Macroeconomics

1. [Reverse Repurchase Agreement] The People's Bank of China (PBOC) announced a tender notice for outright reverse repurchase agreements in the open market. To maintain ample liquidity in the banking system, on December 5, 2025, it will conduct 1 trillion RMB/ton of outright reverse repurchase operations through a fixed-quantity, interest rate, and multiple-price bidding method, with a term of 3 months (91 days).

2. [US Initial Jobless Claims] Initial jobless claims in the US unexpectedly fell to 191,000 last week, the lowest level since September 2022, indicating continued resilience in the job market.

3. [Bank of Japan] The Bank of Japan is almost certain to raise its policy rate from 0.5% to 0.75% at its December meeting, and the Japanese government is expected to tolerate this move. This would be the PBOC's first rate hike since January of this year.

4. [Shipping] This year, the average daily cost on major global crude oil shipping routes has seen the largest increase, reaching 467%, while transportation rates for commodities such as liquefied natural gas (LNG) and iron ore have increased more than fourfold and more than twofold, respectively.

Building Materials

1. [Glass] The "Implementation Rules for Capacity Replacement in the Sichuan Province Glass Industry" will be implemented from December 20, 2025. The rules specify that the capacity replacement ratio for flat glass in key national air pollution control areas and non-key air pollution control areas should be no less than 1.25:1 and 1:1 respectively, with the ratio determined by the region of the construction site.

2. [Wood Pulp] Shandong Bohui Paper Co., Ltd. recently announced its decision to utilize existing production lines within its existing plant area to plan a 320,000-ton-per-year chemical pulp project, with a total investment of 1.701 billion RMB/ton.

3. [Wood Pulp] The Flint Group's Yozeno Pulp Mill, which has been shut down since June of this year, will officially resume production on December 8, 2025. Meanwhile, the Lauma Pulp Mill will begin a reduced-production shutdown for approximately one month starting December 15, 2025, and plans to gradually resume production by department starting January 7, 2026.

4. [Pulp] It is reported that on December 2nd local time, Domtar announced the permanent closure of its Crofton plant in British Columbia, Canada. This decision will reduce Domtar's annual pulp production by approximately 380,000 tons of NBSK softwood pulp.

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