Here's what happened in China's markets last trade day (12/15):

US Treasury Secretary Janet Yellen plans her second trip to China, emphasizing cooperation in non-sensitive areas like climate and money laundering. Simultaneously, the US Treasury targets Chinese solar panels and EV batteries with clean energy manufacturing subsidy rules.

The People’s Bank of China injects $112 billion in liquidity through its monthly medium-term lending facility, reflecting concerns about economic growth. Despite a high liquidity amount, the impact may be limited without a corresponding interest rate cut.

Beijing aims to reduce the annual budget deficit to 3% in 2024 from an expected 3.8% this year. The cautious approach includes the option for up to $140 billion in special government bonds, excluding additional local government bond issuances, to address potential economic challenges.

China experiences an 11.6% YoY surge in electricity consumption in November, indicating manufacturing recovery and seasonal demand. With expectations of continued growth, rising power demand may lead to increased demand for coal and natural gas.

Despite a low base effect, China's retail sales in November grow by 10.1%, falling short of the expected 12.5% increase. Excluding the auto sector, retail sales of consumer goods increase by 9.6%. While industrial output surpasses expectations, the sustainability of the recovery in retail and industrial sectors remains uncertain.