Rare earth permanent magnet concept stocks have been repeatedly active. As of Friday's close, BGRIMM Technology, which focuses on the R&D, production, sales, and services of mining and metallurgical equipment as well as magnetic materials, achieved five consecutive daily limit-ups. Huayang New Materials, whose subsidiary's business scope includes the recycling and utilization of high-magnetic rare earth materials, recorded three consecutive daily limit-ups. On the news front, the Ministry of Commerce stated that it reviews export license applications for rare earth-related items in accordance with laws and regulations, has approved a certain number of compliant applications, and will continue to strengthen the approval process for compliant applications. Ma Yan, an analyst at Caida Securities, pointed out in a research report on April 1 that assuming shipments of humanoid robots reach 890,000 units by 2030, the demand for rare earth permanent magnet materials in the humanoid robot sector is projected to reach 3,115 mt. The explosive growth in the market size of humanoid robots is expected to bring broad incremental space to the rare earth permanent magnet industry . Li Chao and Wang Qinyang, analysts at Guojin Securities, pointed out in a research report on February 20 that rare earth permanent magnets, as excellent magnets that currently balance performance and cost, are the top choice for magnetic components in humanoid robots and magnetic materials for low-altitude aircraft , and the dividends from industry chain integration are expected to gradually materialize. Emphasis should be placed on the layout opportunities brought about by "supply-side reform," integration, and the catalyzing effect of humanoid robots. Choice data shows that rare earth permanent magnet concept stocks that received institutional surveys in the past two months (April 14 - June 14) include Sinomine Resource Group, Shenghe Resources, JL MAG Rare-Earth, Xiamen Tungsten, Yahua Group, Zhenghai Magnetic Material, DMEGC, Lizhong Group, Zhongju Hi-Tech, Zhong Ke San Huan, Longi Magnet, China Northern Rare Earth, Xinlaifu, China Nonferrous Metal Industry's Foreign Engineering and Construction Co., Ltd., Goldwind Science&Technology, Instyle, GEM, Wuchan Zhongda Group, NCS Testing Technology Co., Ltd., Jintian Copper, Yian Technology, Advanced Powder Materials, and Sinosteel NMC . The specific situations are as follows: Among the above-mentioned rare earth permanent magnet concept stocks that received institutional surveys, publicly listed firms that have clearly responded regarding their "rare earth permanent magnet" related business situations mainly include Shenghe Resources, JL MAG Rare-Earth, Xiamen Tungsten, Zhenghai Magnetic Material, Zhong Ke San Huan, Longi Magnet, China Northern Rare Earth, Instyle, GEM, and Jintian Copper . Shenghe Resources disclosed an investor relations activity record on June 10, stating that the company maintains a close and good market cooperation relationship with major domestic rare earth concentrate suppliers . In addition, the company has signed long-term supply agreements for rare earth concentrates with Sichuan Hedi Mining, US MP Materials, Peak Rare Earths, and others, establishing a diversified supply channel for rare earth concentrates and providing sufficient raw material guarantees for the company's downstream businesses such as rare earth smelting and separation. Additionally, the imports of ore from Myanmar have been significantly influenced by the local situation, exhibiting fluctuating characteristics. The company will continue to closely monitor the situation of ore from Myanmar. During a survey conducted by institutions on June 13, JL MAG Rare-Earth stated that after the implementation of export control measures on medium-heavy rare earth-related items, the company had initiated export declaration work in accordance with relevant national regulations. It had also successively obtained export licenses issued by national authorities. The export regions include the US, Europe, and Southeast Asia, among others. The company exports magnetic materials, components, and motor rotors in compliance with laws and regulations. The company has established production facilities in Ganzhou, Jiangxi, a major production area for heavy rare earths, and in Baotou, Inner Mongolia, a major production area for light rare earths. The company has established long-term strategic cooperative relationships with major suppliers of rare earth raw materials, including China Northern Rare Earth Group and China Rare Earth Group. In 2024, the procurement amount from these two groups accounted for 63% of the company's total annual procurement. On May 21, Xiamen Tungsten disclosed the record of investor relations activities, indicating that since the second half of 2024, rare earth prices have generally shown a steady upward trend. If this trend continues, the price center of rare earths will gradually rise, and the fluctuation range will narrow compared to the past. In terms of magnetic material capacity layout, Jinlong Rare Earth has achieved an annual production capacity of 12,000 mt at its Changting base and is currently planning new capacity projects at its Changting and Baotou bases. Upon full commissioning of these two projects, Jinlong Rare Earth's magnetic material capacity will reach 22,000 mt. At the performance briefing on May 15, Zhenghai Magnetic Material, when answering the question "What rare earth permanent magnet projects are currently under construction?", stated that the construction of the third phase of 6,000 mt capacity at the company's Nantong base will adjust the investment pace and method in a timely manner based on changes in the external economic environment. The company's sales of high-performance NdFeB permanent magnet materials have achieved seven consecutive years of growth. During a survey conducted by institutions on May 23, Zhong Ke San Huan stated that the current export control measures on medium-heavy rare earth-related items mainly involve the company's NdFeB permanent magnet material products containing dysprosium and terbium. Exporting these products requires declaration and approval before they can be exported. The company has proactively taken measures to initiate export declarations in accordance with relevant regulations at the earliest opportunity, and has already obtained export licenses for a small number of orders. The company's main products are NdFeB permanent magnet materials, which are currently widely used in automobiles (including NEVs), consumer electronics, industrial robots, computers, energy-efficient home appliances, wind power, industrial motors, and other fields. Longi Magnet disclosed the record of investor relations activities on May 27, stating that building a capacity of 60,000 mt for permanent ferrite magnetic tiles has always been a medium and long-term goal . The company will make more optimizations in capacity layout integration, existing capacity utilization, and efficiency improvement, striving to increase capacity through low-cost expansion methods and controlling the pace of capacity release based on downstream demand. The technological transformation and upgrading work at the production sites in Lujiang, Jinzhai, and Vietnam have all shown initial results, and the expected capacity this year will reach 50,000 mt. China Northern Rare Earth stated during an institutional survey on May 21 that the company holds an optimistic view on the future price trend of rare earths . Currently, the upstream supply of rare earths is showing a steady growth trend, thanks to the country's scientific planning and rational development of rare earth resources, as well as the continuous progress in rare earth mining technology. Although the release speed of downstream consumer demand has not met expectations to a certain extent, the fluctuation range of mainstream product prices has significantly narrowed, indicating that the supply-demand relationship is gradually moving towards balance. This balance not only helps stabilize market expectations but also provides a solid foundation for the healthy development of the rare earth industry. On the demand side, the continuous growth in demand for rare earth products in fields such as new energy and high-tech has become a strong driving force for the development of the rare earth industry. During an institutional survey on June 12, Instyle stated that the company's products are mainly delivered through domestic bonded zones and domestic sales channels, and do not involve direct exports to the United States. Export control measures affect businesses involving products containing medium-heavy rare earths dysprosium and terbium, and the company has been handling relevant procedures in compliance with national laws, regulations, and customer order requirements . The company's core competitive advantages mainly lie in its advantages in magnetic circuit design and production manufacturing processes, its advantages in high-quality customer resources, and its advantages in having the origin of rare earths and lower electricity costs in Baotou. GEM stated at the earnings presentation on May 6 that the company has currently conducted technological reserves in the recycling of permanent magnetic materials in the dismantling and recycling field and has reserved the wet process for recycling and synthesizing rare earth oxides. The company has been continuously monitoring the market for rare earth permanent magnets and actively developing the recycling and utilization of rare and scattered metals such as germanium, gallium, indium, and rare earths, as well as expanding the recycling of energy metals like nickel, cobalt, and lithium. Jintian Stock disclosed the record of investor relations activities on May 23, stating that the company has been engaged in the magnetic materials business since 2001. Currently, the company has two magnetic material production sites in Ningbo and Baotou . The first phase of the Baotou site has been put into operation, and the company's annual capacity for rare earth permanent magnets has increased by 4,000 mt on the original basis. The company's rare earth permanent magnet products are widely used in multiple high-end fields, including NEVs, wind power generation, high-efficiency energy-saving motors, robots, consumer electronics, and medical devices.

[PV ETF Funds Rise: PV Industry Chain May Usher in a New Round of Favorable Conditions] As of June 11, 2025, the CSI Photovoltaic Industry Index (931151) surged by 1.28%, with individual stocks of some PV enterprises also following suit. The PV ETF Fund (159863) rose by 0.93%, with the latest quote at 0.43 yuan. By implementing strategies such as industry self-regulation through production restrictions and accelerating the elimination of outdated capacity, the PV industry chain is gradually optimizing its supply-demand pattern. The PV industry, particularly top-tier enterprises, has also realized that "short-term profit-chasing and capacity hoarding are not viable strategies," and accelerating capacity exits and implementing "anti-cut-throat competition" have gradually become industry consensus. It is expected that the key window period for PV supply-side reform will be from the second half of this year to the first quarter of next year. Despite the overall valuation of the PV sector remaining at historically low levels, it will possess higher allocation space and investment value in the future, and the PV industry chain is expected to usher in a new round of favorable conditions.

The real estate market in April saw a slight pullback in popularity. According to the latest data, both new and existing home prices showed signs of adjustment, with market confidence and transaction momentum needing further improvement. Based on the housing price data for 70 cities nationwide released by the National Bureau of Statistics (NBS) on May 19, in April 2025, the number of cities where new home prices rose MoM was 22, a decrease of 2 cities from the previous month; 45 cities experienced a decline, an increase of 4 cities from the previous month. For existing home prices, 5 cities saw a MoM increase, a decrease of 5 cities from the previous month; 64 cities experienced a decline, an increase of 8 cities from the previous month. Fu Linghui, spokesperson for the NBS, stated that under the influence of various policies aimed at halting the decline and stabilizing the real estate market, China's real estate market has continued to move towards halting the decline and stabilizing this year. Transactions in some first- and second-tier cities have recovered to some extent, and housing prices have remained generally stable. "However, it should also be noted that the overall real estate market is still in the process of adjustment and transformation. Rigid and improvement-oriented demand remains to be released, and the pressure to destock real estate in some regions is still relatively high. Continuous efforts are still needed to promote the halting of the decline and stabilization of the real estate market." Data shows that the MoM growth rate of the new commercial residential housing price index for 70 cities nationwide in April was -0.1%. Li Yujia, chief researcher at the Guangdong Housing Policy Research Center, pointed out that the weak performance of the new home price index in that month was mainly due to the fact that April entered the off-season after the "little spring" sales peak. Specifically, in April, the MoM growth rate of new commercial residential housing sales prices in first-tier cities turned flat from a 0.1% increase in the previous month; in second-tier cities, it remained flat MoM; in third-tier cities, it decreased by 0.2% MoM, the same rate of decline as the previous month. The top five cities in terms of housing price index growth were Dalian, Shanghai, Tianjin, Hangzhou, and Taiyuan. "Currently, there are mainly two types of cities with relatively resilient markets. One type consists of cities with a very high urban hierarchy, such as Shanghai and Hangzhou; the other type includes cities like Tianjin and Taiyuan, where supply and demand indicators are relatively stable," said Yan Yuejin, deputy director of the E-House China Research and Development Institute. It is worth noting that new home prices in first-tier cities ended a four-month consecutive upward trend. Among them, Shanghai led the gains in first-tier cities, with a MoM increase of 0.5%, followed by Beijing with a 0.1% MoM increase, while Guangzhou and Shenzhen saw decreases of 0.2% and 0.1%, respectively. "The market conditions among first-tier cities also diverged in April. New home prices in Beijing and Shanghai rose, indicating that the real estate markets in these two cities still have certain supporting factors. In particular, the overall popularity of both new and existing homes in Shanghai still showed a slight increase. Driven by high-end improvement projects, the new home market in Shanghai in April continued to see a sustained rise in popularity. This can be attributed to its unique urban status and market demand structure, as well as its efforts to increase the supply of new homes in core areas," said Zhang Bo, President of the 58 Anjuke Research Institute. The adjustment in the second-hand housing market has been more pronounced. In April, the second-hand housing price index for 70 cities fell by 0.4% QoQ, a significant increase from the -0.2% decline in the previous month. Among them, the selling prices of second-hand homes in first-tier cities shifted from growth to decline, falling by 0.2% QoQ, compared to a 0.2% increase in the previous month. In second- and third-tier cities, the selling prices of second-hand homes both fell by 0.4% QoQ, with the decline expanding by 0.2 and 0.1 percentage points, respectively, compared to the previous month. "The weakening market transactions are partly related to seasonal factors. Historically, housing prices tend to weaken in Q2. Moreover, the increased supply of high-quality homes in the new housing market has had a certain impact on the second-hand housing market," said Li Yujia. As the supply-side reform in the new housing market takes effect, the transaction cycle between new and second-hand homes is accelerating, with replacement demand driving faster transactions, which has a positive effect on halting the decline in second-hand housing prices. At the policy level, the central and local governments have taken proactive actions since April, introducing multiple measures to stabilize the real estate market. The April 25 meeting of the Political Bureau of the CPC Central Committee emphasized the need to intensify urban renewal efforts, advance the renovation of urban villages and dilapidated houses in an orderly manner, accelerate the construction of a new model for real estate development, increase the supply of high-grade housing, optimize policies for acquiring existing commercial housing, and continuously consolidate the stable trend of the real estate market. Cao Jingjing, General Manager of the Index Research Department at China Index Academy, believes that the Political Bureau's statement on the real estate market at the end of April, shifting from "halting the decline and stabilizing the market" since September 26 last year to "continuously consolidating stability" this time, not only reflects the central government's objective assessment of the recovery in real estate sales since Q4 last year but also demonstrates a full understanding of the ongoing pressures in the market. The market still requires sustained policy efforts to further consolidate the stable trend. It is expected that various policies will continue to be implemented at an accelerated pace, focusing on areas such as urban village renovation, high-grade housing supply, and the acquisition of existing housing.

The State Council Information Office held a press conference at 10 a.m. today, where Fu Linghui, spokesperson for the National Bureau of Statistics (NBS) and Director of the NBS's Department of Comprehensive Statistics of the National Economy, introduced the operation of China's national economy in April 2025 and answered questions from journalists. Fu Linghui, spokesperson for the NBS: The fundamental aspects of China's improving economy remain unchanged, with many favorable conditions for sustained economic rebound. Fu Linghui, spokesperson for the NBS, stated that in the next phase, the international environment will remain complex and severe, with many unpredictable factors of instability and uncertainty. Domestically, cyclical and structural imbalances are intertwined. However, the fundamental aspects of China's improving economy remain unchanged, and there are many favorable conditions for sustained economic rebound. From January to April, China's investment in equipment procurement increased by 18.2% YoY. Fu Linghui said that driven by the large-scale equipment renewal policy, from January to April, China's investment in equipment procurement increased by 18.2% YoY, contributing 64.5% to the overall investment growth. Implement special initiatives to boost consumption and better unleash its potential. Fu Linghui stated that, overall, the effects of policies have continued to manifest since the beginning of the year, with market sales maintaining a rebound trend. However, the endogenous driving force of consumption still needs to be further strengthened. In the next phase, it is necessary to implement special initiatives to boost consumption, continue to enhance residents' consumption capacity, increase the supply of high-quality goods and services, improve the consumption environment, better unleash consumption potential, and promote healthy economic development and sustained improvement of people's livelihoods. In the next phase, a significant reduction in tariffs between China and the US will be beneficial for trade growth between the two countries. Fu Linghui said that in the next phase, a significant reduction in tariffs between China and the US will be beneficial for trade growth between the two countries and also for the global economic recovery. In April, the driving role of "AI+" strengthened, and the digital industry flourished. At the press conference, Fu Linghui stated that support for innovation has continued to increase, with high-tech industries growing rapidly. In April, the added value of high-tech manufacturing above designated size increased by 10% YoY. Among them, the added value of aerospace-related equipment manufacturing and integrated circuit manufacturing increased by 21.4% and 21.3%, respectively. The driving role of "AI+" strengthened, and the digital industry flourished. In April, the added value of digital product manufacturing above designated size increased by 10%. The green and low-carbon transformation continued to deepen, with the new energy industry developing rapidly. In April, the production of new energy products such as NEVs and charging piles increased by 38.9% and 43.1%, respectively. With the coordinated implementation of various macro policies, there are many favorable conditions for sustained economic rebound in China. Fu Linghui stated that since the beginning of the year, the international environment has evolved complexly, with the US imposing a series of unilateral hefty tariffs on China, severely impacting Sino-US economic and trade relations. In response, China has taken resolute and forceful countermeasures. From May 10 to 11, China and the United States held high-level economic and trade talks in Geneva, Switzerland, and agreed through consultation to significantly reduce tariffs. Against this backdrop, there is widespread concern about the trajectory and prospects of China's economy. Looking ahead, the international environment remains complex and severe, with many unstable, uncertain, and unpredictable factors. Domestically, cyclical and structural imbalances are intertwined. However, the fundamental aspects of China's economy, which have been favorable in the long term, remain unchanged. Various macro policies are working in synergy, with all sectors joining forces to tackle challenges and actively adapt to changes. The momentum for innovation continues to grow, providing many favorable conditions for the sustained rebound of the economy. As the effects of policies continue to manifest and the momentum of consumption strengthens, consumption is expected to continue boosting economic growth. Fu Linghui stated that regions and departments across the country have diligently implemented the decisions and arrangements of the CPC Central Committee, vigorously carrying out special initiatives to stimulate consumption, intensifying and expanding the implementation of the "program of large-scale equipment upgrades and consumer goods trade-ins," innovating diversified consumption scenarios, and actively expanding service consumption, with the effects continuously emerging. In April, the total retail sales of consumer goods related to trade-ins, including household appliances and audio-visual equipment, cultural and office supplies, furniture, communication equipment, and building and decoration materials, collectively boosted the growth of total retail sales of consumer goods by 1.4 percentage points. From January to April, service retail sales increased by 5.1%, accelerating for two consecutive months. During the Labour Day holiday, the number of domestic tourists increased by 6.4% YoY. As the effects of policies continue to manifest and the momentum of consumption strengthens, consumption is expected to continue boosting economic growth. China's investment potential remains enormous, with many favorable factors supporting investment growth. Fu Linghui noted that since the beginning of this year, the economy has generally operated smoothly, with the effects of the "implementation of major national strategies and the development of security capabilities in key areas" and the "program of large-scale equipment upgrades and consumer goods trade-ins" continuously emerging. Industrial upgrading and development are on an upward trajectory, supporting the expansion of effective investment. Looking ahead, China's investment potential remains enormous, with many favorable factors supporting investment growth. Firstly, there is vast room for industrial upgrading. The new-generation information technology industry is booming, with emerging industries represented by high-end equipment and artificial intelligence showing good development momentum, and investment in innovation is continuously increasing. Secondly, major regional strategies are leading the way. Since the 18th CPC National Congress, a series of major regional strategies have been accelerated in implementation, with urban-rural and regional coordinated development and new-type urbanization holding enormous investment potential. Thirdly, there is still significant investment demand in the field of social and people's livelihood. Although investment in the people's livelihood sector has been continuously increasing, there is still a gap compared to the needs of the people. Currently, China attaches great importance to ensuring and improving people's livelihood, continuously increasing investment in the social and people's livelihood sector, which is also conducive to the sustained growth of investment. In the next phase, we should continue to leverage the role of macro policies to promote a reasonable rebound in prices. Fu Linghui stated that currently, prices are generally at a low level, which exerts pressure on enterprises' production and operation, and affects residents' employment and income growth. Therefore, it is crucial to promote a reasonable rebound in prices. In the next phase, we should continue to leverage the role of macro policies to further expand investment demand. We should advance supply-side reforms, improve economic circulation, continuously regulate market order, and promote a reasonable rebound in prices. Since the beginning of this year, China's real estate market has continued to move towards halting the decline and stabilizing, with transactions recovering in some first- and second-tier cities. Fu Linghui stated that under the influence of various policies aimed at halting the decline and stabilizing the real estate market, since the beginning of this year, China's real estate market has continued to move towards halting the decline and stabilizing, with transactions recovering in some first- and second-tier cities, and housing prices generally remaining stable. However, it should also be noted that the overall real estate market is still in the process of adjustment and transformation, with rigid and improvement-oriented demand yet to be fully released. In some regions, the pressure to sell off real estate inventory remains relatively high, and continued efforts are needed to promote the halting of the decline and stabilization of the real estate market.

① Several enterprise leaders proposed countermeasures from aspects such as improving the efficiency of module products, increasing the proportion of exports to high-value overseas markets, and building new scenarios integrating PV ESS, in order to steadily enhance the company's operational capabilities. ② The US remains a high-premium market, and several enterprise leaders responded to the export plans for the US.

①The acceleration of capacity exit and the high inventory levels coexist. Can the supply-side reform of the PV industry chain truly reverse the industry's surplus situation? ②Financial reports frequently show signals of "hitting bottom." Is the logic behind the valuation repair of the PV sector sustainable? (Finance Link)