Significant Market Events

1. Tesla’s New Humanoid Robot to Begin Mass Production by End of 2026

On February 2, Tesla announced via its official Weibo account that the third generation of its humanoid robot is set to be unveiled, with an expected production of one million units per year. Insiders revealed that the production line for the Model S/X at the Fremont factory will be converted to manufacture humanoid robots, with mass production anticipated to start by the end of 2026. The robot’s supply chain is fully independent, with all components designed from first principles, suggesting a longer ramp-up period compared to automotive products.

2. Nine Departments Work to Improve Payment Environment for Incoming Tourists During Spring Festival

On February 2, the Ministry of Commerce and eight other departments released the “2026 ‘Happy Spring Festival’ Special Activity Plan.” This plan aims to facilitate spending by international visitors. It encourages regions to publish multilingual maps featuring Spring Festival customs to engage tourists in experiencing China’s intangible cultural heritage and folk activities. Additionally, it seeks to increase capacity on international routes in response to market demand and provide combined products for inbound tourism, focusing on enhancing the payment environment with bank cards, mobile payments, and cash services.

3. Singapore to Establish First National Space Agency on April 1

On February 2, Singapore announced the establishment of its first national space agency, which will officially begin operations on April 1. Serina H. will take on the role of founding director. The new agency will take over and expand the functions of the Singapore Office for Space Technology and Industry Development, focusing on five core missions, including enhancing the research ecosystem, developing the space industry, and promoting international collaboration.

4. Citi Warns of Extreme Gold Valuation; Decrease in Safe-Haven Demand Expected in Second Half of 2026

Citi issued a warning on February 2, stating that gold valuations have reached extreme levels, with global gold expenditure as a percentage of GDP rising to 0.7%, the highest in 55 years. If the allocation of gold returns to the historical norm of 0.35% – 0.4%, gold prices could face a “halving” risk. With the potential for a resolution in the Russia-Ukraine conflict in the second half of 2026, alongside an upturn in the U.S. economy and a reaffirmation of the Federal Reserve’s independence, the collective decrease in safe-haven demand could remove the last support for gold prices.

5. EY Reports Record Number of Foreign Financial Institutions in China

On February 2, EY released a report indicating that by June 2025, there will be 42 foreign-funded banks operating in China, bolstered by strong capital and extensive international experience among their shareholders. This foundation supports the growth of foreign banks in the Chinese market. Additionally, foreign brokerages are accelerating their presence in China’s capital markets, with 16 foreign-controlled securities firms operating by mid-2025. The pace of financial sector opening in banking, insurance, securities, and asset management is expected to further accelerate in 2025, leading to continued growth in assets and revenues for foreign financial institutions.

6. Guangdong Encourages Use of Financial Tools for Mergers and Industry Chain Optimization

On February 2, the Guangdong Provincial Development and Reform Commission released a work plan for optimizing the business environment in 2026. The plan aims to enhance the market-based trading level of property rights and encourages various intellectual property transaction platforms to strengthen financial services. It promotes collaboration with commercial banks to establish dedicated sections for managing intellectual property collateral and encourages accelerated monetization through online auctions and brokerage transactions. The plan also supports the development of carbon emissions trading markets.

7. Tesla Achieves Large-Scale Production of Dry Electrode Batteries

On February 2, Elon Musk announced on social media that Tesla has achieved large-scale production of dry electrode technology, marking a significant breakthrough in lithium battery production techniques. He congratulated Tesla’s engineering, production, and supply chain teams, as well as their strategic partners, for their outstanding achievements. Tesla stated that the dry electrode manufacturing process can reduce costs, energy consumption, and factory complexity while significantly improving scalability.

8. Ministry of Industry and Information Technology Reports Growth in Electronic Information Manufacturing

On February 2, data from the Ministry of Industry and Information Technology indicated that in 2025, the value added by the electronic information manufacturing sector is projected to increase by 10.6% year-on-year, outperforming the growth rates of the overall industry and high-tech manufacturing by 4.7 and 1.2 percentage points, respectively. In December, the sector’s value added grew by 11.8% year-on-year. Key products include a total mobile phone production of 1.54 billion units, a decline of 5.8%, with 1.27 billion being smartphones, down 0.9%; mini computer equipment production of 332 million units, down 2.9%; and integrated circuit production reaching 484.3 billion units, an increase of 10.9%.

9. Civil Aviation Administration Seeks Opinions on C919 Aircraft Special Conditions

On February 2, the Civil Aviation Administration of China issued a request for comments on the special conditions for the C919 aircraft. Based on the design characteristics of the C919, the administration’s Airworthiness Certification Division has drafted the special conditions for “C919 Aircraft Narrow Runway Operations.” The public consultation period for this draft is set for ten working days.