Macroeconomics

1. [Fiscal Policy] A comprehensive package of fiscal and financial policies to stimulate domestic demand has been released. This includes the first-ever establishment of a 500 billion RMB special guarantee plan for private investment, guiding banks to provide an additional 500 billion RMB in loans to small and medium-sized enterprises (SMEs) for private investment. For the first time, interest subsidies for SME loans will be implemented, covering 14 "key industrial chains and upstream and downstream industries," productive service industries, and related agricultural, forestry, animal husbandry, and fishery sectors. Policies such as interest subsidies for service industry businesses, personal consumption loans, and equipment upgrade loans will be optimized, and personal credit card installment payments will be included in the subsidy scope.

2. [US-EU Agreement on Hold] The European Parliament announced the freezing of the approval process for the trade agreement reached with the United States last July. This is seen as the EU's first response to Trump's latest pressure tactics. Trump had previously threatened to impose tariffs on eight European countries until an agreement was reached on the US "purchase of Greenland."

Building Materials

1. [Corrugated Paper] Dongguan Shunyu Paper Industry, Guangdong: All machines in the factory were shut down for 12 days from January 29th to February 10th, affecting corrugated paper production, resulting in an estimated reduction of 22,000 tons in capacity.

Wuxi Rongcheng Paper Industry, Jiangsu: PM38 machine was shut down for 16 days from January 26th to February 10th; PM3A machine was shut down for 5 days from February 6th to February 10th, affecting T-paper production; PM2 machine was shut down for 6 days from January 31st to February 5th, affecting corrugated paper production.

2. [Kraft Paper] Quanzhou Nine Dragons Paper, PM36 machine was shut down for 15 days from January 18th to February 1st, affecting kraft paper production.

Beihai Nine Dragons Paper, PM48 machine was shut down for 11 days from January 20th to January 30th, affecting kraft paper production.

Shenyang Nine Dragons Paper, PM37 machine was shut down for 9 days from January 23rd to January 31st, affecting kraft paper production.

3. [Wastepaper] On January 20th, Shaoxing Huayu Paper Industry, Zhejiang, increased the wastepaper purchase price by 20 RMB/ton. The adjusted price for delivery to the factory without invoice is 1,540 RMB/ton.

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