According to preliminary statistics from the People's Bank of China, the stock of aggregate financing to the real economy (AFRE) stood at 462.06 trillion yuan at end-June 2026, while the cumulative flow of AFRE in H1 2026 reached 20.84 trillion yuan, up 7.4% YoY. RMB loans increased by 10.72 trillion yuan in H1. At end-June, broad money (M2) balance was 356.71 trillion yuan, up 8% YoY. Narrow money (M1) balance was 118.48 trillion yuan, up 4% YoY. Currency in circulation (M0) balance was 14.74 trillion yuan, up 11.8% YoY. Net cash injection in H1 amounted to 641.7 billion yuan. Financial Statistics Report for H1 2026 I. Stock of AFRE up 7.4% YoY Preliminary statistics show that the stock of AFRE at end-June 2026 reached 462.06 trillion yuan, up 7.4% YoY. Specifically, outstanding RMB loans to the real economy were 279.16 trillion yuan, up 5.3% YoY; outstanding foreign currency loans to the real economy (RMB equivalent) were 1.18 trillion yuan, down 2.9% YoY; entrusted loans were 11.24 trillion yuan, up 0.5% YoY; trust loans were 4.62 trillion yuan, up 4% YoY; undiscounted bankers' acceptances were 2.02 trillion yuan, down 2.8% YoY; corporate bonds outstanding were 36.08 trillion yuan, up 8.9% YoY; government bonds outstanding were 101.36 trillion yuan, up 14.2% YoY; and domestic equity of non-financial enterprises stood at 12.49 trillion yuan, up 5% YoY. In terms of structure, at end-June, outstanding RMB loans to the real economy accounted for 60.4% of the total AFRE stock, down 1.2 percentage points YoY; foreign currency loans (RMB equivalent) accounted for 0.3%, flat YoY; entrusted loans accounted for 2.4%, down 0.2 ppt YoY; trust loans accounted for 1%, flat YoY; undiscounted bankers' acceptances accounted for 0.4%, down 0.1 ppt YoY; corporate bonds accounted for 7.8%, up 0.1 ppt YoY; government bonds accounted for 21.9%, up 1.3 ppt YoY; and domestic equity of non-financial enterprises accounted for 2.7%, down 0.1 ppt YoY. II. Cumulative AFRE Flow in H1 Reached 20.84 Trillion Yuan Preliminary statistics show that the cumulative AFRE flow in H1 2026 was 20.84 trillion yuan, 2.02 trillion yuan less than the same period last year. In detail, new RMB loans to the real economy increased by 10.76 trillion yuan, 1.98 trillion yuan less YoY; foreign currency loans (RMB equivalent) to the real economy increased by 160.9 billion yuan, 224.7 billion yuan more YoY; entrusted loans decreased by 78.8 billion yuan, with the decline widening by 27.5 billion yuan YoY; trust loans decreased by 44.6 billion yuan, with the decline widening by 188.9 billion yuan YoY; undiscounted bankers' acceptances decreased by 125.6 billion yuan, with the decline widening by 69.8 billion yuan YoY; net corporate bond financing was 2.07 trillion yuan, 916.7 billion yuan more YoY; net government bond financing was 6.44 trillion yuan, 1.22 trillion yuan less YoY; and domestic equity financing by non-financial enterprises was 293.3 billion yuan, 122.4 billion yuan more YoY. 3. Broad Money Increased 8% At the end of June, broad money (M2) balance stood at 356.71 trillion yuan, up 8% YoY. Narrow money (M1) balance stood at 118.48 trillion yuan, up 4% YoY. Currency in circulation (M0) balance stood at 14.74 trillion yuan, up 11.8% YoY. In H1, net cash injection into the economy was 641.7 billion yuan. 4. RMB Deposits Increased by 17.76 Trillion Yuan in H1 At the end of June, the balance of domestic and foreign currency deposits stood at 354.33 trillion yuan, up 8.2% YoY. At month-end, the balance of RMB deposits stood at 346.44 trillion yuan, up 8.2% YoY. In H1, RMB deposits increased by 17.76 trillion yuan. Specifically, household deposits increased by 7.58 trillion yuan, non-financial enterprise deposits increased by 3.2 trillion yuan, fiscal deposits increased by 971.5 billion yuan, and deposits of non-banking financial institutions increased by 4.65 trillion yuan. At the end of June, the balance of foreign currency deposits stood at $1.16 trillion, up 13.7% YoY. In H1, foreign currency deposits increased by $98 billion. 5. RMB Loans Increased by 10.72 Trillion Yuan in H1 At the end of June, the balance of domestic and foreign currency loans stood at 286.43 trillion yuan, up 5.1% YoY. At month-end, the balance of RMB loans stood at 282.63 trillion yuan, up 5.2% YoY. In H1, RMB loans increased by 10.72 trillion yuan. By sector, household loans decreased by 366.8 billion yuan, with short-term loans decreasing by 588.1 billion yuan and medium and long-term loans increasing by 221.2 billion yuan; loans to enterprises (including public institutions) increased by 11.13 trillion yuan, with short-term loans increasing by 4.59 trillion yuan, medium and long-term loans increasing by 5.55 trillion yuan, and bill financing increasing by 814.3 billion yuan; loans to non-banking financial institutions decreased by 422.3 billion yuan. At the end of June, the balance of foreign currency loans stood at $557.7 billion, down 0.6% YoY. In H1, foreign currency loans increased by $12.7 billion. 6. In June, the monthly weighted average interest rate for interbank RMB lending was 1.41%, and the monthly weighted average rate for pledged bond repos was 1.43% In H1, the interbank RMB market saw a total transaction volume of 1,169.05 trillion yuan through lending, outright bond trading, and repos, with a daily average turnover of 9.74 trillion yuan, up 20% YoY. Of this, the daily average turnover for interbank lending increased 36% YoY, for outright bond trading increased 6.9% YoY, and for pledged repos increased 22.5% YoY. In June, the weighted average interest rate for interbank lending was 1.41%, 0.1 percentage points higher than the previous month and 0.05 percentage points lower than the same period last year; the weighted average rate for pledged repos was 1.43%, 0.1 percentage points higher than the previous month and 0.07 percentage points lower than the same period last year. VII. Balance of Foreign Exchange Reserves at $3.42 Trillion At end-June, the balance of foreign exchange reserves stood at $3.42 trillion. At end-June, the RMB exchange rate was 6.8109 yuan per US dollar. VIII. Cross-border RMB Settlement under the Current Account in H1 Amounted to 9.83 Trillion Yuan, and Direct Investment Cross-border RMB Settlement Reached 4.17 Trillion Yuan In H1, cross-border RMB settlement under the current account amounted to 9.83 trillion yuan, of which goods trade and services trade & other current account items were 7.71 trillion yuan and 2.12 trillion yuan, respectively. Direct investment cross-border RMB settlement amounted to 4.17 trillion yuan, of which outward direct investment and foreign direct investment were 1.5 trillion yuan and 2.67 trillion yuan, respectively. Recommended Reading: Latest Financial Data Released: End-February M2 and Outstanding Aggregate Financing Up 8.7% and 9.0% YoY; Here's What Authoritative Experts Say! Aggregate Financing and New RMB Loans in First Two Months Hit Second-Highest on Record for Same Period; February M2 Up 8.7% YoY January 2024 New Aggregate Financing 6.5 Trillion Yuan, New Loans 4.92 Trillion Yuan, M2 Up 8.7% YoY PBoC: December Aggregate Financing Increment 1.94 Trillion Yuan, New RMB Loans 1.17 Trillion Yuan, M2 Up 9.7% YoY PBoC: November Aggregate Financing Increment 2.45 Trillion Yuan, New RMB Loans 1.09 Trillion Yuan, M2 Up 10% YoY November Financial Data Released: Aggregate Financing Continued to Grow YoY; Credit Support for Real Economy Remains Solid Will Trillion-Yuan Government Bonds "Prop Up" October Money and Credit Data? Market Expects Strong Aggregate Financing but Weak Lending; RRR Cut Expectations Still Brewing PBoC: October Aggregate Financing Increment 1.85 Trillion Yuan, New RMB Loans 738.4 Billion Yuan, M2 Up 10.3% YoY PBoC: September Aggregate Financing Increment 4.12 Trillion Yuan, New RMB Loans 2.31 Trillion Yuan, M2 Up 10.3% YoY PBoC Makes Major Announcement! Discusses China-U.S. Interest Rate Spread, September Financial Data, Existing Home Loan Rates... General Administration of Customs: China's Foreign Trade in First Three Quarters Improved; September Posted Highest Monthly Figure This Year PPI and CPI Improve for Third Month in a Row; Experts Say Price Recovery Further Confirmed, PPI YoY Improvement Expected to Persist NBS: September CPI Stable, PPI Decline Narrows for Third Straight Month, Both Up MoM September Phone Exports Value Doubled MoM; Auto Exports YoY Growth Continued to Lead PBoC: August Aggregate Financing Increment 3.12 Trillion Yuan, New RMB Loans 1.36 Trillion Yuan, M2 Up 10.6% YoY PBoC: Will Act Decisively to Prevent Exchange Rate Overshooting! Dollar Plunges Against Offshore Yuan PBoC: August Aggregate Financing 528.2 Billion Yuan, New RMB Loans 345.9 Billion Yuan, M2 Up 10.7% YoY PBoC: June Aggregate Financing, New RMB Loans Far Exceed Expectations; M2 Up 11.3% YoY PBoC: May Aggregate Financing Increment 1.56 Trillion Yuan, Up 331.2 Billion Yuan From Previous Month PBoC: May RMB Loans Rose 1.36 Trillion Yuan, Previous 718.8 Billion Yuan PBoC: May RMB Deposits Rose 1.46 Trillion Yuan, Down 1.58 Trillion Yuan YoY PBoC: April Aggregate Financing Increment 1.22 Trillion Yuan, New RMB Loans 718.8 Billion Yuan, M2 Up 12.4% YoY PBoC: Q1 RMB Deposits Rose 15.39 Trillion Yuan, Loans Rose 10.6 Trillion Yuan

[Sheets & Plates] Due to RMB exchange rate fluctuations, HRC prices and other sheet and plate export prices were down day-on-day today, with HRC transaction prices at $490-500/mt. Market inquiries showed no significant changes today, while inquiries for Turkey-bound shipments remained. It is understood that desired CIF prices there were low, far below current domestic FOB quotes.

In 2025, the global energy storage industry officially entered the 100 GW era. The wave of energy transition drove the industry to achieve breakthroughs in both scale and quality. China continued to lead with a 58.6% share of global new installations, serving as the core engine of global energy storage development. From accelerating technological iteration and breakthroughs to explosive expansion of market size, from comprehensive upgrades in enterprise strategies to sustained capital inflows, the energy storage industry is embracing unprecedented development opportunities and industry transformation. At the launch of the survey for the " 2026 Global PV Top 20 and China Energy Storage Top 20 Rankings, " we comprehensively reviewed the development trajectory of the global and Chinese energy storage industry in 2025, summarizing core highlights and development trends to provide comprehensive and authoritative decision-making references for industry participants including energy storage enterprises, industry investors, upstream and downstream suppliers, and related institutions, facilitating high-quality industry development. Global Energy Storage: Breakthroughs in Both Scale and Structure, with China Dominating the Supply Chain In 2025, global electricity ESS new installations reached 113.3 GW/323.5 GWh, up 48.2%/65.7% YoY, with cumulative installations exceeding 496.2 GW, demonstrating strong growth momentum. China contributed 66.4 GW/189.5 GWh of new installations, ranking first globally for four consecutive years. The US and Europe followed with 22.5 GW and 15.8 GW respectively, forming a stable "one dominant, multiple strong" global energy storage market landscape. In terms of technology routes, lithium-ion batteries remained mainstream with a 92.3% share. Meanwhile, long duration energy storage (LDES) technologies accelerated breakthroughs, with commercialization of flow batteries, compressed air energy storage, and gravity energy storage advancing rapidly. The share of global new LDES projects rose from 12.5% in 2024 to 18.7%. Sodium-ion battery technology maturity continued to rise, with top-tier enterprises achieving mass-produced battery cell energy density exceeding 160 Wh/kg and costs 20%-25% lower than LFP, offering new possibilities for cost reduction in the energy storage industry. At the supply chain level, Chinese enterprises held an absolutely dominant position. In 2025, global ESS battery shipments reached 651.5 GWh, up 76.2% YoY. Chinese enterprises shipped a combined 614.7 GWh, accounting for 94.4% of the global total. From upstream materials to downstream system integration, Chinese enterprises have built a complete and globally competitive supply chain system. China Energy Storage: Accelerating Market-Oriented Transformation with an Increasingly Mature Industrial Ecosystem Amid the rapid development of the global energy storage industry, China, as a core force, demonstrated a positive trajectory of accelerating market-oriented transformation and an increasingly mature industrial ecosystem. As of the end of 2025, China's cumulative electricity ESS installations reached 213.3 GW, accounting for 43.0% of the global total, up 54% YoY. Among them, new-type energy storage cumulative installations reached 144.2 GW, with its share rising to 67.6%, indicating continuous optimization of the industrial structure. In 2025, the global energy storage industry officially entered the 100-GW era. The wave of energy transition drove the industry to achieve dual breakthroughs in scale and quality. China continued to lead with 58.6% of global new installations, serving as the core engine of global energy storage development. From accelerated technological iteration breakthroughs to explosive market size expansion, from comprehensive upgrades in enterprise strategies to sustained capital inflows, the energy storage industry is embracing unprecedented development opportunities and industry transformation. At the launch of the " 2026 Global PV Top 20 and China Energy Storage Top 20 Rankings " survey, we comprehensively reviewed the development trajectory of the global and Chinese energy storage industry in 2025, summarized core industry highlights and development trends, and provided comprehensive and authoritative decision-making references for industry participants including energy storage enterprises, industry investors, upstream and downstream suppliers, and related institutions, facilitating high-quality industry development. Global Energy Storage: Dual Breakthroughs in Scale and Structure, with China Dominating the Supply Chain In 2025, global electricity ESS new installations reached 113.3 GW/323.5 GWh, up 48.2%/65.7% YoY, with cumulative installations exceeding 496.2 GW, demonstrating strong industry growth momentum. China contributed 66.4 GW/189.5 GWh of new installations, ranking first globally for four consecutive years. The US and Europe followed with 22.5 GW and 15.8 GW respectively, forming a stable "one dominant leader with multiple strong players" pattern in the global energy storage market. In terms of technology routes, lithium-ion batteries remained the mainstream, accounting for 92.3%. Meanwhile, long duration energy storage (LDES) technologies accelerated breakthroughs, with the commercialization of flow batteries, compressed air energy storage, and gravity energy storage advancing rapidly. The share of global new LDES projects rose from 12.5% in 2024 to 18.7%. Sodium-ion battery technology maturity continued to rise, with top-tier enterprises achieving mass-produced battery cell energy density exceeding 160 Wh/kg and costs 20%-25% lower than LFP, offering new possibilities for cost reduction in the energy storage industry. At the supply chain level, Chinese enterprises held an absolutely dominant position. In 2025, global ESS battery shipments reached 651.5 GWh, up 76.2% YoY. Chinese enterprises shipped a combined 614.7 GWh, accounting for 94.4% of the global total. From upstream materials to downstream system integration, Chinese enterprises have built a complete and globally competitive supply chain system. China Energy Storage: Accelerating Market-Oriented Transformation and Increasingly Refined Industrial Ecosystem Amid the rapid global development of the energy storage industry, China, as a core force, demonstrates an accelerating market-oriented transformation and an increasingly refined industrial ecosystem. By the end of 2025, China's cumulative electricity ESS installations reached 213.3 GW, accounting for 43.0% of the global total, up 54% YoY. Among them, new-type energy storage cumulative installations reached 144.2 GW, with its share rising to 67.6%, indicating continuous optimization of the industrial structure. Application scenarios , standalone ESS accounted for 63% of new installations, up 2.7 percentage points from 2024. A coordinated development pattern between the power grid side and user side has taken shape, with the core values of energy storage in peak shaving, frequency regulation, and backup being fully released. Market entities, according to Qichacha data, the number of newly registered energy storage-related enterprises in China reached 107,000 in 2025, up 17.0% YoY, hitting a ten-year high. East China and south China demonstrated significant industrial cluster effects, accounting for 32.3% and 20.3% respectively. Meanwhile, industry reshuffle also accelerated, with approximately 50,000 enterprises exiting the market throughout the year, and a "the strong stay strong" industry landscape initially emerged. The dual drivers of policy and market injected sustained momentum into industry development. The NDRC and the National Energy Administration jointly issued the "Guiding Opinions on High-Quality Development of New-Type Energy Storage," setting a clear target of 200 GW for new-type energy storage installations by 2027. At the local level, 12 provinces have introduced standalone ESS support policies. Capacity electricity prices and peak shaving compensation mechanisms have been gradually refined, with the average IRR of standalone ESS reaching 8.5%-10% in 2025. The improvement in market-oriented returns further stimulated investment vitality in the industry. Top-Tier Enterprises Leading: Dual Empowerment of Technological Innovation and Market Expansion In 2025, key enterprises in the energy storage industry continued to intensify technological innovation and market expansion, leading the industry's transformation toward high-quality development. Top-tier enterprises leveraged their technological and scale advantages to continuously consolidate their market positions. CATL , as the industry leader, saw its ESS battery sales up 29.13% YoY in 2025, ranking first globally for five consecutive years. Its ESS revenue reached 62.44 billion yuan, accounting for 14.74% of total revenue. It also launched condensed-state battery technology with an energy density of 500 Wh/kg, and actively deployed sodium-ion batteries, planning to apply them on a large scale in the ESS sector in 2026. Sungrow delivered outstanding performance in the ESS sector, with full-year ESS revenue of 37.287 billion yuan, up 49.39% YoY, accounting for 41.8% of total revenue. Its global ESS shipments exceeded 25 GWh, with markets outside China accounting for 60%, focusing on core markets including the US, Europe, and the Middle East. Beyond technology deployment, major industry contract signings and capacity expansions also occurred frequently. Canadian Solar Inc. had ESS orders on hand worth $3.6 billion, with global ESS shipments hitting a record high. From publicly listed firms' performance, energy storage business has become a core growth driver for many enterprises, with significant performance divergence across the industry and top-tier enterprises further expanding their advantages. CATL, Sungrow, and other leading enterprises achieved steady growth in energy storage business through comprehensive deployment and strong competitiveness. Meanwhile, Sunwoda, Ginlong Technology, and other enterprises also achieved explosive growth in energy storage business. Ginlong Technology's energy storage business grew 185.31% YoY, with significant increases in string-type energy storage inverter shipments. CORUN, leveraging strategic transformation, achieved 1,700% YoY growth in energy storage business and 1,516.64% growth in non-recurring net profit, becoming an industry dark horse. These enterprises' performance fully reflected the strong momentum of the energy storage industry. 2026 Global PV Top 20 and China Energy Storage Top 20 Rankings Survey Officially Launched Currently, the Strait of Hormuz blockade crisis continues to escalate, plunging global energy supply into a severely strained situation and posing enormous challenges to energy security. Against this backdrop, energy storage, as the "ballast stone" of new energy power, has seen its core value in stable power supply and peak shaving increasingly highlighted. It has not only met more urgent rigid market demand but also driven the industry to explore more cost-effective and practically applicable technology solutions, providing critical support for alleviating global energy tensions and safeguarding energy security. Standing at a turning point of the era, the energy storage industry is transitioning from rapid growth to high-quality development, with technology innovation, cost reduction, market expansion, and landscape reshaping becoming the core key words of industry development. To comprehensively review China's energy storage industry achievements, objectively assess enterprises' comprehensive strengths, and build bridges for industry exchange and cooperation, 2026 Global PV Top 20 and China Energy Storage Top 20 Rankings Survey Has Officially Launched ! This 2026 China Energy Storage Top 20 will produce the 2026 China Energy Storage Enterprise Top 20 (Comprehensive), 2026 China ESS Battery Enterprise Top 20 , and 2026 China ESS Enterprise Top 20 . Ultimately, an authoritative ranking with industry influence will be established. This ranking will serve as an important reference for energy storage enterprises, industry investors, upstream and downstream suppliers, survey institutions, and others, facilitating optimal allocation of industry resources and driving higher-quality development of the energy storage industry. Relevant enterprises are welcome to actively participate in the survey and jointly witness the beginning of a new chapter in the energy storage industry. When solar panels in Lebanon broke through war and scarcity to sustain the survival hopes of an entire city; when Europe adopted household ESS as the primary alternative amid the energy crisis, fortifying energy security with household ESS; when Chinese energy enterprises erected an energy security shield for the world with core technologies, outstanding quality, and a sense of responsibility — we clearly see that new energy technologies and new forces are rising to safeguard global energy security. This force demonstrates the confidence and commitment of Chinese brands, and carries humanity's aspiration for stable energy. We believe that Chinese brands will ultimately inject lasting Chinese momentum into global energy security amid the global energy transformation. 2026 Global PV Top 20 Rankings NO.1 2026 Global PV Enterprise Top 20 (Comprehensive) *Based on enterprise's 2025 annual global PV-related project, product, and service revenue (1 million) NO.2 2026 China PV Enterprise Top 20 (Comprehensive) *Based on enterprise's 2025 annual global PV-related project, product, and service revenue (1 million) NO.3 2026 China PV Power Plant Investment Enterprise Top 20 *Based on enterprise's 2025 annual global PV power plant investment grid connection installations (MW) NO.4 2026 China PV Power Plant EPC General Contractor Enterprise Top 20 *Based on enterprise's 2025 annual global PV power plant grid connection installations (MW) NO.5 2026 China PV Module Enterprise Top 20 *Based on enterprise's 2025 annual global module shipments (MW) NO.6 2026 China PV Inverter Publicly Listed Enterprise Top 15 *Based on each publicly listed firm's (including the listed company and its subsidiaries) 2025 annual global inverter shipments (MW) NO.7 2026 China Solar Panel Mounting Bracket Enterprise Top 20 *Based on enterprise's 2025 annual global mounting bracket shipments (MW) Note: Ranking revenue is denominated in RMB (exchange rates are based on the local currency to RMB exchange rate as of December 31, 2025) 2026 China Energy Storage Top 20 Rankings NO.1 2026 China Energy Storage Enterprise Top 20 Rankings (Comprehensive) *Based on enterprise's 2025 annual energy storage-related project, product, and service revenue (1 million) NO.2 2026 China ESS Battery Enterprise Top 20 Rankings *Based on enterprise's 2025 annual ESS battery sales (MWh) NO.3 2026 China ESS Enterprise Top 20 Rankings *Based on enterprise's 2025 annual ESS installations (MWh) Contact Us ABOUT US 2026 Global PV Top 20 Rankings Declaration and Conference Inquiry: Ms. Zhou: 18651953272 Email: 772813695@qq.com 2026 China Energy Storage Top 20 Rankings Declaration and Conference Inquiry: Ms. Liu: 13584535579 Email: 343856673@qq.com

【SMM News Flash】The Monetary Policy Committee of the People's Bank of China held its 2025 Q4 (111th) regular meeting on December 18. The meeting concluded that since the beginning of the year, macro-control efforts have been intensified, monetary policy has been appropriately accommodative, continuously exerting force and being strengthened in a timely manner, enhancing counter-cyclical adjustments, and comprehensively utilizing various monetary policy tools to serve the high-quality development of the real economy, creating a suitable monetary and financial environment for steady and improving economic performance. The effectiveness of the loan prime rate reform continued to be released, the market-based adjustment mechanism for deposit rates functioned effectively, the transmission efficiency of monetary policy improved, and the cost of social financing remained at historically low levels. Supply and demand in the foreign exchange market were basically balanced, foreign exchange reserves were ample, the RMB exchange rate fluctuated in both directions, and remained basically stable at a reasonable and equilibrium level. Financial markets generally operated smoothly.

The Central Economic Work Conference was held in Beijing from December 10 to 11, identifying the comprehensive green transformation under the guidance of "dual carbon" as a key task for 2026. The conference proposed accelerating the construction of new-type energy systems and developing new quality productive forces as core deployments, outlining a clear policy blueprint for the high-quality development of the new energy industry, especially hydrogen, which will usher in multiple opportunities driven by innovation, policy support, and scenario expansion.​ Policies Target Three Directions, Strategic Support for Hydrogen Industry​ The conference provided multi-faceted policy support for the development of the hydrogen industry from a top-level design perspective, focusing on three main directions:​ Accelerating the Construction of New-Type Energy Systems: The conference explicitly stated, "Formulate an outline for the construction of an energy powerhouse, accelerate the building of new-type energy systems, and expand the application of green electricity." As a key carrier for the consumption and cross-sector application of green electricity, hydrogen (especially green hydrogen) can adopt the "electricity-hydrogen synergy" model to absorb surplus new energy power, achieving long-term storage and cross-industry transfer of clean energy. This approach aligns highly with the conference's requirements for expanding the use of green electricity and enhancing the flexibility of the energy system.​ Intensifying the Cultivation of New Quality Productive Forces: The conference emphasized "developing new quality productive forces according to local conditions" and "adhering to innovation-driven development, accelerating the cultivation and growth of new momentum." As a typical representative of new quality productive forces in the new energy field, the R&D and industrial application of hydrogen have been included in the scope of high-quality development actions for key industry chains. The leading role of enterprises in innovation will be further strengthened, and critical core technologies such as efficient water electrolysis for hydrogen production, hydrogen storage, and transportation are expected to receive more policy and financial support.​ Improving Green Transformation and Market Mechanisms: The conference proposed "strengthening the national carbon emission trading market" and "deeply advancing energy conservation and carbon reduction renovations in key industries," creating broad application spaces for the hydrogen industry. The substitution of green hydrogen in high-energy-consuming sectors like steel, chemicals, and transportation will realize value through the carbon market mechanism. Meanwhile, the advancement of a unified national market will remove barriers for the inter-regional circulation of hydrogen and the sharing of infrastructure, addressing the issue of involutionary competition.​ Multi-Dimensional Policy Synergy Releasing Industrial Development Benefits​ The macro-policy orientation and key tasks clarified at the conference will empower the hydrogen industry in terms of funding, innovation, and scenarios:​ Increased Financial Support: The conference proposed implementing a more proactive fiscal policy and a moderately loose monetary policy, with fiscal subsidies and tax incentives tilting towards scientific and technological innovation and green transformation. New policy-based financial instruments and credit support from financial institutions will provide funding guarantees for the implementation of hydrogen projects, effectively stimulating private investment. Continuous Optimization of the Innovation Ecosystem: The meeting outlined plans to establish international sci-tech innovation centers in the Beijing-Tianjin-Hebei region, the Yangtze River Delta, and the Guangdong-Hong Kong-Macao Greater Bay Area, and to improve the intellectual property protection system in emerging fields. These measures are expected to promote deep integration of industry, academia, research, and application in the hydrogen energy sector, accelerate cross-disciplinary innovation such as "artificial intelligence + hydrogen energy," and facilitate the transformation of technological achievements and their industrialisation application. Comprehensive Expansion of Application Scenarios: Driven by the dual objectives of "expanding domestic demand" and "green transformation," the large-scale application of hydrogen energy in areas such as transportation (hydrogen-powered heavy-duty trucks and buses), industry (green hydrogen replacing fossil fuels), and ESS (long-duration hydrogen energy storage) will be further promoted. Demonstration projects like "hydrogen corridors" and "green hydrogen coupling with chemical production" are expected to be included in local key investment plans, forming a virtuous development pattern guided by "policy direction and market drive." The Industry Embraces New Opportunities, Focusing on Breaking Through Core Bottlenecks Industry analysis indicates that the series of deployments from the Central Economic Work Conference signal that the hydrogen energy industry has transitioned from the "pilot demonstration" phase to a critical period of "scaling up development." Aligning with the spirit of the conference and practical industry needs, the hydrogen energy sector should focus on three key driving forces: first, leveraging advantages in green electricity resources to establish low-cost green hydrogen production sites and strengthen the synergy between "green electricity and green hydrogen"; second, concentrating on breakthroughs in key technologies, overcoming "bottleneck" issues in core components like electrolysers and membrane materials, and enhancing the industry's self-reliance and controllability; third, improving business models and standard systems, promoting the linkage between green hydrogen certification and the carbon market, establishing trading mechanisms for battery-grade lithium hydroxide collaborative projects to participate in the electricity market, and effectively converting ecological value into economic value. With the implementation of various policies, the hydrogen energy industry will become a crucial support for building a new-type energy system and a core vehicle for cultivating new quality productive forces, injecting strong momentum into China's goal of achieving carbon peak before 2030. Partial content of the full text is as follows: Xi Jinping delivered an important speech summarizing the economic work in 2025, analyzing the current economic situation, and outlining the economic work for 2026. Li Qiang delivered a concluding speech, putting forward requirements for implementing the spirit of General Secretary Xi Jinping's important speech and doing a good job in next year's economic work. The meeting noted that this year has been an extraordinary one. The Party Central Committee, with Comrade Xi Jinping at its core, united and led the entire Party and people of all ethnic groups across the country to tackle difficulties head-on and work hard, unswervingly implementing the new development philosophy and promoting high-quality development. By balancing domestic and international situations and implementing more proactive and effective macro policies, the main objectives for economic and social development are expected to be successfully met. China's economy has advanced under pressure, developing with a focus on innovation and excellence. The construction of a modern industrial system has continued, reform and opening up have taken new steps, positive progress has been made in resolving risks in key areas, and livelihood safeguards have been strengthened. Over the past five years, we have effectively responded to various shocks and challenges, driving new major achievements in the Party and national undertakings. The 14th Five-Year Plan is expected to be successfully concluded, and the new journey toward the second centenary goal has achieved a good start. The meeting held that through practice, we have gained new insights and experiences in conducting economic work under new circumstances: it is essential to fully tap economic potential, adhere to both policy support and reform innovation, ensure both "vibrant flexibility" and "effective regulation," maintain close integration of investing in physical capital and human capital, and rely on strengthening internal capabilities to address external challenges. The meeting pointed out that in China's economic development, old issues and new challenges remain numerous, the impact of changes in the external environment is deepening, domestic contradictions of strong supply and weak demand are prominent, and risks and hidden dangers in key areas are considerable. Most of these are issues arising during development and transition, which can be resolved through effort. The supporting conditions and fundamental trend of long-term improvement in China's economy remain unchanged. We must strengthen confidence, leverage advantages, tackle challenges, and continuously consolidate and expand the momentum of steady economic progress. The meeting emphasized that to do a good job in next year's economic work, we must be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and its successive plenary sessions, fully, accurately, and comprehensively implement the new development philosophy, accelerate the establishment of a new development pattern, focus on promoting high-quality development, adhere to the general principle of seeking progress while maintaining stability, better coordinate domestic economic work and international economic and trade struggles, better balance development and security, implement more proactive and effective macro policies, enhance the foresight, targeting, and synergy of policies, continuously expand domestic demand and optimize supply, improve increments and revitalize stock resources, develop new quality productive forces according to local conditions, deepen the construction of a unified national market, continuously prevent and resolve risks in key areas, focus on stabilizing employment, enterprises, markets, and expectations, promote effective qualitative improvement and reasonable quantitative growth in the economy, maintain social harmony and stability, and achieve a good start for the 15th Five-Year Plan. The meeting pointed out that in terms of policy orientation for next year's economic work, we must adhere to seeking progress while maintaining stability, improving quality and efficiency, leverage the integrated effects of existing policies and incremental policies, strengthen counter-cyclical and cross-cyclical adjustments, and enhance the effectiveness of macroeconomic governance. We will continue to implement a more proactive fiscal policy, maintain necessary fiscal deficits, overall debt scale, and total expenditure, strengthen scientific fiscal management, optimize fiscal expenditure structure, and standardize tax incentives and fiscal subsidy policies. We will pay attention to resolving local fiscal difficulties and firmly secure the bottom line of "three guarantees" at the grassroots level. We will enforce strict financial discipline and insist on Party and government organs tightening their belts. We will continue to implement a moderately loose monetary policy. Promoting stable economic growth and a reasonable rebound in prices should be a key consideration for monetary policy. Various policy tools, including RRR cuts and interest rate cuts, should be used flexibly and efficiently to maintain ample liquidity, smooth the transmission of monetary policy, and guide financial institutions to increase support for key areas such as expanding domestic demand, scientific and technological innovation, and small and medium-sized enterprises. The RMB exchange rate should be kept basically stable at a reasonable and balanced level. It is necessary to enhance the consistency and effectiveness of macro policies. All types of economic and non-economic policies, as well as existing and incremental policies, should be included in the consistency assessment of macro policy orientation. The mechanism for managing expectations should be improved to boost social confidence. The meeting determined that the following key tasks should be prioritized in next year's economic work. First, adhere to the principle of domestic demand-led development and build a strong domestic market. Deepen the implementation of the special action plan to boost consumption and formulate and implement plans to increase the income of urban and rural residents. Expand the supply of high-quality goods and services. Optimize the implementation of the program of large-scale equipment upgrades and consumer goods trade-ins. Remove unreasonable restrictions in the consumption sector to release the potential of service consumption. Stabilize and reverse the decline in investment by appropriately increasing the scale of central budgeted investment, optimizing the implementation of projects under the strategy of implementing major national strategies and building up security capacity in key areas, improving the management of the use of local government special bonds, and continuing to leverage the role of new-type policy-based financial instruments to effectively stimulate private investment. Promote high-quality urban renewal. Second, adhere to innovation-driven development and accelerate the cultivation of new momentum. Formulate an integrated plan for the development of education, science and technology, and talent. Build international centers for scientific and technological innovation in Beijing (Beijing-Tianjin-Hebei), Shanghai (Yangtze River Delta), and the Guangdong-Hong Kong-Macao Greater Bay Area. Strengthen the leading role of enterprises in innovation and improve the protection system for intellectual property rights in emerging fields. Formulate an action plan for expanding and upgrading the service sector. Implement a new round of actions for the high-quality development of key industry chains. Deepen and expand "AI+", and improve AI governance. Innovate in the provision of financial services for science and technology. Third, adhere to deepening reforms to invigorate the driving force for high-quality development. Formulate regulations for the construction of a unified national market and intensify efforts to address "involutionary" competition. Formulate and implement further plans to deepen the reform of state-owned assets and enterprises, and improve supporting laws and policies for promoting the private economy. Accelerate the clearance of overdue payments owed to enterprises. Promote win-win development among platform enterprises, operators within platforms, and labour. Expand pilot programs for market-oriented reforms in factor markets. Improve the local tax system. Further reduce the number and improve the quality of small and medium-sized financial institutions, and continue to deepen comprehensive reforms in capital market financing and investment. Fourth, adhere to opening up and promote win-win cooperation in multiple fields. Steadily advance institutional openness, orderly expand autonomous opening in the service sector, optimize the layout and scope of free trade zones, and solidly advance the construction of the Hainan Free Trade Port. We will promote the integrated development of trade and investment as well as domestic and foreign trade. We will encourage and support service exports and actively develop digital and green trade. We will deepen reforms of the systems and mechanisms for promoting foreign investment. We will improve the comprehensive overseas service system. We will promote the high-quality development of the Belt and Road Initiative. We will promote the negotiation and signing of more regional and bilateral trade and investment agreements. Fifth, we will remain committed to coordinated development and promote urban-rural integration and regional collaboration . We will make coordinated efforts to advance urbanization with county seats as important hubs and the comprehensive revitalization of the countryside, and promote the high-quality development of county economies. We will strictly guard against the encroachment on arable land, make unremitting efforts to ensure grain production, and keep the prices of grain and other important agricultural products at a reasonable level. We will continue to consolidate and expand the achievements made in poverty alleviation, integrate regular assistance measures into the overall implementation of the rural revitalization strategy, and hold the line against large-scale relapse into poverty. We will support economically powerful provinces in playing a bigger role. We will strengthen coordination and collaboration among key city clusters and deepen cooperation across administrative regions. We will strengthen overall planning for major bays and promote the high-quality development of the marine economy. Sixth, we will remain committed to the "dual carbon" goals to drive a comprehensive green transition. We will further advance energy conservation and carbon reduction initiatives in key industries . We will formulate an outline for building China into a leading energy power, accelerate the development of a new-type energy system, and expand the application of green electricity. We will strengthen the construction of the national carbon emissions trading market. We will implement comprehensive solid waste management initiatives, intensify efforts to keep our skies blue, waters clear, and lands clean, and strengthen the management of new pollutants. We will make solid progress in tackling the tough challenges in the "Three-North" [the Northeast, North, and Northwest] regions and integrate and optimize nature reserves. We will strengthen the meteorological monitoring, forecasting, and early warning systems, expedite efforts to shore up weaknesses in infrastructure for flood control, drainage, and disaster resilience in north China, and enhance our capacity to respond to extreme weather events. Seventh, we will remain committed to improving people's livelihood and strive to deliver tangible benefits to the people. We will implement initiatives to stabilize and expand employment opportunities and improve their quality, maintain stable employment for key groups such as college graduates and migrant workers, and encourage and support flexible employment personnel and those in new forms of employment to participate in employee insurance programs. We will adjust the layout and structure of educational resources, increase the supply of regular senior high school places and enrollment in high-quality undergraduate programs at colleges and universities. We will optimize concentrated procurement of medicines and deepen reforms of medical insurance payment methods. We will implement initiatives to expand and improve rehabilitation and nursing services, introduce a long-term care insurance system, and strengthen care and support for disadvantaged groups. We will advocate a positive view of marriage and childbearing and strive to maintain a stable birth rate. We will carry out solid work to ensure workplace safety, disaster prevention, mitigation, and relief, and food and drug safety. Eighth, we will remain committed to upholding bottom lines and actively and prudently mitigate risks in key areas. We will make efforts to stabilize the real estate market, implement city-specific policies to control increases in housing supply, reduce inventories, and optimize supply, and encourage the purchase of existing commercial housing for use as government-subsidized housing. Deepening the reform of the housing provident fund system and orderly promoting the construction of "good houses." Accelerating the establishment of a new model for real estate development. Actively and orderly resolving local government debt risks, urging localities to take the initiative in debt resolution, and prohibiting the illegal addition of hidden debt. Optimizing methods for debt restructuring and replacement, and employing multiple measures to resolve operational debt risks of local government financing platforms. The meeting pointed out that it is necessary to consciously unify thoughts and actions with the Central Committee's scientific assessment of the situation, grasp the general trend of China's development, and strengthen confidence in future development. The overall requirements and policy orientation for next year's economic work must be fully implemented, adhering to a proactive and pragmatic goal-oriented approach, focusing on resolving existing difficulties and problems, achieving greater breakthroughs in qualitative and effective enhancement, and increasing the sense of gain among residents and enterprises; enhancing the synergistic effects of reforms and policies to promote sustained improvement in economic operations and market expectations. The key focal points for next year's economic work should be grasped within the broader context, centering on strengthening the domestic circulation to expand new spaces for domestic demand growth; focusing on developing new quality productive forces to deeply integrate technological innovation and industrial innovation; around stimulating the momentum and vitality for high-quality development, unwaveringly deepening reforms and expanding openness; concerning the continuous improvement of people's livelihoods, increasing efforts to ensure and enhance livelihood security; and regarding safeguarding security bottom lines, prudently managing risk resolution in key areas. The meeting emphasized the need to strengthen the Party's comprehensive leadership over economic work, forming a unified will and powerful synergy. It is essential to uphold the Central Committee's centralized and unified leadership, with all regions and departments implementing the Central Committee's ideas, tasks, and policies for next year's economic work based on local conditions and practical circumstances. Correct views on political achievements must be established and practiced, insisting on achieving political gains for the people and through hard work, consciously acting in accordance with laws, and improving differentiated assessment and evaluation systems. National and local "15th Five-Year" plans and specialized plans should be formulated in accordance with the "Proposals" of the Fourth Plenary Session of the 20th Central Committee to promote high-quality and sustainable development. A favorable political environment, talent environment, business environment, and public opinion environment should be fostered, with enhanced policy publicity and interpretation to fully stimulate positive social energy. The meeting required ensuring the supply of important livelihood commodities during the year-end and beginning of the year, caring for the production and livelihoods of disadvantaged groups, and resolutely preventing and curbing the occurrence of major accidents. The meeting called for the entire Party and society to unite more closely around the Central Committee with Comrade Xi Jinping at its core, working with one heart and forging ahead with determination to strive for the achievement of next year's economic and social development goals and tasks, ensuring a good start and solid steps for the "15th Five-Year" period. Attending the meeting were members of the Political Bureau of the Central Committee and secretaries of the Central Secretariat, Vice Chairmen of the Central Military Commission, relevant leading comrades of the Standing Committee of the National People's Congress, State Councilors, President of the Supreme People's Court, Procurator-General of the Supreme People's Procuratorate, relevant leading comrades of the National Committee of the Chinese People's Political Consultative Conference, and members of the Central Military Commission. The principal leading officials from various provinces, autonomous regions, municipalities directly under the central government, cities specifically designated in the state plan, the Xinjiang Production and Construction Corps, relevant departments of the central and state organs, certain people's organizations, some financial institutions and enterprises under central management, and various departments of the Central Military Commission attended the meeting.

[SMM Morning Meeting Summary: LME Zinc Inventory Buildup Continues, LME Zinc Center Shifts Downward] Overnight, LME zinc opened at $3,135.5/mt. At the beginning of the session, LME zinc briefly rose to a high of $3,165/mt, but then bears increased their open interest, causing LME zinc to fluctuate downward throughout the session and hit a low of $3,087.5/mt by the end. It finally closed down at $3,095/mt, falling by $44/mt, a decline of 1.40%. Trading volume dropped to 15,151 lots, while open interest increased by 12,493 lots to 236,000 lots.