[SMM Tin Morning Briefing: The Most-Traded SHFE Tin Contract Opened Sharply Higher in the Night Session and Then Rebounded in Volatile Trading, While the Spot Market Will Gradually Cool Down]

Chan pointed out that Hong Kong can play a role in several key areas, including contributing to the development of a modern industrial system for the nation and accelerating high-level technological self-reliance. Hong Kong possesses strong fundamental research capabilities and holds unique advantages in fields such as AI, life and health technologies, fintech, as well as new materials and new energy. At the same time, as an international financial center, Hong Kong will advance "finance plus" initiatives, leveraging finance to better serve the real economy and advantageous industries, while accelerating the mutual empowerment of finance and innovation and technology, using Hong Kong's strengths to meet national needs.

Commodity markets have experienced extreme fluctuations in recent weeks – but not all analysts see this as a shift in sentiment.

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.

Since Q2, the issuance of local government bonds has significantly accelerated. A review of the Special Bond Information Network by reporters revealed that as of June 12, local government bond issuance this year had exceeded 4 trillion yuan, with newly added special bonds accounting for nearly 40%. Experts stated that fiscal policy will remain one of the key supports for economic resilience in Q2, and the issuance of local government bonds is expected to further increase, driving steady growth in infrastructure investment throughout the year. This year, there has been a notable increase in the issuance scale of new bonds allocated to major projects through local government bonds, primarily in the form of newly added special bonds. Data shows that among the 4,483.4 billion yuan of local government bonds issued so far, 1,645.7 billion yuan are newly added local government bonds, and 359.6 billion yuan are newly added general bonds.

Ningbo Huaxiang announced that the company plans to jointly invest with BOC Capital Private Equity Fund Management (Beijing) Co., Ltd., Ningbo Fengmei Management Consulting Co., Ltd., and others to establish Ningbo Zhongying Fuyao Xingxiang Equity Investment Fund Partnership (Limited Partnership). The total scale of the fund is 1 billion yuan, with Ningbo Huaxiang contributing 299 million yuan as a limited partner. The fund's investment direction is primarily to support the development of Ningbo's real economy, with a focus on the automotive parts industry.

Today, the People's Bank of China (PBOC) announced that it will conduct 400 billion yuan of outright reverse repo operations on June 16, marking the second announcement of such operations by the PBOC this month. Earlier in June, the PBOC had announced the conduct of 1 trillion yuan of 3-month outright reverse repo operations. Considering that a total of 1.2 trillion yuan of outright reverse repos will mature throughout June, the PBOC's two announcements imply a net injection of funds for the entire month. Industry insiders told a Caixin reporter that June is a critical period for semi-annual liquidity assessments, coupled with factors such as the large-scale maturity of interbank negotiable certificates of deposit (NCDs), leading to a higher demand for liquidity from financial institutions throughout the month. The PBOC's provision of medium-term funding support reflects its care for the market. "Building on the approximately 1 trillion yuan of long-term liquidity released through RRR cuts by the PBOC in May, the increase in outright reverse repo operations in June, continuing to boost medium-term liquidity injections, will help maintain ample liquidity in the banking system and control fluctuations in the funding market amid the continuous large-scale issuance of government bonds and the 'peak' period of interbank NCD maturities in recent months," an industry source told Caixin. PBOC Announces Second Round of Operations This Month, Continuing to Boost Medium-Term Liquidity Injections To maintain ample liquidity in the banking system, the PBOC first announced on June 5 and then conducted 1 trillion yuan of outright reverse repo operations on June 6. Just a week later, the PBOC announced its second round of operations today. Today, the PBOC announced that it will conduct 400 billion yuan of outright reverse repo operations on June 16 through fixed-quantity, interest-rate tendering, and multiple-price bidding, with a tenor of 6 months (182 days). Data shows that 500 billion yuan of 3-month and 700 billion yuan of 6-month outright reverse repos will mature in June, respectively, implying a net injection of 200 billion yuan of outright reverse repos by the PBOC for the entire month as of June 16. "Building on the approximately 1 trillion yuan of long-term liquidity released through RRR cuts by the PBOC in May, the increase in outright reverse repo operations in June, continuing to boost medium-term liquidity injections, will, on the one hand, help maintain ample liquidity in the banking system and control fluctuations in the funding market amid the continuous large-scale issuance of government bonds and the 'peak' period of interbank NCD maturities in recent months," Wang Qing, chief macro analyst at Dongfang Jincheng, told a Caixin reporter. Why did the PBOC choose to announce twice in June to manage market expectations? It may be related to June being a traditional critical period for liquidity management, with the funding market facing a "major test" amid multiple pressures. Haitong Asset Management pointed out that the concentrated impact of the peak maturity of interbank NCDs, with a total maturity of over 4 trillion yuan in June, has widened the short-term funding gap for banks. Meanwhile, financial institutions also need to cope with the "regular challenge" of quarter-end liquidity assessments, coupled with a surge in funding demand driven by the accelerated issuance of government bonds, further highlighting the supply-demand imbalance in the funding market. Everbright Securities Finance stated that, considering the seasonal trend, short-term funding rates in June have generally shown a pattern of "pulling back at the beginning of the month and rising in the latter part" in recent years. Given that the end of June coincides with semi-annual financial reports and assessments, liquidity management will be arranged in advance, and the pressure is not expected to last until the last two days of the month. "The intensity and pace of loan issuance squeezing the excess reserve ratio, thereby affecting the willingness of national banks to lend funds; it is estimated that the net financing scale of government bonds in June will still be around 1 trillion yuan, which may cause temporary disruptions; in addition, there will be a concentration of NCD maturities in late June, along with a surge in credit, making the MLF issuance volume worth watching," pointed out Wang Yifeng, Chief Analyst of Everbright Securities' Financial Industry. Wang Qing noted that this move also signals the continuous strengthening of quantitative monetary policy tools, which helps to promote the broadening of credit and enhance countercyclical regulation. "The disclosure of outright reverse repo operations from the end of the month to an earlier release indicates an increase in the transparency of monetary policy operations, which can more effectively guide and stabilize market expectations." In June, the maturity of negotiable certificates of deposit (NCDs) is expected to transition smoothly with no significant changes in volume or price. Looking ahead to June, the large amount of maturing NCDs is one of the main disruptive factors, but the market expects a smooth transition in terms of liquidity. Data shows that the expected maturity of NCDs in June will reach 4.2 trillion yuan, setting a record for the highest single-month figure. Among these, the early and mid-month periods are the concentrated maturity points, with about 920 billion yuan and 1.95 trillion yuan of NCDs due to mature, respectively. Wang Yifeng believes that under the current circumstances, the primary factor disrupting the interest rate on NCDs in June is the large volume of maturities, with 4.2 trillion yuan due to mature in the month, an increase of 1.7 trillion yuan compared to May, reaching a peak for monthly maturities in recent years, increasing the pressure on banks to roll over. However, there are offsetting factors that may result in the renewal volume of NCDs in June being less than the maturing volume. Although NCDs face significant maturity pressure in June, constrained by multiple factors, the overall volume and price levels are not expected to change significantly from previous levels. CITIC Securities Fixed Income Department stated that, looking ahead to June, the disturbance to liquidity from fiscal factors is expected to weaken marginally. Considering the high credit issuance scale typically seen in June due to the bank's semi-annual assessment, coupled with the potential pressure on the liability side after the implementation of a new round of deposit rate cuts, it may be difficult for the liquidity to achieve a spontaneous balance. It is anticipated that the central bank will further inject medium and long-term liquidity through outright reverse repo operations and MLF, and the overall liquidity in June is expected to maintain a balanced supply and demand pattern, with the DR007 interest rate center fluctuating at lows slightly above the policy rate level. "In the future, the central bank will also comprehensively utilize medium- and short-term liquidity management tools such as pledged reverse repo operations, Medium-term Lending Facility (MLF), and outright reverse repo operations to maintain abundant liquidity in the banking system. This is also a crucial step in enhancing the accessibility of credit for enterprises and residents and reducing financing costs for the real economy at present," said Wang Qing.

According to preliminary statistics from the People's Bank of China, China's aggregate financing to the real economy (AFRE) increased by 18.63 trillion yuan from January to May, compared to 16.3429 trillion yuan from January to April. New RMB loans reached 10.68 trillion yuan from January to May, lower than the estimated 10.9597 trillion yuan but higher than the 10.0597 trillion yuan from January to April. As of the end of May, the balance of broad money (M2) stood at 325.78 trillion yuan, up 7.9% YoY. The balance of narrow money (M1) was 108.91 trillion yuan, up 2.3% YoY. The balance of currency in circulation (M0) was 13.13 trillion yuan, up 12.1% YoY. Net cash injection in the first five months amounted to 306.4 billion yuan. Financial Statistics Report for May 2025 I. Broad Money Grew by 7.9% As of the end of May, the balance of broad money (M2) stood at 325.78 trillion yuan, up 7.9% YoY. The balance of narrow money (M1) was 108.91 trillion yuan, up 2.3% YoY. The balance of currency in circulation (M0) was 13.13 trillion yuan, up 12.1% YoY. Net cash injection in the first five months amounted to 306.4 billion yuan. II. RMB Loans Increased by 10.68 Trillion Yuan in the First Five Months As of the end of May, the balance of RMB and foreign currency loans was 270.2 trillion yuan, up 6.7% YoY. The balance of RMB loans was 266.32 trillion yuan, up 7.1% YoY. RMB loans increased by 10.68 trillion yuan in the first five months. By sector, household loans increased by 572.4 billion yuan, including a decrease of 262.4 billion yuan in short-term loans and an increase of 834.7 billion yuan in medium and long-term loans. Loans to enterprises (institutions) increased by 9.8 trillion yuan, including an increase of 3.14 trillion yuan in short-term loans, 6.16 trillion yuan in medium and long-term loans, and 364.5 billion yuan in bill financing. Loans to non-banking financial institutions increased by 135.7 billion yuan. As of the end of May, the balance of foreign currency loans was $539.4 billion, down 16.3% YoY. Foreign currency loans decreased by $2.7 billion in the first five months. III. RMB Deposits Increased by 14.73 Trillion Yuan in the First Five Months As of the end of May, the balance of RMB and foreign currency deposits was 324.08 trillion yuan, up 8.3% YoY. The balance of RMB deposits was 316.96 trillion yuan, up 8.1% YoY. RMB deposits increased by 14.73 trillion yuan in the first five months. Specifically, household deposits increased by 8.3 trillion yuan, non-financial corporate deposits decreased by 7.3 billion yuan, fiscal deposits increased by 2.07 trillion yuan, and deposits of non-banking financial institutions increased by 3.07 trillion yuan. As of the end of May, the balance of foreign currency deposits was $990.1 billion, up 19% YoY. Foreign currency deposits increased by $137.2 billion in the first five months. IV. The Monthly Weighted Average Interbank Offered Rate and Pledged Bond Repo Rate in the RMB Interbank Market in May Were 1.55% and 1.56%, Respectively In May, the total turnover in the RMB interbank market through interbank lending, cash bonds, and repos was 167.2 trillion yuan, with a daily average turnover of 8.8 trillion yuan, up 14.9% YoY. Among them, the daily average turnover of interbank lending decreased by 8.6% YoY, the daily average turnover of cash bonds increased by 5% YoY, and the daily average turnover of pledged repo increased by 19.1% YoY. In May, the weighted average interest rate of interbank lending was 1.55%, which was 0.18 percentage points and 0.3 percentage points lower than the previous month and the same period last year, respectively. The weighted average interest rate of pledged repo was 1.56%, which was 0.16 percentage points and 0.26 percentage points lower than the previous month and the same period last year, respectively. V. In May, the cross-border RMB settlement amount under current accounts was RMB 13.1 trillion, and the cross-border RMB settlement amount under direct investment was RMB 6.1 trillion. In May, the cross-border RMB settlement amount under current accounts was RMB 13.1 trillion, including RMB 9.9 trillion for trade in goods, RMB 3.2 trillion for trade in services, and other current accounts; the cross-border RMB settlement amount under direct investment was RMB 6.1 trillion, including RMB 2 trillion for outward direct investment and RMB 4.1 trillion for foreign direct investment. Report on Statistical Data of the Stock of Social Financing Scale in May 2025 Preliminary statistics showed that the cumulative increment of the social financing scale in the first five months of 2025 was RMB 186.3 trillion, an increase of RMB 38.3 trillion compared with the same period last year. Among them, RMB loans issued to the real economy increased by RMB 103.8 trillion, up RMB 112.3 billion YoY; foreign currency loans issued to the real economy, converted into RMB, decreased by RMB 96.3 billion, with a larger decrease of RMB 169 billion YoY; entrusted loans decreased by RMB 11.3 billion, with a smaller decrease of RMB 80.2 billion YoY; trust loans increased by RMB 62.7 billion, with a smaller increase of RMB 172.3 billion YoY; unaccepted bankers' acceptances increased by RMB 134.3 billion, up RMB 166.2 billion YoY; net corporate bond financing was RMB 908.7 billion, a decrease of RMB 288.4 billion YoY; net government bond financing was RMB 6.31 trillion, up RMB 3.81 trillion YoY; and domestic equity financing by non-financial enterprises was RMB 150.4 billion, up RMB 44.4 billion YoY. Report on Statistical Data of the Stock of Social Financing Scale in May 2025 Preliminary statistics showed that the stock of the social financing scale was RMB 426.16 trillion at the end of May 2025, up 8.7% YoY. Among them, the balance of RMB loans issued to the real economy was RMB 262.86 trillion, up 7% YoY; the balance of foreign currency loans issued to the real economy, converted into RMB, was RMB 1.19 trillion, down 31.5% YoY; the balance of entrusted loans was RMB 11.22 trillion, up 0.4% YoY; the balance of trust loans was RMB 4.36 trillion, up 5.4% YoY; the balance of unaccepted bankers' acceptances was RMB 2.27 trillion, down 7.4% YoY; the balance of corporate bonds was RMB 32.91 trillion, up 3.4% YoY; the balance of government bonds was RMB 87.39 trillion, up 20.9% YoY; and the balance of domestic equity of non-financial enterprises was RMB 11.87 trillion, up 2.9% YoY. In terms of structure, the balance of RMB loans issued to the real economy accounted for 61.7% of the outstanding social financing stock in the same period at the end of May, down 1 percentage point YoY; the balance of foreign currency loans issued to the real economy, converted into RMB, accounted for 0.3%, down 0.1 percentage point YoY; the balance of entrusted loans accounted for 2.6%, down 0.3 percentage point YoY; the balance of trust loans accounted for 1%, down 0.1 percentage point YoY; the balance of undiscounted bankers' acceptances accounted for 0.5%, down 0.1 percentage point YoY; the balance of corporate bonds accounted for 7.7%, down 0.4 percentage point YoY; the balance of government bonds accounted for 20.5%, up 2.1 percentage points YoY; and the balance of domestic stocks of non-financial enterprises accounted for 2.8%, down 0.1 percentage point YoY. Recommended readings: 》PBOC: Social financing increased by 16.34 trillion yuan, new loans increased by 10.06 trillion yuan from January to April, M2 increased by 8% YoY in April 》Breakdown of April's financial data: Government and corporate bonds boost social financing, with a trending shift in credit structure 》PBOC: Social financing increased by 15.18 trillion yuan in Q1, new RMB loans increased by 9.78 trillion yuan, M2 increased by 7% YoY in March 》PBOC: Social financing increased by 9.29 trillion yuan, new RMB loans increased by 6.14 trillion yuan in the first two months, M2 increased by 7% YoY in February 》PBOC: Social financing increased by 7.06 trillion yuan in January, with "full-throttle" credit extension, M2 increased by 7% YoY in January 》PBOC: Total social financing increased by 32.26 trillion yuan in 2024, M2 increased by 7.3% YoY in December 》PBOC makes a major announcement! Regarding macroeconomic policies and support for the capital market... 》PBOC: Social financing increased by 29.4 trillion yuan, new loans increased by 17.1 trillion yuan in the first 11 months, M2 increased by 7.1% YoY in November 》PBOC: Social financing increased by 27.06 trillion yuan in the first 10 months, M2 increased by 7.5% YoY in October 》Supportive tools for the capital market take effect, with M1 and M2 growth rates stabilizing and rebounding, and recent macroeconomic control strategies undergoing adaptive changes 》September's financial data released: Factors such as an increase in securities clients' margins drove a rebound in M2 growth, with overall stable social financing growth 》PBOC: Social financing increased by 21.9 trillion yuan in the first eight months, M2 increased by 6.3% YoY in August 》PBOC: Maintaining price stability and promoting a mild rebound in prices are important considerations for monetary policy 》PBOC: Social financing increased by 18.87 trillion yuan, RMB loans increased by 13.53 trillion yuan in the first seven months 》August's financial data released: Is there still "water squeezing" in financial data?Expert Interpretations Are Here! 》PBOC: In H1, the incremental social financing was RMB 18.1 trillion, with RMB 13.27 trillion increase in RMB loans; M2 grew 6.2% YoY in June 》June's financial data released: How to interpret the continued slowdown in the growth rate of some indicators? Authoritative experts discuss the "side effects" of the "scale complex" in total financial aggregates 》PBOC: In the first five months, the cumulative increase in social financing was RMB 14.8 trillion, with RMB 11.14 trillion increase in RMB loans; M2 grew 7% YoY in May 》Why are May's financial data worth noting, given the optimization of social financing structure and the possible underestimation of M1 growth rate? 》PBOC: In the first four months, the cumulative increase in social financing was RMB 12.73 trillion, with RMB 10.19 trillion increase in RMB loans; M2 grew 7.2% YoY in April 》In Q1, new social financing was RMB 12.93 trillion, with RMB 9.46 trillion increase in new RMB loans; M2 grew 8.3% YoY in March 》What impact did the steady growth of social financing, the moderate decline in financing costs, and the regulation of idle capital circulation and manual interest adjustments have on April's financial data? 》Latest financial data released: M2 and the stock of social financing grew 8.7% and 9.0% YoY, respectively, at the end of February. Let's see how authoritative experts interpret it! 》In the first two months, social financing and new RMB loans reached the second-highest levels for the same period in history, with M2 growing 8.7% YoY in February 》In January 2024, new social financing was RMB 6.5 trillion, with RMB 4.92 trillion increase in new loans; M2 grew 8.7% YoY 》PBOC: In December, the incremental social financing was RMB 1.94 trillion, with RMB 1.17 trillion increase in new RMB loans; M2 grew 9.7% YoY 》PBOC: In November, the incremental social financing was RMB 2.45 trillion, with RMB 1.09 trillion increase in new RMB loans; M2 grew 10% YoY 》November's financial data released: The scale of social financing continued to increase YoY, and the credit support for the real economy remained stable 》Will trillion-yuan government bonds "prop up" October's monetary and credit data? The market expects overall social financing to be strong but credit to be weak, with RRR cut expectations still brewing 》PBOC: In October, the incremental social financing was RMB 1.85 trillion, with RMB 738.4 billion increase in new RMB loans; M2 grew 10.3% YoY 》PBOC: In September, the incremental social financing was RMB 4.12 trillion, with RMB 2.31 trillion increase in new RMB loans; M2 grew 10.3% YoY 》PBOC makes a significant statement! Discussing the Sino-US interest rate spread, September's financial data, mortgage rates on existing home loans, and more... 》General Administration of Customs: China's imports and exports showed positive growth in the first three quarters, with September's monthly figure hitting a new high for the year 》PPI and CPI data have improved for three consecutive months. Experts: The improvement in prices is further confirmed, and it is expected that the YoY improvement trend in PPI will continue 》Interpretation by the National Bureau of Statistics (NBS): In September, CPI operated steadily, PPI's YoY decline narrowed for three consecutive months, and both increased MoM 》In September, the export value of mobile phones doubled MoM, and the YoY growth rate of automobile exports continued to lead 》PBOC: In August, the incremental social financing was RMB 3.12 trillion, with RMB 1.36 trillion increase in new RMB loans; M2 grew 10.6% YoY 》PBOC: Act decisively when the time is right to resolutely guard against the risk of excessive exchange rate fluctuations!The US dollar plunged against the offshore Chinese yuan 》PBOC: In August, the total social financing (TSF) was 528.2 billion yuan, and new yuan-denominated loans reached 345.9 billion yuan. M2 was up 10.7% YoY 》PBOC: In June, TSF and new yuan-denominated loans significantly exceeded expectations. M2 was up 11.3% YoY 》PBOC: In May, the increase in TSF was 1.56 trillion yuan, 331.2 billion yuan more than the previous month 》PBOC: In May, yuan-denominated loans increased by 1.36 trillion yuan, compared to the previous value of 718.8 billion yuan 》PBOC: In May, yuan-denominated deposits increased by 1.46 trillion yuan, a year-on-year decrease of 1.58 trillion yuan 》PBOC: In April, the increase in TSF was 1.22 trillion yuan, and new yuan-denominated loans reached 718.8 billion yuan. M2 was up 12.4% YoY 》PBOC: In Q1, yuan-denominated deposits increased by 15.39 trillion yuan, and loans increased by 10.6 trillion yuan 》[Major News] In February, the growth rate of M2 hit a seven-year high, while new yuan-denominated loans and TSF both reached record highs for the same period in history, exceeding expectations! 》In January, new yuan-denominated loans hit a record high! M2 was up 12.6% YoY, and new TSF reached 5.98 trillion yuan

SMM News on June 13: Metal Market: As of the daytime close, domestic market base metals generally fell, with only SHFE aluminum and SHFE lead rising together. SHFE aluminum rose by 0.49%, and SHFE lead rose by 0.27%. SHFE zinc led the decline with a drop of 1.09%, SHFE copper fell by 0.85%, and the rest of the metals all dropped slightly. Alumina fell by 1.38%, the main continuous contract of foundry aluminum fell by 0.03%. In addition, the main continuous contract of lithium carbonate fell by 1.38%, the main continuous contract of silicon metal fell by 1.8%, and the main continuous contract of polysilicon fell by 0.49%. The main continuous contract of European container shipping rose by 2.76%. On the ferrous metals series front, most prices fell. Stainless steel fell by 0.24%, rebar fell by 0.2%, and HRC fell by 0.26%. In the coking coal and coke sector, coking coal rose by 0.06%, and coke rose by 0.75%. In the overseas market, as of 15:05, overseas market base metals collectively fell, with LME copper and LME zinc both falling over 1%. LME copper fell by 1.1%, and LME zinc fell by 1.21%. The declines of the remaining metals were all within 1%. In the precious metals sector, as of 15:05, COMEX gold fell by 0.97%, reaching a high of $3,467 per ounce during the session, hitting a new high since April 22. COMEX silver fell by 0.36%. Domestically, SHFE gold rose by 1.72%, reaching a high of 801.14 yuan per gram during the session, hitting a new high since May 8. SHFE silver fell by 0.49%. Market conditions as of 15:05 today 》Click to view SMM market dashboard Macro Front Domestic front: [Guangzhou: Optimizing Real Estate Policies by Fully Lifting Purchase, Sales, and Price Restrictions, and Reducing Loan Down Payment Ratios and Interest Rates] The "Implementation Plan for Special Actions to Boost Consumption in Guangzhou (Draft for Public Comment)" is open for public comment. It mentions that consumption restrictions will be reduced in an orderly manner. Real estate policies will be optimized by fully lifting purchase, sales, and price restrictions, and reducing loan down payment ratios and interest rates. This will better meet housing consumption needs. Solid progress will be made in the renovation of urban villages and old residential communities. In 2025, it is planned to promote the renovation of over 150 old residential communities, replace over 9,000 old elevators in residential buildings, and complete fixed asset investment of 100 billion yuan in the renovation of urban villages. The use of special loans to purchase existing commercial housing as resettlement housing will be promoted. The policy on the use of housing provident funds will be continuously optimized, supporting depositors in applying for individual housing loans from housing provident funds while withdrawing housing provident funds to pay for down payments on home purchases, and further optimizing policy measures for rent withdrawal. ► The central parity rate of the RMB against the US dollar in the inter-bank foreign exchange market on June 13 was 7.1772 yuan per US dollar. US dollar front: As of 15:05, the US dollar index rose by 0.3% to 98.15. US PPI data fell short of expectations, with initial jobless claims reaching a new high since October last year. Expectations for a US Fed interest rate cut in September continued to rise. US PPI in May increased by 2.6% YoY, in line with expectations. US PPI in May rose by 0.1% MoM, missing expectations of 0.2%. The number of initial jobless claims in the US for the week ending June 7 reached 248,000, the highest since the week of October 5, 2024. Traders now expect the US Fed to cut interest rates by 55 basis points before the end of the year, starting in September instead of the previously anticipated October. Macro: Today, data including China's M2 money supply annual rate for May (the exact time between June 13-17 is uncertain), China's aggregate financing to the real economy year-to-date for May, China's new RMB loans year-to-date for May, the preliminary US University of Michigan consumer sentiment index for June, the eurozone's seasonally adjusted trade balance for April, the eurozone's total reserve assets for May, the final annual CPI rate for Germany in May, the monthly manufacturing sales rate for Canada in April, and the monthly new orders rate for Canada's manufacturing sector in April will be released. Additionally, the National Energy Administration typically releases data on total electricity consumption around the 15th of each month. Crude Oil: Due to renewed concerns about supply disruptions, as of 15:05, oil prices in both markets surged by over 5%, with US crude oil rising by 5.54% and Brent crude oil increasing by 5.41%. US crude oil briefly reached $77.64 per barrel, the highest since January 20, while Brent crude oil briefly hit $78.5 per barrel, the highest since January 23, both marking new highs in nearly five months. Analysts from ING reported, "This significantly increases the uncertainty surrounding geopolitical risks, requiring the oil market to price in a larger risk premium for any potential supply disruptions." SMM Daily Review ► June 13: The SHFE aluminum squeeze remains unresolved, with the market witnessing "negative processing fees" for aluminum billets [Daily Review of Spot Aluminum Billets] ► [SMM Daily Review of Nickel Sulphate] June 13: Nickel salt prices remained stable. ► [SMM Daily Review of MHP] June 13: Indonesian MHP prices slightly declined. SMM Weekly Review ► Mid-year negotiation results begin to emerge, with KK mine's copper production target slashed by 28% [SMM Weekly Review of Spot Copper Concentrates] ► Deteriorating price ratios lead to inactivity from both buyers and sellers, with Yangshan copper premiums remaining at low levels [SMM Weekly Review of Yangshan Copper] ► Smelters continue to fulfill prior contracts, with domestic TCs remaining stable [SMM Weekly Review of Zinc Concentrates] ► This week's sales promotions boosted operating rates, but market demand is gradually weakening [SMM Weekly Review of Wire and Cable Market]

SMM News on June 11: Metal Market: As of the daytime close, domestic market base metals showed mixed performance. SHFE tin led the gains with a 0.54% increase, while SHFE zinc and SHFE aluminum rose by 0.25%, and SHFE nickel fell by 0.25%. The declines in other metals fluctuated slightly. The main alumina contract fell by 0.24%, and the main casting aluminum contract rose by 0.13%. Most ferrous metals series prices rose, with only stainless steel declining by 0.6%. Iron ore rose by 1%, HRC rose by 0.68%, and coking coal and coke collectively rose by over 1%, with coking coal up by 1.68% and coke up by 1.01%. Overseas market base metals also showed mixed performance. LME copper fell by 0.24%, while LME aluminum and LME lead rose, but with relatively small fluctuations in gains. LME aluminum rose by 0.04%, and LME lead rose by 0.03%. In the overnight precious metals market, COMEX gold fell by 0.3%, and COMEX silver fell by 0.38%. Domestically, SHFE gold rose by 0.23%, and SHFE silver fell by 0.43%. As of 8:18 a.m. on June 11, the overnight closing market performance from last Friday 》Click to view SMM Futures Data Dashboard Macro Front Domestic Aspects: [The General Office of the CPC Central Committee and the General Office of the State Council issued the "Opinions on Further Promoting the Shenzhen Comprehensive Reform Pilot to Deepen Reform, Innovation, and Opening-up"] The Opinions propose to advance the integrated reform of the education, science and technology, and talent systems, strengthen industry-university-research collaboration and deep integration, and improve the support and guarantee mechanisms for overseas talent recruitment. The Opinions also propose to promote the high-quality development of the real economy through empowerment by finance, technology, data, etc., establish a new system for a higher-level open economy, and improve a scientific, refined, and rule-of-law governance model. US Dollar Aspects: The US dollar index rose by 0.03% overnight to close at 99.05, as the market awaited the outcome of trade negotiations between China and the US. This week, investors' focus will be on the US May Consumer Price Index (CPI) report to be released on Wednesday. Before the US Fed's policy meeting next week, investors are vigilant for any signs of intensifying inflation, and this report may provide clues on the impact of tariffs. It is expected that the US Fed will also keep interest rates unchanged next week. Traders anticipate nearly two interest rate cuts of 25 basis points each before the end of the year. Other Currency Aspects: The British pound declined against the US dollar due to weak UK employment data indicating a sluggish labour market. At the New York close, the US dollar rose by 0.2% against the Japanese yen to close at 144.92 yen. The US dollar has fallen by about 8.5% against the yen since the beginning of the year. During the market turmoil triggered by Trump's tariffs, the yen has generally benefited from net safe-haven capital flows. In the three months ending April, UK wages rose by 5.2%, slower than expected, pushing the British pound down 0.4% against the US dollar to $1.3496. The Bank of England will hold a meeting next week and is expected to keep interest rates unchanged. Money market traders anticipate around 48 basis points of interest rate cuts by the end of the year, up from 39 basis points before the data release. The euro was flat against the US dollar at $1.1420, while the Australian dollar, often seen as a proxy for risk sentiment, changed relatively little, trading at $0.6519. Data highlights: Today, China's M2 money supply annual rate for May (time uncertain between June 11-17), China's total social financing for the year to date as of May (time uncertain between June 11-17), China's new yuan loans for the year to date as of May (time uncertain between June 11-17), the US May CPI annual rate (unadjusted), the US May core CPI annual rate (unadjusted), the US May energy CPI annual rate (unadjusted), the US June IPSOS Primary Consumer Sentiment Index (PCSI), and Australia's ANZ consumer confidence index for the week ending June 8 will be released. In addition, He Lifeng visited the UK from June 8 to 13 and held the first meeting of the China-US economic and trade consultation mechanism. Crude oil update: As of the overnight close, oil prices in both markets fell, with US crude down 0.84% and Brent crude down 0.66%. US crude remained near a seven-week high as investors monitored progress in China-US economic and trade consultations. A survey found that OPEC's oil production increase in May was lower than planned, as Iraq further cut production to make up for earlier overproduction, while Saudi Arabia and the UAE also increased production by less than their quotas. According to CCTV News, on June 10 local time, the European Commission officially unveiled a draft of the 18th round of sanctions against Russia, primarily targeting Russia's energy revenues and banking sector, including restrictions on Russia's Nord Stream natural gas pipeline and adding more Russian banks to the sanctions list. The draft also proposes lowering the price cap on Russian crude oil from $60 per barrel to $45 per barrel. EU member states will begin discussing the draft this week. The US Energy Information Administration (EIA) stated in its monthly Short-Term Energy Outlook (STEO) that US crude oil production will decline next year as falling commodity prices force drillers to reduce rig counts faster than expected. The EIA said US crude oil production will fall from about 13.42 million barrels per day this year to about 13.37 million barrels per day in 2026. Previously, the EIA had expected US production to increase to 13.49 million barrels per day next year. Data released by the American Petroleum Institute (API) on Tuesday showed that US crude oil inventories fell last week, while gasoline and distillate inventories rose. The report showed that as of the week ending June 6, US crude oil inventories fell by 370,000 barrels, gasoline inventories increased by 3 million barrels, and distillate inventories increased by 3.7 million barrels. Analysts had previously forecast that US crude oil inventories would fall by 2 million barrels, distillate inventories would increase by approximately 800,000 barrels, and gasoline inventories would increase by 900,000 barrels last week. The US Energy Information Administration (EIA) will release official weekly US oil inventory data on Wednesday. (Wenhua Comprehensive)