★Macro★
01 ★★
CSRC: Enhance Inclusiveness and Adaptability of Capital Market Systems, Strengthen Investment-Side Reform Efforts
Zhou Xiaozhou, spokesperson for the China Securities Regulatory Commission (CSRC), answered questions regarding the "Implementation Opinions on Capital Market's Contribution to the Five Key Financial Areas." The "Implementation Opinions" are a key component of the "1+N" policy framework for the capital market and an important measure for further deepening reforms. The document focuses on addressing key and challenging issues in the "Five Key Financial Areas" by proposing targeted and actionable policy measures, including the following: First, it focuses on serving technological innovation and the development of new productive forces by enhancing the inclusiveness and adaptability of capital market systems. Measures include improving mechanisms for identifying technology-based enterprises, supporting high-quality unprofitable technology companies to go public, refining information disclosure rules for technology firms, optimizing IPO underwriting mechanisms, expanding pilot programs for issuance and underwriting systems, and revitalizing the M&A market through various measures, such as optimizing valuation and payment mechanisms for M&A. Second, it strengthens investment-side reform efforts. Measures include implementing the "Guidelines on Promoting Medium and Long-Term Funds into the Market" and its action plan, addressing bottlenecks for medium and long-term funds entering the market, steadily reducing the comprehensive fee rates of the public fund industry, refining investment advisory system rules, expanding the investment scope for pension and insurance funds, and encouraging professional institutional investors to establish long-term assessment mechanisms of over three years. Third, it promotes diversified equity financing and a multi-tiered bond market, a clear task outlined in the Third Plenary Session of the 20th CPC Central Committee. Measures include fostering a virtuous cycle of fundraising, investment, management, and exit for private equity and venture capital funds, optimizing "reverse linkage" policies for fund exits, piloting stock distribution in kind, refining fund share transfer mechanisms, and developing secondary market funds (S funds) for private equity. Additionally, it advances inclusive financial pilots at the Beijing Stock Exchange and the New Third Board, strengthens specialized boards for "specialized, refined, distinctive, and innovative" enterprises in regional equity markets, promotes high-quality development of technology innovation corporate bonds, explores intellectual property securitization, and develops green bonds, green asset-backed securities, and rural revitalization bonds.
02 ★★
[CSRC Issues "Implementation Opinions on Capital Market's Contribution to the Five Key Financial Areas"]
To thoroughly implement the directives of the Third Plenary Session of the 20th CPC Central Committee, the Central Financial Work Conference, the Central Economic Work Conference, and the new "Nine Articles" on advancing financial efforts in technology, green, inclusive, pension, and digital finance, the CSRC has formulated the "Implementation Opinions on Capital Market's Contribution to the Five Key Financial Areas" (hereinafter referred to as the "Implementation Opinions"). The document focuses on supporting the development of new productive forces, emphasizing comprehensive reforms in capital market financing, enhancing system inclusiveness and adaptability, and directing resources towards key strategies, fields, and weak links such as technological innovation, advanced manufacturing, green and low-carbon initiatives, and inclusive livelihood projects. It proposes 18 policy measures across areas such as providing full life cycle financial services for technology enterprises, enriching product and system frameworks for green and low-carbon transitions, improving the capital market's support for inclusive finance, meeting diverse pension finance needs, accelerating digital and intelligent empowerment of the capital market, and enhancing the financial service capabilities of industry institutions in the "Five Key Financial Areas." Moving forward, the CSRC will adhere to the principle of seeking progress while maintaining stability, balancing risk prevention, strong regulation, and high-quality development, strengthening policy coordination, implementation, and communication, and advancing efforts to better serve China's modernization and high-quality economic and social development.
03 ★★
[Li Qiang Holds Talks With Thai Prime Minister Srettha Thavisin]
On the afternoon of February 6, Premier Li Qiang held talks with Thai Prime Minister Srettha Thavisin, who was on an official visit to China, at the Great Hall of the People in Beijing. Li Qiang noted that this year marks the 50th anniversary of the establishment of diplomatic relations between China and Thailand, celebrated as the "Golden 50 Years of China-Thailand Friendship." President Xi Jinping met with Prime Minister Srettha in the morning, charting a new blueprint for advancing the China-Thailand community with a shared future. China has always prioritized its relationship with Thailand in its neighboring diplomacy and is willing to work with Thailand to maintain close high-level exchanges, strengthen strategic mutual trust, and elevate China-Thailand relations to new heights, bringing more benefits to the people of both countries. Li Qiang emphasized the importance of jointly organizing activities to celebrate the 50th anniversary of diplomatic ties and fostering enduring China-Thailand friendship.China is willing to work with Thailand to promote high-quality Belt and Road cooperation and align it with Thailand's development strategies, implement the China-Thailand Strategic Cooperation Joint Action Plan, and continuously enhance cooperation in areas such as trade and investment, connectivity, and technological innovation. Additionally, China encourages more Chinese enterprises to invest in Thailand and explore cooperation potential in emerging fields such as NEVs, artificial intelligence, and the digital economy, to better empower economic development in both countries.04
★★
[Ministry of Foreign Affairs: Regrets Panama's Decision Not to Renew Belt and Road MOU]
On February 7, Foreign Ministry spokesperson Lin Jian hosted a regular press conference. A reporter from Turkey's Anadolu Agency asked about Panama's announcement to withdraw from the Belt and Road cooperation agreement with China, with a 90-day advance notice as required. The reporter also inquired whether this decision was influenced by U.S. pressure. Lin Jian expressed China's firm opposition to the U.S.'s coercive tactics to undermine Belt and Road cooperation and deep regret over Panama's decision not to renew the MOU. Lin emphasized that the Belt and Road Initiative is an economic cooperation initiative that has seen active participation from over 150 countries, including more than 20 in Latin America, benefiting people worldwide, including those in Panama. In recent years, China and Panama have achieved fruitful results under the Belt and Road framework, bringing tangible benefits to both peoples. China hopes Panama will consider the broader bilateral relationship and the long-term interests of both peoples, resist external interference, and make the right decision.
★Industry and Downstream★
01 ★★
Guangdong: Implement Steel Industry Integration and Upgrading
Recently, the General Office of the CPC Guangdong Provincial Committee and the General Office of the Guangdong Provincial Government issued the "2025 Action Plan for Building a Modern Industrial System in Guangdong Province." The plan includes measures to implement steel industry integration and upgrading, promote mergers and acquisitions, update smelting equipment, and carry out ultra-low emission retrofits. It supports the accelerated green and low-carbon transformation of the steel industries in Shaoguan, Heyuan, Meizhou, Qingyuan, and Yunfu, aiming for high-quality development.
02★★★
CPCA: Estimated January National Passenger NEV Wholesale Sales at 900,000 Units, Up 31% YoY
According to data released by the China Passenger Car Association (CPCA) on February 7, Tesla China's estimated January passenger NEV wholesale sales were 63,238 units, down 11.5% YoY and 32.6% MoM. Based on preliminary monthly data, the estimated national passenger NEV wholesale sales in January were 900,000 units, up 31% YoY from January 2024 and down 40% MoM.
03 ★★
[CAAM: Cumulative Export Value of Auto Parts Reached $105.61 Billion, Up 6.8% YoY]
On February 7, data compiled by the China Association of Automobile Manufacturers (CAAM) from the General Administration of Customs showed that in December 2024, the import value of auto parts was $2.14 billion, down 16.6% MoM and 29.1% YoY. From January to December 2024, the import value of auto parts totaled $29.44 billion, down 1.4% YoY. In December 2024, the export value of auto parts was $9.78 billion, up 11.2% MoM and 16.1% YoY. From January to December 2024, the cumulative export value of auto parts reached $105.61 billion, up 6.8% YoY.
04★★
[Nippon Steel and Kobe Steel to End Cross-Shareholding While Continuing Steel Processing Cooperation]
Nippon Steel and Kobe Steel recently announced their decision to end their mutual shareholding relationship, which has been maintained since 2002, while continuing cooperation in steel processing and other business areas. Nippon Steel is reviewing its group relationships and selling policy holdings to improve capital efficiency. The timing of the sale will depend on market conditions, and the impact on fiscal year 2024 (ending March 2025) performance is currently uncertain. Nippon Steel holds a 2.7% stake in Kobe Steel, while Kobe Steel holds a 0.6% stake in Nippon Steel. Based on the closing price on February 6, the stock sale amounts to approximately 20 billion yen each.
05★★
General Office of Zhejiang Provincial Government Issues Notice on Measures to Promote Dual Controls on Carbon Emissions
At the end of January, Zhejiang Province released the "Measures to Promote Dual Controls on Carbon Emissions," which include the following steel-related measures:
Reasonably control coal use for power generation and heating, continuously advance the "three-in-one" transformation of coal power, and complete energy-saving and carbon-reduction retrofits for over 10,000 kW of existing coal power units by the end of 2025. Promote the replacement of coal heating with industrial waste heat and clean energy, and explore the use of small nuclear reactors for heating. Reduce coal use in key industries such as building materials, steel, and chemicals, and eliminate all coal-fired boilers with a capacity of 35 tons/hour or less by the end of 2025.
06★★★
[Global Ship Orders in January Down 74% YoY]
According to data released by UK-based Clarkson Research on February 7, global ship orders in January totaled 1.46 million CGT, down 74% YoY. South Korean companies secured 900,000 CGT (62%), ranking first globally, followed by China with 270,000 CGT (19%). In terms of the number of ships, South Korea secured 13 orders, fewer than China's 21, mainly due to South Korea focusing on high-value-added ships. As of December last year, the global order backlog decreased by 1.32 million CGT MoM to 156.79 million CGT. South Korea and China's order backlogs were 37.02 million CGT (24%) and 91.51 million CGT (58%), respectively.
★Other Hot Topics★
⭕[Global Crude Steel Production in 2024 Reaches 1.8826 Billion mt]According to the World Steel Association, global crude steel production in 2024 was 1.8826 billion mt, down 0.8% from the previous year, with production decreasing by 15.06 million mt.
China's crude steel production reached 1.005 billion mt, down 1.7% YoY, with a production decrease of 17.09 million mt. Countries outside China increased production by 2.03 million mt, with India leading the growth. India's crude steel production in 2024 was 149.6 million mt, an increase of 8.98 million mt. Japan (84 million mt), the US (79.5 million mt), Russia (70.7 million mt), South Korea (63.5 million mt), Germany (37.2 million mt), Turkey (36.9 million mt), Brazil (33.7 million mt), and Iran (31 million mt).
⭕[Chongqing to Refine Pilot Policy on Individual Housing Property Tax, Excluding Non-Local Buyers of Ordinary Housing From Tax Scope]The General Office of Chongqing Municipal People's Government recently issued a notice on "Several Policy Measures to Promote Sustained and Positive Economic Growth in Chongqing." In the real estate sector, Chongqing will refine the city's pilot policy on individual housing property tax, excluding non-local buyers of ordinary housing from the tax scope. It will also expand and enhance the effectiveness of the "white list" mechanism for urban real estate financing coordination, supporting financial asset management companies in acquiring non-performing loans of distressed real estate projects.
⭕[Senegal's Crude Oil Production Expected to Exceed 30 Million Barrels This Year]On February 6 local time, Senegal's Ministry of Energy, Petroleum, and Mines announced that the Sangomar oilfield's crude oil production in 2025 is expected to exceed 30 million barrels. The ministry stated in an oilfield production report that the Sangomar oilfield's crude oil production in 2025 is projected to reach 30.53 million barrels, aiming to maintain a stable daily output of 100,000 barrels throughout the year. Located approximately 100 kilometers west of Dakar, Senegal's capital, the Sangomar oilfield is jointly developed by Australia's Woodside Energy and Senegal's national oil company. The oilfield officially began production in June last year, marking Senegal's entry into the ranks of oil-producing nations.
⭕[Lei Jun Says Xiaomi Is Researching Ways to Boost Car Production Capacity]On the morning of February 7, Xiaomi Group Chairman Lei Jun stated on his personal Weibo account, "I am at the R&D center of the car factory, with the painting workshop visible outside the window. Today, I will have a serious discussion with the manufacturing team on how to further increase production capacity while ensuring quality and production safety!"
⭕[Fangda Group and Anshan Municipal Government Sign Strategic Cooperation Agreement]According to the "Liaoning Fangda Group" official account, on February 6, a strategic cooperation signing ceremony between Liaoning Fangda Group and the Anshan Municipal Government was held in Anshan.
Under the strategic cooperation agreement, both parties aim to further promote high-quality economic and industrial development in Anshan City. Adhering to the principles of complementary advantages, resource sharing, mutual development, and win-win cooperation, they will establish a long-term, comprehensive, and in-depth strategic partnership in areas such as joint marketing and industrial investment. Leveraging their respective regional resource advantages and operational experience, they will strengthen deep cooperation to achieve mutual benefits.
⭕[Nangang Delivers First Batch of Steel for Nanjing North Station Steel Structures]As a key project in Jiangsu Province and the top project in Nanjing Jiangbei New Area, Nanjing North Station has attracted significant attention since construction began. Recently, Nangang delivered the first batch of high-quality steel plates required for the steel structure construction of Nanjing North Station. This marks an important step forward for Nangang in the field of large-scale transportation hub construction.
⭕[South Korea Issues Preliminary Anti-Dumping Ruling on Hot-Rolled Stainless Steel Plates From China]
On January 16, 2025, the Korea Trade Commission issued Announcement No. 2025-1 (Case No. 23-2024-7), making a preliminary anti-dumping ruling on hot-rolled stainless steel plates originating from China with a thickness of no less than 4.75 mm and a width of no less than 600 mm. The preliminary ruling determined that Chinese producers/exporters, including Schuang International Development Ltd., STX Japan Corporation, Best Win International Co., Ltd., and Jiangsu Daekyung Stainless Steel Co., Ltd., as well as other Chinese suppliers, had a dumping margin of 21.62%. The commission recommended that the Ministry of Economy and Finance of South Korea impose a provisional anti-dumping duty of 21.62% on the products involved. The Korean tariff codes for the products involved are 7219.21.1010, 7219.21.1090, 7219.21.9000, 7219.22.1010, 7219.22.1090, and 7219.22.9000.
On September 6, 2024, South Korea launched an anti-dumping investigation into hot-rolled stainless steel plates originating from China. The dumping investigation period was from January 1, 2023, to December 31, 2023, and the injury investigation period was from January 1, 2021, to June 30, 2024.
⭕Baogang: Striving to Build a Top Domestic Cold-Rolled Sheets & Plates Production Base.
In 2024, the Rare Earth Steel Cold-Rolled Sheets & Plates Plant took on the mission of adjusting Baogang's cold-rolled product structure. Centered on the plant's principles of "premium strategy, product development, quality priority, and process compliance," it aimed to establish a lean production line for rare earth steel cold-rolled products with the goals of "the most comprehensive range, best quality, lowest cost, and strongest capability." The plant focused on quality, high production, efficiency improvement, and brand creation. Its product portfolio expanded comprehensively, with production and quality steadily increasing. Business operations and reform development reached new heights, achieving YoY growth in commodity production, a significant increase in the proportion of specialty steel, and the completion of all economic and technical indicators, setting historical records.
In 2025, the Rare Earth Steel Cold-Rolled Sheets & Plates Plant will strive to achieve its annual targets with full momentum. It will establish a robust management system covering the entire process, tackle production challenges, focus on high-quality product manufacturing, strengthen integrated management, enhance process compliance awareness, and pursue ultimate efficiency.
⭕[Angang's Hot-Rolled Automotive Steel Sales Achieve a Strong Start]On the morning of February 5, the first working day after the holiday, Angang's Marketing Center announced good news: January's shipments of specialty automotive steel exceeded 50,000 mt, setting a new record and achieving a strong start.
Automotive steel is one of Angang's key specialty steel products. To achieve the goal of increasing both volume and efficiency in automotive steel, the Marketing Center actively transformed its marketing model, focusing on increasing sales to long-established customers as a key strategy. The center's head visited over 60 customers, achieving breakthroughs in both increasing sales to long-established customers and developing new customers. Among these, sales of high-strength steel above 700 MPa exceeded 26,000 mt, with high-margin orders accounting for 53%.
⭕[Trump Reportedly Meets With U.S. Steel CEO]Amid widespread speculation about the fate of U.S. Steel, Trump reportedly met with the company's CEO, Dave Burritt, at the White House on Thursday. A day later, Japanese Prime Minister Shigeru Ishiba is set to visit Washington to meet with Trump.
In January this year, a proposal by Nippon Steel to acquire U.S. Steel was vetoed by then-President Biden. On Thursday, U.S. Steel rose 3.6% in New York, closing at $39.27, still nearly 29% below Nippon Steel's offer of $55 per share.
