[SMM Tin Midday Review: The Center of the Most-Traded Contract Rebounded Slightly, and Market Transactions Weakened After Downstream Enterprises Restocked]

[SMM Tin Midday Review: Macro and Fundamental Bearish Factors Resonated, and the Most-Traded SHFE Tin Contract Once Fell Below the 370,000 yuan Mark]

The fundamental challenge in the 304 stainless steel industrial chain is Instrument Asymmetry, a scenario where the dominant cost driver, Nickel Pig Iron (NPI), lacks a direct futures contract and forces participants to manage 75% of their risk using standardized proxies like pure nickel. This creates a lethal threat not from price volatility itself, but from the Basis Risk that occurs when physical assets and hedging tools decouple.

[Zinc Price "Year-End Hurdle": Pre-Holiday Hedging and Post-Holiday Pace Management Suggestions]With the 2026 Chinese New Year approaching and the last trading week before the holiday, SMM has summarized several key points to focus on in the zinc market before and after the holiday:

The National Financial Regulatory Administration and the Shanghai Municipal People's Government have issued the Action Plan for Supporting the Construction of Shanghai as an International Financial Center. The plan proposes to promote the concentration of financial institutions and enhance the quality and strength of financial services. It encourages further concentration of banking and insurance institutions in Shanghai, urges the head offices of commercial banks to increase their support for the construction of Shanghai as an international financial center through the establishment of specialized institutions and the delegation of authority to their branches in Shanghai, supports foreign financial institutions in playing a greater role in the construction of Shanghai as an international financial center, promotes the priority landing of key opening-up projects in Shanghai, supports the establishment of more international financial organizations, international financial industry associations, and new-type multilateral financial organizations in Shanghai, optimizes and enhances the service functions of financial institutions in Shanghai, and guides financial institutions in Shanghai to strengthen collaborative cooperation. National Financial Regulatory Administration and Shanghai Municipal People's Government Issue Action Plan for Supporting the Construction of Shanghai as an International Financial Center To thoroughly implement the decisions and arrangements of the Party Central Committee and the State Council on accelerating the construction of Shanghai as an international financial center, further enhance the competitiveness and influence of Shanghai as an international financial center, and promote high-quality economic development through high-level financial opening-up, the National Financial Regulatory Administration, in conjunction with the Shanghai Municipal People's Government, has jointly issued the Action Plan for Supporting the Construction of Shanghai as an International Financial Center (hereinafter referred to as the "Action Plan"). The Action Plan mainly consists of five aspects: First, promote the concentration of financial institutions and enhance the quality and strength of financial services. Encourage further concentration of banking and insurance institutions in Shanghai, urge the head offices of commercial banks to increase their support for the construction of Shanghai as an international financial center through the establishment of specialized institutions and the delegation of authority to their branches in Shanghai, support foreign financial institutions in playing a greater role in the construction of Shanghai as an international financial center, promote the priority landing of key opening-up projects in Shanghai, support the establishment of more international financial organizations, international financial industry associations, and new-type multilateral financial organizations in Shanghai, optimize and enhance the service functions of financial institutions in Shanghai, and guide financial institutions in Shanghai to strengthen collaborative cooperation. Second, focus on the "five major tasks" to improve the quality and efficiency of financial services for the real economy. Enhance the quality and efficiency of technology finance work, support Shanghai in actively exploring financial service models suitable for technology enterprises under the premise of legal compliance and effective control of substantive risks, and provide better financial services for technological innovation. Encourage financial institutions in Shanghai to prudently and orderly carry out carbon finance-related businesses, support Shanghai in participating in the competition for international carbon finance pricing power, and build Shanghai into an international green finance hub. Vigorously develop inclusive finance, pension finance, and digital finance. Third, expand institutional opening-up and enhance the internationalization level of Shanghai's financial industry. We will persist in benchmarking against high-standard international economic and trade rules to explore institutional financial opening-up, and explore the development of non-resident loan businesses, such as cross-border syndicated loans based on international best practices, in the Shanghai Pilot Free Trade Zone. We will continue to optimize cross-border financial services, enhance the international operations of financial institutions, vigorously promote the construction of the Shanghai International Reinsurance Center and the development of shipping insurance, research and explore offshore financial innovation, and encourage institutions to actively participate in the construction of financial markets. Fourth, we will improve regulatory standards and coordinate financial development with security. We will encourage financial institutions in Shanghai to enhance their proactive risk management capabilities and promote prudent operations. We will adhere to the principle of inclusive and prudent supervision, support the organization and implementation of financial innovation pilot projects focusing on key areas such as serving the real economy and opening-up to the outside world, and explore the implementation of a due diligence exemption mechanism for financial innovation pilot projects. We will strengthen the collaboration between central and local governments to jointly build a safety net, promote the establishment and improvement of the working mechanism for financial risk prevention and disposal in Shanghai, and safeguard the bottom line of financial security under open conditions. Fifth, we will improve supporting policies and enhance the level of professional financial services. We will strengthen the deep integration of Party building with business operations. We will deepen the construction of the financial legal system, strengthen the legal safeguards for the construction of Shanghai as an international financial center, vigorously support the Shanghai Financial Regulatory Bureau in establishing a sound Shanghai Financial Consumer Protection Center, and further improve the business environment for finance in Shanghai. We will enhance the technological level of financial supervision and support the establishment of a data sub-center of the National Financial Regulatory Administration in Shanghai when conditions permit. We will support Shanghai in building a new-type asset management service platform and promoting the high-quality transformation and upgrading of asset management businesses towards risk-driven and data-driven models. We will support Shanghai in attracting and cultivating high-level financial talents. Going forward, the National Financial Regulatory Administration and the Shanghai Municipal People's Government will continue to promote the implementation of the Action Plan, improve policy support, comprehensively enhance the capabilities of Shanghai as an international financial center, better contribute to the construction of a strong financial country, and make greater contributions to advancing the construction of Chinese modernization. Q&A with Officials from the National Financial Regulatory Administration and Relevant Departments of the Shanghai Municipal People's Government on the Action Plan for Supporting the Construction of Shanghai as an International Financial Center To thoroughly implement the decisions and arrangements of the CPC Central Committee and the State Council on accelerating the construction of Shanghai as an international financial center, further enhance the competitiveness and influence of Shanghai as an international financial center, and promote high-quality economic development through high-level financial opening-up, the National Financial Regulatory Administration, in conjunction with the Shanghai Municipal People's Government, jointly issued the Action Plan for Supporting the Construction of Shanghai as an International Financial Center (hereinafter referred to as the "Action Plan"). Officials from the National Financial Regulatory Administration and relevant departments of the Shanghai Municipal People's Government answered questions from reporters regarding the Action Plan. 1. What is the background for the issuance of the Action Plan? The CPC Central Committee and the State Council attach great importance to the construction of Shanghai as an international financial center. The 2023 Central Financial Work Conference proposed to "enhance the competitiveness and influence of Shanghai as an international financial center." The Decision of the CPC Central Committee on Further Comprehensively Deepening Reforms to Advance Chinese Modernization, adopted at the Third Plenary Session of the 20th CPC Central Committee, proposed to "accelerate the construction of Shanghai as an international financial center." On April 29, 2025, a symposium was held in Shanghai for central financial institutions based in Shanghai to support the construction of Shanghai as an international financial center. He Lifeng, a member of the Political Bureau of the CPC Central Committee and Director of the Central Financial Commission Office, attended the symposium and delivered a speech, emphasizing the need to earnestly study, deeply understand, and thoroughly implement the important instructions and directives of Xi Jinping on accelerating the construction of Shanghai as an international financial center, fully implement the Opinions on Supporting the Accelerated Construction of Shanghai as an International Financial Center recently issued by the Central Financial Commission, strengthen the coordinated and synergistic development of Shanghai's "five centers," and comprehensively enhance the capabilities of Shanghai as an international financial center. To further thoroughly implement the decisions and deployments of the CPC Central Committee and the State Council, support the accelerated construction of Shanghai as an international financial center, better contribute to the construction of a financial powerhouse, and make greater contributions to advancing Chinese modernization, the National Financial Regulatory Administration, in conjunction with the Shanghai Municipal People's Government, jointly issued this plan. 2. What are the main contents of the Action Plan? The Action Plan is divided into six parts. The first part outlines the overall requirements, which are to be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, adhere to the centralized and unified leadership of the CPC Central Committee over financial work, adhere to the goal of serving high-quality economic development, adhere to steadily expanding institutional opening-up, and coordinate financial development and security. Parts two through six propose a total of 27 specific measures in the following five aspects: First, promote the clustering of financial institutions to optimize and strengthen financial service functions. Encourage further clustering of banking and insurance institutions in Shanghai, encourage the head offices of commercial banks to increase their support for the construction of Shanghai as an international financial center through the establishment of specialized institutions or the delegation of authority to institutions in Shanghai, support foreign financial institutions in playing a greater role in the construction of Shanghai as an international financial center, prioritize the implementation of key opening-up projects in Shanghai, optimize and enhance the service functions of financial institutions in Shanghai, and guide financial institutions in Shanghai to strengthen collaborative cooperation. Second, implement the "five major tasks" to improve the quality and efficiency of financial services for the real economy. Enhance the quality and efficiency of financial services for science and technology. Encourage financial institutions in Shanghai to prudently and orderly carry out carbon finance-related businesses and build Shanghai into an international green finance hub. Vigorously develop inclusive finance, pension finance, and digital finance. Third, expand institutional opening-up to enhance the internationalization level of Shanghai's financial industry. We will persist in aligning with high-standard international economic and trade rules to explore institutional financial opening-up. We will continue to optimize cross-border financial services, enhance the international operations of financial institutions, vigorously promote the construction of the Shanghai International Reinsurance Center and the development of shipping insurance, research and explore offshore financial innovation, and encourage institutions to actively participate in the construction of financial markets. Fourth, we will improve regulatory standards and coordinate financial development with security. We will encourage financial institutions in Shanghai to enhance their proactive risk management capabilities and promote prudent operations. We will adhere to an inclusive and prudent regulatory philosophy, supporting the implementation of financial innovation pilot programs in key areas such as serving the real economy and opening-up to the outside world, and exploring the implementation of a due diligence exemption mechanism for financial innovation pilot programs. We will strengthen central-local coordination to jointly build a safety net, promoting the establishment and improvement of a working mechanism for financial risk prevention and disposal in Shanghai, and safeguarding the bottom line of financial security under opening-up conditions. Fifth, we will improve supporting policies and enhance the level of professional financial services. We will strengthen the deep integration of Party building with business operations. We will deepen the construction of the financial legal system, vigorously support the Shanghai Financial Regulatory Bureau in establishing a sound Shanghai Financial Consumer Protection Center, and further improve the business environment for finance in Shanghai. We will enhance the technological level of financial supervision and support the establishment of a data sub-center of the National Financial Regulatory Administration in Shanghai when conditions permit. We will support Shanghai in building a new-type asset management service platform. We will support Shanghai in attracting and cultivating high-level financial talents. 3. How will the Action Plan better leverage Shanghai's role as a pilot zone for financial reform? First, we will establish and improve a working mechanism for the supervision of financial innovation, supporting the Shanghai Financial Regulatory Bureau in organizing and implementing financial innovation pilot programs in key areas such as serving the real economy and opening-up to the outside world through regulatory interaction mechanisms, under the premise of limiting business scope, setting quotas, restricting institutions, and establishing risk circuit breakers. Second, we will align with high-standard international economic and trade rules, expand institutional financial opening-up, and explore the development of non-resident loan businesses, such as cross-border syndicated loans based on international good practices, in the Shanghai Pilot Free Trade Zone. Third, we will deepen the coordinated construction of Shanghai as an international financial center and an international center for scientific and technological innovation, supporting Shanghai in actively exploring financial service models suited to the characteristics of technology enterprises under the premise of compliance with laws and regulations and effective control of substantive risks. Fourth, we will support Shanghai in building an international green finance hub, encouraging financial institutions in Shanghai to support the construction of the carbon emissions trading market, prudently and orderly carrying out carbon finance-related businesses, and supporting Shanghai in participating in the competition for international carbon finance pricing power.

A survey by the World Gold Council (WGC) indicates that central banks worldwide expect the proportion of gold in their reserves to continue increasing over the next five years, while the proportion of their US dollar reserves is expected to decline. The survey on central banks' gold reserves, conducted from February 25 to May 20 this year, received responses from 73 global central banks, marking the highest number of participating central banks since the survey's inception. Among them, 76% of central banks anticipate an increase in their gold holdings within five years, up from 69% last year. Additionally, a record number of respondents (95%) believe that central banks' gold reserves will increase over the next 12 months, up from 81% last year. The survey also reveals that the Bank of England remains the most popular location for gold reserves. Fifty-nine percent of the surveyed central banks consider potential trade conflicts and tariffs relevant to their reserve management plans. Notably, the proportion of respondents from emerging markets and developing economies (69%) is higher than that from advanced economies (40%), suggesting that this data may better underscore the views of emerging economy central banks on reserves. Risk Considerations The World Gold Council points out that central banks worldwide have increased their gold reserves by over 1,000 mt each year for the past three years, adding that this represents a significant increase compared to the average annual increase of 400 to 500 mt in the previous decade. The accelerated pace of central banks' gold purchases is linked to geopolitical and economic uncertainties. The survey also shows that 73% of respondents believe that the US dollar's share in global reserves will decline mildly or significantly over the next five years. During the same period, the share of other currencies such as the euro and the yuan, as well as gold, is expected to rise. This result also corroborates recent concerns among economists and analysts about the stability of the US dollar. Due to concerns about the Trump administration's trade policies and the US debt crisis, global investors are gradually reducing their dollar holdings to mitigate potential sovereign credit risks. Risk is also a key factor driving central banks worldwide to increase their gold holdings. The survey shows that the proportion of respondents actively managing their gold reserves has risen from 37% in 2024 to 44% in 2025. While return rates remain the primary reason for increasing gold holdings, risk management has surpassed tactical trading to become the second most chosen reason.