Core Points - Starting from January 1, 2026, interest will be paid on the balances in real-name digital RMB wallets [1] - Ten official designated operating institutions, including major banks like ICBC, ABC, BOC, and CCB, have announced this adjustment [1] - The interest rate will be based on the bank's current deposit benchmark rate, which is currently 0.05% annually [1] Summary by Categories Interest Payment Implementation - The interest payment feature is a result of the People's Bank of China's recent action plan to enhance the management and service system for digital RMB [1] - Banks are required to comply with self-discipline agreements on deposit rate pricing [1] Wallet Classification and Eligibility - The interest payment feature is only available to users of real-name wallets [1] - Digital RMB wallets are categorized into four types based on customer identity verification strength, with only authenticated wallets eligible for interest [1] - Balances in anonymous wallets, which can be opened with just a phone number, will not earn interest [1] Digital RMB App Upgrade - The digital RMB App has been upgraded to version 2.0 to support the new interest payment functionality [1] - Users can check interest details on the wallet asset page after the quarterly interest settlement date [1]

Core Viewpoint - Digital Renminbi will start accruing interest from January 1, 2026, as major banks in China announce plans to pay interest on the balances of digital Renminbi wallets at the same rates as regular savings accounts [1] Group 1: Bank Announcements - Industrial and Commercial Bank of China, Agricultural Bank of China, and China Construction Bank will begin paying interest on digital Renminbi wallet balances according to the current savings deposit rates starting January 1, 2026 [1] - Bank of Communications will also pay interest on digital Renminbi wallet balances, including various types of personal and corporate wallets, based on its announced savings deposit rates, while balances in certain wallet types will not earn interest [1] Group 2: Regulatory Framework - The People's Bank of China has introduced an action plan to enhance the management and service system for digital Renminbi, which will officially launch on January 1, 2026 [1] - The action plan specifies that banks must comply with self-discipline agreements regarding deposit interest rate pricing for customer digital Renminbi wallet balances [1]

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]

Core Viewpoint - The People's Bank of China conducted a 7-day reverse repurchase operation of 482.3 billion yuan at an interest rate of 1.40%, maintaining the previous rate, resulting in a net injection of 415 billion yuan into the market after accounting for maturing reverse repos [1]. Group 1: Market Operations - The overnight Shanghai Interbank Offered Rate (Shibor) fell below 1.25%, while the 7-day Shibor rose by over 10 basis points [1]. - The specific rates on December 29 were: overnight Shibor at 1.2480% (down 1.00 basis points), 7-day Shibor at 1.5580% (up 11.00 basis points), and 14-day Shibor at 1.6500% (up 5.40 basis points) [2][3]. Group 2: Interbank Repo Market - In the interbank pledged repo market, the overnight rate continued to decline, while the R007 rate surged over 40 basis points, approaching 2% [4]. - The weighted average rates for DR001 and R001 decreased by 1.4 basis points and 0.7 basis points, respectively, while DR007 and R007 increased by 7.1 basis points and 41 basis points, respectively [6]. Group 3: Funding Conditions - The overall funding situation remained slightly tight, with month-end and cross-year funding transaction prices showing divergence [8]. - The overnight repo rates fluctuated between 1.23% and 1.30%, while cross-year funding prices remained elevated [8].