Report Summary 1. Report Industry Investment Rating - Not provided in the given content. 2. Core Viewpoints - China's economic rebalancing and global liquidity easing are expected to support stocks, commodities, and EM currencies in 1H26, but may face challenges in 2H26 if US inflation resurges [3][11][17]. - The convergence of China's economic rebalancing and global liquidity easing is likely to bolster risky assets throughout 1H26, while the outlook for 2H26 is more cautious [17]. 3. Summary by Relevant Catalogs Trading Desk Comments - In the Chinese IG space, MEITUA and KUAISH had balanced two - way flows, with slightly better selling on 10yr issues; ZHOSHK tightened 1bp; ORIEAS/CCAMCL papers with <5yr tenor tightened 1 - 3bps [2]. - In HK, FRESHK curve tightened 3 - 5bps; BNKEA T2s traded mixed; NWDEVL/VDNWDL complex surged 0.7 - 7.3pts; LASUDE 26 rose 0.9pt; FAEACO 12.814 Perp was 0.5pt higher; EHICAR 26 dropped 1.4pts [2]. - In Chinese properties, VNKRLE 27 - 29 rose 1.5 - 1.8pts; SHUION 29/DALWAN 28 gained 0.4pt; DALWAN priced USD360mn new bond; LNGFOR 27 - 32/FUTLAN 28/FTLNHD 26 - 27 rose 0.3 - 1.2pts [2]. - In KR space, HYUELE 29s tightened 4bps; AU and JP fixed - rate IG credits squeezed 1 - 2bps tighter; JP bank FRNs tightened 1 - 2bps; JP insurance subs remained better offered; there were decent two - way flows in Yankee AT1s [2]. - In SE Asian space, BBLTB T2s tightened 2 - 3bps; GLPSP Perps rose 1.1 - 1.3pts; VEDLN 28 - 33s were unchanged to 0.4pt higher; INDYIJ 29 lost 0.4pt; MEDCIJ 26 - 30s were unchanged to 0.2pt lower [2]. - In the Middle Eastern space, long - end KSAs lost 0.1 - 0.3pt; SNBAB 6.15 Perp was 0.1pt lower; SECO 36 tightened 1bp; ARAMCO attracted better buying but closed largely unchanged [2]. Macro News Recap - On Thursday, S&P (-0.13%), Dow (+0.11%), and Nasdaq (-0.72%) were mixed; US latest initial jobless claims were +209k, higher than the market expectation; UST yield was lower, with 2/5/10/30 - year yield at 3.53%/3.80%/4.24%/4.85% [6]. Desk Analyst Comments - Regarding NWDEVL/VDNWDL, media reported Blackstone in advanced discussions to become NWD's largest shareholder; NWD confirmed potential investors approached, but no agreement reached; Cheng's family owns c45% of NWD [7]. - Cheng's family reshuffled group entities: transferred c54% of CTF Jewellery to Beyond Luck Limited; increased stakes in CTFH by 9.49% to 90.52%; CTFE to sell Alinta Energy to Sembcorp for AUD6.5bn (cUSD4.3bn) [8]. - Maintain buy on VDNWDL 9 Perp due to higher certainty of coupon payments; expect more corporate actions for NWDEVLs [9]. China Policy: Signals for Economic Rebalancing - China's policymakers signaled a pivot to "boosting domestic demand" in 2026 to address economic imbalance [10]. - Demand - side policies focus on stabilizing the property market and stimulating consumption; supply - side policies aim to address overcapacity; trade - side policies employ a four - pronged approach [10]. - The rebalancing process may lead to a GDP growth target reduction to 4.5% - 5% in 2026, but is structurally positive [10]. Offshore Asia New Issues - Issued: Dalian Wanda issued USD360mn 2 - yr bond at 12.75% coupon; First Abu Dhabi Bank PJS issued USD750mn 5 - yr bond at SOFR+75; Muthoot Finance issued USD600mn 4.5 - yr bond at 5.75% coupon [19][20]. - Pipeline: No offshore Asia new issues pipeline on this day [20]. News and Market Color - 101 credit bonds were issued yesterday in onshore primary issuances, amounting to RMB82bn; month - to - date, 1,920 credit bonds were issued with RMB1,652bn raised, a 13.5% yoy increase [25]. - Adani Group plans to raise up to cUSD1.5bn in JPY - denominated bonds and loans [25]. - China Overseas Grand Oceans and Yuexiu Property propose to issue 3 - yr dim sum bonds [25]. - China Vanke to make partial payment for 21Wanke02 onshore bonds on 30 Jan'26 [25]. - West China Cement's proposed acquisition of AfriSam Holdings has a consideration of USD150mn [25].