Core Viewpoint - The People's Bank of China is officially transitioning the digital yuan from a "cash-type 1.0" to a "deposit currency type 2.0," introducing a historical transformation that enhances its functionality as a financial asset with value storage capabilities [1][2]. Group 1: Mechanism Innovation - The core mechanism innovation of version 2.0 is characterized by the redefinition of liability attributes and the incorporation of a macro framework, allowing digital yuan balances in commercial banks to be classified as "account-based commercial bank liabilities" [3][6]. - The cancellation of the "non-interest" policy for digital yuan enables liquidity to flow directly into the electronic wallet system, marking the end of the cash era [3][6]. - The new framework enhances user willingness to hold and use digital yuan while providing banks with a manageable asset-liability space [6]. Group 2: Technical Architecture - The technical architecture features three major innovations: an account system, a currency string, and smart contracts, which facilitate a digital path for the digital yuan [7]. - The upgrade maintains compliance with existing bank account rules while introducing a "currency string" for value transfer and offline circulation, enhancing verification and system resilience [7]. - Smart contracts embedded in the funding flow can trigger conditions and automate verification in various scenarios, reducing misuse risks and compliance costs [7]. Group 3: Cross-Border Applications - The transition to "digital deposit currency" is reshaping the liquidity foundation and settlement efficiency of the multilateral central bank digital currency bridge (mBridge) [11]. - As of November 2025, digital yuan holds a dominant position in mBridge operations, accounting for 95.3% of transactions, with a total of 4,047 cross-border payments amounting to 387.2 billion yuan [14]. - The introduction of deposit insurance significantly lowers the risk costs for foreign participants holding digital yuan, enabling more robust fund position management [14].

Key Points - The total bond market in mainland China reached 196.18 trillion yuan by the end of 2025, an increase of 20.30 trillion yuan from the beginning of the year, with interest rate bonds at 123.61 trillion yuan, credit bonds at 52.88 trillion yuan, and interbank certificates at 19.69 trillion yuan [3] - In 2025, the issuance of various bonds in mainland China totaled 89.0 trillion yuan, a year-on-year increase of 11%, with interest rate bonds reaching 33.0 trillion yuan, up 18% from the previous year [3] - The issuance of government bonds increased by 28% year-on-year, while local government bonds grew by 5%, and policy financial bonds rose by 17% [3] - Credit bonds issuance was 22.2 trillion yuan, an 8% increase year-on-year, and interbank certificates totaled 33.8 trillion yuan, up 7% [3] Bond Issuance Statistics - Interest rate bonds: 3,534 issues, 329,829.6 billion yuan, 18% growth [4] - Government bonds: 206 issues, 160,140.2 billion yuan, 28% growth [4] - Local government bonds: 2,449 issues, 102,901.0 billion yuan, 5% growth [4] - Policy bank bonds: 879 issues, 66,788.4 billion yuan, 17% growth [4] - Credit bonds: 24,003 issues, 222,246.7 billion yuan, 8% growth [4] - Financial bonds: 1,499 issues, 56,780.6 billion yuan, 25% growth [6] Bank Underwriting Rankings - The top three banks in total underwriting amount (including local government bonds) are China Bank (16,765.2 billion yuan), Industrial and Commercial Bank (16,479.0 billion yuan), and Construction Bank (15,020.5 billion yuan) [12] - In the detailed local government bond underwriting, the top three are Industrial and Commercial Bank (22,584.8 billion yuan), China Bank (16,312.8 billion yuan), and Construction Bank (14,568.1 billion yuan) [17] Securities Firm Underwriting Rankings - The top three securities firms (excluding local government bonds) in total underwriting amount are CITIC Securities (16,136.2 billion yuan), Guotai Junan (13,613.4 billion yuan), and CITIC Jianzhong (12,419.6 billion yuan) [21] - In the local government bond underwriting (averaged), the top three are CITIC Securities (22,491.6 billion yuan), CITIC Jianzhong (17,333.3 billion yuan), and Guotai Junan (16,426.2 billion yuan) [26] NAFMII Debt Financing Tool Underwriting Rankings - CITIC Bank leads the NAFMII debt financing tool underwriting with 9,043.4 billion yuan, followed by Industrial Bank with 8,412.7 billion yuan and Construction Bank with 6,077.7 billion yuan [36] Credit Bond Underwriting Rankings - The top three in credit bond underwriting are CITIC Securities (16,136.2 billion yuan), Guotai Junan (13,613.4 billion yuan), and CITIC Jianzhong (12,419.6 billion yuan) [40]

1. Report Date - The report is dated December 31, 2025 [2] 2. Treasury Bond Futures Transaction Summary 2.1 Ten - year Treasury Bond Futures - T2603: Closing price 107.86, down 0.07%; volume 93,519, up 30%; turnover 100.8 billion, up 30%; open interest 223,646, down 6,646; margin 4.82 billion [3] - T2606: Closing price 107.88, down 0.06%; volume 5,005, up 17%; turnover 5.4 billion, up 17%; open interest 11,156, up 124; margin 240 million [3] - T2609: Closing price 107.74, down 0.08%; volume 548, down 4%; turnover 600 million, down 4%; open interest 1,317, up 156; margin 30 million [3] - Total: Volume 99,072, up 29%; turnover 106.8 billion, up 29%; open interest 236,119, down 6,366; margin 5.09 billion [3] 2.2 Five - year Treasury Bond Futures - TF2603: Closing price 105.76, down 0.04%; volume 66,075, down 3%; turnover 69.9 billion, down 3%; open interest 147,910, up 595; margin 1.88 billion [3] - TF2606: Closing price 105.75, down 0.04%; volume 5,300, up 79%; turnover 5.6 billion, up 79%; open interest 15,693, up 575; margin 200 million [3] - TF2609: Closing price 105.62, down 0.03%; volume 72, up 3%; turnover 100 million, up 3%; open interest 1,757, up 26; margin 20 million [3] - Total: Volume 71,447, up 1%; turnover 75.5 billion, up 1%; open interest 165,360, up 1,196; margin 2.1 billion [3] 2.3 Thirty - year Treasury Bond Futures - TL2603: Closing price 111.41, down 0.35%; volume 117,690, up 41%; turnover 130.9 billion, up 41%; open interest 142,077, up 998; margin 5.54 billion [3] - TL2606: Closing price 111.63, down 0.37%; volume 10,496, up 56%; turnover 11.7 billion, up 55%; open interest 25,486, up 676; margin 1 billion [3] - TL2609: Closing price 111.40, down 0.33%; volume 472, up 387%; turnover 500 million, up 384%; open interest 1,202, up 71; margin 50 million [3] - Total: Volume 128,658, up 43%; turnover 143.1 billion, up 42%; open interest 168,765, up 1,745; margin 6.58 billion [3] 2.4 Two - year Treasury Bond Futures - TS2603: Closing price 102.45, down 0.03%; volume 39,159, down 5%; turnover 80.2 billion, down 5%; open interest 74,199, down 1,931; margin 760 million [3] - TS2606: Closing price 102.49, down 0.03%; volume 472, up 278%; turnover 1 billion, up 277%; open interest 2,687, up 20; margin 30 million [3] - TS2609: Closing price 102.50, down 0.04%; volume 525, up 108%; turnover 1.1 billion, up 107%; open interest 741, up 50; margin 10 million [3] - Total: Volume 40,156, down 4%; turnover 82.3 billion, down 4%; open interest 77,627, down 1,861; margin 800 million [3] 3. Treasury Bond Futures Net Open Interest - There are charts showing the net open interest of ten - year, five - year, thirty - year, and two - year Treasury bond futures for different periods, including the top five, top ten, and top twenty positions [5] 4. Ten - year Treasury Bond Futures Position Details 4.1 T2603 Contract - In terms of trading volume, the top three are CITIC Futures (on behalf of clients) with 40,023 and an increase of 6,509, Orient Securities Futures (on behalf of clients) with 28,884 and an increase of 10,130, and Guotai Junan (on behalf of clients) with 16,495 and an increase of 1,894 [8] - For long positions, the top three are CITIC Futures (on behalf of clients) with 50,890, Orient Securities Futures (on behalf of clients) with 31,057 and a decrease of 296, and Guotai Junan (on behalf of clients) with 29,996 and a decrease of 1,855 [8] - For short positions, the top three are CITIC Futures (on behalf of clients) with 34,251 and a decrease of 10, Orient Securities Futures (on behalf of clients) with 25,216 and a decrease of 4,858, and China Merchants Futures (on behalf of clients) with 19,256 and a decrease of 61 [8] 4.2 T2606 Contract - In terms of trading volume, the top three are CITIC Futures (on behalf of clients) with 3,572 and an increase of 1,084, Haitong Futures (on behalf of clients) with 998 and an increase of 177, and Orient Securities Futures (on behalf of clients) with 988 and a decrease of 667 [10] - For long positions, the top three are Guotai Junan (on behalf of clients) with 3,419, Galaxy Futures (on behalf of clients) with 1,246, and Hongyuan Futures (on behalf of clients) with 891 [10] - For short positions, the top three are Galaxy Futures (on behalf of clients) with 2,641 and an increase of 27, Orient Securities Futures (on behalf of clients) with 1,430, and GF Futures (on behalf of clients) with 1,048 and a decrease of 48 [10] 5. Five - year Treasury Bond Futures Position Details 5.1 TF2603 Contract - In terms of trading volume, the top three are CITIC Futures (on behalf of clients) with 24,885 and a decrease of 730, Orient Securities Futures (on behalf of clients) with 23,092 and an increase of 2,721, and Guotai Junan (on behalf of clients) with 10,895 and a decrease of 5,128 [12] - For long positions, the top three are Orient Securities Futures (on behalf of clients) with 32,897 and an increase of 4,887, CITIC Futures (on behalf of clients) with 27,254 and a decrease of 123, and Guotai Junan (on behalf of clients) with 9,872 and a decrease of 772 [12] - For short positions, the top three are CITIC Futures (on behalf of clients) with 25,676 and an increase of 350, Guotai Junan (on behalf of clients) with 16,413 and an increase of 331, and Ping An Futures (on behalf of clients) with 13,685 and a decrease of 477 [12] 5.2 TF2606 Contract - In terms of trading volume, the top three are CITIC Futures (on behalf of clients) with 2,049 and an increase of 946, Guotai Junan (on behalf of clients) with 1,583 and an increase of 1,275, and Orient Securities Futures (on behalf of clients) with 1,506 and an increase of 159 [14] - For long positions, the top three are CITIC Futures (on behalf of clients) with 4,269 and a decrease of 342, Xingzheng Futures (on behalf of clients) with 1,784, and Galaxy Futures (on behalf of clients) with 1,382 and an increase of 105 [14] - For short positions, the top three are CITIC Futures (on behalf of clients) with 3,119 and an increase of 1, Huatai Futures (on behalf of clients) with 2,348, and Guotai Junan (on behalf of clients) with 2,318 and an increase of 1,000 [14] 6. Thirty - year Treasury Bond Futures Position Details 6.1 TL2603 Contract - In terms of trading volume, the top three are CITIC Futures (on behalf of clients) with 39,632 and an increase of 11,428, Orient Securities Futures (on behalf of clients) with 24,643 and an increase of 6,198, and Guotai Junan (on behalf of clients) with 19,077 and an increase of 5,014 [15] - For long positions, the top three are CITIC Futures (on behalf of clients) with 16,270 and an increase of 588, Guotai Junan (on behalf of clients) with 16,201 and a decrease of 453, and Orient Securities Futures (on behalf of clients) with 12,796 and an increase of 139 [15] - For short positions, the top three are CITIC Futures (on behalf of clients) with 17,400 and a decrease of 462, Galaxy Futures (on behalf of clients) with 13,711 and an increase of 25, and Orient Securities Futures (on behalf of clients) with 13,473 and a decrease of 1,462 [15] 6.2 TL2606 Contract - In terms of trading volume, the top three are CITIC Futures (on behalf of clients) with 3,816 and a decrease of 105, Haitong Futures (on behalf of clients) with 2,629 and an increase of 691, and Guotai Junan (on behalf of clients) with 2,626 and an increase of 910 [18] - For long positions, the top three are CITIC Futures (on behalf of clients) with 8,197, Guotai Junan (on behalf of clients) with 2,398, and Galaxy Futures (on behalf of clients) with 2,258 [18] - For short positions, the top three are Galaxy Futures (on behalf of clients) with 4,951 and an increase of 136, Guojin Futures (on behalf of clients) with 2,944 and a decrease of 94, and Huatai Futures (on behalf of clients) with 2,559 and an increase of 240 [18] 7. Two - year Treasury Bond Futures Position Details 7.1 TS2603 Contract - In terms of trading volume, the top three are CITIC Futures (on behalf of clients) with 17,261 and an increase of 1,419, Orient Securities Futures (on behalf of clients) with 11,976 and an increase of 896, and Guotai Junan (on behalf of clients) with 5,834 and a decrease of 4,549 [19] - For long positions, the top three are CITIC Futures (on behalf of clients) with 13,550, Guotai Junan (on behalf of clients) with 6,297 and a decrease of 21, and CITIC Construction Investment (on behalf of clients) with 6,233 and an increase of 45 [19] - For short positions, the top three are CITIC Futures (on behalf of clients) with 19,436 and a decrease of 1,243, Guotai Junan (on behalf of clients) with 10,833 and an increase of 475, and GF Futures (on behalf of clients) with 8,703 and an increase of 27 [19] 7.2 TS2606 Contract - All trading volume, long - position, and short - position data are 0 [22]

Company Overview - Zhejiang Top Yun Nong Technology Co., Ltd. is a national-level specialized and innovative "little giant" enterprise focused on smart agriculture, established in 2008 [1] - The company utilizes IoT, AI, big data, and algorithms to provide comprehensive solutions for data collection, analysis, decision-making, and scientific management in agriculture [1] Industry Insights - The smart agriculture industry in China is in its early growth stage, with significant market potential due to late development compared to global standards [2] - Government policies and financial investments are increasingly supporting the industry, but there are few companies that offer integrated hardware and AI-enabled solutions [2] Strategic Focus - The company aims to develop an "AI + Agriculture" strategy, creating three core systems: a perception monitoring system, a decision-making system based on model algorithms, and an execution system centered on smart agricultural machinery [3] - The strategic plan includes a timeline of "ten years for planning, three years for regulation, and one year for implementation" to transition agriculture from traditional production to a digital ecosystem [3] Product and Technology Integration - The company has developed various technologies, including smart instruments for plant digital phenotyping and algorithms for corn tassel identification, enhancing breeding efficiency [4] - New products like the AR glasses "Crop Guardian" and the robotic dog "Field Scout" are being developed to assist in precision agriculture management [4] AI Application and Success Cases - The company has achieved over 90% accuracy in pest and disease identification through its smart plant protection system, which integrates AI applications and monitoring equipment [5][6] - The intelligent pest monitoring lamp has won first place in national competitions for three consecutive years, showcasing the company's strong capabilities in agricultural data [6]

Core Insights - The year 2025 marked significant transformations in China's capital market, characterized by index breakthroughs and ecological restructuring, including the Shanghai Composite Index surpassing 4000 points and the handling of the Dongxu Group's 600 billion yuan fraud case [1][10] Group 1: Major Transformations - The most important ideological shift was from "heavy financing" to "coordinated investment and financing," emphasizing a balanced ecosystem and investor returns through improved systems for dividends, buybacks, and mergers [2][12] - A strong consensus emerged around market value management, transitioning from a niche practice to a standard across the market, with 1001 A-share companies disclosing value management systems by November, a fivefold increase from earlier in the year [2][12] Group 2: Key Market Trends - The hottest sectors were AI and hard technology, with the launch of DeepSeek-R1 in January triggering a massive influx of capital into the AI industry chain, leading to a significant revaluation of related stocks [2][13] - A major shift in funding structures occurred, with insurance and social security funds increasing equity asset allocations, and a "deposit migration" trend among residents as savings rates fell below 1% [2][14] Group 3: Regulatory Environment - 2025 was marked by stringent regulatory enforcement, highlighted by the forced delisting of major companies like Dongxu Group for significant fraud, with over 60 companies delisted throughout the year [3][5] - The year also saw a focus on mergers and acquisitions as a strategic solution for asset revaluation, with notable transactions including Guotai Junan's acquisition of Haitong Securities [3][15] Group 4: Notable Reforms - The launch of the "1+6" reform series for the Sci-Tech Innovation Board aimed to enhance the inclusivity and adaptability of the capital market, facilitating the listing of unprofitable companies [5][16] Group 5: Market Performance - The Shanghai Composite Index reached a ten-year high, crossing the 4000-point mark for the first time since August 2015, reflecting a significant recovery in market confidence [6][16] - The total trading volume of A-shares reached a record 29.92 trillion shares, with a total transaction value exceeding 419.86 trillion yuan, marking a 63% increase from 2024 [6][16] Group 6: Unexpected Developments - Hong Kong's stock market made a remarkable comeback, becoming the world's best-performing market with IPO fundraising returning to the top globally and the Hang Seng Index achieving its best annual performance since 2017 [7][17] - The most profitable new stocks were the domestic GPU companies, Moer Thread and Muxi Co., with record profits from initial public offerings, indicating strong market support for domestic GPU alternatives [8][18]

Group 1 - The A-share IPO market in 2025 saw a total of 116 companies complete their listings, representing a 16% year-on-year increase [2] - The total fundraising amount reached 122.025 billion yuan, marking a significant year-on-year growth of 104.25% [2] - The distribution of listings included 23 on the Shanghai main board, 19 on the Sci-Tech Innovation Board, 15 on the Shenzhen main board, 33 on the Growth Enterprise Market, and 26 on the Beijing Stock Exchange, with the Growth Enterprise Market and Beijing Stock Exchange accounting for over 50% of the total IPOs [2] Group 2 - A total of 30 underwriting institutions participated in the IPO business for the 116 newly listed companies, with the total number of underwriting business units reaching 117 due to two institutions being hired by Huadian New Energy for one business each [3] - The top five underwriting institutions dominated the market, collectively handling 62 business units, which is over half of the total [3] - Guotai Junan ranked first with 17 business units, followed by CITIC Securities with 15, CITIC Jianzhong with 11, Huatai United with 10, and China Merchants Securities with 9 [3][4]

Core Insights - The Chinese capital market is at a historical intersection of deepening reform and high-quality development in 2025, with significant transformations in the brokerage industry driven by resource integration, technological empowerment, and ecological restructuring [2] - The brokerage industry is experiencing a year of both challenges and breakthroughs, marked by major events that symbolize the ongoing transformation and the journey towards becoming a first-class investment bank [2] Group 1: Major Mergers and Acquisitions - The merger of Guotai Junan and Haitong Securities marks the largest A+H dual-market merger in China's capital market history, establishing a new "giant" in the brokerage industry, Guotai Haitong [2][3] - In 2025, both CITIC Securities and Guotai Haitong achieved over 20 billion yuan in net profit, solidifying a "dual leader" position in the industry [3] Group 2: Innovative Integrations - The planned merger of China International Capital Corporation (CICC) with Dongxing Securities and Xinda Securities represents the first "three-in-one" integration in the brokerage industry, potentially creating a new "trillion-yuan brokerage" [5] - The combined assets of the three firms reached 1,009.58 billion yuan, positioning them among the top in the industry [5] Group 3: Market Developments - The margin trading market reached a historical high of 25,517.34 billion yuan by December 29, 2025, accounting for 2.59% of the A-share market's circulating value [7] - The number of new margin trading accounts surged by 288% year-on-year in September, indicating increased investor activity [7] Group 4: Regulatory Changes - The China Securities Regulatory Commission revised the classification regulations for securities companies, emphasizing the need for firms to enhance their professional capabilities and better serve the real economy [9] - The new regulations focus on improving return on equity (ROE) and reducing the emphasis on total revenue rankings [9] Group 5: Technological Advancements - The brokerage industry is rapidly adopting AI technologies, with significant advancements showcased at the 2025 World Artificial Intelligence Conference [11] - CITIC Securities introduced a "digital employee" system to enhance operational efficiency, reflecting a broader trend of digital transformation in the industry [11] Group 6: Leadership Changes - Over 50 brokerages experienced changes in their core management teams in 2025, indicating a significant reshuffling of leadership within the industry [15] - The changes are driven by factors such as retirement and the impact of mergers, with a notable shift towards younger leadership [15] Group 7: Competitive Landscape - A price war has emerged in the brokerage industry, with commission rates dropping significantly, reflecting the competitive pressures and the industry's response to market conditions [17] - The average commission rate in Shanghai decreased by 8.2% year-on-year, with some firms offering financing rates below 4% [17] Group 8: New Financial Instruments - Securities companies were included as issuers of sci-tech bonds for the first time in 2025, with over 80 billion yuan in bonds issued since May [19] - This expansion aims to enhance the industry's ability to support technological innovation and align with national strategies [19] Group 9: Market Trends - The enthusiasm for public fund business among brokerages has waned, with several firms withdrawing their applications for public fund licenses [21] - The industry is shifting towards alternative models such as equity participation in public funds, indicating a strategic pivot in business operations [21] Conclusion - The brokerage industry in China is navigating a transformative landscape characterized by mergers, technological advancements, regulatory changes, and evolving market dynamics, all while striving to enhance its competitive edge and service capabilities [23]

Core Insights - The report highlights the performance of stock recommendations from various brokerages, with 10 brokerages achieving over 50% returns in 2025, showcasing their ability to identify and recommend stocks early in the market cycle [2][3]. Group 1: Brokerage Performance - The highest cumulative return was achieved by Guoyuan Securities at 83.73%, followed by Northeast Securities and Kaiyuan Securities with returns of 67.47% and 67% respectively [2]. - Other brokerages such as Dongxing Securities, Huaxin Securities, and China Merchants Securities also reported returns exceeding 60%, while Everbright Securities, Dongguan Securities, Guotai Junan, and Changcheng Securities had returns above 50% [2]. Group 2: Stock Selection Strategy - The success of these brokerages is attributed to their strategy of identifying stocks at low points and consistently recommending them, which has led to significant gains [4][5]. - For instance, Kaiyuan Securities recommended Xinyisheng for four consecutive months, resulting in a total increase of 440% from May to August [6]. Group 3: Popular Stocks - Tencent Holdings emerged as the most recommended stock, being favored by around seven brokerages each month, making it the most popular stock of the year [7]. - The report indicates that the most popular stocks varied throughout the year, with technology stocks dominating in the first quarter, consumer stocks in the second, financial stocks in the third, and a return to technology stocks in the fourth quarter [7].

Core Viewpoint - The article discusses the ongoing trend of mergers and acquisitions in the Chinese securities industry, highlighting significant cases and the regulatory environment that encourages the formation of influential financial institutions by 2025 [1]. Group 1: Major Mergers and Acquisitions - Guolian Minsheng Securities officially rebranded after merging, reporting a revenue of 4.011 billion yuan and a net profit of 1.127 billion yuan for the first half of the year, marking a year-on-year growth of 269.4% and 1185.19% respectively [2]. - The merger of Guotai Junan and Haitong Securities, which became Guotai Haitong, is noted as the largest A+H market merger in Chinese capital market history, with Guotai Haitong achieving a net profit of 15.737 billion yuan in the first half of the year, surpassing CITIC Securities [4]. - The merger between Zhejiang Securities and Guodu Securities is progressing, with Zhejiang Securities establishing control over Guodu Securities through a series of share acquisitions [5][6]. Group 2: Regulatory Approvals and Market Impact - The merger of Xibu Securities and Guorong Securities received regulatory approval, with Xibu Securities planning to acquire a 64.5961% stake for 3.3217 yuan per share, totaling 3.825 billion yuan [8]. - The acquisition of Wanhe Securities by Guosen Securities was approved, with Guosen Securities aiming to gain control over Wanhe Securities, which has significantly smaller assets and profits compared to Guosen [9][10]. - Central Huijin's stake in CICC will increase to 1.936 billion shares post-merger with Dongxing Securities and Xinda Securities, maintaining its status as the controlling shareholder [13].

Core Viewpoint - The article emphasizes the need for innovation and steady development of the digital renminbi, addressing four major challenges faced by digital payment tools in relation to central bank monetary control, financial disintermediation, responsibilities of commercial banks, and the centralized management of bank accounts versus the decentralized nature of blockchain technology [1][2]. Summary by Sections Digital Renminbi Development - The digital renminbi has achieved significant progress in its pilot phase, with a total of 3.48 billion transactions amounting to 16.7 trillion yuan by the end of November 2025 [1]. - The People's Bank of China (PBOC) plans to launch a 2.0 version of the digital renminbi on January 1, 2026, to address emerging challenges and enhance the management service system [2]. Challenges and Policy Recommendations - Four main challenges identified include: 1. The impact of new "currency" payment tools on traditional frameworks. 2. Financial disintermediation risks due to digital cash circulation outside the banking system. 3. Ambiguities in the responsibilities of commercial banks regarding digital currency. 4. Compatibility issues between centralized account management and decentralized systems [2]. - Proposed policy measures include: 1. A dual-layer operational structure to strengthen the development direction of the digital renminbi. 2. Classifying the digital renminbi as a liability of commercial banks, integrating it into the reserve and deposit insurance systems to mitigate disintermediation risks [2]. 3. Clarifying the responsibilities of banks, allowing them to pay interest on digital currency balances [2]. 4. Implementing a hybrid architecture combining account systems, currency strings, and smart contracts to leverage blockchain technology [2]. Transition to Deposit Currency - The digital renminbi is transitioning from a "legal currency" to a "deposit currency," enhancing its compatibility with the existing financial system and expanding the operational space for financial institutions [3]. - This transition aims to improve monetary circulation efficiency, stabilize the financial system, and enhance service capabilities for the real economy, potentially increasing transaction volumes in broader scenarios [3].