Wu Qing on Capital Market; China Approves Some Rare Earth Export Licenses

What are the key updates?

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2.At the regular press conference held on the afternoon of the 18th, Ministry of Commerce spokesperson He Yadong responded to the latest progress on export controls for rare earth-related items. He stated that since the implementation of export controls, Chinese authorities have conducted policy briefings for Chinese exporters. As relevant export and compliance experience accumulates, some Chinese exporters have preliminarily met the basic requirements for applying for general licenses. To his knowledge, the authorities have already received and approved some general license applications submitted by Chinese exporters.

3.On December 18, 2025, Wu Qing, Chairman of the China Securities Regulatory Commission (CSRC) and President of the China Capital Market Society, attended the inaugural meeting of the society’s Academic Committee and chaired an expert symposium on the capital market’s "15th Five-Year Plan." Wu Qing stated that the CSRC will thoroughly implement the spirit of the Fourth Plenary Session of the 20th Central Committee and the Central Economic Work Conference, diligently advance the formulation and implementation of the capital market’s "15th Five-Year Plan," focus on preventing risks, strengthening regulation, and promoting high-quality development, deepen comprehensive reforms in capital market investment and financing, steadily expand institutional opening-up at a high level, continuously enhance the inclusiveness and attractiveness of the capital market system, and better serve high-quality economic development and the broader goals of Chinese modernization.

4.At the regular press conference on December 18, Ministry of Commerce spokesperson He Yadong said that China has noted the European Commission’s recent intensive investigations against Chinese enterprises under the Foreign Subsidies Regulation (FSR), including in-depth investigations into CRRC Group and Nuctech, and even unannounced on-site inspections of Chinese digital platforms. He described these actions as egregious, highly targeted, and discriminatory. China strongly opposes such measures and urges the EU to immediately cease unreasonable suppression of foreign-invested enterprises, including those from China, use FSR investigation tools prudently, and create a fair, just, and predictable business environment for enterprises operating in Europe. China will closely monitor the EU’s actions and take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises.

5.On December 18, Hong Kong Exchanges and Clearing Limited (HKEX) published a consultation paper titled “Optimizing the Framework for Board Lot Sizes in the Hong Kong Securities Market.” The main proposals include:

Lowering the guidance floor for board lot value from HK$2,000 to HK$1,000.

Introducing a guidance ceiling of HK$50,000 for board lot value.

Reducing the variety of board lot sizes to eight standardized options: 1 share, 50 shares, 100 shares, 500 shares, 1,000 shares, 2,000 shares, 5,000 shares, and 10,000 shares.

The consultation period will end on March 12, 2026.

6.The General Office of the State Council recently issued the “Opinions on Combating Tobacco-Related Illegal Activities Across the Entire Chain,” proposing a series of targeted policy measures to address prominent issues such as tobacco counterfeiting, illegal sales, and smuggling. The aim is to continuously purify the tobacco market environment and safeguard national interests and consumer rights.

7.The State-owned Assets Supervision and Administration Commission (SASAC) issued the “Measures for Accountability for Violations in Operations and Investments by Central Enterprises.” Key points include:

Defining asset loss levels: below ¥5 million as minor, between ¥5 million (inclusive) and ¥50 million as significant, and ¥50 million or above as major.

Categorizing other adverse consequences into three classes: minor, significant, and major, corresponding to the severity of the violation (lighter, more severe, serious) and the scope of impact (the involved enterprise, the industry or central enterprises as a whole, society, or the nation).

Clarifying accountability: dividing responsibility into direct, supervisory, and leadership roles based on job duties.

Specifying conditions and procedures for exemption from liability due to due diligence and compliance in operations and investments, particularly in areas such as technological R&D, strategic emerging industries, and optimization of state-owned economic layout and structural adjustment.

8.On December 18, Yang Xudong, Director of the Electronics and Information Department of the Ministry of Industry and Information Technology (MIIT), stated that 2026 will be a critical period for governance in the photovoltaic industry. Efforts will be intensified to regulate production capacity, strengthen the management of photovoltaic manufacturing projects, and use market-oriented and rule-of-law means to phase out outdated capacity in an orderly manner, accelerating the achievement of dynamic capacity balance.

9.On December 18 local time, the U.S. Department of Labor reported that the Consumer Price Index (CPI) for November increased by 2.7% year-on-year. Excluding volatile food and energy prices, the core CPI rose by 2.6% year-on-year.

10.On December 18 local time, the Bank of England announced a reduction in the benchmark interest rate from 4% to 3.75%. This marks the sixth rate cut since August 2024 and the lowest benchmark rate in the UK since February 2023.

11.The European Central Bank kept its deposit facility rate unchanged at 2.00%, maintained the main refinancing rate at 2.15%, and held the marginal lending rate steady at 2.40%.

12.On December 18 local time, the three major U.S. stock indices closed higher: the Dow Jones rose 0.14%, the Nasdaq gained 1.38%, and the S&P 500 increased by 0.79%. Popular tech stocks broadly advanced, with Micron Technology surging over 10% and Tesla rising over 3%. The Nasdaq Golden Dragon China Index closed up 0.97%, with most popular Chinese stocks trading higher.