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.

Energy

1. [Crude Oil] On January 22nd, international crude oil futures closed lower. The settlement price of the US WTI crude oil futures March contract was US$59.36 per barrel, a decrease of US$1.26 or 2.1%. Brent crude oil futures for the April contract settled at $63.34 per barrel, down $1.19 or 2.0%.

2. [Crude Oil] On January 22, the Trump administration announced it would restructure or cancel nearly $84 billion in clean energy projects funded during former President Biden's administration. This move is the latest by the Trump administration aimed at supporting fossil fuels and nuclear energy while eliminating subsidies for alternative energy sources such as wind and solar power.

3. [Crude Oil] Data from the U.S. Energy Information Administration (EIA) showed that U.S. crude oil, gasoline, and distillate fuel inventories all increased last week due to a significant drop in refinery and consumer demand. For the week ending January 16, U.S. crude oil inventories increased by 3.6 million barrels to 426 million barrels, while analysts had previously estimated an increase of 1.13 million barrels. U.S. gasoline inventories increased by 6 million barrels to 257 million barrels, the highest level since February 2021, while analysts had previously expected an increase of 1.71 million barrels. Distillate fuel inventories, including diesel and heating oil, rose to their highest level since January 2024, increasing by 3.35 million barrels to 132.6 million barrels, while analysts had expected a decrease of 162,000 barrels.

4. [Crude Oil] Data shows that Russia's oil production in 2025 will decrease by 0.8% year-on-year to 10.28 million barrels per day, equivalent to one-tenth of global total production.

5. [Crude Oil] On January 22, Venezuela's National Assembly passed a bill related to oil and gas reform in its first reading. National Assembly President Jorge Rodríguez stated that this reform is crucial for "accelerating the increase" in the country's oil production. According to Venezuelan law, the bill is awaiting a second reading, a more substantive second round of discussions, and is still subject to modification. 6. [Crude Oil] Recently, Indonesia's state-owned energy company Pertamina announced that the Balikpapan refinery in East Kalimantan province has completed a US$7.4 billion upgrade, increasing its daily crude oil processing capacity from 260,000 barrels to 360,000 barrels, making it Indonesia's largest refining facility.

7. [Petroleum Coke] On January 22nd, Huaxiang Petrochemical quoted petroleum coke at 2700 RMB/ton, a decrease of 80 RMB/ton compared to the previous trading day.  ​​The product has a sulfur content of 2.7, and the delayed coking unit has a capacity of 400,000 tons per year, with a daily output of 450 tons.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com