August 20, SMM News: Base metals: At midday close, most base metals on the domestic market rose. SHFE copper rose 0.36%, SHFE aluminum fell 0.57%. SHFE lead rose 0.28%. SHFE zinc edged down. SHFE tin rose 1.68%. SHFE nickel rose 1.19%. Additionally, the most-traded cast aluminum futures edged up, while the most-traded alumina contract fell 0.3%. The most-traded lithium carbonate contract rose 0.98%. The most-traded silicon metal contract rose 0.57%. The most-traded polysilicon futures rose 0.48%. Ferrous metals showed mixed performance. Iron ore fell 2.17%, rebar fell 0.46%, and hot-rolled coil fell 0.27%. Stainless steel rose 0.63%. Coking coal and coke: the most-traded coking coal contract rose 0.25%, and the most-traded coke contract rose 1.12%. On the overseas market base metals side, as of 11:40, LME metals generally rose. LME copper, LME lead, and LME zinc each gained less than 0.3%. LME aluminum fell 0.79%. LME tin rose 0.73%. LME nickel fell 0.64%. Precious metals, as of 11:40, COMEX gold rose 0.11%, COMEX silver rose 2.11%. Domestic precious metals: SHFE gold rose 2.47%, the most-traded SHFE silver contract rose 4.93%. Additionally, at midday close, the most-traded platinum futures rose 4.52%, and the most-traded palladium futures rose 2.44%. At midday close, the most-traded Europe container shipping futures fell 1.46% to 1,716.5 points. As of 11:40 on August 20, noon quotes for some futures: Spot market & fundamentals Aluminum: Today the futures market continued its decline, but the south China spot market was steady with improvement. The cumulative decline in absolute prices had been substantial, clearly breaking below the monthly moving average. Coupled with stable inventory draws and a significant single-day decline, these dual positives prompted holders to generally hold back from selling more firmly... Macro front China: [Unchanged for the 15th consecutive month! August LPR quotes released: 5-year above 3.5%, 1-year 3%] China's August loan prime rate (LPR) was released on August 20, with both 1-year and 5-year above LPR unchanged. The People's Bank of China authorized the National Interbank Funding Center to announce that the loan prime rate (LPR) on August 20, 2026 is: 1-year LPR at 3.0%, 5-year above LPR at 3.5%. The above LPR is valid until the next LPR release. The 7-day reverse repo rate, as the main policy rate, has remained unchanged for 15 consecutive months since its cut in May 2025. Therefore, the pricing basis for LPR quotes has not changed this month. The LPR was last adjusted in May 2025, with both the 1-year and over-5-year LPR cut by 10 basis points. [Shanghai issues "Housing Eight Measures" for property market: Down payment for second homes outside the outer ring road reduced from 20% to 15%, and interim home purchase subsidy policy introduced] To better meet residents' rigid and improved housing needs and promote the stable and healthy development of the real estate market, on August 20, six departments including the Shanghai Municipal Commission of Housing and Urban-Rural Development Management, the Shanghai Municipal Housing Authority, the Shanghai Municipal Finance Bureau, the Shanghai Branch of the People's Bank of China, the Shanghai Financial Regulatory Bureau, and the Shanghai Housing Provident Fund Management Center jointly issued the 《Notice on Optimizing Local Real Estate Policy Measures》 (hereinafter referred to as the 《Notice》), effective from August 21, 2026. The 《Notice》 mainly includes 8 policy measures in 5 aspects: optimizing housing provident fund withdrawal, optimizing personal housing credit, implementing trade-in home purchase subsidies, promoting housing voucher placement, and advancing the acquisition of second-hand housing. [Beijing Yizhuang: Will accelerate the mass production of 100,000-unit level embodied AI robots] According to the "Beijing Yizhuang" official account, on August 19, the 2026 World Robot Conference opened in Beijing Yizhuang. At the "Open Cooperation" main forum, Li Quan, member of the Party Working Committee and Deputy Director of the Management Committee of the Beijing Economic-Technological Development Area, released the "Beijing Machine Domain"—a vision of building a new society of human-machine integrated embodied AI. Beijing Yizhuang will accelerate the development of 100 feature robot products that can be practically deployed, promote their application in 1,000 niche areas; accelerate the mass production of 100,000-unit level embodied AI robots, and form a production capacity of 1 million sets of key core parts. (from Wall Street News APP) The PBOC conducted zero 7-day reverse repo operations for 8 consecutive working days. Today, 327.4 billion yuan of reverse repos matured. US dollar side: As of 11:40, the US dollar index rose 0.03% to 98.83. US Fed meeting minutes showed that several officials last month leaned toward raising rates, while many said that if inflation failed to decline, further tightening of monetary policy would be necessary. However, at the July meeting, uncertainty continued to heavily influence Fed officials' judgment. The minutes showed: "Regarding the monetary policy outlook, participants reiterated that their interpretation of future data would be a key component of policy discussions." The FOMC voted 9 to 3 in July to keep the benchmark interest rate in the range of 3.5% to 3.75%. Logan, Hammack, and Kashkari voted against, advocating for a 25-basis-point rate hike. Two other regional Fed presidents who did not have voting rights in July—Schmid and Musalem—also later stated that if they had had voting rights at that time, they would have supported a rate hike at that meeting. Most of the policy discussions at the July meeting revolved around differing judgments on future inflation trends. The meeting minutes stated: "Most participants expected that inflation would gradually pull back over the remainder of the year as the effects of tariffs and earlier energy price increases faded, but many participants noted that the possibility of inflation remaining elevated persisted." According to the CME FedWatch: The probability of the US Fed keeping rates unchanged by September is 67.3%, and the probability of a cumulative 25-basis-point rate hike is 32.7%. The probability of the Fed keeping rates unchanged by October is 58.3%, the probability of a cumulative 25-basis-point hike is 37.3%, and the probability of a cumulative 50-basis-point hike is 4.3%. Four US Senate Democrats led by Chris Van Hollen have demanded that Fed Chairman Warsh publicly disclose the content of his conversations with Trump, after The Wall Street Journal reported that the two had spoken multiple times, even though Warsh's schedule did not show such calls. The senators said that without disclosing contact information, it could lead the public to mistakenly believe that the White House is steering monetary policy. Last month, under questioning by Van Hollen, Warsh did not directly respond to the matter. The senators demanded that Warsh confirm in writing whether he has had any contact with Trump since taking office, or amend his schedule to disclose relevant calls. In early August, White House National Economic Council Director Hassett downplayed these calls, saying that Trump did not pressure Warsh on rate decisions; and Trump himself said that he had only had one brief conversation with Warsh. In contrast, former Fed Chairman Powell had detailed records of his calls with Trump and disclosed several face-to-face meetings. The US Treasury issued a statement saying it will at least double the size of liquidity support repo operations targeting long-term nominal coupon securities, covering two maturity buckets: 10-to-20-year and 20-to-30-year tenors. The current maximum size per operation is $2 billion, and future operations will be at least $4 billion each. The adjustment will take effect on September 9, 2026, and will be implemented for the remainder of the current refunding quarter (through November 4, 2026). The Treasury will provide more information on future repo sizes at the next quarterly refunding meeting, scheduled for November 4, 2026. The expansion of the repurchase operation scale reflects the Ministry of Finance's intention to provide stronger liquidity support for the long-term nominal government bond market. The Ministry of Finance will announce the updated temporary government bond repurchase arrangements later. US Treasury Secretary Bessent this year has become one of the most interventionist Treasury secretaries in decades through a series of unconventional operations, aiming to curb the rise in US borrowing costs. This week, the US Treasury announced it would "at least double" its originally planned repurchase of 10-year to 30-year bonds. Previously, the Treasury had signaled a possible reduction in long-term debt issuance. On July 31, Bessent led the US government's first yen purchase in 30 years. Former Treasury official Mark Sobel commented that Bessent is "absolutely an aggressive interventionist," with a style reminiscent of his hedge fund background. He believes that Bessent and senior government officials are clearly concerned about rising long-term US Treasury yields. Affected by inflation, Fed monetary policy, and fiscal deficits, the 10-year US Treasury yield has been rising, pushing up mortgage rates and dragging down economic growth. Some analysts point out that Bessent is trying to stabilize the market through yield curve intervention, but also warn that without addressing high debt and fiscal deficits, this strategy is difficult to sustain in the long term. (Jin Shi Data APP) Data: Today, the following data will be released: Australia July seasonally adjusted unemployment rate, Germany July PPI month-on-month, Switzerland July trade balance, UK August CBI industrial order expectations, US initial jobless claims for the week ending August 15, US August Philadelphia Fed manufacturing index, US July Conference Board leading index month-on-month, China July year-to-date installed power generation capacity, China July year-to-date installed power generation capacity year-on-year rate, among others. In addition, attention should be paid to: the Ministry of Commerce's August first regular press conference; interview of 2028 FOMC voter and St. Louis Fed President Musalem by CNBC; Alibaba's earnings release. Crude oil: As of 11:40, both crude oil benchmarks moved sideways, with WTI up 0.05% and Brent up 0.23%. With US-Iran negotiations in a stalemate, oil prices moved sideways. According to CCTV News: On August 19 local time, US President Trump posted on his social media platform "Truth Social" that Iran failed to seize the opportunity to reach an agreement, so he announced the "harshest economic action ever taken against any country" against Iran, calling it an unprecedented "economic war and economic isolation." Trump said the US is building a record number of oil pipelines to reduce dependence on the Strait of Hormuz. He said that with the emergence of more alternative supply routes and the US strengthening its control over the strait, the importance of the Strait of Hormuz will decline. Trump also said that although some had predicted that oil prices could skyrocket to $350, current oil prices remain around $84 to $85 per barrel. Two US officials told Axios that the US military has quietly established a shipping lane through the Strait of Hormuz, carrying millions of barrels of oil daily. Although the broader war remains deadlocked, the operation has achieved significant results. The operation has been ongoing for weeks, and 15 to 20 tankers have already passed through the southern channel off the coast of Oman to enter or exit the Strait. Officials said that about 10 million barrels of oil are shipped through the strait daily and enter the global energy market, but this figure is about half of the pre-war volume. This US-led operation is alleviating one of the most severe impacts of the war: the disruption of oil supply, which has driven a sharp rise in crude oil prices. Officials stated that although the current volume of oil shipped through the strait is still below pre-war levels, it has already had a notable impact on global oil supply. (Jinshi Data) In addition, Venezuelan oil minister Paula Enao told investors in Houston that Venezuela hopes to sign production-sharing contracts and increase oil production in this country with the world's largest crude oil reserves. Enao said that Venezuela currently has 916 blocks available for exploration and production. She said Venezuela is known for heavy crude, but there are also investment opportunities in light and medium crude and natural gas. She said: "We need to reach these agreements to enter these new blocks." "There is a whole world waiting for you to explore." This week, Venezuela has signed agreements with oilfield services giant Schlumberger (SLB.N) and independent oil producer Hnt Oil, but the country hopes to attract more private investment to revive oil production. Over the past 20 years, Venezuela's oil production has been steadily declining. Enao said about 140 companies attended the meeting, and the scale of on-site investors showed the market's interest in investing in Venezuela. Spot Market Overview: ► ► ► ► ► ► ► ► ► ► ► ► ► ►

Recently, the NDRC is working with relevant departments to accelerate the study and formulation of the Implementation Plan for the Strategy of Expanding Domestic Demand (2026-2030). Moving forward, the NDRC will work with relevant departments to effectively expand China's domestic demand with greater intensity and more concrete measures.

★ macro ★ 01 ★★ [The central bank achieved a net withdrawal of 278.5 billion yuan from open market operations.] The central bank conducted 10 billion yuan of 7-day reverse repo operations today, with a bid volume of 10 billion yuan and an allotment volume of 10 billion yuan, at an operation rate of 1.40%, unchanged from the previous level. As 288.5 billion yuan of 7-day reverse repos matured today, a net withdrawal of 278.5 billion yuan was achieved on the day. 02 ★★★ [NBS: June Consumer Prices Rose 1.0% YoY] Data from the NBS showed that in June 2026, the national CPI rose 1.0% YoY. Urban areas rose 1.0%, rural areas rose 0.8%; food prices fell 1.6%, non-food prices rose 1.5%; consumer goods prices rose 1.1%, services prices rose 0.8%. In H1, the national CPI rose 1.0% YoY. In June, the national CPI fell 0.3% MoM. Urban prices fell 0.4%, rural prices fell 0.3%; food prices fell 0.4%, non-food prices fell 0.3%; consumer goods prices fell 0.6%, services prices remained flat. 03 ★★★ [ [NBS: June Industrial Producer Prices Rose 4.1% YoY] ] Data from the NBS showed that in June 2026, the national PPI rose 4.1% YoY and fell 0.3% MoM. Industrial producer purchasing prices rose 6.4% YoY and fell 0.2% MoM. In H1, industrial producer prices rose 1.5% YoY, and industrial producer purchasing prices rose 2.4%. ★ Industry and Downstream ★ 01 ★★★ [Zhejiang Activates Level IV Typhoon Emergency Response] The 9th typhoon of this year, Bavi, was located on the ocean surface about 1,210 kilometers east-southeast of Keelung City, Taiwan, at 5:00 a.m. on July 9, with maximum sustained winds of Force 16 near its center (super typhoon). It is forecast to move northwest at about 15–20 km/h, gradually turning to move northwest tonight, and gradually approaching the waters east of Taiwan. Affected by Bavi, winds in the southern East China Sea will gradually strengthen to Force 8–11 on the night of the 9th. According to the Zhejiang Provincial Emergency Plan for Flood Control, Typhoon Prevention and Drought Relief and the work plan for defending against Typhoon Bavi, after assessment and consultation, the Zhejiang Provincial Flood Control and Typhoon Prevention Headquarters decided at 9:00 a.m. on July 9 to adjust the maritime typhoon emergency response to a Level IV typhoon emergency response. 02 ★★ [H1 NEV Production and Sales Both Exceeded 7 Million Units] On July 9, the latest data released by CAAM showed that from January to June this year, China’s NEV market saw steady growth in production and sales as well as exports. NEV production and sales totaled 7.438 million units and 7.446 million units, up 6.7% YoY and 7.3% YoY, respectively; in June, NEV new-vehicle sales accounted for nearly 60% of total new-vehicle sales. On the export front, from January to June, auto exports reached 5.096 million units, up 65.3% YoY. Of this, NEV exports were 2.355 million units, up 1.2 times YoY. 03 ★★ [China Index Academy: Full-Year Floor Space of Newly Built Commercial Buildings Sold Is Expected to Fall 7.8% YoY] China Index Academy released Summary of China’s Real Estate Market in H1 2026 & Trend Outlook for H2, expecting that in H2, policies on both the supply and demand sides will continue to gain traction, and stabilizing home prices may become a key focus. Overall, the real estate market remains in the process of consolidating at lows, and the market recovery will continue to show divergent characteristics. Looking ahead to H2, the second-hand housing market in core cities is expected to maintain a certain level of activity; sustained improvement in transactions, together with a stabilization in listings, will further narrow the pace of price declines, and the foundation for price stabilization in some cities will gradually strengthen. For new homes, affected by a low base in the same period of 2025, the YoY decline in nationwide new-home sales in H2 is expected to narrow gradually, but a comprehensive market recovery will still take time. 04 ★★★ [Shipbuilders’ Orders Scheduled Through 2030, Industry Sees Clear Upcycle Opportunities] Riding the wave of the global shipbuilding industry’s recovery, China’s shipbuilding sector is seeing clear upcycle opportunities. In H1, Hengli Heavy Industry signed 207 new vessel orders, with cumulative orders on hand exceeding 500 vessels, and its delivery schedule has been locked in through 2030; China State Shipbuilding’s delivery cycle is also scheduled through 2030; and Sumec’s newly won orders in Q1 2026 surged by more than 600% YoY. Overall, orders at leading shipbuilders in China are generally full, and industry dividends are being released. Amid the high-prosperity cycle, potential risks also warrant attention. Analysts noted that overly rapid capacity expansion under optimistic sentiment should be guarded against. In addition, variables such as trade policy disruptions, divergence in segmented demand, and shortcomings in fuel technologies may constrain the industry’s upside room and profitability. 05 ★★ [ Mongolia’s Coal Exports Reached 59.21 Million mt in H1 2026 ] According to statistical data released by Mongolia’s customs authorities, from January to June 2026, Mongolia’s cumulative coal exports totaled 59.2149 million mt, with average monthly coal exports close to 10 million mt, an increase of 21.34 million mt compared to the same period last year, up 56.3% YoY. Among them, hard coal exports were 56.8428 million mt, up 62.0% YoY; lignite exports were 2.3721 million mt, down 15.2% YoY. In June, Mongolia’s coal exports continued to surge, with monthly exports reaching 10.3057 million mt, up 69.0% YoY and up 4.8% MoM. Of this, hard coal exports stood at 9.9272 million mt, up 72.7% YoY and up 4.3% MoM; lignite exports were 378,400 mt, up 8.8% YoY and up 17.8% MoM. ★ Other Hot Topics ★ ⭕ [Tata Steel’s Q1 FY2027 India Crude Steel Production at 5.82 Million mt] Indian steelmaker Tata Steel Group released its production and delivery data for Q1 FY2027 (April 1, 2026 to June 30, 2026). Tata Steel India’s crude steel production reached 5.82 million mt, down about 6% MoM and up 11% YoY, primarily driven by higher output at the Jamshedpur and Kalinganagar plants; during the same period, its India deliveries stood at 5.17 million mt, down about 16% MoM and up about 9% YoY, with domestic deliveries up 11% YoY. ⭕[Fangda Jiugang Successfully Trial-Rolls 36mm Large-Size HG6E/C High-Strength Seismic Rebar] Recently, Fangda Jiugang successfully trial-rolled 36mm large-size HG6E/C high-strength seismic rebar for the first time. Testing shows that all performance indicators, dimensional accuracy, and surface quality comply with relevant standards, marking a major breakthrough in the high-end construction steel segment for the enterprise. HG6E/C is a 635MPa-grade ultra-high-strength seismic rebar, a high-grade, high-end specialty steel for construction, offering significant comprehensive advantages over conventional rebar used in general engineering. ⭕ [Tsingshan Special Material Stainless Steel Deep-Processing Project Commissioned] The “Four-Chain” Integration Promotion Meeting for the stainless steel industry chain and the Tsingshan Special Material Launch & Development Conference were held in Zhouning County. Attendees included Xiang Guangda, Chairman of Tsingshan Holding Group; Zhang Jimin, Chairman of Xintuo Group; Zhang Longqiang, Deputy Secretary General of the China Iron and Steel Association (CISA) and Party Secretary and President of the Metallurgical Industry Information and Standards Research Institute; Li Yan, Member of the Standing Committee of the Municipal Party Committee and Executive Vice Mayor; Wang Qingjie, Executive President of the Stainless Steel Branch of CISA; Zhang Luyao, Chairman of Fujian Tsingshan Special Materials Co., Ltd.; Lei Chunxiong, Secretary of the County Party Committee; Yang Chenxia, Director of the Comprehensive Division of the Provincial Department of Industry and Information Technology; and Zheng Jinsi, Deputy Director of the Municipal Bureau of Industry and Information Technology. The meeting was chaired by Chen Dongyue, Deputy Secretary of the County Party Committee, Secretary of the Party Leadership Group of the County Government, and Acting County Magistrate. * This report is an original work and/or compilation of SMM Information & Technology Co., Ltd. (hereinafter referred to as "SMM"), and SMM holds the copyright in accordance with the Copyright Law of the People's Republic of China and other applicable laws, regulations, and international treaties. Without written permission, no one may reproduce, modify, sell, transfer, display, translate, compile, and disseminate or otherwise disclose the above content to any third party or permit any third party to use it. Once discovered, SMM will pursue legal liability for infringement, including but not limited to demanding the assumption of contractual liability for breach of contract, restitution of unjust enrichment, and compensation for direct and indirect economic losses. The contents of this report, including but not limited to any or all information such as news, articles, data, charts, images, audio, video, logos, advertisements, trademarks, trade names, domain names, layout designs, etc., are protected by the Copyright Law of the People's Republic of China, the Trademark Law of the People's Republic of China, the Anti-Unfair Competition Law of the People's Republic of China, and other applicable laws and regulations as well as international treaties concerning copyright, trademark rights, domain name rights, commercial data information property rights, and other rights, and are owned or held by SMM and its relevant right holders. Without written permission, no institution or individual may reproduce, modify, use, sell, transfer, display, translate, compile, and disseminate or otherwise disclose the above content to any third party or permit any third party to use it. Once discovered, SMM will pursue legal liability for infringement, including but not limited to demanding the assumption of contractual liability for breach of contract, restitution of unjust enrichment, and compensation for direct and indirect economic losses. The views in this report are based on information collected from the market and a comprehensive assessment by the SMM research team. The information provided in this report is for reference only, and risks are borne by the user. This report does not constitute direct investment research advice. Clients should make prudent decisions and not replace their independent judgment with this report. Any decision made by clients has nothing to do with SMM. Furthermore, any losses or liabilities resulting from unauthorized and illegal use of the views in this report have nothing to do with SMM. SMM reserves the right to modify and the final interpretation of the terms of this statement.

★ Macro ★ 01 ★★ [Oil Prices May Return to the 7-Yuan Era] According to China's refined oil product price adjustment cycle, the 13th adjustment window of the year will open at 24:00 on July 3, with only 3 statistical working days remaining and 70% of the current pricing cycle completed. As reported by Dazhong Daily, the decline in oil prices has continued to widen during this cycle, deepening for six consecutive days from an initial drop of just over 0.4 yuan to the current level exceeding 0.65 yuan. The trend of a substantial cut appears largely irreversible, and this Friday evening may mark the year's first triple consecutive decline in oil prices, as well as the fourth price reduction in 2024. As of the calculation data from the 7th working day, estimated figures show a cut of 820 yuan/mt for gasoline and 790 yuan/mt for diesel. Converted to retail terminal unit prices, estimates show a drop of 0.66 yuan per liter for 92-octane gasoline, 0.7 yuan per liter for 95-octane gasoline, and 0.68 yuan per liter for 0# diesel. The two previous adjustments in June had already achieved a double consecutive decline, with cumulative cuts of 1,040 yuan/mt and 1,000 yuan/mt for gasoline and diesel respectively, equivalent to a cumulative price drop of between 0.84 and 0.89 yuan per liter. The price of 92-octane gasoline has fallen below 8 yuan, returning to the 7-yuan range. Once this round of cuts takes effect, the national average price for 95-octane gasoline may fall below 8 yuan, re-entering the 7-yuan era. 02 ★★ [US and Iranian Officials to Hold Indirect Talks in Doha] Sources stated on July 1 that officials from the US and Iran will hold indirect talks in the Qatari capital, Doha, later that day. ★ Industry and Downstream ★ 01 ★★ [Shenzhen Real Estate Market Hits New High for June Transactions in Nearly Six Years] According to data released today by the Shenzhen Centaline Research Center, first-hand and second-hand residential transactions in Shenzhen totaled 8,878 units in June, down 11.9% MoM yet up 14.2% YoY. The combined transaction volume was the highest for the same period since 2021. Specifically, online registrations for new housing (pre-sale and existing) amounted to 3,785 units, a decrease of 16.7% MoM but an increase of 15.6% YoY, while second-hand housing transfers reached 5,093 units, down 8% MoM but up 13.1% YoY. Monitoring data indicates that both new home pre-sales and second-hand home transactions in Shenzhen for the month reached record highs for the same period over the past six years, marking the best June performance for the property market in nearly six years. 02 ★★ [China-Made Air Conditioners See Export Orders Surge from Europe] Data shows that only about 20% of European households have air conditioning installed. Due to the concentrated surge in European demand for cooling, export orders for Chinese-made air conditioners have continued to grow. Air conditioning enterprises are working overtime to produce and fulfill these export orders. At an enterprise's air conditioner production workshop in Jiangmen, Guangdong, workers are rushing to assemble air conditioner parts. Since March this year, the enterprise’s export orders to the European market saw a sharp increase, with exports in May exceeding 800,000 units, up 20.3% YoY. The person in charge told the reporter that many residential buildings in Europe were built long ago, building facades are subject to strict controls, and installation procedures for traditional split air conditioners are complicated with high approval thresholds. Mobile air conditioners produced by Chinese enterprises, which require no outdoor unit and no wall drilling, precisely match the usage scenarios of local homes, apartments, and shops. An air conditioner enterprise’s sales in the French market in June surged over 100% YoY, while its Italian market sales rose 30% YoY in June. 03 ★★ [Chongqing: Promoting Housing "Trade-in" and Optimizing Support Policies such as "Selling Smaller to Buy Larger" and "Transfer with Mortgage"] The Chongqing Municipal Housing and Urban-Rural Development Committee is publicly soliciting opinions on the "Chongqing Urban Housing High-Quality Development 15th Five-Year Plan (Draft for Comments)". It proposes to promote a virtuous cycle in the new and second-hand housing markets, advance housing "trade-in", optimize support policies such as "selling smaller to buy larger" and "transfer with mortgage", reduce transaction costs, and foster synergy between the new and second-hand housing markets. Based on the "Yuyue Anju" system, fully implement online contract signing services for existing homes, establish and improve mechanisms for supervision of existing home transaction funds, listing and release of property listings, and price monitoring; simplify the transaction process, strengthen real estate registration information sharing, automatically verify property information, and promote "one-stop acceptance" and full online processing of transaction services. 04 ★★ [TISCO Steel Science & Technology Company Successfully Trials T1100S-Grade Ultra-High-Strength Carbon Fiber in a Single Attempt] According to China Baowu, recently, the TISCO Steel Science & Technology Company under China Baowu successfully trial-produced T1100S-grade ultra-high-strength carbon fiber in a single attempt, with excellent performance across all key indicators, reaching domestic leading and international advanced levels. Carbon fiber is a key strategic material supporting aerospace and high-end equipment manufacturing. From aircraft structural components to rocket casings, breakthroughs in lightweight materials directly determine the performance ceiling of equipment. The T1100S grade, meanwhile, is a top-tier high-modulus, ultra-high-strength carbon fiber in the industry, with extremely high technical barriers, and has long been a key focus of China’s new material breakthroughs. 05 ★★ [In H1, New Home Prices in 100 Chinese Cities Edge Up Cumulatively, While Second-Hand Home Prices Fall] In the first half of this year, new home prices in 100 Chinese cities continued a structural uptrend. In June, the average new home price in the 100 cities was 17,184 yuan per m², up 0.16% MoM and up 2% YoY. Second-hand home prices in the 100 cities fell cumulatively. In June, the average second-hand home price in the 100 cities was 12,639 yuan per m², down 0.42% MoM and down 7.68% YoY. Core cities were the first to show positive signals: Shenzhen’s second-hand home prices turned to a month-on-month increase in June, while Shanghai’s second-hand home prices rose MoM for four consecutive months. ★Other Hot Topics★ ⭕ [China Fully Enters Main Flooding Season Today] Starting July 1, China fully entered the main flooding season. According to forecasts and comprehensive assessments, during the main flooding season (July–August), both northern and southern China will see areas of heavy rainfall, with the north facing relatively severe flooding, more frequent localized extreme rainstorms and floods, and stronger typhoons moving northward to affect inland areas. Meanwhile, parts of the southwest and northwest may experience periodic droughts due to high temperatures and low rainfall. The flood control and drought relief situation is severe and complex. On the morning of July 1, the Ministry of Water Resources organized a rolling consultation to analyze and assess the current and near-term development of rainfall, water conditions, flooding, and drought, and deployed targeted key preventive measures accordingly. Based on the 24-hour rainfall forecast, the ministry issued province-specific targeted early warnings to 14 provinces (autonomous regions and municipalities), including Liaoning, Shanghai, Zhejiang, Anhui, Jiangxi, Hubei, Hunan, Guangxi, Sichuan, Guizhou, Yunnan, Gansu, Qinghai, and Xinjiang. These warnings detailed lists of counties (cities and districts) under heavy rainfall coverage, reservoir lists, and flash flood disaster risk areas and locations, and reminded relevant parties to ensure safe reservoir operation during flooding, and to guard against small and medium river floods and flash flood disasters. ⭕ [Domestic Route Fuel Surcharges to Be Sharply Cut from July 5] 9 Air issued a notice today stating that effective July 5, 2026 (ticket issuance date), domestic route fuel surcharges will be reduced. For routes over 800 kilometers, each passenger will be charged 100 yuan, and for routes of 800 kilometers or less, each passenger will be charged 50 yuan, representing cuts of 50 yuan and 30 yuan, respectively, from the previous levels. In April and May this year, domestic fuel surcharges were raised significantly for consecutive months. Starting June 5, they were reduced by 20 yuan and 10 yuan for the two categories. With the decline in fuel prices, the fuel surcharge reduction in July is much larger. ⭕ ["US ADP Employment Data" Lower Than Expected] US ADP employment for June was 98,000, the lowest increase since March, below the expected 118,000. The prior reading was 122,000. *This report is an original work and/or compilation produced exclusively by SMM Information & Technology Co., Ltd. (hereinafter referred to as "SMM"). SMM legally holds the copyright and is protected by the Copyright Law of the People's Republic of China and other applicable laws and international treaties. No reproduction, modification, sale, transfer, display, translation, compilation, dissemination, or any other form of disclosure of the above content to third parties or licensing thereof is permitted without written authorization. Otherwise, upon discovery, SMM will pursue legal action for infringement, including but not limited to demanding the assumption of contractual breach liability, restitution of unjust enrichment, and compensation for direct and indirect economic losses. All contents contained in this report, including but not limited to information, articles, data, charts, pictures, sounds, videos, logos, advertisements, trademarks, trade names, domain names, layout designs, and any or all other information, are protected by the Copyright Law of the People's Republic of China, the Trademark Law of the People's Republic of China, the Anti-Unfair Competition Law of the People's Republic of China, as well as applicable international treaties concerning copyrights, trademark rights, domain name rights, commercial data and information property rights, and other rights. They are owned or held by SMM and its relevant rights holders. Without written permission, no organization or individual may reproduce, modify, use, sell, transfer, display, translate, compile, disseminate, or otherwise disclose the above content to any third party or permit any third party to use it. Otherwise, upon discovery, SMM will pursue legal action for infringement, including but not limited to demanding the assumption of contractual breach liability, restitution of unjust enrichment, and compensation for direct and indirect economic losses. The views expressed in this report are based on information gathered from the market and the comprehensive assessment of SMM's research team. The information provided in this report is for reference only, and risks are borne by the user. This report does not constitute direct investment research decision advice. Clients should make decisions prudently and not replace independent judgment with this report. Any decisions made by clients are unrelated to SMM. Furthermore, any losses or liabilities arising from the unauthorized or illegal use of the views in this report are unrelated to SMM. SMM reserves the right to amend and the final right to interpret the terms of this statement. ​

Around the Dragon Boat Festival, reporters visited Beijing, Shenzhen, and Shanghai and found that viewing numbers and trading volumes for popular new and second-hand housing projects had recovered, while demand for improved housing was released at a faster pace. Experts believe that, against the backdrop of policy support and stabilizing home prices, the property markets in first-tier cities have seen marginal improvements, with their role as a market barometer growing more prominent. This helps boost home buying confidence nationwide, though the strength and sustainability of the subsequent market recovery remain to be seen.

SMM June 3 News: Metals market: As of the midday close, base metals on the domestic market rose nearly across the board. SHFE copper gained 1.03%, SHFE aluminum rose 0.45%, SHFE lead rose 0.45%, SHFE zinc gained 1.61%, SHFE tin rose 1.83%, and SHFE nickel fell 0.64%. In addition, the most-traded casting aluminum futures rose 0.39%, and the most-traded alumina futures fell 1.51%. The most-traded lithium carbonate futures continued the downtrend from the previous two trading days, falling 2.58%. The most-traded silicon metal futures rose 0.63%. The most-traded polysilicon futures fell 1.96%. Ferrous metals showed mixed performance. Iron ore was flat at 784.5 yuan/mt, rebar edged down 0.09%, hot-rolled coil fell 0.21%, and stainless steel rose 0.2%. Coking coal and coke: the most-traded coking coal contract fell 0.26%, and the most-traded coke contract rose 0.18%. Overseas base metals, as of 11:41, LME metals showed mixed performance. LME copper fell 0.34%, LME aluminum rose 0.17%, LME lead and LME nickel both fell within 0.4%. LME zinc and LME tin edged up. Precious metals, as of 11:41, COMEX gold fell 0.16% and COMEX silver fell 0.29%. Domestic precious metals: the most-traded SHFE gold contract rose 0.07%, and the most-traded SHFE silver contract rose 0.18%. In addition, as of the midday close, the most-traded platinum futures fell 0.82%, and the most-traded palladium futures rose 1.02%. As of the midday close, the most-traded Europe containerized freight index contract fell 0.67%, closing at 3,758 points. As of 11:41 on June 3, midday futures quotes for selected contracts: Spot and fundamentals Copper: Today, #1 copper cathode spot prices against the front-month contract in North China were reported at an average discount of 400 yuan/mt to a discount of 300 yuan/mt, with the average discount of 350 yuan/mt down 20 yuan/mt from the previous trading day. The average transaction price was 106,360 yuan/mt, up 825 yuan/mt from the previous trading day... Macro front China: [PBOC reverse repo operations achieved a net withdrawal of 177.6 billion yuan on the day] The PBOC conducted zero reverse repo operations today. As 177.6 billion yuan in 7-day reverse repos matured today, a net withdrawal of 177.6 billion yuan was achieved on the day. [ Zibo, Shandong: Optimizing housing provident fund usage policies ] Zibo officially implemented new optimized provident fund policies, adopting multiple measures to boost housing consumption and safeguard residents' essential and upgrading housing needs. The new policies broadened the scope of provident fund withdrawals, allowing down payment and owner-occupied housing withdrawals to be linked with funds from the homebuyer's spouse, both parents, and children. Elevator installation withdrawals were also expanded to include old elevator replacement scenarios. Lending side, housing unit count can be reduced for families with multiple children, purchases of high-grade residential properties or completed homes, and one loan record can be waived for trade-in policies; the upper limit of second-hand housing age plus loan term was raised to 50 years, and the lending ban on properties over 300㎡ was lifted. The new policy added loan extension services, while opening up commercial-to-provident fund and commercial-to-combined loan conversions for flexible employment workers, further reducing residents' home purchase and repayment costs. US dollar: As of 11:41, the US dollar index rose 0.03% to 99.24. US April JOLTs job openings surged from 6.89 million in March to 7.62 million, reaching the highest level in nearly two years, while layoffs declined. These signs indicated that the labour market remained robust despite pressure on enterprises from rising energy costs caused by the Iran war. The professional and business services sector accounted for nearly all of the increase. Total hiring fell to 5.12 million, partially offsetting the sharp increase in March, while layoffs also declined to 1.69 million. These data suggested that US labour demand has stabilized this year compared to near-zero job growth in 2025. Although job openings remained well below levels reached during the post-pandemic reopening period, this stability may further undermine the case for interest rate cuts, with US Fed officials increasingly discussing the possibility of rate hikes. According to CME "FedWatch": the probability of the US Fed maintaining rates unchanged through June was 98.6%, with a 1.4% probability of a cumulative 25 basis point interest rate cut. The probability of the US Fed maintaining rates unchanged through July was 92.4%, with a 6.3% probability of a cumulative 25 basis point rate hike, and a 1.3% probability of a cumulative 25 basis point interest rate cut. Fed Chairman Waller has hired two outside individuals as advisors to assist him in the early stages of his tenure; one of them co-authored a conservative policy blueprint that recommended sweeping structural reforms to the US Fed. According to people familiar with the matter, one of the advisors is Paul Winfree. He served as a White House domestic policy expert during Trump's first term. He is also a credited author of the US Fed chapter in "Project 2025," a conservative policy blueprint developed ahead of the 2024 election. The other advisor is Daniel Heil, a policy fellow at Stanford University's Hoover Institution who served as an economic policy advisor to the 2016 presidential campaign team. His recent writings have primarily focused on cutting federal healthcare spending costs and social security issues. Both individuals have long been active in conservative policy circles, and their professional backgrounds lie in areas outside the US Fed's core responsibilities. A person familiar with the matter said the two advisors would work on temporary contracts to assist Warsh with policy analysis and planning; Warsh has not yet made a final decision on whether they will take on longer-term, formal job titles within the US Fed. (Jin10 Data APP) Other currencies: Traders were reluctant to push the yen exchange rate above the key 160 level amid the risk of intervention by Japanese authorities to support the yen. The yen edged down to near 160 in early Wednesday trading, touching its weakest level since the authorities intervened in late April. The yen still declined despite Japan spending a record 11.73 trillion yen ($73.35 billion) to support the currency between April 28 and May 27. Finance Minister Katayama Satsuki reiterated on Wednesday that the authorities were prepared to respond to foreign exchange fluctuations at any time as needed. Gaitame.com Research Institute analyst Nakamura Tsutomu said: "As USD/JPY approaches the 160 level, intervention concerns are escalating rapidly, triggering a psychological battle in the market, but a test of 160 could happen at any time. With almost no signs of a breakthrough in US-Iran permanent ceasefire negotiations, pressure on the yen is increasing. The large interest rate differential between the US and Japan is also putting the yen under pressure after the Bank of Japan kept rates unchanged in April. Bank of Japan Governor Ueda Kazuo is scheduled to speak on Wednesday afternoon, his last scheduled speech before the central bank's rate-setting meeting on June 16." Overnight index swaps indicated the probability of a rate hike this month was approximately 84%. (Jin10 Data APP) Australia's economic growth slowed more than expected last quarter as households cut spending in the face of rising fuel costs and higher interest rates. Government data released on Wednesday showed GDP grew 0.3% in the first three months of the year, below expectations and roughly one-third of the Q4 2025 growth rate. The 2.5% annual growth rate also fell short of expectations. The head of national accounts at the Australian Bureau of Statistics said: "Economic growth slowed in the March quarter, with mild household and public sector spending. Rising interest rates and significantly higher fuel costs in March likely created an environment of more cautious consumer behavior." Swap traders consolidated the view that the probability of a rate hike at the August meeting was only slightly above 50%, and maintained the view that the Reserve Bank of Australia may raise rates once more before year-end. (Jin10 Data APP) Data: Data to be released today include US May ADP employment, US May S&P Global Services PMI final, US May ISM Non-Manufacturing PMI, US April factory orders month-over-month, France May Services PMI final, Eurozone May Services PMI final, Eurozone April PPI month-over-month, Germany May Services PMI final, UK May Services PMI final, and Australia Q1 GDP annual rate. In addition, attention should be paid to: Bank of Japan Governor Ueda Kazuo will deliver a speech, and US Fed Governor Barr will participate in a dialogue at the 2026 Community Development Bankers Association Peer Forum. Crude oil: As of 11:41, oil prices in both markets rose, with WTI up 0.92% and Brent up 0.82%. According to CCTV News: On June 2 local time, the US Central Command stated that US forces took action against an oil tanker heading to an Iranian port in the Arabian Gulf and disabled it. The war between Iran and the US has no end in sight, diplomatic negotiations have stalled, and military conflicts in the Gulf region continue to escalate. A series of developments indicate that this conflict, which erupted in late February this year, continues to drain all parties through repeated frictions. Oil prices rose after the news broke. (Wallstreetcn) US API crude oil inventory for the week ending May 29 was -6.757 million barrels, vs. expectations of -3.605 million barrels and a prior value of -2.819 million barrels. US API gasoline inventory for the week ending May 29 was 3.454 million barrels, vs. expectations of -98,000 barrels and a prior value of -3.199 million barrels. (Jin10 Data APP) Spot market overview: ► ► ► ► ► ► ► ► ► ► ► ► ►