★Macro★
01 ★★
【PBOC: Implement Moderately Loose Monetary Policy, Strengthen Countercyclical Adjustment】
The 108th regular meeting of the People's Bank of China (PBOC) Monetary Policy Committee was held on March 18, 2025. The meeting analyzed the domestic and overseas economic and financial situation, noting that the current external environment is becoming more complex and severe, with weak global economic growth momentum. The performance of major economies has diverged, and uncertainties in inflation trends and monetary policy adjustments have increased. China's economy is generally stable, advancing steadily, and high-quality development is being solidly promoted. However, it still faces challenges such as insufficient domestic demand and numerous risk factors. It is necessary to implement a moderately loose monetary policy, strengthen countercyclical adjustment, better leverage the dual functions of monetary policy tools in terms of aggregate and structural aspects, enhance coordination between monetary and fiscal policies, and maintain stable economic growth and reasonable price levels.
02 ★★
【Ministry of Housing and Urban-Rural Development Holds 2025 City Health Check Work Deployment Video Conference to Ensure Implementation of Key Urban Renewal Tasks】
The Ministry of Housing and Urban-Rural Development held a video conference for the deployment of the 2025 city health check work. The meeting emphasized the need to complete the 2025 city health check tasks with high quality and continuously promote urban renewal actions. It is essential to fully leverage the roles of city governments, provincial housing and urban-rural development departments, and third-party professional teams. Expand the breadth and depth of city health checks, comprehensively conduct health checks on housing, communities, blocks, and cities at or above the prefecture level, orderly carry out health checks on key urban renewal areas and specialized health checks based on actual work conditions, and guide county-level cities in conducting health checks. Strengthen the application of health check results, continuously focus on solving problems, and integrate city health checks and urban renewal to ensure the implementation of key urban renewal tasks.
03 ★★&Z12/>【2025 China Development Forum: Continue to Address Local Government Hidden Debt, Promote Market-Oriented Transformation and Debt Risk Resolution of Local Financing Platforms】
The two-day 2025 China Development Forum Annual Meeting was held at the State Guesthouse in Beijing on March 23. Han Wenxiu, Deputy Director of the Central Finance and Economics Commission Office and Director of the Central Rural Work Leading Group Office, stated at the annual meeting that China will continue to address local government hidden debt, promote market-oriented transformation and debt risk resolution of local financing platforms. China attaches great importance to resolving the issue of overdue payments to enterprises and will coordinate the use of fiscal and monetary policy tools to strive for significant progress as soon as possible.
04★★
【1,411.7 Billion Yuan in Reverse Repo Operations to Mature Next Week】
Next week, 1,411.7 billion yuan in reverse repo operations will mature in the central bank's open market, with 481 billion yuan, 273.3 billion yuan, 295.9 billion yuan, 268.5 billion yuan, and 93 billion yuan maturing from Monday to Friday, respectively. Additionally, 3.5 billion yuan in central bank bills swap will also mature on Wednesday.
05 ★★
【Wang Yi Discusses Trilateral Cooperation Among China, Japan, and South Korea: "A Distant Relative Is Not As Helpful As a Near Neighbor"】
According to the Ministry of Foreign Affairs website, on March 21, 2025, Wang Yi, Member of the Political Bureau of the CPC Central Committee and Minister of Foreign Affairs, attended a collective meeting with the foreign ministers of China, Japan, and South Korea hosted by Japanese Prime Minister Ishiba Masahiro in Tokyo. Wang Yi stated that trilateral cooperation among China, Japan, and South Korea started early, achieved many results, and has great potential, playing an important role in enhancing mutual understanding and promoting mutually beneficial cooperation among the three countries. China places great importance on trilateral cooperation and is confident about its prospects. All three countries have a proverb, "A distant relative is not as helpful as a near neighbor." In a world with increasing instability and uncertainty, this saying, full of Eastern wisdom, highlights the practical significance of trilateral cooperation. Good relations among China, Japan, and South Korea provide an additional guarantee for regional peace and stability. Deepened trilateral cooperation enables regional countries to better cope with various external challenges. Wang Yi emphasized that this year marks the 80th anniversary of the victory of the Chinese People's War of Resistance Against Japanese Aggression. Only by correctly addressing history can we better forge the future. He hopes that Japan and South Korea, together with China, will establish a correct view of World War II history, adhere to multilateralism, uphold the core position of the United Nations, and promote the continuous development of trilateral cooperation, making their respective contributions to regional and global peace and prosperity.
★Industry and Downstream★
01 ★★
【Minister of Commerce Meets with President of European Automobile Manufacturers' Association and Chairman of Mercedes-Benz Group Ola Källenius】
Minister of Commerce Wang Wentao met with Ola Källenius, President of the European Automobile Manufacturers' Association and Chairman of Mercedes-Benz Group, to discuss Mercedes-Benz's cooperation with China and the EU's anti-subsidy case against Chinese EVs. Wang Wentao pointed out that despite a complex and volatile international environment, China's economy maintains steady growth, demonstrating strong resilience and internal dynamism. China is unwavering in its commitment to expanding high-level opening-up, and no matter how the international situation changes, China's door to the outside world will never close. China's policies for attracting foreign investment are consistent and continuous, providing a more stable development environment and broader development space for foreign companies, including Mercedes-Benz. Wang Wentao emphasized that China and the EU are the backbone of the WTO, and properly resolving the EU's anti-subsidy case against Chinese EVs is of great significance to the current Sino-European relationship. It will send a positive and clear signal to the world. China and the EU have the willingness and capability to resolve differences through dialogue according to WTO rules, creating a stable and predictable trade environment for industrial development and cooperation.
02 ★★
【Shanghai Vice Mayor Hua Yuan: Since the Introduction of the Trade-In Policy, Sales of Home Appliances, Furniture, and Home Renovation Products in Shanghai Reached 18.6 Billion Yuan】
Hua Yuan, Member of the Standing Committee of the Shanghai Municipal Party Committee and Vice Mayor, stated at the launch ceremony of the "2025 National Home Appliance Consumption Season" this morning that since the introduction of the trade-in policy for home appliances in September last year, sales of home appliances, furniture, and home renovation products in Shanghai reached 18.6 billion yuan by March 20, 2025, with over 10.6 million transactions, and subsidies to consumers exceeded 2.8 billion yuan. Among these, sales of 3C electronic products, including mobile phones, reached 2.6 billion yuan, up 30% YoY.
03 ★★
【Shenzhen Real Estate Association: Secondary Housing Transactions Remain at High Levels, Inventory Increases for Six Consecutive Weeks】
According to statistics from the Shenzhen Real Estate Association, 1,808 secondary housing units (including self-service) were recorded in Shenzhen in the 11th week of 2025, down 0.2% WoW. Although there was a slight decline in secondary housing transactions, the absolute value remains at a high level, indicating sustained market heat. Based on public data on the number of available secondary housing units, as of March 17, 2025, there were 68,530 effective secondary housing units for sale in the city, an increase of 868 units from the previous week, marking six consecutive weeks of growth.
04 ★★
【CPCA Preliminarily Estimates Narrow Passenger Vehicle Retail Market Size at 1.85 Million Units in March】
The CPCA preliminarily estimates that the narrow passenger vehicle retail market size in March will be around 1.85 million units, up 9.1% YoY and 33.7% MoM. New energy retail is expected to reach 1 million units, with the penetration rate rebounding to 54.1%.
★Other Hot Topics★
⭕【France Calls for Strong EU Countermeasures Against US "Tariff Stick"】
According to multiple media reports, in response to the frequent use of the "tariff stick" by the Trump administration, France and other EU countries are calling for the EU to prepare for strong countermeasures. France firmly advocates that if US President Donald Trump uses new tariffs to pressure the EU, the EU should consider taking the strongest measures against the US. Reports indicate that the EU could consider restrictions on trade, services, intellectual property, and access to government procurement.
⭕【Baltic Dry Index Ends Four-Day Decline】
Spokesperson of the Ministry of Commerce, He Yadong, introduced that so far, China has signed 23 free trade agreements with 30 countries and regions, with free trade partners spanning five continents, and the free trade network is continuously expanding and deepening. The content and quality of free trade agreements are also continuously enriching and improving, with negative lists for services and investment, as well as standard cooperation, digital economy, and other new contents becoming the "standard configuration" of newly signed free trade agreements. Moving forward, we will continue to actively expand a high-standard free trade network facing the globe, continuously implement high-quality existing free trade agreements, and make them better benefit the people of China and our free trade partners.
⭕【France Proposes Using EU's Most Powerful Trade Tool Against the US】
If President Donald Trump uses tariffs unfairly to force the EU to change its policies, France wants the EU to consider deploying the anti-coercion instrument to counter the US. The anti-coercion instrument would allow the EU to deploy retaliatory responses, including restrictions on trade and services, intellectual property, foreign direct investment, and access to public procurement. The European Commission is currently not considering using the anti-coercion instrument, and any discussion about its use is still far off, pending the US announcement of tariffs on April 2.
⭕【President of the European Council: Deteriorating Investment Environment, EU Capital Outflows Exceed 300 Billion Euros】
European Council President Costa pointed out that the EU's investment environment has deteriorated, with annual capital outflows reaching 300 billion euros. The EU is prepared to reduce some cumbersome rules and procedures to attract capital back and strengthen basic industries such as automobiles, steel, and metals.
