The National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) released China's purchasing managers' index (PMI) for January 2026 today (31st). The data showed that in January, China's manufacturing market demand tightened somewhat, but enterprise production maintained an expansionary trend, with the industrial structure continuing to optimize. The service sector operated relatively stably, with business expectations continuously improving. The manufacturing PMI for January 2026 was 49.3%, a decrease of 0.8 percentage points from the previous month. The PMI for equipment manufacturing in January was 50.1%, and for high-tech manufacturing, it was 52%. Both equipment and high-tech manufacturing sectors are developing steadily and positively, with the manufacturing industrial structure continuously optimizing. Operation of China's Purchasing Managers' Index in January 2026 I. Operation of China's Manufacturing PMI In January, the manufacturing PMI was 49.3%, a decline of 0.8 percentage points from the previous month, indicating a pullback in the level of manufacturing activity. By enterprise size, the PMI for large enterprises was 50.3%, down 0.5 percentage points from the previous month, yet still above the critical point; the PMIs for medium and small enterprises were 48.7% and 47.4% respectively, dropping by 1.1 and 1.2 percentage points from the previous month, both below the critical point. Looking at the sub-indices, among the five sub-indices constituting the manufacturing PMI, the production index and supplier delivery time index were both above the critical point, while the new orders index, raw material inventory index, and employment index were all below the critical point. The production index stood at 50.6%, a drop of 1.1 percentage points from the previous month, yet still above the critical point, indicating that manufacturing production activities remained in an expansionary state. The new orders index was 49.2%, a decrease of 1.6 percentage points from the previous month, suggesting a slowdown in manufacturing market demand. The raw material inventory index was 47.4%, down 0.4 percentage points from the previous month, indicating a continued reduction in the stock of major raw materials in the manufacturing sector. The employment index was 48.1%, a decline of 0.1 percentage points from the previous month, showing a slight pullback in the employment climate for manufacturing enterprises. The supplier delivery time index was 50.1%, a decrease of 0.1 percentage points from the previous month, yet still above the critical point, indicating a continuous acceleration in the delivery times of raw material suppliers in the manufacturing sector. II. Operation of China's Non-Manufacturing PMI In January, the non-manufacturing business activity index was 49.4%, a drop of 0.8 percentage points from the previous month. By industry, the construction sector's business activity index was 48.8%, a decrease of 4 percentage points from the previous month; the service sector's business activity index was 49.5%, a decline of 0.2 percentage points from the previous month. Looking at the service sector, the business activity indices for monetary and financial services, capital market services, insurance, and other industries were all above 65.0%; while the business activity indices for wholesale, accommodation, real estate, and other industries were all below the threshold. The new orders index stood at 46.1%, down 1.2 percentage points MoM, indicating a decline in market demand prosperity in the non-manufacturing sector. By sector, the new orders index for construction was 40.1%, down 7.3 percentage points MoM; the new orders index for services was 47.1%, down 0.2 percentage points MoM. The input prices index was 50.0%, down 0.2 percentage points MoM, at the threshold, indicating that input prices for non-manufacturing enterprises' operational activities were generally flat compared to the previous month. By sector, the input prices index for construction was 52.0%, up 1.2 percentage points MoM; the input prices index for services was 49.7%, down 0.4 percentage points MoM. The selling price index was 48.8%, up 0.8 percentage points MoM, indicating that the overall decline in selling prices in the non-manufacturing sector narrowed. By sector, the selling price index for construction was 48.2%, up 0.8 percentage points MoM; the selling price index for services was 48.9%, up 0.8 percentage points MoM. The employment index was 46.1%, unchanged from the previous month, indicating that the employment prosperity of non-manufacturing enterprises was basically stable. By sector, the employment index for construction was 41.1%, up 0.1 percentage points MoM; the employment index for services was 47.0%, unchanged from the previous month. The business activity expectations index was 56.0%, down 0.5 percentage points MoM, still remaining in a high prosperity range, indicating that most non-manufacturing enterprises maintain optimistic market expectations. By sector, the business activity expectations index for construction was 49.8%, down 7.6 percentage points MoM; the business activity expectations index for services was 57.1%, up 0.7 percentage points MoM. III. Operation of China's Composite PMI Output Index In January, the composite PMI output index was 49.8%, down 0.9 percentage points MoM, indicating that the overall production and operating activities of Chinese enterprises slowed down compared to the previous month. China's Purchasing Managers' Index Pulled Back in January —Huoli Hui, Chief Statistician of the NBS Service Industry Survey Center, Interprets China's Purchasing Managers' Index for January 2026 On January 31, 2026, the NBS Service Industry Survey Center and the China Federation of Logistics & Purchasing released China's Purchasing Managers' Index. In this regard, Huo Lihui, Chief Statistician of the Service Industry Survey Center of the National Bureau of Statistics (NBS), provided an interpretation. In January, the manufacturing PMI, non-manufacturing business activity index, and composite PMI output index registered 49.3%, 49.4%, and 49.8%, respectively, down 0.8, 0.8, and 0.9 percentage points MoM, indicating a pullback in economic prosperity. I. Manufacturing PMI Declined Slightly, While Production Continued to Expand In January, as some manufacturing industries entered the traditional off-season and effective market demand remained insufficient, the manufacturing PMI stood at 49.3%, reflecting a decline in prosperity compared to the previous month. (1) Enterprise production continued to expand. The production index was 50.6%, above the threshold, indicating sustained expansion in manufacturing production; the new orders index was 49.2%, reflecting a pullback in market demand. By sector, the production and new orders indices for agricultural and non-staple food processing, railway, ship, aerospace equipment, and other industries all exceeded 56.0%, indicating rapid release of production and demand; for petroleum, coal, and other fuel processing, automotive, and other industries, both indices were below the threshold, suggesting slowed market demand and a pullback in production in related sectors. (2) Both price indices rebounded. Influenced by factors such as recent price increases in some bulk commodities, the major raw material purchase price index and ex-factory price index registered 56.1% and 50.6%, respectively, up 3.0 and 1.7 percentage points MoM. Notably, the ex-factory price index rose above the threshold for the first time in nearly 20 months, indicating an overall improvement in the price level of the manufacturing market. By sector, the major raw material purchase price index and ex-factory price index for non-ferrous metal smelting and rolling processing, electrical machinery and equipment, and other industries both rose above 55.0%, reflecting overall price increases for raw material procurement and product sales in related sectors; for timber processing and furniture, petroleum, coal, and other fuel processing, and other industries, both price indices remained below the threshold. (3) The PMI for large enterprises continued to exceed the threshold. The PMI for large enterprises was 50.3%, remaining in expansion territory, with their supportive role continuing to be evident; the PMI for medium and small enterprises were 48.7% and 47.4%, respectively, down 1.1 and 1.2 percentage points MoM, indicating a pullback in their prosperity levels. (4) High-tech manufacturing continued to lead. The PMI for high-tech manufacturing was 52.0%, staying at or above the relatively high level of 52.0% for two consecutive months, indicating sustained positive development trends in related industries. The PMI for equipment manufacturing was 50.1%, remaining in expansion territory. The PMI for consumer goods and high-energy-consumption industries were 48.3% and 47.9%, respectively, reflecting a pullback in their prosperity levels. (V) Enterprise Expectations Remain Optimistic. The business activity expectations index stands at 52.6%, continuing to be above the critical point. By industry, the business activity expectations index for agricultural and sideline food processing, food and beverage refining, and tea industries has remained above 56.0% for two consecutive months, indicating strong confidence among related enterprises in the recent development of their respective industries. II. Non-Manufacturing Business Activity Index Pulls Back Slightly, Financial Market Activity Remains High In January, influenced by factors such as a decline in the prosperity of the construction industry, the non-manufacturing business activity index was 49.4%, down 0.8 percentage points from the previous month, indicating a pullback in the overall prosperity level of the non-manufacturing sector. (I) Service Sector Prosperity Drops Back Slightly. The service sector business activity index was 49.5%, down 0.2 percentage points from the previous month. By industry, the business activity indices for monetary financial services, capital market services, and insurance were all above 65.0%, showing high market activity; the real estate industry's business activity index fell below 40.0%, with a generally weak prosperity level. In terms of market expectations, the service sector business activity expectations index was 57.1%, up 0.7 percentage points from the previous month, indicating that service enterprises' confidence in the near-term market development has strengthened somewhat. (II) Construction Industry Prosperity Declines. Affected by recent low temperatures and the approaching Chinese New Year holiday, construction production and operations slowed down, with the business activity index at 48.8%, down 4.0 percentage points from the previous month, marking a significant pullback in the construction industry's prosperity level. In terms of market expectations, the construction industry business activity expectations index was 49.8%, dropping below the critical point, suggesting that construction enterprises are cautious about the industry's development prospects. III. Composite PMI Output Index Slightly Below Critical Point In January, the composite PMI output index was 49.8%, down 0.9 percentage points from the previous month, indicating that overall enterprise business activities slowed down compared to the previous month. The manufacturing production index and non-manufacturing business activity index, which make up the composite PMI output index, were 50.6% and 49.4%, respectively.

SMM June 4 News: Metal Market: As of the midday close, all base metals in the domestic market rose. SHFE copper increased by 0.68%, SHFE zinc by 0.92%, SHFE aluminum by 0.63%, SHFE lead by 0.48%, SHFE tin by 2.64%, and SHFE nickel by 0.94%. In addition, alumina rose by 0.87%, lithium carbonate by 0.74%, silicon metal fell by 0.14%, and polysilicon rose by 2.52%. The ferrous metals series all rose. Iron ore increased by 0.86%, rebar by 0.61%, and HRC by 0.95%. Stainless steel rose by 0.28%. In the coking coal and coke sector: coking coal increased by 2.16%, and coke by 1.62%. In the overseas metal market, as of 11:46, all LME metals rose. LME zinc increased by 0.3%, LME copper and LME lead rose slightly, LME aluminum by 0.51%, and LME tin and LME nickel both rose by 0.4%. In the precious metals sector, as of 11:46, COMEX gold increased by 0.272%, and COMEX silver by 0.12%. Domestically, SHFE gold fell by 0.16%, and SHFE silver rose by 0.26%. As of the midday close, the most-traded contract for the Europe-to-Asia container shipping index rose by 5.38%, closing at 2168.8. As of 11:46 on June 4, some midday futures market movements: 》June 4 SMM Metal Spot Prices Spot and Fundamentals Copper: Today, spot #1 copper cathode in Guangdong was quoted at a discount of 130 yuan/mt to a premium of 0 yuan/mt against the front-month contract, with an average discount of 65 yuan/mt, down 5 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 190 yuan/mt to a discount of 170 yuan/mt, with an average discount of 180 yuan/mt, down 10 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 78,295 yuan/mt, up 115 yuan/mt from the previous trading day, and the average price of SX-EW copper was 78,180 yuan/mt, up 110 yuan/mt from the previous trading day. Spot Market: Inventories in Guangdong have increased significantly for four consecutive days, with current inventories up 14,300 mt from the previous low... 》Click for details Macro Front Domestic: [Announcement: The State Council Information Office will hold a press conference at 10 a.m. on June 6 regarding economic and trade cooperation between China and South Asia and the 9th China-South Asia Exposition] The State Council Information Office will hold a press conference at 10 a.m. on June 6, 2025 (Friday). Yan Dong, Vice Minister of Commerce, and Liu Yong, Vice Governor of Yunnan Province, will introduce the economic and trade cooperation between China and South Asia and the 9th China-South Asia Exposition, and answer questions from reporters. [PBOC's Open Market Operations Net Withdraw 600 Million Yuan Today] The PBOC conducted 214.9 billion yuan of 7-day reverse repo operations today. As 215.5 billion yuan of 7-day reverse repos matured today, a net withdrawal of 600 million yuan was realized on the day. [Market Liquidity Remains Generally Controllable in June Thanks to Central Bank’s Stimulus Policy Package] Against the backdrop of continued monetary policy efforts, the funding situation remained loose, enabling a smooth transition across the month. As of the close on June 3, funding rates across all tenors declined, with the DR007 weighted average interest rate, an indicator reflecting liquidity conditions, falling sharply by 11.49 basis points to 1.5496%. Analysts believe that market liquidity remains generally controllable. It is expected that under the combined influence of precise reverse repo operations and fiscal expenditures in early June, funding rates are likely to remain low, and sentiment in the bond market may stabilize and rebound. (Financial News Agency) ► The central parity rate of the RMB against the US dollar in the interbank foreign exchange market on June 4 was 7.1886 yuan per US dollar. US dollar: As of 11:46, the US dollar index rose by 0.03% to 99.3. The US dollar index fluctuated rangebound, as uncertainties in the global trade situation offset the impact of US employment data boosting risk appetite. CCTV News reported that on June 3 local time, the US White House issued a statement saying that US President Trump announced an increase in tariffs on imports of steel and aluminum and their derivatives from 25% to 50%. The tariff policy took effect at 00:01 a.m. Eastern Time on June 4, 2025. US economic data showed that job openings in the US increased by 191,000 in April, but layoffs rose by 196,000, the largest increase in nine months, suggesting that conditions in the labour market are softening. The market is now focusing on the US May non-farm payrolls report due on Friday. US Fed policymakers reiterated on Tuesday that they should exercise caution in formulating monetary policy, as the trade war initiated by Trump continues to inject significant uncertainty and risks of economic weakness into the US economic outlook. The Organisation for Economic Co-operation and Development (OECD) warned on Tuesday that the global economic slowdown is exceeding expectations due to the severe impact of the Trump administration's trade policies on the US economy, exacerbating market concerns about the global economy. The OECD forecasts that the US economy is expected to grow by 1.6% in 2025, down from the previous forecast of 2.2%. Global economic growth is expected to be 2.9% in both 2025 and 2026, lower than the previous forecasts of 3.1% (for 2025) and 3.0% (for 2026) made in March this year. Other currencies: The final reading of Japan's services Purchasing Managers' Index (PMI) for May was revised up to 51.0. Although this is lower than April's 52.4, it is an improvement from the preliminary reading of 50.8, indicating that service sector activity expanded for the second consecutive month. Driven by the upward revision of Japan's services data and increased safe-haven demand, the yen rebounded mildly in the Asian session on Wednesday, exerting downward pressure on the US dollar. Despite the cautious stance expressed by the Bank of Japan Governor, market expectations for an interest rate hike in 2025 still persist. Meanwhile, the US dollar is constrained by expectations for US Fed interest rate cuts, concerns over the US fiscal deficit, and uncertainties surrounding trade tensions, limiting the upside of the USD/JPY pair to the resistance zone of 144.30. (Huitong Finance) Data Releases: Today, data including Australia's Q1 seasonally adjusted quarter-on-quarter GDP growth rate, Q1 year-on-year GDP growth rate, Russia's SPGI Services PMI for May, the final UK SPGI Services PMI for May, the US ADP employment change for May, Canada's total reserve assets for May, Brazil's seasonally adjusted SPGI Services PMI for May, the Bank of Canada's overnight lending rate on June 5, and the US ISM Non-Manufacturing PMI for May will be released. Additionally, notable events include: FOMC voter for 2025 and Chicago Fed President Austan Goolsbee participating in a Q&A session; FOMC voter for 2027 and Atlanta Fed President Raphael Bostic, along with Fed Governor Lisa Cook, attending the "Fed Listens" event; and the Bank of Canada announcing its interest rate decision. Crude Oil: As of 11:46, crude oil futures have all dropped slightly, with US crude oil down 0.33% and Brent crude oil down 0.32%. Oil prices have declined due to the loosening of the supply-demand balance following an increase in OPEC production and lingering concerns over the global economic outlook amid tariff tensions. Data released by the American Petroleum Institute (API) on Tuesday showed a decline in US crude oil inventories last week, while gasoline and distillate inventories rose. The API report indicated that US crude oil inventories fell by 3.3 million barrels, gasoline inventories increased by 4.7 million barrels, and distillate inventories rose by approximately 760,000 barrels in the week ending May 30. The US Energy Information Administration (EIA) will release crude oil inventory data on Wednesday. Surveys suggest that analysts expect US crude oil inventories to have declined by approximately 1 million barrels in the week ending May 30. (Webstock Inc.) Spot Market Overview: ► Inventories continue to rise sharply, with spot premiums falling continuously [SMM South China Copper Spot] ► Market demand remains weak, with spot premiums and discounts plummeting [SMM North China Copper Spot] ► Copper cathode rod exports continue to grow positively on a YoY basis. Can the upward trend continue in May amid tariff concerns? [SMM Analysis] Other metal spot noon reviews will be updated later. Please refresh to view.

[Caixin manufacturing PMI was 48.3 in May] The Caixin China General Manufacturing Purchasing Managers' Index (PMI) released on June 3 was recorded at 48.3 in May, a decrease of 2.1 percentage points from April, marking the first time it fell below the threshold since October 2024.

Macro News 1. Recently, there have been repeated claims from the US side that China has violated the consensus reached during the China-US Geneva Economic and Trade Talks. The Ministry of Commerce stated that the US has unilaterally and continuously provoked new economic and trade frictions, exacerbating the uncertainty and instability of bilateral economic and trade relations. Instead of reflecting on its own actions, the US has shifted the blame and unjustly accused China of violating the consensus, which is a serious departure from the facts. China firmly rejects these unfounded accusations. If the US continues to act unilaterally and harm China's interests, China will continue to take resolute and forceful measures to safeguard its legitimate rights and interests. 3. The Office of the United States Trade Representative announced an extension of the exemption period in the Section 301 investigation into China's acts, policies, and practices related to technology transfer, intellectual property, and innovation. The exemption period, originally set to expire on May 31, 2025, has now been extended to August 31, 2025. 4. On June 1 local time, the Investigative Committee of Russia classified the bridge sabotage incidents in Bryansk Oblast and Kursk Oblast as terrorist attacks. 5. On May 30 local time, US President Trump stated that he would raise tariffs on imported steel from 25% to 50%. On February 10, Trump signed an executive order announcing a 25% tariff on all steel and aluminum imported into the US. On March 12 local time, the measure imposing a 25% tariff on all steel and aluminum imported into the US officially took effect. 6. In a statement, the European Commission expressed regret over the US announcement to raise tariffs on imported steel and aluminum, and stated that the EU is prepared to take countermeasures. The statement claimed that the US government's decision further adds uncertainty to the global economy and undermines ongoing efforts to resolve issues through negotiations. It emphasized that the European Commission is currently conducting final consultations on expanding countermeasures. If a mutually acceptable solution cannot be reached, existing and additional EU measures will automatically take effect on July 14 or earlier if necessary. 7. On May 31, the China Federation of Logistics and Purchasing and the Service Industry Survey Center of the National Bureau of Statistics (NBS) released China's Purchasing Managers' Index (PMI) for May. The manufacturing PMI for China in May was 49.5%, an increase of 0.5 percentage points MoM. 8. Starting from June 1, China will implement a visa-free policy for holders of ordinary passports from five countries: Brazil, Argentina, Chile, Peru, and Uruguay. From June 1, 2025, to May 31, 2026, nationals of these five countries holding ordinary passports may enter China without a visa for business, tourism, visiting relatives and friends, exchange visits, or transit for no more than 30 days. Industry News 1. In order to implement the decisions and plans of the CPC Central Committee and the State Council, further reduce business operating costs, optimize the business environment, promote the development of the real economy, and advance the construction of the social credit system, the National Development and Reform Commission (NDRC) recently issued the "Notice on Further Reducing Credit Reporting Service Fees," significantly lowering the fees for credit reporting services. 2. Multiple regions across the country have taken various measures to strengthen control and prevent the illegal outflow of strategic minerals. Among them, the Office of the National Export Control Coordination Mechanism issued and implemented the "Overall Plan for Strengthening the Full-Chain Control of Strategic Mineral Exports" after approval through the established procedures. Guizhou will strictly adhere to the division of responsibilities outlined in the "Overall Plan" and carry out relevant work accordingly. Relevant authorities in Hunan Province have stated that they will earnestly fulfill their local regulatory responsibilities, systematically investigate and establish a ledger for strategic mineral export enterprises in Hunan, guide enterprises in strengthening the construction of compliance systems, enhance their awareness and capabilities in compliance, and ensure the effective implementation of control measures. Guangxi will continue to effectively supervise and manage the exploration and exploitation of national strategic minerals, intensify efforts to investigate and punish illegal mining activities such as unlicensed mining, cross-border mining, and mining under the guise of exploration, and resolutely prevent the illegal outflow of strategically important minerals. Additionally, relevant departments in Jiangxi and Yunnan have also indicated that they will unwaveringly implement all tasks in accordance with their respective responsibilities. 3. China Securities Index Co., Ltd. announced that it will adjust the sample stocks for indices such as the CSI 300, CSI 500, CSI 1000, CSI A50, CSI A100, and CSI A500. This adjustment is a regular, periodic revision of the index samples, and the revised scheme will officially take effect after the market closes on June 13. 4. In response to the "Initiative on Maintaining Fair Competition Order and Promoting Healthy Industry Development" issued by the China Association of Automobile Manufacturers (CAAM) on May 31, relevant officials from the Ministry of Industry and Information Technology stated that they will intensify efforts to rectify "cut-throat competition" in the automotive industry and resolutely maintain a fair and orderly market environment. 5. CAAM issued the "Initiative on Maintaining Fair Competition Order and Promoting Healthy Industry Development." For some time, the industry's profitability has declined, with "cut-throat competition" characterized by disorderly "price wars" being a significant factor contributing to the decline in industry benefits. Continuous investment is needed to ensure product after-sales service guarantees and support enterprises' innovative development. However, "price wars" seriously affect the normal operations of enterprises, impact the security of the industry chain and supply chain, and drive the industry into a vicious cycle. 6. A reporter from Cailian Press learned that recently, Ping An Asset Management Co., Ltd. received formal approval from the National Financial Regulatory Administration to establish Hengyi Chiying (Shenzhen) Private Equity Fund Management Co., Ltd. The company has a registered capital of 300 million yuan and will be based in Qianhai, Shenzhen. It is reported that Hengyi Chiyin will act as the fund manager to issue a contractual private securities investment fund exclusively to Ping An Life Insurance, with the initial fund size reaching 30 billion yuan. The fund will focus on investing in high-quality publicly listed firms that align with policy directives and meet the allocation needs of insurance capital. 7. The Hong Kong Special Administrative Region Government gazetted the Stablecoin Ordinance on May 30, signifying its formal enactment as law. 8. Sources revealed that a major state-owned bank branch received notice from its headquarters to halt the "high-interest, high-rebate" model for car purchase installments starting June 1, with the bank no longer accepting applications under this scheme. The "high-interest, high-rebate" model typically refers to businesses where bank commission payment standards exceed 3%. The source also indicated that most financial institutions nationwide are expected to phase out this model within approximately two months, pending unified regulatory guidance. 9. OPEC+ agreed to increase daily oil production by 411,000 barrels, marking the third consecutive month of output growth. Representatives disclosed that major countries led by Saudi Arabia approved this production hike for July during a video conference last Saturday, matching the increases implemented in May and June. Corporate News 1. China Communications Construction announced plans to repurchase its A-share shares with 500 million to 1 billion yuan. 2. *ST Tianyu disclosed that one of its actual controllers, Chunyu Yan, and others are under investigation for suspected embezzlement. 3. BYD reported NEV sales of 382,500 units in May. 4. Nationz Technologies proposed issuing H-shares for listing on the Hong Kong Stock Exchange. 5. Maxwell Technologies plans to issue convertible bonds to raise up to 1.967 billion yuan. 6. Aerosun Corporation suspended participation in military material engineering service procurement due to regulatory violations. 7. Fillinger is expected to undergo a change in control, with its shares suspended from trading starting June 3. 8. Emicron announced a private placement to raise no more than 310 million yuan for projects including temperature control products for computing infrastructure. 9. *ST Longyu received a delisting decision and will enter the delisting consolidation period on June 10. 10. *ST Pengbo received a delisting decision and will enter the delisting consolidation period on June 10. 11. Bohai Automobile is expected to acquire equity in BAIC Moulding and other companies, with its shares suspended. 12. ST Dongshi was investigated by the China Securities Regulatory Commission for suspected information disclosure violations. 13. Zhejiang Longsheng plans to purchase a 37.57% stake in DyStar for $697 million. 14. *ST Hengli announced that it was under investigation by the China Securities Regulatory Commission (CSRC) for suspected false disclosure of financial data. 15. *ST Jinglan announced that it was under investigation by the CSRC for suspected violations of information disclosure laws and regulations. 16. Baili Tianheng announced plans to raise no more than 3.764 billion yuan, all of which will be used for the R&D of innovative drugs. Global Markets 1. The three major U.S. stock indices closed higher collectively, with the Dow Jones Industrial Average rising 0.08%, the Nasdaq Composite Index rising 0.67%, and the S&P 500 Index rising 0.41%. The Nasdaq Golden Dragon China Index rose 0.53%, with most popular Chinese ADRs closing higher. 2. COMEX gold futures closed 2.74% higher at $3,406.4 per ounce, and COMEX silver futures closed 5.76% higher at $34.93 per ounce. 3. WTI crude oil futures closed 2.85% higher at $62.52 per barrel. Brent crude oil futures closed 2.95% higher at $64.63 per barrel. Investment Opportunities 1. The world's first! Zhiyuan Yuanzheng A2 becomes a humanoid robot with certifications from China, the US, and Europe According to media reports, the Yuanzheng A2 humanoid robot under Zhiyuan Robotics has passed four product certifications: China's CR, the EU's CE-MD, the EU's CE-RED, and the US's FCC, becoming the world's first humanoid robot with certifications from China, the US, and Europe, as well as the first humanoid robot in China to obtain CR and CE-MD certifications. As one of the representatives of embodied intelligence, the development of humanoid robots is accelerating towards the critical point of industrialisation. The year 2025 is widely regarded by the industry as the "first year of mass production" for humanoid robots. It is expected that the industry penetration rate will enter an exponential growth trajectory after 2030, with global shipments potentially reaching 4 million to 10 million units by 2035. Cinda Securities pointed out that the industrialisation progress of humanoid robots is accelerating, with domestic and overseas enterprises accelerating the deployment of robots, and it is optimistic about the domestic humanoid robot industry chain. 2. Yushi Space completes nearly 100 million yuan in Angel+ round financing, with 2025 expected to be the first year of accelerated development for satellite internet According to media reports, Yushi Space recently completed nearly 100 million yuan in Angel+ round financing, with Qiansheng Capital as the lead investor and Huacang Capital and Linge Venture Capital as co-investors. Yushi Space focuses on the R&D and manufacturing of large-capacity, low-cost, and rapidly reusable liquid rockets. The company is currently "the only team in China adopting a stainless steel rocket + 'chopstick' capture arm recovery solution," with a technological approach fully comparable to Musk's SpaceX. According to data from Cailian Press Venture Capital Tong - Zhizhong, with May 2025 as the forecast baseline, the financing forecast probability for the next two years is 66.08%. Western Securities believes that the current satellite internet industry is still dominated by thematic investment styles, with a focus on event catalysts brought about by breakthroughs at the industrial level. From a temporal perspective, 2025 is expected to be the first year of accelerated development for the satellite internet industry. As of May, Xingwang has completed the batch networking and orbit insertion of 29 satellites, while Qianfan Constellation has completed the orbit insertion and networking of 90 satellites. Meanwhile, public testing of direct-to-satellite mobile phone terminals will also commence in the second half of the year. It is recommended to continuously monitor investment opportunities in China's domestic low-Earth orbit satellite industry chain, including: 1) communication payloads; 2) phased array and RF components; 3) laser communication; 4) detection; 5) satellite ground stations; 6) satellite terminals; and 7) satellite operations. 3. Large aircraft may enter a stage of rapid development, with a significant boost in market supply capability According to media reports, the domestically produced large aircraft C919 has officially commenced regular commercial operations on the Shanghai-Xiamen route. With Xiamen joining the C919 route network, the C919's service coverage has expanded to 15 cities across the Chinese mainland over the past two years, and it has taken its first international step through the cross-border route from Shanghai to Hong Kong. On March 20, COMAC's 2025 Supplier Conference was grandly held. At the conference, COMAC provided forward-looking production planning guidelines for 2025-2029, explicitly mentioning for the first time that the C919's capacity will reach 200 aircraft per year by 2029. This fully indicates that the C919 will enter a stage of rapid development in the coming years, with a significant boost in market supply capability. Zheshang Securities pointed out that, according to disclosures from the "Aerospace Power Future" official account, COMAC's procurement volume in 2024 approached 20 billion yuan, and the procurement volume in 2025 is expected to increase by 70% compared to 2024. This substantial growth in procurement volume signifies that the C919 is expected to achieve comprehensive mass production acceleration and, at the same time, is expected to vigorously boost the development of the large aircraft industry chain. 4. Institutions claim that this specific industry chain segment will be a core beneficiary of the low-altitude economy's development Recently, reporters learned from a conference that Hubei has initiated the construction of a low-altitude flight service platform. After its launch at the end of the year, it will aggregate information from multiple sources, including low-altitude communications, navigation, surveillance, meteorology, and geographical environments, and provide various services such as flight plan submissions, supporting safe and efficient low-altitude flights. Zhiyan Consulting stated that UAVs are the pillar industry of the low-altitude economy, serving as the primary carriers for low-altitude flights. Currently, China's UAV policies are increasingly being refined, and the industry chain is becoming increasingly complete, providing foundational conditions for the development of the low-altitude economy. With the further implementation of airspace and route planning, existing major application demands in agriculture, forestry, animal husbandry, fisheries, surveying and mapping, and emergency response will be further released, while new application scenarios such as urban logistics, cargo transportation, and passenger transportation will also expand. The UAV industry chain will be the core beneficiary in the development of the low-altitude economy. In recent years, the Chinese government has encouraged the integration of logistics with the low-altitude economy. With a vast market for the low-altitude economy, it will drive the development of the logistics UAV industry. It is expected that by 2030, the market size of China's low-altitude economy will exceed 2 trillion yuan.

SMM, June 3: ※Financial Market Performance During the Holiday Metal Market: Domestic Metal Market: The domestic metal market was closed during the Dragon Boat Festival holiday. A review of the market performance of domestic base metals on May 30 shows that most domestic metals fell: Domestic base metals generally declined, with SHFE nickel rising 1.14%, SHFE tin falling 2.87%, and SHFE copper, SHFE aluminum, SHFE lead, and SHFE zinc all falling less than 1%. The main alumina contract rose 0.27%. Most ferrous metals series declined on May 30: Iron ore fell 0.43%, rebar fell 0.34%, stainless steel rose 0.12%, and HRC fell 0.81%. In terms of coking coal and coke, coking coal fell 5.28%, and coke fell 2.13%. Overseas Metal Market: The London Metal Exchange (LME) mostly fell on May 30 and rose across the board on June 2. During the Dragon Boat Festival holiday, LME metals rose across the board, with LME zinc leading the gains with a 2.41% increase, LME copper rising 1.24%, LME aluminum rising 1%, LME tin and LME nickel both rising over 1%, and LME lead rising 0.87%. Precious Metals: During the Dragon Boat Festival holiday, COMEX precious metals all rose sharply. COMEX gold rose 2.82%, touching its highest level in over three weeks, as a weaker US dollar and economic uncertainty drove demand for safe-haven assets. COMEX silver rose 5.61%. Hong Kong Stocks: During the Dragon Boat Festival holiday, Hong Kong stocks weakened on June 2 as tariff issues once again drew market attention. As of the close on June 2, the Hang Seng Index fell 0.57%, the Hang Seng Tech Index fell 0.7%, and the Hang Seng China Enterprises Index fell 0.86%. US Stocks: During the Dragon Boat Festival holiday, the three major US stock indices closed mixed last Friday, with the Dow rising 0.12% and gaining 3.94% in May; the Nasdaq falling 0.32% but rising 9.56% in May; and the S&P 500 falling 0.01% but rising 6.15% in May. As of the close on June 2, the three major US stock indices all rose slightly, with the Dow Jones Industrial Average rising 0.08% to 42,305.48 points, the S&P 500 rising 0.41% to 5,935.94 points, and the Nasdaq rising 0.67% to 19,242.61 points. Metal and Crude Oil Contract Quotes as of 8:20 on June 3 》SMM Metal Spot Prices on May 30 Macro Aspects Domestic Aspects: [National Bureau of Statistics (NBS): PMI for May was 49.5%, up 0.5 percentage points MoM, indicating improved manufacturing sentiment] On May 31, the China Federation of Logistics and Purchasing and the Service Industry Survey Center of the NBS announced China's PMI for May. Among them, the manufacturing PMI rebounded MoM, indicating an improvement in the manufacturing sector's prosperity level and a stabilization in economic operations. In May, China's manufacturing PMI stood at 49.5%, up 0.5 percentage points MoM. Looking at the sub-indices, the production index was 50.7%, up 0.9 percentage points MoM, rising above the critical point, suggesting an acceleration in manufacturing production activities. On the demand side, the new orders index in May was 49.8%, up 0.6 percentage points MoM. 》Click to view details [This year's sales of consumer goods through trade-in policies have exceeded 1 trillion yuan] According to CCTV News reporters who learned from the Ministry of Commerce, as of now, this year's sales of consumer goods through trade-in policies have exceeded 1 trillion yuan. Since the beginning of this year, the trade-in policies for consumer goods have effectively driven a sustained rebound and improvement in consumption. Ministry of Commerce data shows that as of May 31, the five major categories of consumer goods under the trade-in policies have collectively driven sales of 1.1 trillion yuan, with approximately 175 million subsidies directly issued to consumers. Among them, there were 4.12 million applications for trade-in subsidies for automobiles; 49.863 million consumers purchased 77.618 million units of 12 major categories of home appliances; 53.529 million consumers purchased 56.629 million units of digital products such as mobile phones; 6.5 million e-bikes were traded in; and 57.626 million orders were placed for home renovation and kitchen and bathroom "upgrades". (CCTV News) [Various regions take multiple measures to strictly prevent the illegal outflow of strategic minerals] Multiple regions across the country have taken various measures and strengthened controls to strictly prevent the illegal outflow of strategic minerals. Among them, the "Overall Deployment for Strengthening the Full-Chain Management and Control of Strategic Mineral Exports" by the National Office for Coordination of Export Control Work was issued and implemented after approval in accordance with procedures. Guizhou will strictly adhere to the division of responsibilities outlined in the "Overall Deployment" to carry out relevant work. The relevant competent authorities in Hunan Province have stated that they will earnestly fulfill their local regulatory responsibilities, systematically investigate and establish ledgers for strategic mineral export enterprises in Hunan, guide enterprises in strengthening the construction of compliance systems, enhance enterprises' awareness and capabilities of compliance, and ensure the effective implementation of control measures. Guangxi, on the other hand, will continue to effectively supervise and manage the exploration and mining of national strategic minerals, increase efforts to investigate and punish illegal mining activities such as mining without licenses, mining beyond boundaries, and mining under the guise of exploration, and resolutely prevent the illegal outflow of strategically important minerals through illegal mining. Among them, Wuzhou City in Guangxi and Yunfu City in Guangdong have established a cross-regional cooperation mechanism to combat and rectify illegal activities related to mineral resources. In addition, relevant departments in Jiangxi and Yunnan have also stated that they will unwaveringly implement all tasks in accordance with their respective responsibilities. [MIIT: Intensify Efforts to Rectify "Cut-throat Competition" in the Automotive Industry] In response to the "Initiative on Maintaining Fair Competition Order and Promoting Healthy Industry Development" issued by the China Automobile Manufacturers Association (CAAM) on May 31, relevant officials from the Ministry of Industry and Information Technology (MIIT) stated that they would intensify efforts to rectify "cut-throat competition" in the automotive industry and resolutely maintain a fair and orderly market environment. [Opposing "Cut-throat Competition" CAAM Issues Important Initiative] CAAM issued the "Initiative on Maintaining Fair Competition Order and Promoting Healthy Industry Development." In recent years, China's new energy vehicle (NEV) industry has developed rapidly, with the proportion of new NEV sales exceeding 40%. Currently, the overall operation of the industry is showing a steady and improving trend, with market vitality continuing to be released. However, we have also observed that for some time, the industry's profitability has declined. "Cut-throat competition," primarily manifested as disorderly "price wars," is a significant factor contributing to the decline in industry benefits. Continuous investment is needed in product after-sales service guarantees and enterprise innovation and development, while "price wars" seriously affect the normal operations of enterprises, impact the security of the industry chain and supply chain, and drive the industry into a vicious cycle. US Dollar Aspect: During the Dragon Boat Festival holiday, the US dollar index fell by 0.75%, closing at 98.69 as of June 2. New US tariff threats have sparked market concerns about economic uncertainty, putting pressure on the US dollar. According to CCTV News, on May 30 local time, US President Trump stated at a rally in Pennsylvania that he would raise tariffs on imported steel from 25% to 50%. Subsequently, Trump posted on social media platforms that the decision would take effect from June 4. The latest data released by the US shows: The US core PCE price index in April rose 2.5% YoY, the lowest since March 2021, in line with market expectations of 2.5% and down from the previous value of 2.6%. The US core PCE price index in April rose 0.1% MoM, in line with the estimated increase of 0.1% and up from the previous value of 0%. The final S&P Global US Manufacturing PMI for May was 52, below the expected 52.3 and unchanged from the previous value of 52.3. The market is also closely monitoring the speeches of Fed Chairman Powell and other policymakers this week, seeking clues about the path of US interest rates. Other Currency Aspects: The European Central Bank's (ECB) 25 basis point interest rate cut has been fully priced in by the market and widely anticipated. The final manufacturing Purchasing Managers' Index (PMI) for the Eurozone was in line with expectations at 49.4, slightly below expectations in Germany at 48.3, and slightly above expectations in France at 49.8. This week, the focus of eurozone data will be on the preliminary Consumer Price Index (CPI) released on Tuesday, with overall and core inflation rates expected to fall to 2.0% and 2.4%, respectively. Thursday's European Central Bank (ECB) meeting is crucial as policymakers will release new forecasts and provide some insights into interest rate expectations. The market has fully priced in a 25-basis-point interest rate cut and expects at least another 25-basis-point cut by December. The risk lies in that a neutral or hawkish interest rate cut may signal the end of the current easing cycle. (Huitong Finance) Macro Aspects: This week will also see the release of data including Malaysia's manufacturing PMI for May, Australia's current account for Q1, China's Caixin manufacturing PMI for May, Switzerland's annual CPI rate for May, the eurozone's preliminary unadjusted annual harmonized CPI for May, the eurozone's unemployment rate for April, the revised monthly rate of US durable goods orders for April, the monthly rate of US factory orders for April, US JOLTs job openings for April, Australia's AIG manufacturing performance index for May, Australia's seasonally adjusted quarterly GDP growth rate for Q1, Australia's annual GDP growth rate for Q1, Russia's SPGI services PMI for May, the final UK SPGI services PMI for May, the change in US ADP employment for May, Canada's total reserve assets for May, Brazil's seasonally adjusted SPGI services PMI for May, the Bank of Canada's overnight lending rate on June 5, the US ISM non-manufacturing PMI for May, a Q&A session involving 2025 FOMC voter and Chicago Fed President Austan Goolsbee, 2027 FOMC voter and Atlanta Fed President Raphael Bostic, and Fed Governor Lisa Cook attending the "Fed Listens" event, the Bank of Canada's interest rate decision, the global annual ANZ commodity price index for May, Australia's goods and services trade balance for April, Australia's monthly export growth rate for April, Australia's monthly import growth rate for April, China's Caixin services PMI for May, Switzerland's unadjusted unemployment rate for May, the global leading indicator for turning points in the industrial production cycle for May (irregular), the number of job cuts announced by US Challenger companies for May, the ECB's main refinancing rate for June, the ECB's deposit facility rate for June, the ECB's marginal lending facility rate for June, the US trade balance for April, the number of initial jobless claims in the US for the week ending May 31, the number of continuing jobless claims in the US for the week ending May 31, Canada's trade balance for April, Canada's seasonally adjusted IVEY PMI for May, the global supply chain pressure index for May, Germany's seasonally adjusted monthly industrial output growth rate for April, France's trade balance for April, the final seasonally adjusted quarterly GDP growth rate for the eurozone in Q1, the monthly retail sales growth rate for the eurozone in April, the monthly leading indicator growth rate for Canada in May, the seasonally adjusted change in US non-farm payrolls for May, the annual growth rate of US average hourly earnings for May, the change in US non-farm payrolls in the private sector for May, the US labor force participation rate for May, the seasonally adjusted change in US manufacturing employment for May, the US unemployment rate for May, the change in Canadian employment for May, the Canadian unemployment rate for May, and China's foreign exchange reserves for May. Notably: South Korea held its presidential election on June 3, with the stock market closed for the day. The Zhengzhou Commodity Exchange designated 8:55-9:00 on June 3 as the call auction period for all futures and options contracts, with night session trading to resume that evening. Goolsbee, the 2025 FOMC voter and Chicago Fed Chairman, participated in a Q&A session. Fed Chairman Powell delivered opening remarks at an event. South Korea tentatively scheduled its presidential election for June 3. The Reserve Bank of Australia released the minutes of its June monetary policy meeting. Bank of Japan Governor Kazuo Ueda delivered a speech. South Korea held its general election. The Fed released the Beige Book on economic conditions. The European Central Bank (ECB) announced its interest rate decision. ECB President Christine Lagarde held a monetary policy press conference. Fed Governor Adriana Kugler delivered a speech at the Economic Club of New York. Harker, the 2026 FOMC voter and Philadelphia Fed Chairman, delivered a speech on the economic outlook. ECB President Christine Lagarde delivered a speech. In terms of crude oil: During the Dragon Boat Festival holiday, both WTI and Brent crude oil futures rose. WTI crude oil increased by 3.7%, while Brent crude oil rose by 4.01%. Despite the OPEC+ group's adherence to its plan to increase production, wildfires raging in oil-producing provinces in Canada threatened supplies, and new US tariff threats put pressure on the US dollar, both of which supported oil prices. As of Monday, wildfires in Alberta, a major oil-producing province in Canada, had affected approximately 7% of the country's total crude oil production. At least two thermal oil sands operators south of the industrial hub of Fort McMurray evacuated workers and halted production over the weekend. OPEC member countries agreed on Saturday to increase oil production by 411,000 barrels per day (bpd) in July, marking the third consecutive month of the same increase. The alliance aims to regain market share and penalize overproducing countries. Goldman Sachs analysts expect OPEC to implement a final 410,000 bpd increase in August. In a report, the bank stated, "Relatively tight spot oil market fundamentals, strong global manufacturing data, and seasonal support for oil demand during the summer suggest that the expected slowdown in demand is unlikely to be severe enough to prevent production increases when the August production level is decided on July 6." (Wenhua Comprehensive)

The National Bureau of Statistics (NBS) released the operating conditions of China's Purchasing Managers' Index (PMI) in May, with the manufacturing PMI at 49.5%, up 0.5 percentage points from the previous month, indicating an improvement in the manufacturing sector's prosperity level. I. Operating Conditions of China's Manufacturing Purchasing Managers' Index In May, the manufacturing PMI stood at 49.5%, up 0.5 percentage points from the previous month, reflecting an improvement in the manufacturing sector's prosperity level. By enterprise size, the PMI for large enterprises was 50.7%, up 1.5 percentage points from the previous month and above the threshold; for medium-sized enterprises, it was 47.5%, down 1.3 percentage points from the previous month and below the threshold; for small enterprises, it was 49.3%, up 0.6 percentage points from the previous month but still below the threshold. Looking at the sub-indices, among the five sub-indices that constitute the manufacturing PMI, the production index was above the threshold, the supplier delivery time index was at the threshold, while the new orders index, raw material inventory index, and employment index were all below the threshold. The production index was 50.7%, up 0.9 percentage points from the previous month, rising above the threshold, indicating an acceleration in production activities of manufacturing enterprises. The new orders index was 49.8%, up 0.6 percentage points from the previous month, indicating a rebound in market demand prosperity in the manufacturing sector. The raw material inventory index was 47.4%, up 0.4 percentage points from the previous month but still below the threshold, indicating a narrowing decline in the inventory of major raw materials in the manufacturing sector. The employment index was 48.1%, up 0.2 percentage points from the previous month, indicating an improvement in the employment prosperity of manufacturing enterprises. The supplier delivery time index was 50.0%, down 0.2 percentage points from the previous month and at the threshold, indicating that the delivery time of raw material suppliers in the manufacturing sector was basically flat compared to the previous month. II. Operating Conditions of China's Non-Manufacturing Purchasing Managers' Index In May, the non-manufacturing business activity index was 50.3%, down 0.1 percentage points from the previous month but still above the threshold, indicating a continued expansion in the non-manufacturing sector overall. By industry, the business activity index for the construction industry was 51.0%, down 0.9 percentage points from the previous month; for the service industry, it was 50.2%, up 0.1 percentage point from the previous month. By industry, the business activity indices for railway transportation, air transportation, postal services, telecommunications, radio, television, and satellite transmission services, internet software, and information technology services were all above 55.0%, indicating a relatively high prosperity level; while the business activity indices for the capital market services and real estate industries were all below the threshold. The new orders index was 46.1%, up 1.2 percentage points from the previous month, indicating a rebound in market demand sentiment in the non-manufacturing sector. By industry, the new orders index for the construction industry was 43.3%, up 3.7 percentage points from the previous month; the new orders index for the service sector was 46.6%, up 0.7 percentage points from the previous month. The input prices index was 48.2%, up 0.4 percentage points from the previous month, remaining below the threshold, indicating that the overall level of input prices used by non-manufacturing enterprises in their business activities was lower than that of the previous month. By industry, the input prices index for the construction industry was 48.0%, up 0.5 percentage points from the previous month; the input prices index for the service sector was 48.2%, up 0.3 percentage points from the previous month. The selling prices index was 47.3%, up 0.7 percentage points from the previous month, remaining below the threshold, indicating that the overall decline in selling prices in the non-manufacturing sector narrowed. By industry, the selling prices index for the construction industry was 47.5%, up 0.3 percentage points from the previous month; the selling prices index for the service sector was 47.3%, up 0.8 percentage points from the previous month. The employment index was 45.5%, unchanged from the previous month, indicating that the employment sentiment in non-manufacturing enterprises was basically stable. By industry, the employment index for the construction industry was 39.5%, up 1.7 percentage points from the previous month; the employment index for the service sector was 46.6%, down 0.2 percentage points from the previous month. The business activity expectations index was 55.9%, down 0.1 percentage point from the previous month, still within a relatively high sentiment range, indicating that most non-manufacturing enterprises remained optimistic about market development. By industry, the business activity expectations index for the construction industry was 52.4%, down 1.4 percentage points from the previous month; the business activity expectations index for the service sector was 56.5%, up 0.1 percentage point from the previous month. III. Performance of China's Composite PMI Output Index In May, the composite PMI output index was 50.4%, up 0.2 percentage points from the previous month, indicating that the production and business activities of Chinese enterprises continued to expand overall. Interpretation of China's PMI in May 2025 by Zhao Qinghe, Senior Statistician at the Service Industry Survey Center of the National Bureau of Statistics: Manufacturing PMI Rebounds, Non-Manufacturing Business Activity Index Continues to Expand in May On May 31, 2025, the Service Industry Survey Center of the National Bureau of Statistics and the China Federation of Logistics and Purchasing released China's PMI. Zhao Qinghe, Senior Statistician at the Service Industry Survey Center of the National Bureau of Statistics, provided an interpretation. In May, the manufacturing PMI was 49.5%, up 0.5 percentage points from the previous month; the non-manufacturing business activity index was 50.3%, down 0.1 percentage point from the previous month; the composite PMI output index was 50.4%, up 0.2 percentage points from the previous month, indicating that China's overall economic output continued to expand. I. Rebound in Manufacturing PMI In May, the manufacturing PMI stood at 49.5%, indicating an improvement in the prosperity level compared to the previous month. (1) Accelerated production by enterprises. The production index was 50.7%, up 0.9 percentage points from the previous month, rising above the threshold, indicating an acceleration in manufacturing production activities. The new orders index was 49.8%, up 0.6 percentage points from the previous month. By industry, the production and new orders indices for agricultural and sideline food processing, special equipment, railway, shipbuilding, aerospace equipment, and other industries were all above 54.0%, showing rapid growth in both supply and demand. However, for industries such as textiles, chemical fibers, rubber and plastic products, ferrous metal smelting and rolling processing, and non-ferrous metal smelting and rolling processing, both indices were below the threshold, indicating insufficient release of production and demand. (2) PMI for large enterprises rose above the threshold. The PMI for large enterprises was 50.7%, up 1.5 percentage points from the previous month, returning to the expansion territory. Their production and new orders indices were 51.5% and 52.5%, respectively, up 1.7 and 3.0 percentage points from the previous month. The PMI for medium-sized enterprises was 47.5%, down 1.3 percentage points from the previous month, with the prosperity level pulling back. The PMI for small enterprises was 49.3%, up 0.6 percentage points from the previous month, showing some improvement in the prosperity level. (3) Continued expansion in high-tech manufacturing. By key industry, the PMI for high-tech manufacturing was 50.9%, remaining in the expansion territory for four consecutive months and continuing a good development trend. The PMIs for the equipment manufacturing and consumer goods industries were 51.2% and 50.2%, respectively, up 1.6 and 0.8 percentage points from the previous month, with both showing a rebound in prosperity levels. The PMI for high energy-consuming industries was 47.0%, down 0.7 percentage points from the previous month, indicating low market activity. (4) Rebound in both import and export indices. The new export orders index and the import index were 47.5% and 47.1%, respectively, up 2.8 and 3.7 percentage points from the previous month. Some enterprises involved in trade with the US reported in the survey that foreign trade orders were accelerating their restart, and the import and export situation had improved. (5) Improved market expectations. The expected index of production and business activities was 52.5%, up 0.4 percentage points from the previous month, indicating that manufacturing enterprises' confidence in the recent market development remained generally stable. Among them, the expected indices of production and business activities for industries such as agricultural and sideline food processing, food, beverage, and refined tea, automobiles, railway, shipbuilding, and aerospace equipment all remained above the relatively high prosperity threshold of 56.0%, with related enterprises being more optimistic about industry development. II. Continued Expansion in Non-Manufacturing Business Activity Index In May, the non-manufacturing business activity index was 50.3%, slightly down 0.1 percentage point from the previous month but still above the threshold, indicating that the non-manufacturing sector generally continued to expand. (I) The service sector's business climate improved slightly. The business activity index for the service sector was 50.2%, up 0.1 percentage point from the previous month. By industry, driven by the "Labour Day holiday" effect, residents' travel and dining consumption were relatively active. The business activity indices for industries such as railway transportation, air transportation, accommodation, and catering rebounded significantly, all entering expansion territory, indicating increased market activity. Meanwhile, the business activity indices for industries such as postal services, telecommunications, radio, television, and satellite transmission services, as well as internet software and information technology services, remained above 55.0%, indicating a relatively high-growth business climate and maintaining a good growth momentum. From the perspective of market expectations, the business activity expectations index was 56.5%, up 0.1 percentage point from the previous month. It has consistently remained above 56.0% since the beginning of the year, indicating that most service sector enterprises remain optimistic about market development. (II) The construction sector continued to expand. The business activity index for the construction sector was 51.0%, down 0.9 percentage point from the previous month, with expansion slowing down somewhat. Among them, the business activity index for civil engineering construction was 62.3%, up 1.4 percentage points from the previous month, rebounding for two consecutive months, indicating that construction projects across regions continued to accelerate. From the perspective of market expectations, the business activity expectations index was 52.4%, indicating that construction enterprises were relatively optimistic about market development expectations. III. The composite PMI output index rebounded slightly In May, the composite PMI output index was 50.4%, up 0.2 percentage point from the previous month, indicating that the production and operation activities of China's enterprises generally continued to expand. The manufacturing production index and the non-manufacturing business activity index, which constitute the composite PMI output index, were 50.7% and 50.3%, respectively.