Macro News 1. On the 28th, He Lifeng, Member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, met with Dan Simkowitz, Co-President of Morgan Stanley in the US, at the Great Hall of the People. He Lifeng stated that China is committed to promoting high-quality development through high-level opening up, and welcomes more US financial institutions, including Morgan Stanley, and long-term capital to continuously deepen mutually beneficial cooperation with China and actively participate in the construction and development of China's capital market. Simkowitz expressed that Morgan Stanley will continue to expand its presence in the Chinese market and provide high-quality services to facilitate investment cooperation between US and Chinese enterprises. 2. From the 27th to the 28th, Zhang Guoqing, Member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, conducted a survey in Shanghai on promoting the healthy development of the platform economy and market supervision. He emphasized the need to thoroughly implement the important instructions and directives of General Secretary Xi Jinping, implement the decisions and arrangements of the CPC Central Committee and the State Council, focus on promoting high-quality development, comprehensively strengthen governance capabilities in the field of market supervision, promote the construction of a sound ecosystem for the platform economy, and maintain a fair and orderly market environment. 3. On May 28th, Foreign Ministry spokesperson Mao Ning presided over a regular press conference. Mao Ning stated that China has decided to expand the scope of visa-free countries. From June 9, 2025, to June 8, 2026, a visa-free policy will be implemented on a trial basis for holders of ordinary passports from Saudi Arabia, Oman, Kuwait, and Bahrain. Individuals from these four countries holding ordinary passports who come to China for business, tourism, visiting relatives and friends, exchanges, visits, or transit for no more than 30 days may enter the country without a visa. 4. According to the National Disease Control and Prevention Administration, the upward trend of the COVID-19 epidemic nationwide has slowed down, and the epidemic has reached its peak or is showing a downward trend in most provinces. The dominant circulating strain is the sixth-generation sub-lineage NB.1.8.1 of the XDV variant, with no significant changes observed in its pathogenicity or clinical severity of the disease. Industry News 1. It has been learned from multiple informed sources that at a recent symposium on upstream and downstream enterprises in the China-EU semiconductor industry held by the Ministry of Commerce, the policy on rare earth export controls was explained, and communication with China-EU chip enterprises on rare earth export controls was strengthened to maintain the stability of the global industry chain. Another informed source indicated that this move implies that China may relax rare earth export controls targeting the industry chain of China-EU semiconductor enterprises. 2. The Office of the National Healthcare Security Administration conducted an investigation into cases of "ghost pharmacists" (pharmacists whose names are listed but who are not actually present) at designated retail pharmacies. Through screening and analysis, it was found that the names of some pharmacists (corresponding to the same ID numbers) appeared in the drug expense details of multiple designated retail pharmacies, suggesting possible violations such as pharmacist information being falsified or pharmacists engaging in "ghost pharmacist" practices. Designated retail pharmacies found to have engaged in violations such as falsified pharmacist information, "ghost pharmacists," or failure to provide pharmaceutical services as required will be subject to measures such as interviews, rectification within a specified time limit, suspension of the medical insurance service agreement, or termination of the medical insurance service agreement, depending on the severity of the violations. 3. The website of the Shenzhen Municipal Housing and Construction Bureau released the "Administrative Measures for the Allocation and Sale of Affordable Housing in Shenzhen (Draft for Soliciting Opinions)" and the "Administrative Measures for the Planning and Construction of Affordable Housing in Shenzhen (Revised Draft for Soliciting Opinions)". The drafts mention that allocation-and-sale-type affordable housing will be subject to strict closed-loop management, and it is prohibited to convert such housing into commercial housing in any way. 4. It has been learned from informed sources that DJI's robotic vacuum cleaner products have entered mass production and are expected to be launched in June. It is understood that DJI has been engaged in the R&D of robotic vacuum cleaners for more than four years, and the upcoming product is a robotic vacuum and mop combo. 5. The General Office of the People's Government of Fujian Province issued the "Implementation Plan for Special Actions to Boost Consumption in Fujian Province", which proposes supporting automobile consumption. It supports various regions in carrying out automobile consumption promotion activities and providing additional support through preferential car purchase policies. 6. The State Administration for Market Regulation recently issued the "Action Plan for Key Technological Innovations in Metrology and Testing". The Plan proposes that by 2030, more than 50 key metrological core technologies will be achieved, more than 20 new-generation international first-class metrological standards will be established, the self-controllable rate of core devices for newly established metrological standards will reach over 60%, and the leading rate in international metrological comparisons will reach 20%. 7. It was learned from the media briefing on promoting the trade-in of e-bikes in Guangdong that as of May 26, the sales volume of e-bikes traded in in Guangdong Province reached 174,000 units, ranking among the top in the country, with the trade-in volume being approximately three times that of the previous year. The cumulative subsidy funds used amounted to 87.08 million yuan, boosting new e-bike consumption by over 400 million yuan. Corporate News 1. Jiaying Pharmaceutical announced that it is under investigation by the China Securities Regulatory Commission for suspected violations of laws and regulations in information disclosure. 2. China Energy Engineering Group announced that it has won the bid for the 6×660 MW coal-fired power project in the Bingzhun Industrial Park of the China-Kyrgyzstan-Uzbekistan Railway, with a bid amount of approximately 14.586 billion yuan. 3. *ST Jilin Pharmaceutical announced that its shares will be delisted on May 29. 4. *ST Longjin announced that its shares will enter the delisting consolidation period starting from June 6. 5. ST Huaxi announced that it has signed a major contract for daily operations worth approximately 2.084 billion yuan. 6. Fuda Co., Ltd. announced that it plans to invest in the construction of a project for ultra-precision gears for electric drive systems in NEVs and a project for robotic transmission joint components. 7. Longgao Co., Ltd. announced that the restructuring of its controlling shareholder is undergoing the approval process for the assessment report. 8. Jiangsu New Energy announced that its future performance is related to multiple factors such as the natural resources at the project sites, and significant changes may bring about performance fluctuation risks. 9. China Flag Chemical announced that the company currently has the project approval procedures for chlorantraniliprole, but it has not yet officially commenced production. 10. ST United announced its intention to acquire 100% equity in Jiangxi Runtian Industry, a packaged drinking water company, and its stock will resume trading. 11. Shangwei Cable announced that the company's actual controller has been changed to Zhang Hua. 12. At the earnings briefing, executives of Huguang stated that the first prototype line for the humanoid robot project has been successfully implemented. 13. IntSig Information announced its intention to plan for the issuance of H shares and list them on the Hong Kong Stock Exchange. 14. China National Gold Group announced that its controlling shareholder intends to increase its stake in the company by 168 million to 335 million yuan. 15. Lier Chemical stated on its interactive platform that the 5,000 mt/year chlorantraniliprole production facility is under accelerated construction. Global Markets 1. The three major U.S. stock indices closed lower collectively, with the Dow Jones falling 0.58%, the Nasdaq declining 0.51%, and the S&P 500 index dropping 0.56%. Most popular Chinese ADRs closed lower, with the Nasdaq Golden Dragon China Index falling 0.71%. 2. WTI crude oil futures prices closed up 1.56% at $61.84 per barrel. Brent crude oil futures closed up 1.26% at $64.9 per barrel. 3. COMEX gold futures closed down 0.48% at $3,312.4 per ounce, and COMEX silver futures closed down 0.65% at $33.095 per ounce. 4. Nvidia reported revenues of $44.1 billion in the first fiscal quarter, up 69% YoY, and a net profit of $18.78 billion in the first fiscal quarter, up 26% YoY. Investment Opportunities Reference 1. Xiaomi YU7's pre-booking inquiries exceed those of SU7 during the same period, with the number of users leaving their information being about three times higher. According to media reports, Lu Weibing, Partner and President of Xiaomi Group, stated at the earnings call that Xiaomi YU7 has been well-received by users since its pre-release, becoming more popular and well-known than when Xiaomi SU7 was first unveiled. Lu Weibing revealed that after the technical release of YU7, the number of pre-booking inquiries exceeded those of SU7 during the same period. As of May 25, the number of users leaving their information for the "YU7 Technical Launch Event" was about three times that of the "SU7 Technical Launch Event" during the same period. YU7 has a broader audience than SU7, and we are very confident in YU7. YU7 is expected to be officially launched in July this year. Previously, Xiaomi Auto announced that it had raised its delivery target for 2025 to 350,000 units (up from 300,000 units). Driven by factors such as strong product competitiveness and the launch of new models, Xiaomi Auto's sales are expected to continue to accelerate. Guotai Haitong Securities stated that Xiaomi Group's YU7 was launched on May 22, and its sales after the new model's launch are worth looking forward to, with the industry chain expected to continue benefiting. 2. WeRide Enters Saudi Arabian Market, with Three Major Products Deployed Recently, WeRide, a global leader in autonomous driving technology, announced its market expansion strategy in Saudi Arabia, marking a further expansion of the company's global commercial footprint. As the first step in entering the Saudi market, WeRide has tested and deployed autonomous driving products such as Robotaxi, Robobus, and Robosweeper in key Saudi cities including Riyadh and AlUla, laying the foundation for subsequent large-scale commercial operations across Saudi Arabia. With the rapid development of artificial intelligence (AI) technology, autonomous driving is undergoing unprecedented changes. From intelligent perception to precise decision-making, and from efficient control to data-driven operations, AI has injected strong momentum into autonomous driving. Haitong Securities pointed out that previously, the main barriers to the development of large-scale autonomous driving models included computing power, data loops, etc., with leading autonomous driving enterprises mostly being top-tier technology companies. Following the release of Deepseek's faster inference model, latecomers (including vehicle manufacturers and solution providers) are expected to gain new opportunities, and the autonomous driving algorithm sector is expected to witness a flourishing landscape. Therefore, 2025 is expected to be a year of rapid penetration of high-level intelligent driving, with numerous opportunities emerging across the industry chain. 3. Three Departments, Including MIIT, Coordinate to Promote the Development of Advanced Computing Industry According to media reports, the Ministry of Industry and Information Technology (MIIT), the National Development and Reform Commission (NDRC), and the National Data Administration jointly issued the "Implementation Plan for the Digital Transformation of the Electronic Information Manufacturing Industry" to strengthen the construction of new-type information infrastructure. The plan coordinates the promotion of the development of the advanced computing industry, accelerates the integration of networks, data, computing power, and algorithms, drives innovative development in high-performance computing, intelligent computing, and cloud-edge-end collaborative computing, improves the network layout of edge computing centers, and builds a new-type information infrastructure that is highly reliable, high-performance, and widely connected. It promotes the deep empowerment of new-type information infrastructure in electronic information manufacturing applications, accelerating the large-scale application of advanced computing, 5G-A, gigabit optical networks, industrial internet, and AI in the electronic information manufacturing industry. Advanced computing encompasses three major areas: computing power, algorithms, and data, covering various computing methods such as cloud, edge, and end computing. As the core productivity in the digital economy era, computing power plays a crucial role in driving technological and industrial progress, accelerating the deep integration of digital technologies with the real economy, and its strategic and supportive roles are becoming increasingly prominent. Shanxi Securities believes that the demand for AI computing power from two major downstream sectors, the internet and intelligent computing centers, will continue to experience high growth, with rapid progress in localization procurement. 4. Musk's Brain-Computer Interface Company Completes New Round of Financing It is reported that Musk's brain-computer interface company, Neuralink, has raised $600 million in a round of financing, bringing the company's valuation to $9 billion. In recent years, the global brain-computer interface (BCI) technology has witnessed rapid development, with its application areas gradually expanding from the medical field to non-medical fields such as education and gaming. Meanwhile, the rapid evolution of emerging technologies like artificial intelligence (AI) is driving more breakthroughs in the application of BCI technology. According to PrecedenceResearch, the global BCI market size was approximately $2.62 billion in 2024 and is expected to reach $12.4 billion by 2034, with a compound annual growth rate (CAGR) of 17.4% from 2025 to 2034.

Macro News 1. Xi Jinping, General Secretary of the Communist Party of China Central Committee, President of the People's Republic of China, and Chairman of the Central Military Commission, recently emphasized during a field trip in Henan that, in the new era and on the new journey, Henan should earnestly implement the strategic plans of the CPC Central Committee on accelerating the rise of the central region, ecological protection and high-quality development of the Yellow River Basin, adhere to the general principle of pursuing progress while ensuring stability, comprehensively deepen reform and opening up, focus on building a modern industrial system and a strong agricultural province, improve people's livelihoods and strengthen social governance, enhance ecological and environmental protection, and promote cultural prosperity, striving to write a new chapter in advancing Chinese-style modernization in central China with high-quality development and efficient governance. 2. On the 19th (local time), US President Trump held separate phone calls with Russian President Putin and Ukrainian President Zelenskyy to discuss issues such as the ceasefire negotiations between Russia and Ukraine. Foreign Ministry spokesperson Mao Ning stated that, on the issue of the Ukraine crisis, China supports all efforts conducive to peace. We support direct dialogue and negotiations between Russia and Ukraine, and support a political solution to the crisis. We hope that all parties can reach a fair, lasting, and binding peace agreement acceptable to all parties involved through dialogue and negotiations. 3. On May 19th, Pan Gongsheng, Governor of the People's Bank of China, chaired and spoke at a symposium on financial support for the real economy. The meeting emphasized the need to intensify support for key areas such as scientific and technological innovation, boosting consumption, private and micro enterprises, and stabilizing foreign trade. It called for making full use of existing and incremental policies to improve the quality and efficiency of financial support for the real economy, and to support economic restructuring, transformation, upgrading, and the replacement of old growth drivers with new ones. 4. According to data from the Ministry of Finance, from January to April, the national general public budget revenue was 8,061.6 billion yuan, down 0.4% YoY. Among this, national tax revenue was 6,555.6 billion yuan, down 2.1% YoY; non-tax revenue was 1,506 billion yuan, up 7.7% YoY. From January to April, stamp duty revenue was 161.4 billion yuan, up 18.9% YoY. Among this, stamp duty on securities transactions was 53.5 billion yuan, up 57.8% YoY. 5. The National Health Commission held a press conference yesterday. An Zhijie, a researcher from the Chinese Center for Disease Control and Prevention, introduced that currently, the pertussis epidemic situation nationwide is stable, with the number of reported cases down by more than 80% YoY. An Zhijie also stated that recently, the COVID-19 epidemic has shown a slight upward trend in some countries and regions, but there has been no significant change in the clinical severity of the disease. Industry News 1. The State Council Information Office will hold a press conference at 3 p.m. on May 22, 2025. Qiu Yong, Vice Minister of the Ministry of Science and Technology, Zhu Hexin, Vice Governor of the People's Bank of China and Director of the State Administration of Foreign Exchange, and relevant officials from the National Financial Regulatory Administration and the China Securities Regulatory Commission will introduce the relevant situation of science and technology finance policies and answer questions from reporters. 2. The Cyberspace Administration of China (CAC) and two other departments jointly issued the Key Points for Further Promoting the Large-Scale Deployment and Application of IPv6 in 2025. The Key Points specify that by the end of 2025, China will have fully established a globally leading IPv6 technology, industry, infrastructure, application, and security system. The number of active IPv6 users will reach 850 million, the number of IPv6 connections in the Internet of Things (IoT) will reach 1.1 billion, the proportion of IPv6 traffic in fixed networks will reach 27%, and the proportion of IPv6 traffic in mobile networks will reach 70%. 3. The National Energy Administration (NEA) released data on electricity consumption across society in April. In April, electricity consumption across society was 772.1 billion kWh, up 4.7% YoY. Electricity consumption for urban and rural residents' daily lives was 93.6 billion kWh, up 7.0% YoY. From January to April, cumulative electricity consumption across society was 3,156.6 billion kWh, up 3.1% YoY, with power generation from industrial enterprises above designated size reaching 2,984 billion kWh. 4. Regulatory authorities have recently initiated a new round of surveys on some leading quantitative private equity firms. This survey focuses on two aspects: one is the overall operational status of quantitative trading under the current market environment; the other is the application of AI models in quantitative strategies. 5. It has been learned from the State Grid Corporation of China that China has independently developed a high-proportion new energy large power grid operation and control system, marking that China has taken the lead in solving the world-class challenge of integrating ultra-large-scale new energy into large power grids. It is understood that currently, the proportion of installed new energy capacity in China has exceeded 40%. To ensure the safe and stable integration of large-scale new energy into large power grids, China has independently developed a new energy large power grid operation and control system. 6. A new round of interest rate cuts on deposits is on the horizon, with multiple banks, including the Industrial and Commercial Bank of China (ICBC), Bank of China (BOC), and China Construction Bank (CCB), lowering interest rates on various products such as demand deposits, time deposits, and notice deposits. As the "interest rate cut trend" in bank deposits continues, certificate of deposit (CD) products, once regarded as "powerful tools for attracting deposits," are gradually falling out of favor. Recently, several banks have simultaneously lowered interest rates on time deposits and CD products. Currently, CD products are on the verge of fully entering the "1% era." Corporate News 1. GigaDevice announced its plan to issue and list H shares. 2. TINAVI Medical Technologies announced that Advanced Manufacturing Fund and its concerted actors intend to reduce their combined shareholding in the company by no more than 3%. 3. Huili B announced that its shares may be delisted. 4. NovaSense announced that its shareholders intend to transfer a combined 3.4% of the company's shares. 5. *ST Yushun announced a trading halt for verification due to abnormal stock price fluctuations. 6. National Silicon Industry Group released a draft report on major asset restructuring, proposing to acquire a 46.7354% stake in Xinsheng Jingtou, among others. The second phase of the National Integrated Circuit Industry Investment Fund will become a shareholder holding more than 5% of the company's shares. 7. ST Huaxi announced that its controlling shareholder and actual controller, Li Renchao, had been detained and a case had been filed against him. 8. Jiuding Investment announced that management remuneration is typically realized gradually over several years after investment, leading to significant volatility in the company's performance. 9. Xichang Electric Power announced that due to adjustments in the time-of-use electricity prices mechanism, it is expected to reduce the company's net profit for 2025 by approximately 5.4 million yuan. 10. Ancai Hi-Tech announced that the selling price of its PV glass products in Q1 2025 decreased by approximately 30% compared to the same period last year. 11. Yulong Co., Ltd. announced that its shares will be delisted and removed from trading on May 27. 12. Huamao Technology announced that it is planning to acquire equity in Fuchuang Youyue, and its shares have been suspended from trading starting from the 21st. 13. Hongjing Technology announced that it has signed a service contract for an intelligent computing project worth 597 million yuan. 14. Chaohongji announced that it is planning to issue H shares for listing on the Hong Kong Stock Exchange. 15. Demai Shi announced that its controlling shareholder is planning changes to the company's control, and its shares have been suspended from trading. 16. Suzhou Longjie stated on an interactive platform that the prices of some of its new and hot-selling products have increased. 17. Rockchip announced that its shareholder, Runkexin, plans to reduce its stake in the company by no more than 2%. Global Markets 1. The three major US stock indices closed lower collectively, with the Dow Jones falling 0.27%, the Nasdaq dropping 0.38%, and the S&P 500 declining 0.39%. Most popular Chinese ADRs fell, with the Nasdaq Golden Dragon China Index closing down 0.65%. 2. WTI crude oil futures rose by 2.5% to $63.60 per barrel. News emerged that US intelligence had discovered that Israel was planning to attack Iranian nuclear facilities. 3. COMEX gold futures closed up 1.83% at $3,292.6 per ounce, while COMEX silver futures closed up 2.32% at $33.26 per ounce. Investment Opportunities Reference 1. The "Healthcare Robotics" Collaborative Development Conference is set to convene, with Huawei and Zhiyuan Robotics to collaborate The Embodied Intelligent Healthcare Robotics Collaborative Development Conference, themed "Reshaping the Future of Healthcare with Intelligent Technology," will be held on May 21. Meanwhile, the Science and Technology Innovation Board Daily learned that Huawei, Zhiyuan Robotics, and Zhongjian Technology will collaborate on healthcare humanoid robots, with cooperation in areas such as computing power, large model platforms, data collection, solutions, and application scenarios. Against the backdrop of an accelerating aging population, the embodied intelligent healthcare robotics industry is becoming an important force in promoting the implementation of the Healthy China strategy, ushering in unprecedented opportunities. Founder Securities believes that the elderly care robot industry is entering a period of explosive growth in technological integration and scenario implementation. The R&D, application promotion, and ecosystem co-construction of elderly care robots provide more intelligent, efficient, and humanized elderly care solutions for groups such as the elderly, opening up a new future for "AI + elderly care." 2. Microsoft Plans to Establish an "Agent Factory," with Institutions Projecting the Global AI Agent Market to Reach $47.1 Billion by 2030 According to media reports, based on an internal Microsoft memo, the company is developing a new "Tenant Copilot" service. This new service aims to assist tenants in establishing a Copilot that can "converse, think, and work like the tenant themselves," and is expected to be announced at Microsoft's developer conference next week. Additionally, Microsoft also plans to establish an "Agent Factory" to help enterprise customers develop methods for managing AI Agents alongside human employees. According to MarketsandMarkets' forecast, the global AI Agent market is expected to grow from $5.1 billion in 2024 to $47.1 billion in 2030, with a compound annual growth rate (CAGR) of 44.8%. Shanghai Securities stated that the commercialization of AI Agents is continuously evolving both domestically and overseas, with a vast market potential. On the B-side, companies such as Microsoft, Google, Salesforce, Zoom, Baidu, Alibaba, Tencent, and ByteDance are continuously increasing their investments to drive the commercialization of AI Agents. On the C-side, remarkable AI Agents are emerging both domestically and overseas. 3. Shanghai's First Urban Low-Altitude Sightseeing Route Takes Off, with Institutions Reporting Gradual Implementation of Low-Altitude Economy Market Applications According to media reports, Shanghai's first customized urban low-altitude sightseeing route took off from the outdoor platform on the fifth floor of Global Harbor, passing by iconic Shanghai landmarks such as Shanghai Stadium, Lupu Bridge, Nanpu Bridge, Lujiazui, and Yangpu Bridge (on the Pudong side) before returning along the same route, with a total flight time of approximately 15 minutes. Guoyuan Securities stated that the current low-altitude economy sector is characterized by deepening policies and accelerating scenario implementation. On the policy side, the state has incorporated the low-altitude economy into its top-level design for the first time, including it in the preparation of the national "15th Five-Year Plan." Multiple regions, including Shenzhen and Hefei, are promoting industrialization through substantial subsidies and pilot expansions. Meanwhile, financial support is also increasing, with special bonds for the low-altitude economy providing strong support, the establishment of multiple low-altitude industry investment funds, and a gradual rise in investment preferences for low-altitude industry enterprises in the primary market. On the technology side, the airworthiness certification process for eVTOLs is accelerating, with AI drones achieving breakthrough applications in agriculture, logistics, tourism, and other scenarios. The low-altitude infrastructure network is being densely laid out to support large-scale operations of the low-altitude economy. On the market side, the low-altitude zone at the China International Consumer Products Expo has seen a surge in popularity, with multiple eVTOL producers delivering products or securing large orders, indicating the gradual implementation of low-altitude economy market applications. 4. As a typical example of "self-indulgent consumption," this type of economy is now entering a stage of high-quality development. As people's living standards improve, the demand for emotional consumption continues to grow. As a typical example of "self-indulgent consumption," the pet economy has seen consumption demand extend from basic food to high-end and service-oriented products. According to the "2025 China Pet Industry White Paper" by Petu, it is projected that by 2027, the consumer market size for pets (dogs and cats) in urban areas will surpass the 400 billion yuan mark, reaching 404.2 billion yuan, with a compound annual growth rate (CAGR) of 12.6% from 2015 to 2027. With the development of the social economy and changes in people's lifestyles, pets have transitioned from their traditional role as guardians of the home to becoming members of the family, giving rise to and fueling the growth of the pet economy. From pet food and supplies to medical care and services, the consumer market surrounding the entire life cycle of pets continues to expand, becoming a significant growth point in the global consumer sector. In recent years, China's pet industry has gone through stages of enlightenment, growth, and rapid development, and is now entering a stage of high-quality development. The market size continues to expand, domestic brands are emerging, new retail models are rising, and the concept of scientific pet care is deeply rooted in people's minds. Huaan Securities points out that, overall, China's pet industry is developing in a professional and diversified direction, with immense market potential, a continuously improving industry chain, and broad prospects for the future.

The operating rate of zinc oxide this week was recorded at 59.77%, down 1.01% WoW. Currently, tyre factories are experiencing poor orders, and overcapacity is continuously compressing corporate profits. Tyre companies are seeing significant inventory buildup, and the demand for rubber-grade zinc oxide is weakening. The market demand for ceramic-grade zinc oxide remains relatively stable. In terms of feed-grade zinc oxide, overall orders are also relatively normal, but the recent severe epidemic diarrhea in the pig market may impact future feed-grade zinc oxide orders. Regarding export orders, the "rush to export" in the end-use market is not significant recently. On the contrary, tyre orders have weakened due to tariff issues.

The operating rate of zinc oxide this week was recorded at 59.77%, down 1.01% WoW. Currently, tyre factories are experiencing poor orders, and overcapacity is continuously compressing corporate profits. Tyre companies are seeing significant inventory buildup, and the demand for rubber-grade zinc oxide is weakening. The market demand for ceramic-grade zinc oxide remains relatively stable. In terms of feed-grade zinc oxide, overall orders are also relatively normal, but the recent severe epidemic diarrhea in the pig market may impact future feed-grade zinc oxide orders. Regarding export orders, the "rush to export" in the end-use market is not significant recently. On the contrary, tyre orders have weakened due to tariff issues.

Demand from tyre factories slowed, and the operating rate of zinc oxide declined. This week, the operating rate of zinc oxide recorded 59.77%, down 1.01% MoM. Raw material side, the center of zinc prices rose this week, and prices of various raw materials remained high. Zinc oxide enterprises mainly made just-in-time procurement, and raw material inventory decreased MoM. Finished product inventories side, downstream demand weakened, and the pace of cargo pick-up slowed. Additionally, some enterprises had holiday arrangements during the May Day period, leading to an increase in finished product inventories MoM.

After COMEX gold hit a high of US$2,150.5 per ounce on March 5, it experienced a slight shock correction on the 6th; SHFE gold has frequently set new historical highs recently!

According to the latest data from the General Administration of Customs, the exports of unwrought aluminum and aluminum semis in 2024 was 966,000 tons, up 9.8% YoY; the cumulative export value from January to February reached $3172.1 million, up 0.5% YoY.

The mainstream transaction price of Mg90% magnesium ingots in the main production areas is 19,000 yuan/mt, which is 5.1% lower than the transaction price on the first day of the year.

**In 2023, the lithium manganese oxide cathode material market in China experienced severe turmoil, with frequent price wars. Influenced by lithium carbonate prices, the price of lithium manganese oxide exhibited a "reverse U-shaped" trend throughout the year. The price of capacity-type lithium manganese oxide plummeted from a high of 137,000 yuan/ton at the beginning of the year to 54,000 yuan/ton in mid-to-late April, then rose to 98,000 yuan/ton in mid-to-late May, before steadily declining to 37,000 yuan/ton by the end of the year. Regarding production, compared to a low operating rate of 25% in 2022, the situation improved slightly in 2023, with an overall average operating rate of 39% for the year, mainly due to the relaxation of epidemic restrictions in 2023, leading to a relatively improved demand.**

Customs data showed that China exported a total of 72,600 mt of aluminum wheels in December 2023, down by 6 percentage points MoM but up by 9 percentage points YoY.