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%.

Building Materials

1. [Asphalt] On January 21st, according to statistics, the planned asphalt production for January was 2.066 million tons, a decrease of 9.47% compared to the previous month.  Increased refinery maintenance and tight supply of Venezuelan crude oil pushed up raw material costs.

2. [Corrugated Paper] Recently, Shanying Paper announced its latest shutdown plan. All machines at its seven major domestic bases will be shut down for 3-28 days in February. Based on design capacity, the estimated production reduction is approximately 370,000 tons, most of which is corrugated cardboard.

3. [Wastepaper] On January 21st, Shanying Paper in Jiaxing, Zhejiang, increased its wastepaper purchase price by 20 RMB/ton. The adjusted price for delivery to the factory without invoice is 1,700 RMB/ton.

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