Group 1: Digital Currency Developments - The People's Bank of China has announced that digital RMB will start accruing interest, transitioning from a cash-based model to a deposit currency model by January 1, 2026 [1] - This change allows banks to pay interest on digital RMB wallet balances, enhancing liquidity within the banking system and potentially increasing user willingness to adopt digital RMB [2] Group 2: National Subsidy Policy for 2026 - The National Development and Reform Commission and the Ministry of Finance have clarified the "National Subsidy" policy for 2026, focusing on four categories: vehicle scrappage, vehicle replacement, home appliances, and digital products [3] - The subsidy for home appliances has been reduced from 12 categories to 6, and the subsidy rates for vehicles have shifted from fixed amounts to a percentage of the new vehicle price [3] Group 3: VAT Law Implementation - The VAT Law Implementation Regulations will take effect on January 1, 2026, maintaining the current VAT system framework while enhancing clarity and operability of the tax system [5][6] - The regulations address key issues in VAT collection and taxpayer rights, supporting the smooth implementation of the VAT Law [6] Group 4: Housing Tax Policy Changes - Starting January 1, 2026, individuals selling homes purchased for less than two years will pay a reduced VAT rate of 3%, down from 5%, effectively lowering transaction costs [7] - This adjustment is expected to alleviate financial pressure on homeowners and facilitate inventory reduction in the housing market [7] Group 5: A-Share Market Performance - The A-share market closed the year with the Shanghai Composite Index rising over 18%, marking its largest annual increase in six years, with significant contributions from sectors like CPO, storage chips, and non-ferrous metals [8] - The total market capitalization of A-shares reached nearly 109 trillion yuan, reflecting a robust market performance despite earlier volatility due to external factors [8] Group 6: Manufacturing PMI Recovery - The manufacturing PMI rose to 50.1% in December 2025, indicating a return to expansion after eight months below 50%, driven by improved production expectations and new orders [9][10] - Large enterprises showed significant recovery, while small enterprises continued to lag behind, suggesting a mixed outlook for the manufacturing sector [9] Group 7: Precious Metals Market Volatility - Gold and silver prices experienced a sharp decline at the end of December 2025, following significant increases throughout the year, with gold rising approximately 70% and silver 150% [11][12] - The volatility was attributed to increased margin requirements by exchanges, impacting speculative trading in the precious metals market [11] Group 8: Meta's Acquisition of Manus - Meta has announced a multi-billion dollar acquisition of Manus, an AI startup, marking its third-largest acquisition to date [13] - This acquisition aims to enhance Meta's capabilities in AI applications, although it reflects ongoing challenges in competing with other tech giants like OpenAI and Google [14]