Macroeconomics

1. [Monetary Policy] The central bank governor stated that in 2026, they will continue to implement a moderately loose monetary policy, flexibly and efficiently utilizing various monetary policy tools such as reserve requirement ratio reductions and interest rate cuts to maintain ample liquidity. There is still some room for further reserve requirement ratio reductions and interest rate cuts this year. They will continue to maintain the stable operation of the financial market. They will manage expectations effectively and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level. Supervision and management of the bond market, foreign exchange market, money market, bill market, and gold market will be strengthened. A mechanism will be established to provide liquidity to non-bank institutions under specific circumstances. The two monetary policy tools supporting the capital market will continue to be utilized to support the stable development of the capital market.

2. [Consumer Loan Interest Subsidy Policy] The six major state-owned banks collectively announced the implementation of the government's interest subsidy policy for personal consumer loans and the optimization of related services. During the implementation period of the consumer loan interest subsidy policy, some high-quality customers will enjoy an actual interest rate in the "2%" range after receiving the subsidy. This level is even lower than the current interest rate on newly issued housing loans.

3. [US Initial Jobless Claims] The number of initial jobless claims in the US increased by 200,000 last week, compared to an estimated 209,000 and a previous figure of 198,000. Continuing jobless claims slightly decreased to 1.85 million, a decrease of 26,000 from the previous week.

4. [Bank of Japan] The Bank of Japan will conclude its two-day monetary policy meeting on January 23rd. The market generally expects the bank to maintain its policy interest rate at 0.75%. However, analysts warn that given the weak yen and persistent domestic inflation, the Bank of Japan may adopt a hawkish stance.

5. [South Korean Exports] According to the Korea Customs Service, South Korea's total exports from January 1st to 20th reached US$36.4 billion, a year-on-year increase of 14.9%. South Korean semiconductor exports increased by 70.2%, leading the overall export growth and accounting for 29.5% of total exports, a year-on-year increase of 9.6 percentage points.

Building Materials

1. [Glass] Tangshan Jinxin Photovoltaic Glass's two 700-ton production lines (one kiln, four lines) ceased production on January 21st.

2. [Pulp] As of January 22, 2026, the inventory of pulp at major Chinese ports was 2.068 million tons, an increase of 54,000 tons from the previous period, a 2.7% increase month-on-month.

3. [Wastepaper] On January 22nd, Henan Xinxiang Hengli Paper increased its wastepaper purchase price by 20 RMB/ton, bringing the adjusted price to 1,630 RMB/ton (including VAT).

Zhejiang Jiaxing Jingxing Paper increased its waste paper purchase price by 20 RMB/ton, bringing the adjusted price to 1,600 RMB/ton (excluding VAT).

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