Macroeconomics

1. [Tax Policy] The Ministry of Finance and two other departments issued an announcement extending the tax policies related to the pilot phase of innovative enterprise CDRs until December 31, 2027. During this period, capital gains or income from the transfer of innovative enterprise CDRs by individual investors and public funds will be temporarily exempt from income tax or value-added tax; differentiated personal income tax policies will be implemented for dividend income.

2. [Japanese Exports] Data released by the Japanese Ministry of Finance showed that overall exports in December 2025 increased by 5.1% year-on-year, lower than the median forecast of 6.1% by analysts. Exports to the United States decreased by 11.1%, while exports to China increased by 5.6%. Exports to the European Union increased by 2.6%.

Plastics and Rubber

1. [EVA] Recently, China National Petroleum Corporation (CNPC) Guangxi Petrochemical Company officially started construction on its 300,000 tons/year EVA plant (tubular process) and 100,000 tons/year H-EVA plant (autoclave process). The 300,000 tons/year EVA plant (tubular process) is planned to be completed and handed over by the end of December 2027, and the 100,000 tons/year H-EVA plant (autoclave process) is planned to be completed and handed over by the end of February 2028.

2. [PE] It is understood that Sinopec Quanzhou's 400,000 tons/year HDPE plant began a major overhaul on November 28, 2025, and is expected to resume operation on January 26.

3. [PE] On January 21, Maoming Petrochemical's #1 LDPE plant produced 951-000; the #2 LDPE plant was shut down for maintenance on January 20; the full-density plant produced 7042; the HDPE plant began a major overhaul on November 24, 2025, and is planned to resume operation on January 31, 2026. Maoming Petrochemical LDPE (South China Branch) 2426H was quoted at 9,100 RMB/ton, down 50 RMB/ton.

4. [SBR] In December 2025, China's styrene-butadiene rubber exports amounted to 30,106.11 tons, a month-on-month increase of 10.69%; imports amounted to 39,447.94 tons, a month-on-month increase of 1.87%.

5. [NBR] In December 2025, my country's nitrile latex imports amounted to 20,179.33 tons, a month-on-month increase of 50.33%; exports amounted to 10,119.04 tons, a month-on-month increase of 37.39%.

6. [Natural Rubber] In December 2025, China imported 58,000 tons of natural latex, a month-on-month increase of 23%, and a year-on-year increase of 11.6%. From January to December, cumulative imports of natural latex reached 455,000 tons, a year-on-year increase of 24%.

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