Group 1 - The People's Bank of China will implement eight measures to enhance credit support in key areas, aiming to boost the economy's structural transformation and optimization [1] - The central bank plans to increase the support for structural monetary policy tools, focusing on carbon reduction and green transformation initiatives [3] - The one-year re-lending rate will be reduced from 1.5% to 1.25%, with other term rates adjusted accordingly [3] Group 2 - The total re-lending quota for supporting agriculture and small enterprises will be increased by 500 billion, with a specific quota of 1 trillion for private enterprises [3] - The re-lending quota for technological innovation and technological transformation will be raised from 800 billion to 1.2 trillion, including support for high R&D investment private SMEs [3] - Existing bond financing support tools for private enterprises and technology innovation will be merged, providing a total re-lending quota of 200 billion [3]

1. Report Industry Investment Rating No relevant information provided. 2. Core Views of the Report - The Politburo meeting in December set the tone for the macro - policies in 2026, with the economy in 2025 expected to achieve its main goals. In 2026, the economy may face challenges, and the estimated growth rate under the neutral assumption is 4.8%. Fiscal policy should be more proactive with a suggested deficit rate of 4.5% - 5% and a broad - based deficit scale exceeding 16 trillion. Monetary policy will remain moderately loose, with expected interest rate cuts and reserve requirement ratio cuts [5][8][10]. - Nearly 20 regions have issued the "15th Five - Year Plan" suggestions, focusing on constructing government debt management mechanisms, resolving hidden debts, establishing local balance sheets, and promoting the transformation of financing platforms. It is expected that over 90% of platforms will complete their exit by the end of 2026 [5][15]. - This week, 5 urban investment enterprises declared themselves as market - oriented operating entities, 23 urban investment enterprises prepaid bond principal and interest, and 2 urban investment bonds cancelled their issuance [19][22][23]. - The issuance and net financing scale of local government bonds and urban investment bonds both decreased this week. The special refinancing bonds for replacing hidden debts in 2025 have all been issued [5][24][29]. 3. Summary by Relevant Catalogs 3.1. Important News Review 3.1.1. Politburo Meeting Emphasizes Policy Coordination - The Politburo meeting in December analyzed the economic work in 2026, stating that the economy in 2025 will achieve its main goals. In 2026, more proactive fiscal and moderately loose monetary policies will be implemented, with an emphasis on policy coordination and the integration of stock and incremental policies [7][8][10]. - It is suggested that the deficit rate in 2026 be raised to 4.5% - 5%, and the broad - based deficit scale exceed 16 trillion. The monetary policy will arrange one interest rate cut and 1 - 2 reserve requirement ratio cuts, and expand the scope of special re - loans [10]. - The key economic work in 2026 includes "domestic demand - led", "people's livelihood as the top priority", and the position of "risk prevention" has dropped to the last [13]. 3.1.2. "15th Five - Year Plan" Suggestions on Local Debt Management - Nearly 20 regions have issued "15th Five - Year Plan" suggestions, focusing on four aspects: constructing government debt management mechanisms, resolving hidden debts, establishing local balance sheets, and promoting the transformation of financing platforms [15]. - Most regions aim to resolve local government debt risks, and it is expected that over 90% of platforms will complete their exit by the end of 2026 [15][17]. 3.1.3. Tracking of Urban Investment Enterprises' "Exit from Platforms" - This week, 5 urban investment enterprises declared themselves as market - oriented operating entities, with the majority being AA + rated and from prefecture - level and district - county levels [19]. 3.1.4. Prepayment of Bond Principal and Interest by Urban Investment Enterprises - This week, 23 urban investment enterprises prepaid bond principal and interest, involving 23 bonds with a total scale of 34.02 billion yuan [22]. 3.1.5. Cancellation of Urban Investment Bond Issuance - This week, 2 urban investment bonds cancelled their issuance, with a planned total issuance scale of 6 billion yuan. As of December 7, 101 urban investment bonds have postponed or cancelled their issuance this year, with a total scale of 645.28 billion yuan [23]. 3.2. Issuance of Local Government Bonds and Urban Investment Enterprise Bonds 3.2.1. Local Government Bonds - The issuance and net financing scale of local government bonds decreased this week. The special refinancing bonds for replacing hidden debts in 2025 have all been issued. The total issuance scale was 1087.17 billion yuan, and the net financing amount was 604.93 billion yuan [24]. - As of December 7, the cumulative issuance of new bonds (excluding special bonds for small and medium - sized banks) was 52253.78 billion yuan, completing 100.49% of the annual new quota [24]. 3.2.2. Urban Investment Bonds - The issuance and net financing scale of urban investment bonds decreased this week. The total issuance scale was 878.19 billion yuan, and the net financing amount was - 7.11 billion yuan [29]. - The overall issuance interest rate was 2.20%, a decrease of 1.60BP from the previous value, and the issuance spread was 70.92BP, a decrease of 0.09BP [29]. 3.3. Trading of Local Government Bonds and Urban Investment Enterprise Bonds - The central bank conducted 6638 billion yuan of reverse repurchase operations in the open market this week, with 15118 billion yuan of reverse repurchases maturing, resulting in a net withdrawal of 8480 billion yuan [33]. - The short - term capital interest rates mostly declined this week [33]. - There were no adjustments to the urban investment ratings and no urban investment credit risk events this week [33]. - The trading scale of local government bonds increased by 29.40% to 5086.82 billion yuan, and most of the maturity yields increased [35]. - The trading scale of urban investment bonds decreased by 6.61% to 2707.68 billion yuan, and most of the maturity yields increased, with an average increase of 4.05BP [35]. - There were 9 abnormal transactions of 5 bonds from 5 urban investment entities this week, with a decrease in the number of entities and bonds compared to last week [35]. 3.4. Important Announcements of Urban Investment Enterprises - This week, 51 urban investment enterprises issued announcements regarding changes in senior management, legal representatives, directors, supervisors, etc. [38].

Core Viewpoint The China Securities Regulatory Commission (CSRC) is focusing on a comprehensive five-year plan for capital market development, emphasizing the importance of governance, long-term investment, and regulatory reforms. Group 1 - Emphasis on a new round of corporate governance initiatives to encourage quality companies to increase dividend and buyback efforts [4] - Promotion of a long-term assessment mechanism for medium and long-term funds, with a strong push for the development of equity public funds [4] - Strengthening counter-cyclical and cross-cyclical adjustments to establish a long-term market stabilization mechanism [4] Group 2 - Accountability for reputation management among industry institutions and listed companies, with a focus on improving the narrative around the stock market [4] - Initiation of reforms for the Growth Enterprise Market and acceleration of the implementation of the "1+6" reform measures for the Sci-Tech Innovation Board [4] - Urgent implementation of commercial real estate REITs pilot projects and research on new key futures products [4] Group 3 - Commitment to supporting high-quality firms while limiting underperformers, aiming to build top-tier investment banks and institutions [4] - Gradual expansion of institutional openness, optimizing the qualified foreign institutional investor system and improving the efficiency of overseas listing filings [4] - Enhancement of regulatory capabilities through technology, with a continued crackdown on financial fraud, insider trading, market manipulation, and misappropriation of private fund assets [4] Group 4 - Promotion of the introduction of regulations for listed companies and active cooperation in revising laws and regulations in key areas such as securities companies and investment funds [4]

Group 1: Autonomous Driving - China's first batch of L3 conditional autonomous driving vehicles has received approval for road testing in designated areas of Beijing and Chongqing, marking a significant step towards commercialization [1] - The two approved models include an electric sedan capable of 50 km/h in congested traffic and another capable of 80 km/h on highways and urban expressways, both limited to specific routes [1] Group 2: Financial Sector Reforms - The China Securities Regulatory Commission (CSRC) has initiated reforms to enhance the inclusivity and attractiveness of the capital market, focusing on the implementation of the "1+6" reform measures for the Sci-Tech Innovation Board [3][10] - The CSRC aims to promote high-quality development in the private equity fund sector and expedite the pilot program for commercial real estate REITs [10] - A new round of corporate governance initiatives will be launched to encourage quality companies to increase dividend payouts and share buybacks [11] Group 3: Company Financials - Cambrian Technology plans to use approximately 2.78 billion yuan from its capital reserve to offset accumulated losses, with the aim of bringing its negative retained earnings to zero by the end of 2024 [8] - TCL Technology intends to acquire a 10.7656% stake in Shenzhen Huaxing Semiconductor for 6.045 billion yuan, increasing its ownership from 84.21% to 94.98%, to enhance its competitiveness in the semiconductor display industry [12] Group 4: Currency and Real Estate Market - The onshore and offshore RMB against the USD reached a 14-month high, with the onshore rate peaking at 7.0500 and the offshore rate at 7.046, indicating a favorable external environment for the RMB [13] - In November 2025, the sales prices of commercial residential properties in 70 major cities in China showed a month-on-month decline, with first-tier cities experiencing a 0.4% decrease in new residential prices [14]

Core Viewpoint - The China Securities Regulatory Commission (CSRC) is focusing on cultivating a high-quality group of listed companies and initiating a new round of corporate governance actions to enhance dividend and share buyback efforts among quality firms [1] Group 1: Corporate Governance and Quality Companies - The CSRC is launching a new round of corporate governance initiatives aimed at guiding quality companies to increase their dividend and share buyback activities [1] - There is an emphasis on the importance of long-term funding mechanisms and the development of equity public funds to support high-quality index investment [1] Group 2: Risk Monitoring and Market Stability - The CSRC is strengthening cross-market, cross-industry, and cross-border risk monitoring and control to enhance market stability [1] - There is a focus on reinforcing counter-cyclical and cross-cyclical adjustments to establish a long-term market stabilization mechanism [1] Group 3: Policy Communication and Market Narrative - The CSRC aims to improve policy interpretation and expectation management, responding promptly to market concerns [1] - There is a commitment to holding industry institutions and listed companies accountable for reputation management and effectively communicating the "stock market narrative" [1]

Core Viewpoint - The China Securities Regulatory Commission (CSRC) emphasizes enhancing market stability and promoting high-quality listed companies through governance actions and increased shareholder returns [1] Group 1: Market Stability and Governance - The CSRC aims to strengthen the internal stability of the market by fostering a group of high-quality listed companies [1] - A new round of corporate governance initiatives will be launched to guide quality companies in increasing dividend payouts and share buybacks [1] - The implementation of a long-term assessment mechanism for medium and long-term funds is prioritized to support the development of equity public funds [1] Group 2: Risk Monitoring and Policy Guidance - The CSRC will enhance cross-market, cross-industry, and cross-border risk monitoring and control [1] - There is a focus on strengthening counter-cyclical and cross-cyclical adjustments to establish a long-term market stabilization mechanism [1] - The importance of policy interpretation and expectation guidance is highlighted, with a commitment to respond promptly to market concerns and reinforce the reputation management responsibilities of industry institutions and listed companies [1]

Core Viewpoint - The meeting led by the Chairman of the China Securities Regulatory Commission (CSRC) emphasizes the importance of enhancing the intrinsic stability of the market and fostering a high-quality group of listed companies [1] Group 1: Market Stability and Company Governance - The CSRC will conduct a new round of special actions on corporate governance to guide quality companies in increasing dividend payouts and share buybacks [1] - There is a focus on implementing a long-term assessment mechanism for medium and long-term funds, promoting the development of equity public funds, and advancing high-quality index investment [1] Group 2: Risk Monitoring and Market Mechanisms - The meeting highlights the need for enhanced cross-market, cross-industry, and cross-border risk monitoring and control, as well as strengthening counter-cyclical and cross-cyclical adjustments [1] - A long-term stabilization mechanism for the market will be established, with an emphasis on policy interpretation and expectation guidance [1] Group 3: Reputation Management and Market Communication - The CSRC aims to ensure that industry institutions and listed companies take responsibility for reputation management and effectively communicate the narrative of the stock market [1]

Group 1 - The core viewpoint of the article emphasizes the importance of "quality improvement and efficiency enhancement" in the economic work for the upcoming year, indicating a shift towards higher standards for development quality and effectiveness while maintaining reasonable economic growth [2][4] - The 2026 macroeconomic policy is expected to be more forward-looking, aiming to lay a foundation for high-quality development over the next five years [2] - The meeting highlighted the need for coordinated policies across fiscal, monetary, and industrial sectors, combining traditional and innovative tools to promote high-quality economic growth [4] Group 2 - The central economic work meeting proposed to continue implementing a moderately loose monetary policy, with a focus on stabilizing economic growth and ensuring reasonable price recovery [5] - It is anticipated that in 2026, deposit rates and policy rates will further decline, with the Loan Prime Rate (LPR) expected to stabilize or decrease slightly, emphasizing the use of structural monetary policy tools to direct financial resources towards technology innovation, green development, and boosting consumption [5][7] - The meeting stressed the importance of policy coordination, integrating both stock and incremental policies to enhance the consistency and effectiveness of macroeconomic policies [8][10]

Group 1 - The central economic work conference emphasized the policy direction of "seeking progress while maintaining stability" and "improving quality and efficiency" for the upcoming year, indicating a higher demand for development quality and effectiveness alongside reasonable economic growth [2][3] - The conference highlighted the need for fiscal, monetary, and industrial policies to work in coordination, combining traditional and innovative tools to promote high-quality economic growth [2][3] Group 2 - The conference proposed to continue implementing a moderately loose monetary policy, with a focus on stabilizing economic growth and ensuring reasonable price recovery, while also flexibly utilizing various policy tools such as reserve requirement ratio (RRR) cuts and interest rate reductions [3][4] - Experts predict that in 2026, deposit rates and policy rates will further decline, with the Loan Prime Rate (LPR) expected to stabilize or decrease slightly, emphasizing the role of structural monetary policy tools to direct financial resources towards technology innovation, green development, and boosting consumption [3][4] - The conference stressed the importance of policy coordination, integrating both stock and incremental policies to enhance the consistency and effectiveness of macroeconomic policies, with a focus on counter-cyclical and cross-cyclical adjustments [4]

Group 1 - The core viewpoint of the news is that during the "14th Five-Year Plan" period, China's fiscal policy has increasingly focused on improving people's livelihoods, with significant financial allocations aimed at education, social security, healthcare, and housing [1][4]. - The total public budget expenditure for the "14th Five-Year Plan" period is expected to exceed 136 trillion yuan, marking a 24% increase compared to the previous five-year period [4]. - The central government has allocated nearly 50 trillion yuan in transfer payments to local governments during the "14th Five-Year Plan" period, demonstrating a strong commitment to supporting local fiscal stability [5]. Group 2 - The fiscal policy has been characterized by a proactive approach, with a focus on both risk prevention and economic development, ensuring that there is ample room for future policy adjustments [2][3]. - The fiscal strength of the country has significantly increased, with public budget revenue projected to reach 106 trillion yuan, a 19% increase from the previous five-year period [4]. - Over the past four years, China's economy has maintained an average growth rate of 5.5%, contributing approximately 30% to global economic growth [6].