MNI China Press Digest Jan 12: Polysilicon, SME, Commodities

Highlights from Chinese press reports on Monday:

• China’s polysilicon market sentiment has weakened sharply after authorities fully scrapped value-added tax export rebates for photovoltaic products and reportedly tightened self-discipline mechanisms following regulatory talks, Yicai reports. Sources said regulators have recently warned major firms of potential antitrust risks, laid out explicit rectification requirements and demanded concrete corrective actions. Authorities said companies must not coordinate on capacity, utilisation rates, production or sales volumes, or pricing. They must not divide markets, allocate output, or share profits in any form, nor coordinate on current or future prices, costs, or production and sales plans.
• China will prioritise support for private investment by optimising an interest subsidy program for loans to small, medium, and micro enterprises, aimed at reducing corporate financing thresholds and costs, according to a recent State Council executive meeting. Local governments such as Beijing and Shenzhen have already rolled out similar interest subsidy policies for SMEs, primarily targeting innovative firms. In Beijing, for example, companies can receive subsidies covering 20% of the interest incurred on their first loan within one year from the date of the initial disbursement, with the total subsidy capped at 1% of the actual loan amount. The meeting described these measures as a critical step toward expanding effective demand and advancing macroeconomic policy innovation.
• China’s strong industrial advantage in optical modules and PCBs, power equipment, energy storage and the broader manufacturing sector are creating powerful momentum for commodity demand, said Mu Yiling, chief strategy officer of Guojin Securities. He notes that the main opportunities are in industrial resource products, including copper, aluminium, tin, lithium, crude oil, and oil transportation. Wang Hua, a fund manager at Ping An Fund, expects the price center of copper and aluminium to continue rising, driven by tight supply and steady demand growth, which he believes will create attractive allocation opportunities for investors. Yang Kun, a fund manager at Huian Fund, believes that in 2026, precious metals such as gold will continue to offer strategic overweight value, supported by interest-rate cuts and de-dollarisation. He expects industrial metals like copper, aluminum, and nickel to maintain a “volatile upward” trajectory amid the interplay of supply disruptions, fiscal expansion and the global energy transition.