The National Conference on Service Consumption and Trade for 2026 proposed cultivating new growth areas in service consumption and encouraging support for service exports. According to a February 5th announcement from the Ministry of Commerce, the conference was held in Beijing from February 4th to 5th. The meeting emphasized that the consumption structure is accelerating its shift from being goods-dominated to service-dominated. Service trade has also reached a new level on the basis of a trillion-dollar scale. Guided by high-level opening-up and driven by both policy and activities, the focus is on fostering new growth points in service consumption, encouraging service exports, innovating digital trade development, promoting high-quality growth in the exhibition industry, and striving for a strong start to high-quality development in the 15th Five-Year Plan period.
The added value of major enterprises in the machinery industry increased by 8.2% in 2025. It was learned from a press conference on the economic performance of the machinery industry for the full year of 2025, held by the China Machinery Industry Federation on February 5th, that the industry's operation showed a trend of high-level moderation with steady progress. A good start was achieved in the first quarter. Growth slowed in the second quarter due to factors like tariff fluctuations but quickly stabilized with proactive responses. The high-level moderation trend continued in the third and fourth quarters, resulting in relatively rapid growth for the full year.
The resilience of the consumption and high-dividend sectors in the Hong Kong stock market has become prominent, with public funds看好 structural investment opportunities. On February 5th, the performances of the A-share and Hong Kong stock markets diverged. Major Hong Kong indices rose in the afternoon session, closing in positive territory against the trend. The consumption sector performed notably well, with several related ETFs ranking among the top gainers in the market. It is worth noting that during recent volatile adjustments in the Hong Kong market, the Hang Seng Tech Index fell significantly. In contrast to the overall market's weaker performance, the consumption and high-dividend sectors demonstrated strong resilience, leading to corresponding increases in the net asset values of several related funds. Looking ahead, several public fund institutions believe that Hong Kong stocks remain a global valuation洼地, and short-term disturbances may not alter their medium-to-long-term allocation appeal, expressing optimism about structural investment opportunities.
Wu Weichen from CITIC Securities stated that dual drivers of industrial trends and fundamentals are propelling the solid-state battery sector into a value realization phase. After an upward trend since the beginning of the year, the solid-state battery sector recently entered a phase of volatile adjustment, attracting significant market attention. In a recent exclusive interview, Wu Weichen, Chief Analyst of Batteries and Energy Management at CITIC Securities, indicated that the strength in the solid-state battery sector is not merely thematic speculation. It is supported by a solid foundation formed by two factors: improved fundamentals of related companies in the industrial chain and accelerated industrial development, possessing strong rationality and sustainability. Benefiting from a comprehensive reversal in prices, orders, and profitability within the lithium battery industry chain, coupled with multiple catalysts such as the solicitation of opinions on national standards for solid-state batteries and successful vehicle testing by several companies, the industry is transitioning from a conceptual phase to an industrialization and value realization cycle. Segments including equipment, materials, and batteries are expected to benefit sequentially from industrial development, highlighting the medium-to-long-term structural investment value of the sector.
Global market growth is slowing, and the photovoltaic industry urgently needs new breakthrough points. On February 5th, the China Photovoltaic Industry Association held a seminar in Beijing reviewing the industry's development in 2025 and outlook for 2026. It was understood on-site that during the 15th Five-Year Plan period, the growth rates for new photovoltaic installations globally and in China are expected to slow significantly. While crystalline silicon photovoltaic technology continues to improve, it is also approaching its limits, leading to diminishing marginal returns from cost reduction and efficiency gains. Photovoltaic companies must confront the challenges of high-quality development and seek new breakthrough points.
To hedge pre-holiday funding demand, the central bank restarted 14-day reverse repo operations. The arrangements for liquidity management around the Spring Festival have been implemented. On February 5th, the People's Bank of China conducted a combination of 7-day and 14-day reverse repo operations, achieving a net injection of 64.5 billion yuan into the open market. Industry insiders believe this move by the central bank precisely hedges against funding demand before the holiday and also reflects refined management of liquidity节奏 against the backdrop of stabilizing growth.
Hainan introduces a new "zero tariff" policy: Island residents enjoy an annual 10,000 yuan tax-free quota for imported goods. To solidly advance the construction of the Hainan Free Trade Port and tangibly enhance the sense of benefit for island residents, the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration issued a notice on February 5th, clarifying the "zero tariff" policy on inbound goods for consumption by residents of the Hainan Free Trade Port, effective from the date of announcement. The notice stipulates that inbound goods purchased by Hainan Free Trade Port island residents at designated business premises are exempt from import tariffs, import VAT, and domestic VAT and consumption tax, within the specified quota and product list. Island residents include Chinese citizens holding Hainan ID cards, Hainan residence permits, or Hainan social security cards, as well as foreign personnel working and living in Hainan holding residence permits. The tax-free quota is 10,000 yuan per person per year, with no limit on the number of purchases.
Meituan plans to acquire Dingdong Maicai for $717 million, potentially altering the landscape of fresh produce instant retail. The landscape of the fresh produce instant retail sector is undergoing another change. After market hours on February 5th, Meituan announced on the Hong Kong Exchange that it will acquire 100% of the equity in Dingdong Maicai's China business for an initial consideration of approximately $717 million. This acquisition will make Dingdong Maicai an indirect wholly-owned subsidiary of Meituan, and its financial performance will be consolidated into Meituan's financial statements.
Eight departments aim for the preliminary formation of a coordinated system across the entire industrial chain of traditional Chinese medicine by 2030. On February 5th, eight departments including the Ministry of Industry and Information Technology, the State-owned Assets Supervision and Administration Commission, and the National Financial Regulatory Administration jointly issued the "Implementation Plan for High-Quality Development of the Traditional Chinese Medicine Industry (2026-2030)". The plan clarifies the development goals, key tasks, and safeguard measures for the TCM industry over the next five years, comprehensively promoting coordinated upgrades across the entire industrial chain.
The central bank emphasizes the importance of comprehensively carrying out financial support for the construction of the New Western Land-Sea Corridor. A conference on financial support for the construction of the New Western Land-Sea Corridor was held in Chongqing on February 5th. Pan Gongsheng, Secretary of the Party Committee and Governor of the People's Bank of China, stated at the meeting that effectively providing financial support for the corridor's construction is an important duty of the PBOC and the financial system. The New Western Land-Sea Corridor is highly significant for forming a new pattern of opening up characterized by "linkage between land and sea, two-way interaction between east and west." In December last year, the PBOC and seven other departments jointly issued the "Opinions on Financial Support to Accelerate the Construction of the New Western Land-Sea Corridor," deploying 21 key measures. These include increasing coordinated financial resource support, optimizing the convenience of fund settlement systems, and expanding the cross-border use of the renminbi, aiming to comprehensively improve the financial service system for the corridor.
If the upward trend in non-ferrous metals continues, it may lead to a moderate rebound in the CPI. Since August last year, prices of upstream raw materials, represented by base metals, have surged significantly. The Producer Price Index has improved for five consecutive months, and the Consumer Price Index in December recorded its highest increase in nearly three years. Currently, with prices of upstream materials like copper continuing to climb, attention is focused on whether domestic PPI and CPI can further rebound from low levels this year.
Improved supply-demand dynamics and stabilizing prices lead to widespread gains across the lithium battery industry chain. In 2025, driven by both supply-side efforts to "counter internal competition" and demand-side volume growth, the supply-demand situation in the lithium battery industry gradually improved, leading to stabilized and rebounding product prices and corporate profitability. Wind data shows that as of February 5, 2026, 70 A-share listed companies in the lithium battery chain had disclosed performance forecasts or preliminary reports. Among them, 50 companies achieved year-on-year growth in net profit (including reduced losses), accounting for over 70%; 19 listed companies turned losses into profits.
China's total service import and export value increased by 7.4% year-on-year in 2025. Data released by the Ministry of Commerce on February 5th showed that China's service trade grew steadily in 2025, with the total service import and export value reaching 8,082.31 billion yuan, a year-on-year increase of 7.4%. Exports amounted to 3,626.79 billion yuan, up 14.2%, while imports were 4,455.51 billion yuan, up 2.5%. The service trade deficit was 828.72 billion yuan, a reduction of 343.95 billion yuan compared to the previous year.
The commercial aerospace industry is accelerating towards scale. On February 4th, Beijing Tianbing Technology Co., Ltd. announced via its official social media that its satellite testing and launch technical facility in Jiuquan recently passed the pre-acceptance review. As the first such facility for commercial aerospace in China, it marks the achievement of a closed-loop process for Tianbing's scaled launch capability of "36 satellites per rocket" and signifies the full-speed advancement of China's satellite internet constellation deployment task.
Three departments issued the "zero tariff" policy on inbound goods for consumption by residents of the Hainan Free Trade Port. On February 5th, the Ministry of Finance announced that, to solidly advance the construction of the Hainan Free Trade Port and tangibly enhance the sense of benefit for island residents, the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration jointly issued the "Notice on the Zero Tariff Policy for Inbound Goods for Consumption by Residents of the Hainan Free Trade Port," effective from the date of announcement.
Guoxuan High-Tech plans a private placement to raise up to 5 billion yuan for power battery projects. On the evening of February 5th, Guoxuan High-Tech Co., Ltd. announced its plan to issue shares to specific objects to raise funds totaling no more than 5 billion yuan. The funds will be used for three projects, including the "Annual 20GWh Power Battery Project," and to supplement working capital. Additionally, the number of shares issued will not exceed 15% of the company's total share capital prior to the issuance (i.e., 272 million shares). The issue price will be no less than 80% of the average trading price of the 20 trading days preceding the pricing benchmark date, and the number of subscribers will not exceed 35.