Market Data - As of February 6, the Shanghai Composite Index fell by 0.25% to 4065.58 points, the Sci-Tech Innovation 50 Index dropped by 0.71% to 1422.41 points, the Shenzhen Component Index decreased by 0.33% to 13906.73 points, and the ChiNext Index fell by 0.73% to 3236.46 points [1] - In the US market, major indices saw significant gains, with the Dow Jones Industrial Average closing at 50115.67 points, marking a 2.47% increase; the S&P 500 Index rose by 1.97% to 6932.30 points; and the Nasdaq Composite Index increased by 2.18% to 23031.21 points [1] Economic News - China's gold reserves have increased for 15 consecutive months, reaching 7419 million ounces by the end of January 2026, up by 4 thousand ounces from December 2025 [2] - China's foreign exchange reserves continued to grow, reaching 33990.78 billion USD at the end of January 2026, an increase of 412.09 billion USD or 1.23% from December 2025 [3] - The People's Bank of China and eight other departments issued a notice to further prevent and address risks related to virtual currencies, reiterating that virtual currencies do not have the same legal status as fiat currencies [4] Industry Developments - The National Health Commission released a draft national standard for pre-prepared dishes, which does not include staple foods and sets specific requirements for food additives [5][6] - The State Council and other departments announced measures to enhance consumer rights in the catering industry, encouraging transparency in the use of pre-prepared foods [6] - A new strategic partnership was formed between Innovent Biologics and Eli Lilly to advance global R&D of innovative drugs in oncology and immunology, with potential payments totaling up to 88.5 billion USD [7] - The company Beike (688793.SH) is under investigation by the China Securities Regulatory Commission for alleged market manipulation, marking the second investigation in a short period [8]

Group 1 - Shanghai's GDP growth target for this year is set at around 5%, with a focus on enhancing the capabilities of the "Five Centers" [3] - The Shanghai government aims to strengthen the international financial center by advancing financial system reforms and improving cross-border financial services [3][4] - There is a push for the development of offshore financial functions to enhance Shanghai's global competitiveness in the financial sector [5][6] Group 2 - The Shanghai government is initiating a pilot program for purchasing second-hand homes to expand the supply of affordable rental housing, with support from China Construction Bank [7] - The Shanghai Futures Exchange has announced adjustments to margin levels and price limits for silver and other futures contracts due to significant price volatility [9] - The Shanghai Stock Exchange is working on creating a multi-layered ETF market, with projections indicating that the domestic ETF market will exceed 6 trillion yuan by 2025, surpassing Japan [10] Group 3 - The People's Bank of China reported that cross-border RMB transactions reached 32.4 trillion yuan in 2025, marking a 9% year-on-year increase [10] - The first commercial real estate REITs projects have been accepted for review, indicating an expansion of the REITs market into commercial properties [10] - A biodiversity loan for forest economy has been successfully issued, supporting the construction of a world-class ecological island in Chongming [12]

Core Viewpoint - The People's Bank of China and seven other regulatory bodies have issued a notification to strengthen the regulation of virtual currency and related risks, particularly focusing on the tokenization of real-world assets by domestic entities abroad [1][2]. Group 1: Regulatory Measures - Domestic entities engaging in real-world asset tokenization abroad will face strict regulatory oversight, adhering to the principle of "same business, same risk, same rules" [1]. - The notification specifies that any business activities related to the tokenization of real-world assets must be approved and filed with relevant authorities, prohibiting unauthorized operations [1]. Group 2: Management of Financial and Intermediary Institutions - Financial institutions' overseas subsidiaries must comply with domestic risk management frameworks, including customer access and anti-money laundering requirements [2]. - Intermediary and information technology service providers supporting domestic entities in tokenization activities must establish robust compliance and internal control systems, ensuring proper business and risk management [2].

Core Viewpoint - The People's Bank of China and several regulatory bodies issued a notice to strengthen the management of financial, intermediary, and technical service institutions regarding virtual currency risks [1][2]. Summary by Relevant Categories Regulatory Actions - Financial institutions, including non-bank payment institutions, are prohibited from providing account opening, fund transfer, and clearing services for virtual currency-related activities [1][2]. - The issuance and sale of financial products related to virtual currencies are not allowed [1][2]. - Virtual currencies and related financial products cannot be included as collateral or pledged assets [1][2]. - Engaging in insurance business related to virtual currencies or including virtual currencies in insurance liability is prohibited [1][2]. Risk Management - There is an emphasis on enhancing risk monitoring, with a requirement to report any illegal or non-compliant issues to relevant authorities promptly [1][2]. Tokenization Restrictions - Financial institutions are not allowed to provide custody, clearing, or settlement services for tokenization of real-world assets without consent [1][2]. - Intermediary and information technology service institutions are also restricted from providing services for unauthorized tokenization of real-world assets and related financial products [1][2].

Core Viewpoint - The joint risk warning issued by seven associations in China emphasizes the illegal activities associated with virtual currencies and related tokens, urging institutions and the public to remain vigilant against potential fraud and illegal fundraising activities [1][2]. Summary by Sections Nature of Virtual Currencies - Virtual currencies are not issued by monetary authorities and do not hold the same legal status as national legal tender, thus cannot be circulated as currency within China [2]. - Activities involving the exchange of legal currency for virtual currencies, issuance of real-world asset tokens, and related financing are considered illegal financial activities [2]. Institutional Responsibilities - Financial institutions, including banks and payment service providers, are prohibited from offering services related to the issuance and trading of virtual currencies and real-world asset tokens [3]. - Institutions must conduct due diligence to identify potential risks associated with virtual currencies and report any suspicious activities to relevant authorities [3]. Public Awareness and Precautions - The public is advised to be highly cautious of various forms of virtual currency and real-world asset token activities, including avoiding promotional groups and being wary of false claims regarding high returns [3][4]. - Experts recommend that ordinary investors adhere to the "three no" principles: do not participate in virtual currency trading, do not trust high-yield claims, and do not spread related promotional information [4].