariff rates on wafers and polysilicon will be raised to 50%, while the tariff rate on certain tungsten products will increase to 25%. These tariff adjustments will take effect on January 1, 2025 (Sina).

Friday

Central Bank: The incremental social financing scale for the first 11 months of 2024 accumulated to 29.4 trillion yuan.

Data from the central bank shows that preliminary statistics indicate that the incremental social financing scale for the first 11 months of 2024 accumulated to 29.4 trillion yuan, 4.24 trillion yuan less than the same period last year; RMB loans increased by 17.1 trillion yuan. By the end of November, the balance of broad money (M2) stood at 311.96 trillion yuan, a year-on-year increase of 7.1%. The balance of narrow money (M1) was 65.09 trillion yuan, a year-on-year decrease of 3.7%. The balance of cash in circulation (M0) was 12.42 trillion yuan, a year-on-year increase of 12.7%. In the first eleven months, a net cash injection of 1.07 trillion yuan was made.

The China Securities Regulatory Commission has approved the registration of polysilicon futures and options.

The China Securities Regulatory Commission announced that it has recently approved the registration of polysilicon futures and options at the Guangzhou Futures Exchange. The CSRC will urge the Guangzhou Futures Exchange to prepare for all aspects to ensure the smooth launch and stable operation of polysilicon futures and options.

The China Securities Regulatory Commission has approved the registration of bottle cap options.

The China Securities Regulatory Commission announced that it has recently approved the registration of bottled cap options at the Zhengzhou Commodity Exchange. The CSRC will urge the Zhengzhou Commodity Exchange to prepare for all aspects to ensure the smooth launch and stable operation of the bottled cap options.

He Lifeng: Fully utilize the city real estate financing coordination mechanism to expand and enhance the effectiveness of 'white list' projects.

The National Financial System Work Conference was held in Beijing on December 13. He Lifeng stated at the meeting that the city real estate financing coordination mechanism should be fully utilized to expand the effectiveness of 'white list' projects, consolidate the stabilization trend of the real estate market, firmly tackle the challenge of ensuring housing delivery, and accelerate the establishment of a financial service system that aligns with the new model of real estate development. It is essential to identify the focal points of financial support for steady foreign trade and continuously increase support for foreign trade enterprises. In the process of serving high-quality economic and social development, it is necessary to accelerate the promotion of the high-quality development of finance, focus on the main responsibilities, and better serve the overall economic situation, implement reform plans, solidly deepen financial reform and opening up, and comprehensively strengthen the Party's construction in the financial system.

MPOB: The expected reduction in Malaysian palm oil production will further push up palm oil futures prices.

The Malaysian Palm Oil Board (MPOB) stated that palm oil production will decline for the fourth consecutive month due to heavy rainfall affecting harvesting. The reduction in palm oil production will slow the growth of stocks and further push up palm oil futures prices, which are already near their highest levels in about two and a half years. Under normal circumstances, crude palm oil production is expected to decrease by 5% to 8%. However, if severe flooding continues, the decline could reach 10% to 20%.

Zou Lan from the People's Bank of China: Create a suitable liquidity environment for government bond issuance and increase operations in national debt buying and selling.

Zou Lan, head of the Monetary Policy Department of the People's Bank of China, stated that comprehensive coordination of macro policies should be achieved, creating a suitable liquidity environment for government bond issuance, increasing operations in national debt buying and selling to better reflect the effectiveness of a more proactive fiscal policy, and jointly supporting stable growth and structural adjustment.

Malaysia: Consider exempting the export tariff on crude palm oil.

The Malaysian Ministry of Plantation and Commodities stated that the increase in import tariffs on Indian palm oil poses a temporary challenge to Malaysia's exports. Such tariff adjustments are usually short-term and have little long-term impact. India raised the import tariff, increasing the tax rate on crude palm oil from 5.5% to 27.5% and on processed palm oil from 13.75% to 35.75%. Through the ASEAN-India Free Trade Agreement and the Malaysia-India Comprehensive Economic Cooperation Agreement, Malaysia ensures that the import tariff on crude palm oil does not exceed 37.5%, and on processed palm oil does not exceed 45%. If necessary, Malaysia may also consider exempting the export tariff on crude palm oil as a long-term measure to maintain competitiveness.

China's grain output has exceeded 1.4 trillion jin for the first time.

According to data from the National Bureau of Statistics, in 2024, the total grain output in the country is expected to be 70.65 million tons (1413 trillion jin), an increase of 11.09 million tons (2.22 trillion jin) compared to 2023, representing a growth of 1.6%. After remaining stable at over 1.3 trillion jin for nine consecutive years, it has first reached a new milestone of 1.4 trillion jin.

National Bureau of Statistics: The soybean planting area has remained stable at over 15 million mu for three consecutive years.

Data from the National Bureau of Statistics shows that in 2024, the planting area of legumes nationwide is expected to be 177 million mu, a decrease of 2.582 million mu compared to the previous year, down by 1.4%. Among them, the soybean planting area is expected to be 155 million mu, a decrease of 2.232 million mu compared to the previous year, also down by 1.4%. To consolidate the results of expanding soybean cultivation, the state will continue to implement soybean producer subsidy policies in Inner Mongolia and the three northeastern provinces, promote the connection between soybean production and sales, and ensure stable soybean production. The soybean planting area has remained stable at over 15 million mu for three consecutive years. In 2024, the national legume output is expected to be 47.26 billion jin, a decrease of 430 million jin compared to the previous year, down by 0.9%. Among them, the soybean output is expected to be 41.3 billion jin, a decrease of 390 million jin compared to the previous year, also down by 0.9%. The national legume yield is expected to be 133.2 kg/mu, with an increase of 0.7 kg/mu compared to the previous year, a growth of 0.5%. Among them, soybean yield is expected to be 133.3 kg/mu, with an increase of 0.7 kg/mu compared to the previous year, a growth of 0.5%.

Guangzhou Futures Exchange: Polysilicon futures contracts will be listed for trading starting December 26, 2024 (Thursday).

The Guangzhou Futures Exchange announced that polysilicon futures contracts will be listed for trading starting December 26, 2024 (Thursday). The trading hours for polysilicon futures contracts are Monday to Friday (excluding national public holidays and trading days announced by the exchange) from 9:00 to 10:15, 10:30 to 11:30, and 13:30 to 15:00, as well as other times specified by the exchange. The first batch of contracts available for trading are PS2506, PS2507, PS2508, PS2509, PS2510, PS2511, and PS2512. On the first day of listing, the trading margin level for polysilicon futures contracts will be 9% of the contract value, and the price fluctuation limit will be 14% of the listing benchmark price. If there are transactions for the contract, from the next trading day onward, the trading margin level will be 9% of the contract value, and the price fluctuation limit will be 7% of the previous trading day's settlement price; if there are no transactions for the contract, the trading margin level and price fluctuation limit will continue to follow the first day's trading margin level and price fluctuation limit. The trading commission for polysilicon futures contracts will be 0.01% of the transaction amount.

The 13th meeting of the 14th National People's Congress Standing Committee will review the draft law on promoting the private economy, the revision of the anti-unfair competition law, and other legislative drafts.

The 35th Chairperson Meeting of the 14th National People's Congress Standing Committee was held in Beijing on December 13. The meeting decided that the 13th meeting of the 14th National People's Congress Standing Committee would be held in Beijing from December 21 to 25. The Chairperson's meeting suggested that the 13th meeting review the draft of the representative law, the draft of the value-added tax law, the draft of the supervision law, the draft of the science and technology popularization law, and the draft of the national park law; review the National People's Congress's supervision and judicial committee's proposal to review the draft law on legal publicity and education; and review the State Council's proposals to review the draft law on promoting the private economy, the revision of the anti-unfair competition law, the revision of the fishery law, and the draft law on the safety of hazardous chemicals; and review the proposal regarding the convening of the third session of the 14th National People's Congress.

Saturday

Ministry of Finance: Next year, a more proactive fiscal policy will be implemented to ensure that fiscal policy continues to exert strength and is more effective.

On December 13, Minister of Finance Lan Fo'an presided over a meeting of the Party Committee. The meeting pointed out that according to the deployment and arrangement of the Central Economic Work Conference, next year a more proactive fiscal policy will be implemented to ensure that fiscal policy continues to exert strength and is more effective. This is a significant decision made by the central government from a strategic and overall perspective, taking into account the current opportunities and challenges; it aims to anchor high-quality development goals while strengthening extraordinary counter-cyclical adjustments and improving the foresight, targeting, and effectiveness of macro-control measures. The finance department should accurately grasp the overall requirements and policy orientation for next year's economic and fiscal work and increase the fiscal deficit rate. It should increase the issuance of ultra-long-term special government bonds and continuously support 'two重' projects, while enhancing the scope and implementation of 'two new' policies. It should also increase the issuance and use of local government special bonds, expanding the areas of investment and scope used as project capital.

Han Wenxiu, deputy director of the Central Financial Office: China's GDP is expected to grow by about 5% this year.

At the 2024-2025 China Economic Annual Conference held at the China International Economic Exchange Center, Han Wenxiu, the deputy director of the Central Financial Committee Office and director of the Central Rural Work Leading Group Office, stated that China's GDP is expected to grow by about 5% this year, contributing nearly 30% to global economic growth; employment and prices remain stable, the balance of international payments is basically balanced, and the country's foreign exchange reserves remain above 3.2 trillion dollars.

Wang Xin: Take multiple measures to further reduce social financing costs.

Wang Xin, director of the Research Bureau of the People's Bank of China, stated that the next phase will fully leverage the effectiveness of loan interest rate reforms and take multiple measures to further reduce social financing costs. Wang Xin indicated that in the next five years, the scale of local hidden debt replacement will reach 10 trillion yuan, while local small and medium financial institutions' reform to mitigate risks and the disposal of non-performing assets are also being advanced. When these efforts are implemented, they will objectively lower the growth rate of total financial volume, but fundamentally, this is a good thing that is conducive to alleviating debt chains, allowing local governments to lighten their burdens and operate more efficiently, and also helps improve the asset quality of financial institutions, maintain financial stability, and smooth economic circulation. Wang Xin stated that interest rate policy will be adjusted in a timely and appropriate manner according to changing circumstances, strengthening counter-cyclical adjustment efforts and further reducing social financing costs through multiple measures. While guiding interest rates to decrease, it is also necessary to balance support for the development of the real economy and the financial institutions' own stability and health.

Wang Xin: Timely reduction of the reserve requirement ratio and interest rate to increase monetary credit supply.

Wang Xin, director of the Research Bureau of the People's Bank of China, stated that overall, next year's moderately loose monetary policy will moderately strengthen support based on this year's supportive stance. It will moderately increase the support of total and structural monetary policies, timely reduce the reserve requirement ratio and interest rates, and increase the supply of monetary credit, focusing on strategic priorities, key areas, and weak links. Financing conditions for the real economy will be more relaxed and effectively meet development needs, helping to achieve a stable combination of growth, employment, and reasonable price rebound. Wang Xin revealed that in the next phase, the total monetary policy's strength will be increased to fully meet effective financing demands and promote funds to flow fully into the real economy.

China Securities Regulatory Commission: Firmly implement the important requirement to 'stabilize the real estate and stock markets' to effectively maintain the stability of the capital market.

On December 14, Wu Qing, secretary of the Party Committee and chairman of the China Securities Regulatory Commission, presided over an expanded meeting of the Party Committee. The meeting emphasized the firm implementation of the important requirement to 'stabilize the real estate and stock markets', enhance the foresight and proactivity of market monitoring, early warning and response, strengthen the coordinated regulation of domestic and foreign markets, on-exchange and off-exchange, and spot and futures markets, enhance targeted monitoring of financing and securities lending, off-exchange derivatives, and quantitative trading, accelerate the implementation of incremental policies, continuously utilize monetary policy tools to stabilize the market, strengthen and improve the management of market expectations, focus on stabilizing funds, leverage, and expectations, and effectively maintain the stability of the capital market.

China Securities Regulatory Commission: Focus on promoting the entry of medium- and long-term funds into the market and advancing the stock issuance registration system.

On December 14, Wu Qing, secretary of the Party Committee and chairman of the China Securities Regulatory Commission, presided over an expanded meeting of the Party Committee. The meeting emphasized the deepening of comprehensive reforms in the capital market investment and financing. It focused on promoting the entry of medium- and long-term funds into the market, collaboratively constructing a sound institutional environment for the national social security fund, insurance, pensions, and wealth management for 'long money and long investment', further unblocking bottlenecks, and ensuring a steady flow of fresh funds. It aims to deepen the stock issuance registration system, advance the reforms of the sci-tech innovation board, the growth enterprise market, and the Beijing Stock Exchange, and improve the multi-level capital market service system. The meeting emphasized the importance of timing and effectiveness in reforms, and appropriate timing to launch a number of typical cases to stimulate market vitality. It also stressed promoting reforms through openness, steadily advancing interconnectivity with overseas markets, and better supporting enterprises to utilize both markets and resources. Additionally, it aims to improve the basic management system for REITs to help activate existing assets.

The China Coal Transportation and Sales Association held a national conference to promote the construction of a unified coal market.

On December 13, the China Coal Transportation and Sales Association organized a national conference on the construction of a unified coal market in Taiyuan, Shanxi. The meeting discussed the development ideas and directions for building a national unified coal market and deployed the next key work of the coal trading market professional committee. The meeting also held a signing ceremony for the supplementary agreement on strategic cooperation between trading institutions in major coal-producing areas (Shanxi, Shaanxi, Inner Mongolia, and Xinjiang). The China Coal Transportation and Sales Association's coal trading market professional committee will further play a leading role, calling for relevant policy support through multiple channels, and accelerating the construction of a national unified coal market.

Sunday

A fire broke out at the oil refinery in Zawiya, Libya.

Armed conflict occurred around the oil refinery in Zawiya, Libya, early on the 15th, causing a fire at the refinery. Detailed reports on the extent of the damage have not yet been received. The Libyan National Oil Company called for relevant agencies and all parties to take responsibility and take action to stop the conflict as soon as possible.

Trump and Netanyahu discussed the situation in Syria and issues related to Gaza over the phone.

According to multiple Israeli media reports, including Channel 12, on the evening of the 14th, Israeli Prime Minister Netanyahu spoke on the phone with US President-elect Trump. The conversation covered topics such as the exchange of hostages held in Gaza, the Israeli military's actions in Gaza, and the current situation in Syria. This is reportedly Netanyahu's sixth conversation with Trump since he won the US presidential election. No official statement regarding this call has been released yet.

The 2025 National Energy Work Conference was held in Beijing.

On December 15, the 2025 National Energy Work Conference was held in Beijing. The meeting emphasized accelerating the planning and construction of a new energy system, insisting on technological innovation as the leading force, system reform as the driving force, safety and abundance as the premise, and economic feasibility as the foundation. It aims to gradually establish a new energy system with non-fossil energy as the main supply, fossil energy as the bottom guarantee, a new power system as the key support, and green, intelligent, and energy-saving as the energy use direction, promoting greater results in implementing the new energy security strategy. Accelerating the construction of systems and mechanisms that adapt to the new energy system, establishing a national unified electricity market, optimizing the operation and dispatch mechanism of oil and gas pipelines, and advancing the independent operation of natural monopoly links and the market-oriented reform of competitive links, taking the implementation of the 'Energy Law' as an opportunity to solidify the legal foundation for energy.

The National Energy Administration: Promote the increase of oil and gas reserves and production, and vigorously advance the development and utilization of wind and solar energy.

On December 15, the 2025 National Energy Work Conference was held in Beijing. The meeting emphasized strengthening bottom-line thinking and strategic determination to fully complete the task of ensuring energy supply, effectively utilize the role of coal and coal-fired power as a safety net, promote the increase of oil and gas reserves and production, strengthen energy reserve capabilities, and continue to advance the construction of monitoring and early warning systems. It insists on a green low-carbon transformation while continuously promoting the optimization and adjustment of the energy structure. The meeting also stresses vigorously advancing the development and utilization of wind and solar energy, coordinating the development of hydropower and ecological protection, and actively and orderly developing nuclear power, while promoting the construction of a new power system.

ITS: Malaysia's palm oil exports from December 1-15 declined by 9.8% compared to the same period last month.

Shipping survey agency ITS reported that Malaysia's palm oil exports from December 1-15 amounted to 671,454 tons, a decrease from 713,182 tons in the same period last month.

Article forwarded from: Jin Ten Data.