Morning News

# Source: Wall Street Insights

## Market Overview

Against the backdrop of a lack of new catalysts and tight liquidity, the minutes of the Federal Reserve meeting failed to lift U.S. stocks. The three major U.S. stock indexes posted three consecutive days of losses; small-cap stocks underperformed and were sold off at the opening for three straight trading sessions. The large U.S. tech stocks, which had weakened across the board the previous day, stabilized on Tuesday. Cyclical sectors such as U.S. communication services and materials outperformed briefly, while momentum assets remained under pressure overall.

With expectations for interest rate cuts unchanged, U.S. Treasuries fluctuated slightly, with the 10-year yield rising less than 1 basis point. The U.S. dollar rebounded 0.2%, approaching the 98 mark. The offshore renminbi appreciated by 0.2% at one point, before trimming gains to close at 6.992.

Cryptocurrencies continued their trend of rising and then pulling back. Bitcoin climbed 2.4% at one stage, and Ethereum neared the $3,000 level before its gains faded.

Metals saw divergent trends. Spot gold rose 1.60% at one point, reclaiming the $4,400 mark, before erasing most of its gains during the U.S. stock trading session. Silver staged a strong intraday rebound, hitting a high of around $78, and still posted a more than 5% gain by the end of New York trading. LME copper jumped nearly 4%, and LME nickel hit a 14-month high.

During the Asian trading session, the Shanghai Composite Index notched 10 consecutive days of gains, with the robotics and AI agent sectors surging. The Hang Seng Tech Index rose nearly 2%, led by semiconductors. Insilico Medicine's Hong Kong IPO climbed approximately 25%. SDIC Silver LOF fluctuated in a consolidation phase, and the onshore renminbi broke below the 7 mark.

## Top News

- **Central Rural Work Conference**: Strengthen research on core agricultural technologies and the efficient transformation and application of scientific and technological achievements; develop new agricultural productive forces based on local conditions.

- **Li Qiang**: Refine the scope of taxpayers and taxable items, and determine the calculation methods for tax payable under different circumstances.

- **2026 National Subsidy Program Released**: Add smart products to the subsidy list, exclude home decoration and electric bicycles, and adjust subsidy standards for home appliances and automobiles. The 2026 first batch of 62.5 billion yuan ultra-long-term special treasury bonds to support consumer goods trade-in programs has been issued in advance.

- **Four Ministries**: Promote the digital transformation of the automotive industry, explore the construction of industry public computing infrastructure, and focus on tackling key equipment such as intelligent robots.

- **Starting next year**: VAT exemption will be applied to individuals selling residential properties that have been owned for more than 2 years.

- **Fed Meeting Minutes**: "Most" officials expect it will be appropriate to continue cutting interest rates after December, while some advocate holding policy steady for "some time". **Fed Survey**: Respondents expect to purchase approximately $220 billion of short-term U.S. Treasuries via the RMP in the next 12 months.

- **Ukraine seeks a "50-year security guarantee"**, while Trump only intends to offer 15 years.

- **Tesla Rarely Discloses Analyst Forecasts**: Q4 deliveries may drop 15%, with demand hit by the rollback of tax subsidies and intensifying competition. Elon Musk confirmed that xAI has purchased a third building, with its training computing power set to approach 2 gigawatts.

- **China's first memory chip stock is here!** ChangXin Memory Technologies' Sci-Tech Innovation Board IPO has been accepted, marking the first case under the pre-review mechanism, with plans to raise 29.5 billion yuan.

- **MiniMax's Hong Kong IPO**: Plans to raise HK$4.2 billion, with Alibaba, Abu Dhabi entities and others as cornerstone investors.

- **Pop Mart Frenzy Cools Down**: Scalpers stop hoarding goods, and the Labubu premium myth is shattering.

- **OPEC+ Set to Hold Steady This Week**: Amid mounting oversupply pressure, the alliance will maintain its production suspension plan.

## Market Closing Quotes

### European and U.S. Stock Markets

- S&P 500: Down 0.14% to close at 6,896.24 points.

- Dow Jones Industrial Average: Down 0.20% to close at 48,367.06 points.

- Nasdaq Composite: Down 0.24% to close at 23,419.08 points.

- Euro Stoxx 600 Index: Up 0.6% to close at 592.78 points.

### A-Share Market

- Shanghai Composite Index: Closed at 3,965.12 points, nearly flat.

- Shenzhen Component Index: Up 0.49% to close at 13,604.07 points.

- ChiNext Index: Up 0.63% to close at 3,242.90 points.

### Bond Market

- U.S. 10-year Treasury yield: Rose 1.56 basis points to 4.1258%.

- U.S. 2-year Treasury yield: Fell 0.61 basis points to 3.4484%.

### Commodities

- WTI Crude Oil Futures (February contract): Down 0.22% to close at $57.95 per barrel.

- Brent Crude Oil Futures (February contract): Down 0.03% to close at $61.92 per barrel.

- COMEX Gold Futures: Rebounded 0.43% to close at $4,362.20 per ounce.

- COMEX Silver Futures: Up 8.57% to close at $76.490 per ounce.

- COMEX Copper Futures: Up 3.44% to close at $5.7580 per pound.

# Detailed Top News

## Global Highlights

### Central Rural Work Conference

Strengthen the research on key core agricultural technologies and the efficient transformation and application of scientific and technological achievements, and develop new agricultural productive forces in light of local conditions. According to Xinhua News Agency, the conference pointed out that efforts should be made to strengthen the research on key core agricultural technologies and the efficient transformation and application of scientific and technological achievements, and develop new agricultural productive forces based on local conditions. It is necessary to coordinate the establishment of a regular mechanism to prevent returning to poverty, improve the regular support policy system, continuously support the development of underdeveloped areas, and consolidate and expand the achievements of poverty alleviation. Every possible means should be taken to promote the steady increase of farmers' income and improve the mechanism for guaranteeing the income of grain-growing farmers. Coordinate the guarantee of services for migrant workers going out for employment and the support for returning to their hometowns for employment and entrepreneurship, so as to promote the stable employment of migrant workers.

### Li Qiang's Remarks

Refine the scope of taxpayers and taxable items, and determine the calculation methods for tax payable under different circumstances. Refine the scope of taxable transactions including goods, services, intangible assets and real estate as stipulated by the Value-Added Tax Law; further clarify the standards for distinguishing between corporate and individual taxpayers, general taxpayers and small-scale taxpayers, as well as the specific circumstances under which services and intangible assets are consumed within the territory.

### 2026 National Subsidy Program Unveiled

New smart products are added to the subsidy list, while home decoration and electric bicycles are excluded, and the subsidy standards for home appliances and automobiles are adjusted. Smart products such as smart home appliances and smart home systems are newly included in the 2026 national subsidy program. For the purchase of new cars, a subsidy of 12% or 10% of the vehicle price will be granted, with the subsidy ceiling remaining at the 2025 standard (i.e., 20,000 yuan or 15,000 yuan). The scope of national subsidies for home appliances has been narrowed; the subsidy ratio for first-class energy-efficient home appliances has been reduced from the previous 20% to 15%, and the maximum subsidy per household appliance has been cut from 2,000 yuan to 1,500 yuan.

### Advance Issuance of Special Treasury Bonds for Trade-in Program

The first batch of 62.5 billion yuan ultra-long-term special treasury bonds in 2026 to support the consumer goods trade-in program has been issued to local governments in advance. According to Xinhua News Agency, it is learned from the National Development and Reform Commission (NDRC) that to optimize the implementation of the "Two New" policies, ensure the smooth and orderly connection of policies, and meet the consumer demand during peak seasons such as the New Year's Day and Spring Festival, the NDRC, together with the Ministry of Finance, has recently issued the first batch of 62.5 billion yuan ultra-long-term special treasury bonds in 2026 to local governments in advance to support the consumer goods trade-in program.

### Four Ministries' Initiative for Automotive Industry Digital Transformation

Promote the digital transformation of the automotive industry, explore the construction of industry public computing infrastructure, and focus on tackling key equipment such as intelligent robots. Four ministries including the Ministry of Industry and Information Technology (MIIT) issued the *Implementation Plan for the Digital Transformation of the Automotive Industry*. The plan proposes to strengthen the research on key technology products, focusing on basic software such as simulation design, R&D testing, middleware and operating systems, key equipment such as intelligent robots and intelligent testing devices, as well as key core technologies such as cyber-physical systems. Enterprises are encouraged to apply independently controllable technology products to enhance the resilience and security of the industrial chain and supply chain. Leading enterprises are encouraged to carry out technological research in collaboration with universities and research institutions, strengthen data sharing and platform co-construction, and accelerate the formation of a collaborative innovation cycle of "R&D - verification - iteration".

### VAT Exemption Policy for Housing Sales

Starting next year, individuals selling residential properties that have been owned for at least 2 years will be exempt from value-added tax. According to the announcement, those holding properties for less than 2 years will pay VAT at a full rate of 3%. The new policy will take effect on January 1, 2026, and at the same time, the transitional provisions on individual housing sales in the 2016 VAT reform pilot will be abolished. The policy also includes a transition period arrangement: for VAT related to individual housing sales before January 1, 2026 that has not yet been declared and paid, those conforming to the new regulations can be implemented in accordance with the new policy.

### Federal Reserve Meeting Minutes

"Most" officials expect it will be appropriate to continue cutting interest rates after December, while some advocate "keeping policy unchanged for some time". Most participants believed that if inflation declines gradually as expected, it may be appropriate to further cut interest rates; most participants supported the rate cut in December, among whom a few thought the decision was made after careful consideration and they might have supported keeping rates unchanged. Those in favor of the rate cut generally mentioned that the downside risks to employment have increased in recent months; most participants believed that the rate cut would help prevent the deterioration of the labor market, and some pointed out the risk of entrenched inflationary pressures. Participants agreed that reserve balances have fallen to an ample level, and short-term Treasury purchases will be conducted as needed for reserve management (RMP).

### Federal Reserve Survey on RMP Treasury Purchases

Respondents expect RMP to purchase approximately $220 billion of short-term U.S. Treasuries in the next 12 months. According to the minutes of the December FOMC meeting released by the Federal Reserve on Tuesday, respondents expect net purchases to be about $220 billion in the first 12 months after the start of purchases. The Federal Reserve stated that the RMP will initially purchase short-term U.S. Treasuries at a monthly scale of about $40 billion, and then gradually reduce the purchase volume. The Federal Reserve has purchased about $38 billion of short-term U.S. Treasuries this month and will conduct two more operations in January next year.

### Divergent Trends in Metal Markets

Silver rebounds sharply, gold's gains narrow significantly, LME copper rises nearly 4%, and LME nickel hits a 14-month high. Spot silver rose nearly 5.6% to $76.16 per ounce, after plunging 9% in the previous trading day. Spot gold rose more than 1.5% at one point, hitting the 200-hour moving average before pulling back; after the release of the Federal Reserve meeting minutes, its gains further narrowed, approaching the price near $4,335 at the end of New York trading yesterday. Base metals generally rose: LME copper increased by about 3.7%, LME nickel surged over 6%, LME tin climbed 3.56%, and LME zinc rose more than 1%.

### Impact of Silver Price Surge on Solar Cell Manufacturers

Amid the silver price surge, solar cell manufacturers will shift from production cuts to protect prices to full production halts and holidays! It is estimated that for every 1,000 yuan per kilogram increase in silver prices, the cost of solar cells rises by 0.01 yuan per watt. The shift from "production cuts to protect prices" to "production halts and holidays" mainly depends on the breach of four key thresholds: the loss of cash cost line, cash flow exhaustion, the disruption of financing channels, and extreme inventory pressure.

### Ukraine's Security Guarantee Demand vs. Trump's Proposal

Ukraine wants a "50-year security guarantee", while Trump only intends to offer 15 years. According to reports, when Zelensky proposed extending the 15-year term by at least double, Trump responded that he "would consider it". Zelensky stated that he believes the stationing of foreign troops in Ukraine is an essential part of any agreement to guarantee Kyiv's security and end the war. It is unclear what form such guarantees will take.

### Tesla's Q4 Delivery Forecast

Tesla rarely discloses analyst forecasts: Q4 deliveries may drop 15%, with demand hit by the rollback of tax subsidies and intensifying competition. Analysts expect Tesla's fourth-quarter deliveries to decline 15% year-on-year, with full-year 2025 deliveries ranging between 1.6 million and 1.65 million units, a year-on-year decrease of about 8%. Despite the launch of budget-friendly models, the North American and European markets remain sluggish.

### xAI's Computing Power Expansion

Musk confirms xAI has purchased a third building, with its training computing power set to approach 2 gigawatts. xAI has built its first data center Colossus in Memphis and is constructing a second facility Colossus 2 nearby.

### ChangXin Memory Technologies' Sci-Tech Innovation Board IPO

China's first memory chip stock is coming! ChangXin Memory Technologies' Sci-Tech Innovation Board IPO has been accepted, marking the first case under the pre-review mechanism, with plans to raise 29.5 billion yuan. ChangXin Memory Technologies has completed two rounds of pre-review for its ChiNext listing sprint. As China's "largest-scale, most technologically advanced and fully laid-out" DRAM manufacturer, ChangXin Memory Technologies achieved revenue exceeding 32 billion yuan in the first nine months of this year, with a compound annual growth rate of 72% in main business income from 2022 to 2024. Its R&D investment accounted for nearly 24% of revenue in the first half of this year, far exceeding the world's top three DRAM giants such as Samsung.

### MiniMax's Hong Kong IPO Plan

MiniMax's Hong Kong IPO plans to raise HK$4.2 billion, with Alibaba, Abu Dhabi entities and others as cornerstone investors. According to MiniMax's prospectus, it plans to issue 25.4 million shares with a guidance price range of HK$151-165 per share, with a maximum financing scale of HK$4.19 billion (US$538 million). This fundraising amount is slightly lower than the previous market expectation of over US$600 million. The company recorded revenue of US$30.5 million last year. The subscription is expected to start as early as this week, with listing scheduled for January. IDG Capital, Yi Chi Capital and others will also participate as cornerstone investors.

### Major Update of Alibaba's Qwen Code

Alibaba's Qwen Code gets a major update: enabling AI programming to move beyond the command line. The official version of Qwen Code v0.5.0 has been released. This update launches a VSCode extension and TypeScript SDK, allowing developers to seamlessly use its code generation and intelligent Q&A capabilities in a familiar IDE environment for the first time, and integrate Qwen Code's intelligence (such as automatic website generation, translation, and drawing) into their own web or mobile applications through programming. This evolution aims to deeply integrate into developers' core workflows in a more flexible and customizable way, and build a broader AI programming ecosystem together with the community.

### Cooling Down of Pop Mart's Frenzy

Pop Mart's frenzy cools down: scalpers stop hoarding goods, and the Labubu premium myth is shattering. Pop Mart is facing a severe challenge as the premium myth of its iconic IP "Labubu" has first collapsed in the secondary market: scalpers have stopped hoarding goods due to the disappearance of resale profits, and the second-hand prices of some series have fallen below the official retail prices. This phenomenon has directly triggered a sharp drop in stock prices and forced the market to re-examine the sustainability of its business model—whether the growth narrative driven by a single blockbuster IP has reached its ceiling.

### OPEC+'s Production Policy Decision

Amid mounting oversupply pressure, OPEC+ is set to hold steady this week, maintaining the suspension of production increase plans. Core OPEC+ member states will hold a monthly video meeting on January 4. Faced with global oil oversupply pressure, it is expected to maintain the suspension of production increase plans. OPEC+ unexpectedly accelerated production recovery in April this year, but suspended the process last month due to intensifying oversupply pressure, with about 1.2 million barrels per day of production capacity still not restored.

## Review & Outlook

### Review of Top 10 Global Macro Events in 2025

Trump's tariff storm, the U.S.-Israel-Iran "messy conflict" in the Middle East, and the Federal Reserve's "leadership change" turmoil. In 2025, the global macro order showed systemic cracks, and volatility became the new normal: Trump's "reciprocal tariffs" dealt a heavy blow to the multilateral trading system; U.S. fiscal policy expanded comprehensively under the "Great Beautiful Act", with the federal government shutdown setting a new historical record; the 12-day U.S.-Israel-Iran war reshaped the pricing of geopolitical risks; global central banks experienced directional divergence for the first time, and the Federal Reserve's independence faced unprecedented challenges. Institutional failures were quickly priced in by the market: gold broke through $4,500, and the U.S. dollar recorded its worst performance in 20 years.

### Asian Stock Markets' Banner Year

South Korea surges 76%, Japan surpasses the year-end peak of the bubble economy era, and Indonesia posts its best performance in 11 years. South Korea's KOSPI recorded its strongest annual performance since the 21st century, led by AI infrastructure and chip stocks; SK Hynix rose 270% and Samsung climbed 125% for the full year. Japan's TOPIX rose 22% this year, with valuation adjustments driving the index to hit new highs repeatedly during the year. Foreign capital net outflows from Indonesia's stock market reached $1 billion this year, the largest scale in five years, but retail investors' entry helped the Jakarta Composite Index rise 22% for the year.

### AI Investment Winners in 2025

The "shovel sellers" remain the winners of AI trading in 2025, but the biggest winner is no longer NVIDIA. Statistics show that in 2025, data storage companies led the gains in the S&P 500, with SanDisk surging 580% to top the list, while NVIDIA only rose 40% to rank 71st. The boom in data center construction drove the surge of infrastructure stocks such as power supply, construction contracting, wiring and cooling systems. Analysts pointed out that when benchmark indexes are quite concentrated, it becomes important to find themes that can drive sales and profit growth. Therefore, investors are broadening their horizons beyond the technology sector itself.

### Kioxia Leads Global AI Stocks Amid AI Memory Demand Surge

Driven by the explosive growth of AI memory demand, Kioxia's share price soars 540% this year, leading global AI stocks. Since its listing in December last year, Japanese memory chip manufacturer Kioxia has seen its share price surge 540% this year, outperforming all components of the MSCI World Index, with a current market capitalization of $36 billion. Its customers include tech giants such as Apple and Microsoft, benefiting from the AI infrastructure construction boom, which has led to a surge in demand and tight supply of memory chips. Strategists said that in the technology sector, the main focus in 2026 will be on memory chips, whether through direct investment in Kioxia or related derivative targets.

# Domestic & Overseas Macroeconomics, Corporate News, Sector Comments, and Market Preview

## Domestic Macroeconomics

The onshore renminbi (CNY) against the US dollar strengthened beyond the 7.0 threshold, reaching its highest level since May 2023. On December 30, the onshore CNY/USD exchange rate broke through the closely watched psychological level of 7.0, hitting an intraday high of 6.9960 with a 0.1% increase, marking its highest level since May 17, 2023. Previously, the offshore renminbi (CNH) had already surpassed this key psychological threshold on December 25. Market participants anticipate that supported by capital inflows and expectations of economic recovery, the renminbi still has room for further appreciation.

Hong Kong's IPO market concluded strongly: six mainland enterprises listed collectively, raising USD 900 million in a single day. Hong Kong's stock market capped off a year of robust recovery with a flurry of IPOs, as total funds raised through equity offerings in 2025 hit a new high since 2021. The recent concentrated listings of multiple companies with solid first-day performances, coupled with the launch of a new round of large-scale financing including that of Zhipu AI, have jointly consolidated market confidence, indicating a strong return of its status as a leading equity financing hub in Asia.

## Domestic Companies

Zhipu AI launched its IPO subscription: secured HKD 3 billion in subscriptions from Beijing's core state-owned capital and other investors, with a valuation exceeding HKD 50 billion and listing scheduled for January 8. The subscription period is expected to end on January 5, 2026, and the company plans to list on the Hong Kong Stock Exchange (HKEX) on January 8, 2026. Based on the offering price of HKD 116.2 per share, Zhipu AI is expected to raise a total of HKD 4.3 billion through this IPO, with an estimated post-IPO market capitalization of over HKD 51.1 billion. Prior to the IPO, Zhipu AI had completed 8 rounds of financing, raising a total of more than CNY 8.3 billion.

Behind Meta's multi-billion-dollar acquisition of Manus: founder Xiao Hong reflects on the darkest hours. Manus has pursued an unconventional development path. Over the past two years, Xiao Hong has led three counter-consensus decisions: a "life-or-death" call to halt the seven-month-old AI browser project and pivot to developing independent computers for AI; a "speed" decision to adhere to zero marketing budget amid high traffic costs and bet on computing power to enhance user experience; and an "organizational" move to drive 80% of code generation by AI, exploring the future of "corporate forms in the AI era".

Founded less than three years ago, acquired by Meta for over USD 2 billion! Manus has become a "new benchmark for Chinese startups in the AI era". Meta acquired AI startup Manus for over USD 2 billion, with the entire acquisition negotiation completed in an extremely short period of just over ten days. Earlier this year, Manus achieved an annual recurring revenue of USD 125 million, selling AI agents to enterprises through subscription services. This acquisition will provide more direct revenue returns for Meta's substantial investments in the AI sector.

Meng Wanzhou, Rotating Chairperson of Huawei, delivered her New Year address: "Chase the wind and the moon without lingering; beyond the vast plains lie spring mountains." A new journey in the intelligent era has begun.

TSMC quietly launched mass production of 2nm chips. Taiwan Semiconductor Manufacturing Company (TSMC) initiated mass production of its 2nm (N2) process in the fourth quarter of 2025, becoming the first industry player to adopt Gate-All-Around (GAA) nanosheet transistor technology for advanced manufacturing processes. Compared with the N3E process, the N2 process has achieved significant improvements: a 10-15% performance boost at the same power consumption, a 25-30% power reduction at the same performance, and a 15-20% increase in transistor density. TSMC plans to launch the performance-enhanced N2P and the backside power delivery A16 process in the second half of 2026 to meet strong demand from partners.

Boosted by both rising volume and prices, Zijin Mining's 2025 net profit is expected to surge by 60% year-on-year.

Insilico Medicine, an AI drug discovery company praised by Jensen Huang, made its Hong Kong IPO debut on Tuesday.

## Overseas Macroeconomics

Learning from history: has gold "overrallied"? Guojin Securities argues that despite gold posting its largest annual gain in 46 years in 2025, historical comparisons show it has not overrallied: compared with the 24-fold increase in the 1970s, the current rally has only seen a 5.7-fold rise since 2008 and a 2.4-fold increase since 2022. Looking ahead to 2026, as long as the market's pricing logic for the "AI unknowns" remains unchanged, the lack of global order will continue to favor gold. Once the AI narrative becomes clear, gold's prime time may come to an end, and silver, as an asset with both "gold-like" attributes and AI power-related narratives, will also return to rationality.

Huatai Securities: index weight adjustments cause short-term technical disruptions to gold and silver; passive allocation pressure on silver may be stronger than that on gold. Huatai Securities stated that precious metals are significantly overweighted in funds passively tracking the Bloomberg Commodity Index (BCOM), and passive funds tracking this index will be forced to sell gold and silver futures positions during the rebalancing period. Considering that the silver futures market is significantly smaller in size and less liquid than gold, the proportion of passive position adjustments in total open interest is much higher. Silver may face more concentrated technical selling pressure during the rebalancing window, while gold will mostly experience a moderate technical correction.

Supply chain concerns drive year-end rebound; copper prices soar. In 2025, "intelligence" was explicitly identified as one of the core directions of the "National Education Digitalization Strategic Initiative 2.0," and a special policy document is planned to be issued in 2026 for systematic deployment. China's AI education is transitioning from partial pilot programs and tool applications to a new stage of top-level design and systematic promotion. The introduction of policies marks that China's artificial intelligence education has entered a new phase of systematic advancement from the exploration stage, which will exert a profound impact on educational concepts, teaching models, and talent training systems, while also bringing new development opportunities to the edtech industry.

## Sector Comments

### 1. Consumer Sector

On December 30, the National Development and Reform Commission (NDRC) and the Ministry of Finance issued a notice on implementing large-scale equipment renewal and consumer goods trade-in policies in 2026. According to the *Action Plan for Promoting Large-Scale Equipment Renewal and Consumer Goods Trade-In*, the consumer goods trade-in policy focuses on increasing the "subsidy accessibility rate" for key consumer goods with broad population coverage and strong driving effects. It continues to support subsidies for automobiles, home appliances, and digital products, and adds new purchase subsidies for smart glasses and smart home products (including aging-adapted home products).

**Commentary** (Jianghai Securities): Driven by the CNY 300 billion ultra-long-term special treasury bonds this year, the consumer goods trade-in policy has achieved remarkable results. According to statistics from the Ministry of Commerce, from January to November 2025, the policy drove sales of related commodities to exceed CNY 2.5 trillion, benefiting over 360 million consumers. In specific sectors, the scale of home appliance trade-ins reached 128.44 million units, and sales of home improvement and kitchen and bathroom products through renewal programs hit 120 million pieces. The continuation of national subsidy policies in 2026 will provide crucial policy support for the transformation to a domestic demand-driven economic growth model, which is expected to further drive the coordinated development of upstream and downstream industries.

### 2. Robotics Sector

According to the official WeChat account of the Ministry of Industry and Information Technology (MIIT), on December 30, four ministries including MIIT issued the *Implementation Plan for the Digital Transformation of the Automotive Industry*. The plan proposes to accelerate the expansion of artificial intelligence applications in key links, organize an industry-wide "AI +" application initiative, and select a number of benchmark cases of innovative AI applications. It also promotes the large-scale application of intelligent robots in welding, painting, final assembly, and other production processes, and builds an embodied intelligence demonstration production line in the automotive industry. The plan sets two-phase development goals: by 2027, digital and intelligent technologies will be deeply integrated and applied in enterprises' R&D, production, supply, sales, and service links, driving significant improvements in enterprises' smart manufacturing maturity and production efficiency, with the industry supply and public service system gradually improved; by 2030, the overall digital and intelligent development of the industry will reach a high level.

**Commentary** (Shanghai Securities News): In recent years, documents such as the *New Energy Vehicle Industry Development Plan (2021-2035)* and the *Automotive Industry Stable Growth Work Plan (2025-2026)* have been successively issued, promoting the in-depth application of artificial intelligence technology and guiding the digital and collaborative transformation of the industrial chain and supply chain. China's automotive industry is continuously deepening its digital transformation, accelerating its evolution towards digitalization, networking, and intelligence. (Guojin Securities): The year-on-year growth rate of passenger vehicle exports has remained above 20% for six consecutive months. Going global is expected to become a long-term major theme in the future. With the recovery of demand in the Russian market, the continuous penetration of fuel vehicle exports, and the accelerated export volume of new energy vehicles, China's total wholesale exports are expected to maintain double-digit growth in 2026. In addition, against the backdrop of the accelerated popularization of intelligent driving, consumer awareness is expected to continue to break through, and the first echelon of intelligent driving enterprises is expected to gain sales dividends through leading user experience. Benefiting from favorable policies, intensive new product launches, and technological breakthroughs, the commercialization process of the robotics industry is accelerating.

### 3. Agricultural Machinery Sector

According to Xinhua News Agency, the Central Rural Work Conference was held in Beijing from December 29 to 30. The conference emphasized that the modernization of agriculture and rural areas is crucial to the overall situation and quality of Chinese-style modernization, and it is essential to accelerate the construction of a strong agricultural country. Efforts should be made to stabilize grain and oil production, intensify the implementation of a new round of the 100-billion-jin grain production capacity improvement initiative, and promote the improvement of grain variety and quality. Strengthen the construction of water conservancy infrastructure, enhance meteorological monitoring, forecasting, and early warning capabilities, and improve agriculture's ability to prevent and mitigate disasters. Strengthen research on key core agricultural technologies and the efficient transformation and application of scientific and technological achievements, and develop new agricultural productive forces based on local conditions.

**Commentary** (Research Institutions): The application of agricultural machinery can increase per-mu yield, serving as a vital link in ensuring national food security, and the industry has long received subsidy support. At this stage, influenced by adjustments in subsidy policies and the construction of high-standard farmland, the competitive landscape of the agricultural machinery industry is in a state of flux. Based on different user distributions, the agricultural machinery market presents distinct consumption characteristics at various levels. Driven by agricultural machinery subsidies and land improvement, the industry's supply and demand will move towards high-endization.

## Upcoming News Preview

- President Xi Jinping delivers the 2026 New Year Address.

- China's December Manufacturing, Non-Manufacturing, and Composite Purchasing Managers' Index (PMI).

- U.S. initial jobless claims for the previous week.

- U.S. EIA crude oil inventory changes for the previous week.

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