Macro Dynamics - The Ministry of Commerce announced safeguard measures for imported beef, stating that an investigation was initiated on December 27, 2024, due to domestic industry requests. The measures include country-specific quotas and additional tariffs for three years, with annual quota increases to support the domestic industry [2] Financial Institutions - Major state-owned banks, including ICBC, ABC, CCB, BOC, and Postal Savings Bank, announced that starting January 1, 2026, interest will be paid on the balances of real-name digital RMB wallets at the same rate as current deposits. The announcement emphasizes the distinction between real-name and anonymous wallets, with specific interest rules applying only to real-name wallets [9] Market Data - The A-share market closed on December 31, 2025, with the Shanghai Composite Index rising 0.09% for a total annual increase of 18.41%, marking a ten-year high. The Shenzhen Component Index increased by 29.87% over the year, while the ChiNext Index saw a significant rise of 49.57% [11] - The Hong Kong stock market also reported strong performance, with the Hang Seng Index increasing by 27.77% for the year, the best annual performance since 2017. The Hang Seng Tech Index rose by 23.45%, marking its best annual performance since 2020 [12] Company Dynamics - The first domestically produced quadrivalent HPV vaccine has been launched, developed by China National Pharmaceutical Group. The vaccine covers four HPV types and has shown 100% efficacy in preventing certain precancerous lesions in clinical trials, providing a cost-effective option for women aged 18 to 45 [14] - Tianqi Materials announced an expected net profit increase of 127.31% to 230.63% for 2025, driven by rising demand in the new energy vehicle and energy storage markets, along with improved production efficiency [15] - Platinum Technology is under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws, but the company stated that its operations remain normal [16] - Changan Ford announced a recall of 38,473 units of the Ford Focus due to compliance with regulations regarding defective automotive products [17]

Core Viewpoint - The announcement by six major banks in China regarding interest payments on digital RMB wallet balances marks a significant transition from "digital cash (M0)" to "digital deposit currency," indicating a shift in the nature of liabilities from the central bank to commercial banks [1][2] Group 1: Announcement Details - Starting from January 1, 2026, the six major banks will pay interest on the balances of real-name digital RMB wallets at the rate of the current deposit interest rate [1] - The current deposit interest rate for the Bank of Communications is set at 0.05% [1] - Balances in type four personal wallets will not earn interest, and specific interest rate standards can be checked through the bank's official website, mobile banking app, or physical branches [1] Group 2: Implications and Effects - This move enhances user willingness to hold digital RMB, promoting its adoption and dissemination [2] - It incorporates banking institutions into the reserve requirement framework, improving monetary statistics and macroeconomic regulation [2] - Establishing this mechanism is a crucial step towards the maturity of digital RMB, maintaining a dual-layer operational structure while achieving functional upgrades [2]

Core Viewpoint - Starting from January 1, 2026, six major state-owned banks in China will begin to pay interest on the balances of digital RMB real-name wallets at the same rate as their current deposit rates, following the same interest calculation rules as regular savings accounts [1][10]. Group 1: Announcement Details - The six banks involved are the Bank of China, Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Bank of Communications, and Postal Savings Bank [1]. - The current interest rate for regular savings accounts is noted to be 0.05% [10]. - Interest will be calculated quarterly, with the interest credited to accounts on the 21st of each quarter's last month [10]. Group 2: Wallet Types and Interest Eligibility - Digital RMB wallets are categorized into four types: Type 1, Type 2, and Type 3 are real-name wallets eligible for interest, while Type 4 is an anonymous wallet that does not earn interest [10][12]. - Type 1 wallets require in-person verification and must be linked to a domestic bank account, while Type 2 and Type 3 wallets can be opened remotely with varying identification requirements [12][13][14]. - The new definition of digital RMB indicates a shift from being classified as M0 (cash) to being recognized as a form of deposit currency, allowing for interest accrual [11][12].

Core Insights - The operating logic of commercial banks is undergoing a profound transformation, facing challenges such as narrowing net interest margins and diverse risk sources, while also seizing strategic opportunities from digital transformation and service model upgrades [1] - The "Comprehensive Competitiveness Evaluation Index System for Commercial Banks" was officially released, aiming to provide a scientific and comprehensive measure of banks' real performance and competitive status in the context of high-quality development [1] Group 1: Evaluation Framework - The evaluation system includes five core modules: operational scale and capital strength, profitability, sound operational capability, technological and service innovation capability, and brand building capability [1] - This framework covers the entire chain from resource support to performance output, risk control compliance to innovation-driven growth, and short-term operations to long-term value [1] Group 2: High-Quality Development - Experts emphasize that high-quality development for commercial banks must move beyond reliance on asset scale growth, focusing instead on stable, endogenous growth under capital constraints [2] - Banks are encouraged to optimize their asset structures and allocate credit resources to strategic national priorities and high-quality customer segments [2] Group 3: Profitability Challenges - The narrowing of net interest margins has become a new normal, necessitating the construction of more resilient and diversified profit models [2] - Banks should strategically accelerate the development of wealth management, investment banking, and transaction finance, which have lower capital consumption and higher customer stickiness [2] Group 4: Technology Investment Evaluation - There is an unprecedented scale of investment in technology resources within the banking sector, requiring a mechanism to evaluate the conversion of technology input into business value [3] - A comprehensive evaluation mechanism should consider the impact of technology on internal management efficiency and external business benefits [3] Group 5: Competitiveness Rankings - The rankings of commercial banks based on their operational scale, profitability, and sound operational capability have been published, with the Industrial and Commercial Bank of China leading in all three categories [4][5][6] - The top five banks in terms of operational scale and capital strength are: 1. Industrial and Commercial Bank of China - 95.90 2. China Construction Bank - 95.15 3. Agricultural Bank of China - 93.44 4. Bank of China - 93.29 5. China Merchants Bank - 91.95 [4][5]

Investment Rating - The report maintains a stable outlook for the banking industry, indicating a controlled decline in net interest margins and stable asset quality [4][7]. Core Insights - The banking sector in China has shown steady development in the first three quarters of 2025, with stable credit asset quality and sufficient provisions and capital [4][22]. - The People's Bank of China is expected to continue implementing a moderately loose monetary policy, ensuring ample liquidity in the banking system [4][22]. - The report highlights the challenges faced by commercial banks due to a declining net interest margin and the need for active management of asset quality [7][27]. Summary by Sections Industry Data - As of Q3 2025, the non-performing loan (NPL) rate for commercial banks was 1.52%, a slight increase from the previous year, while the ratio of attention loans decreased to 2.20% [9][27]. - The total amount of non-performing loans reached 35,224.78 billion yuan, with a provision coverage ratio of 207.15% [9][28]. - The net profit for commercial banks in the first three quarters of 2025 was 18,702.58 billion yuan, reflecting a 7.19% decrease year-on-year [9][31]. Regulatory Policies - The People's Bank of China has introduced measures to optimize the financial services for the real estate sector, although the market remains sluggish [8][12]. - Ongoing reforms for small and medium-sized banks are aimed at enhancing their risk resistance and operational quality [8][12]. Bond Issuance Statistics - By December 15, 2025, 100 commercial banks issued a total of 227 financial bonds, raising 14,566 billion yuan, a 44.38% increase from the previous year [15][16]. - The issuance of tier-2 capital bonds totaled 8,727.60 billion yuan, while perpetual bonds raised 8,218 billion yuan, indicating a diverse funding strategy among banks [15][17]. Credit Quality and Profitability - The report notes that while the asset quality remains stable, there are pressures from the real estate market and external trade uncertainties that could affect repayment capabilities [7][27]. - The net interest margin for commercial banks was recorded at 1.42% in Q3 2025, with a trend of narrowing expected to slow down [30][31].

Core Viewpoint - The digital renminbi will officially end its "interest-free era" as major state-owned banks announce that starting January 1, 2026, the balance in real-name digital renminbi wallets will earn interest based on the current deposit rate [1][4][5]. Group 1: Digital Renminbi Interest Policy - Six major state-owned banks, including ICBC, ABC, BOC, CCB, Bank of Communications, and Postal Savings Bank, will implement interest payments on digital renminbi wallet balances according to the current deposit rate [1][4]. - The interest payment policy is a result of the People's Bank of China's recent action plan aimed at enhancing the management and service system for digital renminbi [4][5]. - The new interest mechanism marks the transition of digital renminbi from a "digital cash" to a "digital deposit currency" [5][8]. Group 2: Digital Renminbi Overview - Digital renminbi is a legal digital currency issued by the People's Bank of China, applicable in various scenarios such as transportation, dining, shopping, and public services [6]. - The pilot program for digital renminbi has expanded from select cities to entire provinces, with applications in both consumer and governmental sectors [6]. - As of November 2025, digital renminbi has processed 3.48 billion transactions totaling 16.7 trillion yuan, with 230 million personal wallets opened [7]. Group 3: Future Implications of Interest Payments - The introduction of interest payments changes the liability nature of digital renminbi, making it a liability of commercial banks rather than the central bank, thus aligning it more closely with traditional bank deposits [8]. - This shift is expected to enhance the monetary elasticity of digital renminbi, allowing it to support credit activities and deposit expansion mechanisms [8]. - The future digital renminbi will be a modern digital payment and circulation tool, regulated by the central bank and possessing attributes of commercial bank liabilities [8].

Core Viewpoint - The digital renminbi will officially end its "interest-free era" as major state-owned banks announce that starting January 1, 2026, the balance in real-name digital renminbi wallets will earn interest based on the current deposit rate [1][4][10]. Group 1: Digital Renminbi Interest Policy - Six major state-owned banks, including ICBC, ABC, BOC, CCB, BOCOM, and PSBC, will implement interest payments on digital renminbi wallet balances according to the current deposit rate starting January 1, 2026 [1][4]. - The interest will be calculated based on the People's Bank of China's regulations for current deposits, with interest credited quarterly [3][4]. - The introduction of this interest policy is part of the People's Bank of China's action plan to enhance the management and service system for digital renminbi [4][10]. Group 2: Transition to Digital Deposit Currency - The implementation of the interest policy marks the transition of digital renminbi from a "digital cash" model to a "digital deposit currency" model [10]. - Previously, digital renminbi was classified as M0, similar to cash, and did not earn interest, limiting its attractiveness compared to bank deposits [10]. - With the new policy, digital renminbi will be treated as a liability of commercial banks, allowing it to support credit activities and deposit expansion mechanisms, thus enhancing its monetary elasticity [10][11]. Group 3: Current Status and Future Prospects - As of November 2025, digital renminbi has processed 3.48 billion transactions with a total transaction amount of 16.7 trillion yuan [8]. - The digital renminbi is being tested in various scenarios, including daily consumption and government services, and is expanding into cross-border payment initiatives [7][8]. - The future digital renminbi will be a modern digital payment and circulation tool, supported by the central bank and possessing attributes of commercial bank liabilities [10][11].

建设银行指出，自2026年1月1日起，该行数字人民币实名钱包余额将按照该行活期存款挂牌利率计付利 息，计结息规则与活期存款一致，并相应修订《中国建设银行数字人民币钱包个人客户服务协议》相关 内容。该行也在公告中介绍到，数字人民币是指中国人民银行发行的法定数字货币和相关支付体系，采 用双层运营架构，由中国人民银行向数字人民币业务运营机构发行，再由数字人民币业务运营机构兑换 给公众。自2026年1月1日起，数字人民币钱包（不含四类钱包）中的钱包余额按照中国人民银行规定的 活期存款计结息规则计付利息，并由乙方依法代扣代缴利息税（如有）。 2026年1月1日起，数字人民币实名钱包余额将开始计付利息。 12月31日，工行、农行、建行、交行、邮储银行等国有银行公布了数字人民币钱包余额计息的规则。 工商银行、农业银行、邮储银行表示，为数字人民币实名钱包余额按照活期存款挂牌利率计付利息，计 结息规则与活期存款一致；交通银行表示，自2026年1月1日起，交通银行将数字人民币实名钱包（包含 一类、二类、三类个人钱包和单位钱包）余额，按照该行公布的活期存款挂牌利率计付利息。如用户开 立的数字人民币钱包为四类个人钱包，则钱包内的余额 ...

Core Viewpoint - The A-share market has shown a steady upward trend in 2025, driven by policy support, ample liquidity, and positive industry trends, marking a new phase of quality and quantity improvement in the capital market [1] Group 1: Market Overview - In 2025, the total market capitalization of A-shares surpassed 100 trillion yuan for the first time, indicating a significant milestone [1] - The number of companies with a market capitalization exceeding 1 trillion yuan increased to 13, with notable entries from the technology sector [4][5] - The market structure has shown a shift, with traditional industries like finance and energy maintaining strong positions while technology companies are rapidly climbing the ranks [2][6] Group 2: Technology Sector Impact - Technology companies, particularly in AI and semiconductors, have been the main drivers of market growth, with Industrial Fulian's market cap nearly tripling and surpassing 1 trillion yuan [4] - Semiconductor company SMIC also crossed the 1 trillion yuan mark, although it recently fell below this threshold [4] - The rise of technology stocks has been characterized by high R&D investment and policy support, with new entrants in the market demonstrating significant valuation elasticity [8] Group 3: New Entrants and Market Dynamics - The number of companies with a market capitalization exceeding 100 billion yuan increased from 137 to 178, reflecting a robust expansion in this segment [7] - New companies, such as Moer Technology and Muxi Co., have made headlines with substantial first-day gains, indicating strong market interest in tech innovations [8] - However, five companies, including Yanghe Brewery and Poly Developments, saw their market caps drop below 100 billion yuan, primarily due to declining industry conditions and poor financial performance [9]

Group 1 - From January 1, 2026, digital RMB real-name wallet balances will earn interest based on the current demand deposit rate set by the banks [1] - The current demand deposit rate is 0.05% as per the announcements from major banks [1] - Digital RMB wallets are categorized into four types, with only real-name wallets (Type 1, 2, and 3) eligible for interest, while anonymous wallets (Type 4) do not earn interest [1] Group 2 - There are currently 10 designated operating institutions for digital RMB, including six state-owned commercial banks, two joint-stock commercial banks, and two internet banks [2] - The People's Bank of China is working on expanding the number of operating institutions for digital RMB [2] - A new action plan has been issued by the central bank to enhance the management service system and financial infrastructure for digital RMB, set to be implemented on January 1, 2026 [2]