The market fluctuated and rebounded throughout the day, with the ChiNext Index leading the gains. Trading volume on the Shanghai and Shenzhen stock exchanges reached 1.22 trillion yuan, a decrease of 252.2 billion yuan compared to the previous trading day. On the futures market, hot topics rotated rapidly, with more stocks rising than falling. Over 3,500 stocks across the market advanced. In terms of sectors, the IP economy concept remained strong throughout the day, with multiple stocks such as Enlight Media hitting the daily limit. The stablecoin concept strengthened again, with stocks like GCL New Energy Holdings and Hundsun Technologies hitting the daily limit. The chemical sector remained active, with stocks like Jinniu Chemical hitting the daily limit. On the downside, the football concept experienced volatile adjustments, with Gongchuang Lawn approaching the daily limit down. By the close, the Shanghai Composite Index rose 0.35%, the Shenzhen Component Index rose 0.41%, and the ChiNext Index rose 0.66%. Sector-wise In the sector, stablecoin concept stocks strengthened further in the afternoon, with stocks like Insigma Technology, Tiansun Technology, Hundsun Technologies, Hengbao, China Finance Online, and Oceanpayment hitting the daily limit. Stocks like Lakala and Feitian Technologies rose over 10%. On the news front, Financial Secretary of the Hong Kong Special Administrative Region Government Paul Chan Mo-po recently wrote that after the Stablecoin Ordinance comes into effect, the Hong Kong Monetary Authority will process license applications as soon as possible to allow eligible applicants to commence their businesses. Additionally, Walmart, the largest retailer in the US, and Amazon, the largest e-commerce platform in the US, have recently been exploring the possibility of issuing stablecoins in the US. This, combined with the continuous surge in Circle, a stablecoin concept stock listed on the US stock market, has also catalyzed positive sentiment for A-shares. However, after the overall volume surge in the stablecoin sector, it remains noteworthy whether there will be sufficient capital inflows to support the sector tomorrow. If the sector can maintain its upward momentum or complete a transition from divergence to consensus within the day, its short-term position may be further strengthened. Conversely, if it returns to consolidation after a sentiment peak, it should be viewed from the perspective of topic rotation, with a focus on front-line core stocks at that time. The IP economy concept remained strong throughout the day, with stocks like Enlight Media, GaoLe, Cuihua Jewelry, Yuanlong Yatu, and Dazzle Fashion hitting the daily limit. Stocks like Rastar Group, Jinghua Laser, Kingwin Laser, and Bona Film Group led the gains. On the news front, on the IP side, Labubu has gone viral globally, with the overseas expansion of domestic cultural IPs exceeding expectations. Industry insiders commented that its popularity is another vivid manifestation of Chinese creativity and innovative products gaining global recognition. Huachuang Securities remains bullish on the high-growth development of China's IP industry and the progress of cultural exports in the long term. From a market perspective, the overall position of IP economy concept stocks has already risen significantly after the hype. Therefore, amid intensifying market divergence, fluctuations in related stocks during the trading day may be more pronounced. However, as long as the medium-term trend remains intact, the overall risk is relatively controllable. In addition, the market's recent speculation on the IP economy has gradually extended to sub-sectors such as film and television, gaming, and even 3D printing. Therefore, attention can still be paid to the rebound opportunities of newly strengthened stocks in lower-tier sub-sectors. Regarding individual stocks From the perspective of individual stocks, although short-term sentiment showed some recovery today, the feedback from high-level consecutive limit-up stocks remained relatively average. As of the close, only Yuanlong Yatu remained among the stocks with more than two consecutive limit-ups today. However, stocks like Beikong Technology, Nanhua Futures, Yiming Pharmaceutical, and Hengbao Co., although unable to maintain consecutive limit-ups, still managed to sustain a strong upward structure after breaking the streak. Therefore, in terms of the current speculative style, funds are no longer confined to pure consecutive limit-up strategies but are engaging in trend-based speculation combined with industry logic. On the other hand, the number of stocks with two consecutive limit-ups today increased to 16, mainly focusing on sectors such as oil and gas, IP economy, stablecoins, and chemicals. Therefore, which stocks can stand out in the future will also be a key focus, as the themes behind them may still hold certain rebound opportunities. Market Outlook Analysis The market rebounded with fluctuations today, with all three major indices closing in the green and more stocks rising than falling. This reflects that, after last Friday's high-volume adjustment, the market still possesses considerable momentum. However, it is worth noting that today's trading volume shrank significantly (a single-day decrease of over 250 billion yuan). Combined with the recent week's trend of "volume increases during declines and shrinks during rebounds," the market will need to confirm a renewed strength by breaking above the 5-day moving average with increased volume. From the perspective of the futures market, as repeatedly emphasized recently, the current hot topics continue to rotate rapidly, making it difficult for the market to form sufficient buying momentum. Therefore, to further enhance the profitability of the futures market, a more defined leading theme is needed to elevate the market's potential. Market News Focus 1. Goldman Sachs Turns Bullish Again: Global Funds Returning to China, Favoring China's "Top Ten" Stocks According to a report by CLS on June 16, Goldman Sachs' Chief China Equity Strategist, Kenneth Lau, recently released a research report titled "The Return of Chinese Private Enterprises: The Tide Has Turned." Lau pointed out that driven by various macro, policy, and micro factors, the medium-term investment outlook for Chinese private enterprises is improving. Goldman Sachs also emulated the "Magnificent Seven" of U.S. stocks and listed China's "Top Ten," which are the ten Chinese private publicly listed firms that Goldman Sachs particularly favors. They are Tencent, Alibaba, Xiaomi, BYD, Meituan, NetEase, Midea, Hengrui Medicine, Trip.com, and Anta. The combined market capitalization of the aforementioned ten companies reached US$1.6 trillion, accounting for 42% of the MSCI China Index's weight, with daily trading volume reaching US$11 billion. Goldman Sachs analysts forecast that the earnings of the "Big Ten" will increase by 13% (compound annual growth rate) over the next two years, with a price-to-earnings ratio of 16x. The "Big Ten" will collectively embody the latest economic themes in China, including AI/technology development, "going global," new consumption trends, and enhancing shareholder returns. Additionally, Liu Jinjin specifically noted that investing in private enterprises does not mean excluding state-owned enterprises—Goldman Sachs reiterated its preference for a combination of "high-quality" Chinese state-owned enterprises and shareholder returns. 2. National Bureau of Statistics (NBS): Industrial Added Value Above Designated Size Grew 5.8% YoY in Real Terms in May Caijing News on June 16: Data from the National Bureau of Statistics (NBS) showed that in May, the industrial added value above designated size grew 5.8% YoY in real terms. On a MoM basis, the industrial added value above designated size increased by 0.61% in May compared to the previous month. From January to May, the industrial added value above designated size grew 6.3% YoY.

This week, the three major A-share indices showed mixed changes, with the Shanghai Composite Index falling 0.25% week-on-week, the Shenzhen Component Index dropping 0.6%, and the ChiNext Index rising 0.21%. In terms of sectors, the oil and gas extraction and precious metals sectors saw significant rebounds, while rare earth concept stocks performed actively. This week, rare earth concept stocks led the gains, with China Science Magnetism Co., Ltd. rising 63.61% week-on-week, Beikuang Science & Technology Co., Ltd. up 61.09%, and Jiuling Technology Co., Ltd. gaining 55.01%. In terms of news, recently, several rare earth magnetic material enterprises have obtained export licenses. The Ministry of Commerce stated that it has approved a certain number of compliant applications in accordance with the law and will continue to strengthen the approval process. Currently, the demand for rare earth permanent magnets in sectors such as NEVs, wind power generation, industrial robots, and humanoid robots remains robust. With the development of robotics technology, the demand for high-performance rare earth permanent magnets may bring new growth points to the rare earth industry. This week, the oil and gas extraction sector performed strongly, with Keli Co., Ltd. rising 37.78% week-on-week and Tongyuan Petroleum up 21.34%. In terms of news, influenced by the tense situation in the Middle East, Brent crude oil prices surged significantly. The rise in oil prices directly expanded the profit margins of oil and gas extraction enterprises and enhanced their profitability expectations. In terms of net inflows of the most-traded contract funds this week, Zijin Mining and East Money Information Co., Ltd. saw net inflows exceeding 1 billion yuan. In terms of net outflows of the most-traded contract funds, Kweichow Moutai, BYD, Wuliangye Yibin Co., Ltd., InnoLight Technology Corporation, and Hygon Information Technology Co., Ltd. experienced net outflows exceeding 1 billion yuan this week.

Driven by progress in the China-US economic and trade negotiations, rare earth concept stocks surged strongly on Wednesday. Both sides formulated an implementation framework for fulfilling the consensus reached in the previous round of talks in Geneva. The US negotiators expressed "absolute confidence" in resolving differences over the export of rare earth minerals and magnets. Influenced by the positive news, the A-share market opened higher in the morning session, with gains narrowing somewhat before noon. The Shanghai Composite Index rose by 0.54%, the Shenzhen Component Index increased by 0.89%, and the ChiNext Index climbed by 1.29%. On the futures market, sectors such as non-ferrous metals, automobiles, and non-banking finance took turns to rally, with the rare earth permanent magnets concept standing out particularly. Both the rare earth permanent magnets index and the rare earth index ranked among the top gainers. In the Hong Kong stock market, rare earth concept stocks also performed strongly, with China Rare Earth Holdings Limited surging over 14% during the trading session. Among individual stocks, Zhongke Magnetic Industry hit the daily limit of 20%, while Beikuang Technology and Ningbo Yunsheng hit the daily limit of 10%. Multiple stocks, including INST, Earth-Panda, Galaxy Magnets, and Longci Technology, saw gains exceeding 10%. Larger-cap stocks such as China Northern Rare Earth, Bao Gang United Steel, and China Rare Earth also delivered notable performances.

The market declined rapidly in the afternoon session yesterday, with the ChiNext Index leading the losses. The combined turnover of the Shanghai and Shenzhen markets reached 142 million yuan for the day, up 129 billion yuan from the previous session. Sector-wise, port shipping, beauty and personal care, innovative drugs, and rare earth permanent magnets were among the top gainers, while Huawei Ascend, defense, semiconductors, and software development were among the biggest decliners. At yesterday's close, the Shanghai Composite Index fell 0.44%, the Shenzhen Component Index dropped 0.86%, and the ChiNext Index lost 1.17%. At today's brokerage morning meetings, Huatai Securities noted in its 2025 mid-year outlook that attention should be paid to the AI technological revolution as well as defense and self-sufficiency themes. China International Capital Corporation (CICC) believes the tungsten price center is expected to continue rising. Huaxi Securities suggested adopting a rotation strategy to play the tech rally. Huatai Securities 2025 Mid-Year Outlook: Focus on AI Tech Revolution, Defense, and Self-Sufficiency Themes Huatai Securities' 2025 mid-year outlook stated that the restructuring of global order is simultaneously altering asset pricing patterns. Multiple macro themes including tariff policies, global economic prospects, and geopolitical shifts are intertwined, leading to increased volatility across asset classes and weakened trends. In an uncertain environment, higher demands are placed on valuation, safety margins, odds, and ergodicity. The firm recommends responding through high odds and low correlation strategies. At the asset level, it advises maintaining operational flexibility, leveraging odds for left-side positioning during adjustments, and seeking structural opportunities in regional and industrial logic. With the US dollar trending weaker, non-US assets may show relative outperformance, European assets offer higher win rates, while emerging markets like Hong Kong stocks present better odds. Focus areas include the AI technological revolution, domestic demand sectors under fiscal expansion, as well as defense and self-sufficiency themes. CICC: Tungsten Price Center Expected to Continue Rising CICC noted that in the short term, the tightening supply-demand situation persists, coupled with the stimulative effect of overseas tungsten product premiums. The firm believes tungsten prices have entered a bull market channel and may continue breaking historical highs. Long-term, the supply-demand gap for tungsten is projected to expand from 18,300 mt in 2024 to 19,100 mt by 2028. The global tungsten supply-demand gap as a percentage of primary demand is estimated at -18.4%, -16.6%, -17.0%, -16.8%, and -17.4% from 2024 to 2028 respectively, with the tungsten price center expected to keep rising. Huaxi Securities: Play Tech Rally With Rotation Strategy Huaxi Securities pointed out that overall, expectations of easing China-US trade relations have boosted market risk appetite, with the tech sector continuing its rebound since late May. Notably, despite improving trade relations, international clues remain chaotic, indicating the "chaotic era" persists. Preparations should be made for potential reversals, avoiding excessive trading in single directions. Meanwhile, the main theme of the market remains unclear. Before the narrative of the technology sector is further strengthened, it is necessary to adopt a rotation strategy to participate in the technology market, "take profits when they are good" after achieving certain gains, and then look for sectors at low levels for appropriate positioning. If the technology market experiences a significant correction, it means that the STAR 50 Index will once again approach its position before the technology market rally in February. The expectation of market stabilization funds and substantive progress in the technology sector may provide solid support, offering a better opportunity to participate in the recovery of the technology market.

The market experienced a day of volatile and divergent trading, with the three major indices showing mixed changes. The total trading volume on the Shanghai and Shenzhen stock exchanges reached 1.15 trillion yuan, a decrease of 138.4 billion yuan from the previous trading day. On the futures market, hot topics were rather scattered, with the number of rising and falling stocks roughly equal. In terms of sectors, cyclical stocks such as chemicals and non-ferrous metals bucked the trend and remained active, with Shengda Resources and others hitting the daily limit. Computing power concept stocks surged at one point, with Meiliyun and others hitting the daily limit. The ST sector also strengthened amid volatility, with over 10 stocks including ST Baili hitting the daily limit. On the downside, stablecoin concept stocks underwent a collective correction, with Xiongdi Technology falling more than 10%. By the close, the Shanghai Composite Index rose 0.04%, the Shenzhen Component Index fell 0.19%, and the ChiNext Index dropped 0.45%. Sector Performance Among sectors, non-ferrous metals and precious metals led the gains, with stocks such as Zhongrun Resources, Hunan Silver, Baiyin Nonferrous Group Co., Ltd., and Shengda Resources hitting the daily limit. On Thursday, spot silver surged 4.5% at one point, touching above the $36 per ounce mark, reaching its highest level since February 2012. Analysts believe that the market has begun to worry that the US government may continue to impose additional taxes on other key metals, driving up the prices of silver and platinum. In addition, recent poor performance in multiple macroeconomic indicators released by the US has rapidly fueled expectations for US Fed interest rate cuts, which has also provided a positive catalyst for precious metals with stronger industrial attributes, such as silver and platinum. Chemical stocks also remained active against the trend, with stocks such as Bohai Chemical, Danhua Technology, Meibang Stock, Changqing Stock, and Zhejiang Zhongcheng hitting the daily limit, while stocks such as United Chemical, Shanshui Technology, Silver Age Technology, and Hengxing New Materials led the gains. On the news front, Red Sun recently announced on its official WeChat account that due to rising raw material costs, the price of chlorantraniliprole has been increased to 300,000 yuan per mt, with limited supply. Supply side, the "dual carbon" policy has accelerated the exit of high-energy-consuming and backward production capacities in China. On the demand side, surging demand in the new energy and semiconductor sectors has driven growth in the demand for fine chemicals such as lithium battery electrolytes and photoresists; traditional industries have also shown signs of recovery. Given that the overall valuation of the current chemical industry remains at a historically low level, an increasing number of institutions believe that the industry's prosperity cycle is expected to bottom out and rise. In addition to the fundamental expectations catalyst, the rotation of hot topics in the existing market was also a key factor in today's strength of cyclical stocks. In the previous few trading days, sectors such as innovative drugs, new consumption, and technology (CPO) have successively rebounded, while the performance of cyclical stocks has remained lukewarm. Therefore, some funds that have taken profits from high positions have begun to attempt to flow back into cyclical stocks, which are relatively undervalued. However, after today's concentrated rebound, it is expected that the profit-making effect within cyclical stocks will still concentrate on a few individual active stocks. In the direction of computing power leasing, there was a temporary surge. Nanling Technology and Meiliyun hit the daily limit, while Qingyun Technology, UCloud, and Parallel Technology were among the top gainers. On the news front, the Ministry of Industry and Information Technology (MIIT) recently issued the "Action Plan for Computing Power Interconnection," focusing on improving the efficiency and service level of public computing power resources and promoting high-quality development of computing power. The plan outlines 16 key tasks across six areas. As computing power remains a high-profile market direction, it has a strong influence on short-term sentiment. If it strengthens further in the future, there may still be opportunities for supplementary gains within the technology sector. Regarding individual stocks From the perspective of individual stocks, the enthusiasm for consecutive limit-up stocks showed some recovery today. Most of yesterday's consecutive limit-up stocks continued to receive positive feedback from funds, with an overall advancement rate exceeding 50%. In terms of specific gains, although the football concept sector experienced overall divergence and consolidation, the leading stock, CCGrass, hit the daily limit again in the afternoon, pushing the market's consecutive limit height back to five boards. Driven by this, Jinling Sports also saw a rapid inflow of funds for recovery after initially dropping over 10%, ultimately closing with a nearly 9% gain. In the chemical sector, stocks showed strength against the trend. Suli Co. achieved two consecutive limit-ups, while the popular stock United Chemical rose over 8%. The two core stocks in fluorochemical, Sanmei Co. and Juhua Co., also hit historical highs during the session. The innovative drug sector became active again, with Changshan Biochemical surging over 10% to a new high, while Sailun Biotech, Zhongsheng Pharma, and Qianhong Biopharma maintained their upward trend structures. Overall, under the influence of fund clustering, intraday sector rotations mainly exhibited localized stock activity. Therefore, compared to passive following, seeking low-entry opportunities during the pullback and consolidation of core stocks may offer higher success rates. Market Outlook After yesterday's surge with increased volume, the market returned to divergence and consolidation today, with turnover shrinking again. Given the current market environment, the index still lacks the conditions for sustained volume-driven upward momentum. However, on the positive side, there was still some support momentum during the session. Therefore, as long as the index does not break below the 5-day moving average, it is expected to maintain a fluctuating upward rebound structure. From the perspective of the futures market, under the stock game, hotspots continue to exhibit rapid rotation. Most hotspots experience a pulse-like surge during the session, followed by fluctuations and pullbacks. Compared to major thematic sectors, stock clustering has become increasingly prominent in recent sessions. Thus, the strategy should focus on capturing rotation rhythms to find low-entry opportunities in popular sectors or patiently wait for the market to identify a clearer leading core before following. Market News Focus 1. Hong Kong's "Stablecoin Ordinance" to Take Effect on August 1 According to a report by Cailian Press on June 6, the Hong Kong Special Administrative Region Government published the "Stablecoin Ordinance (Effective Date) Notice" in the Gazette today (June 6), designating August 1, 2025, as the commencement date for the "Stablecoin Ordinance" (Chapter 656) ("the Ordinance"). Christopher Hui, Secretary for Financial Services and the Treasury, said, "After the Ordinance comes into effect, the licensing regime will provide appropriate regulations for relevant stablecoin activities, marking a milestone in promoting the sustainable development of Hong Kong's stablecoin and digital asset ecosystem." 2. Next week, reverse repo operations worth 930.9 billion yuan will mature in the central bank's open market operations. Caijing reported on June 6 that data showed the central bank conducted reverse repo operations totaling 930.9 billion yuan in the open market this week, while reverse repo operations worth 1,602.6 billion yuan matured. As a result, the central bank's open market operations achieved a net withdrawal of 671.7 billion yuan this week. Next week, reverse repo operations worth 930.9 billion yuan will mature in the central bank's open market operations, with maturities of 0, 454.5 billion yuan, 214.9 billion yuan, 126.5 billion yuan, and 135 billion yuan from Monday to Friday, respectively.

On June 3, the Shenzhen Stock Exchange (hereinafter referred to as "SZSE") issued the "Announcement on Adjusting the Sample Stocks of the Shenzhen Component Index, ChiNext Index, Shenzhen 100 Index, and Other Indices." The announcement indicated that, starting from June 16, the SZSE would adjust the sample stocks of the Shenzhen Component Index in accordance with the index compilation rules, with China Minmetals' subsidiary China Tungsten and High-Tech Materials Co., Ltd. (hereinafter referred to as "China Tungsten") being selected for the first time since its listing in 1996. The Shenzhen Component Index selects 500 companies with large market capitalizations and good liquidity from the SZSE market as samples to reflect the overall performance of the Shenzhen stock market. Along with the Shanghai Composite Index, it is one of the two most important benchmark indices in China's securities market. China Tungsten's inclusion in the Shenzhen Component Index represents full recognition by the capital market and securities regulatory authorities of its industry position, profitability, investment value, and governance standards, which is conducive to further enhancing its brand image in the capital market. In the future, China Minmetals will promote China Tungsten to continuously improve its corporate governance, strengthen capital operations, enhance market capitalization management, fully leverage its platform functions, and help build it into a world-class publicly listed firm in the tungsten industry.

On June 3, the Shenzhen Stock Exchange (hereinafter referred to as "SZSE") issued the "Announcement on Adjusting the Sample Stocks of the Shenzhen Component Index, ChiNext Index, Shenzhen 100 Index, and Other Indices." The announcement indicated that the SZSE would adjust the sample stocks of the Shenzhen Component Index in accordance with the index compilation rules starting from June 16, and China Minmetals' subsidiary China Tungsten and High-Tech Materials Co., Ltd. would be included for the first time since its listing in 1996.

The market rebounded with fluctuations throughout the day yesterday, with the three major indices rising slightly. The total trading volume in the Shanghai and Shenzhen markets reached 1.14 trillion yuan, up 2.23 billion yuan from the previous trading day. Sector-wise, beauty and personal care, soccer concepts, innovative drugs, and pet economy sectors led the gains, while automobile manufacturing, steel, baijiu, and coal sectors lagged. At the close, the Shanghai Composite Index rose 0.43%, the Shenzhen Component Index gained 0.16%, and the ChiNext Index advanced 0.48%. In today's brokerage morning meetings, China Securities noted that molybdenum and tungsten prices continue to rise, highlighting investment opportunities in strategic metals. CICC suggested the yuan may still have room to appreciate against the US dollar. Huatai Securities indicated that the imminent reduction in policy interest rates is expected to lower costs for the insurance industry. China Securities: Molybdenum and Tungsten Prices Continue to Rise, Highlighting Strategic Metal Investment Opportunities China Securities stated that since the beginning of the year, strategic metals such as antimony, bismuth, tungsten, and molybdenum have seen successive price increases. In recent years, the price center of strategic minor metals has shown a significant upward trend, primarily due to increasing resource scarcity and supply rigidity, demand-side benefits from new energy, advanced materials, manufacturing upgrades, and military development, coupled with critical mineral resources becoming a new "battleground" in global competition. China Securities remains optimistic about the value reversion and stock valuation reassessment of China's dominant strategic mineral resources, recommending attention to strategic metal investment opportunities. CICC: Yuan May Still Have Room to Appreciate Against the US Dollar CICC noted that, in the medium and long term, the US dollar still holds a pivotal position in global reserves, but geopolitical and economic changes pose challenges. In the short term, the US faces "twin deficits" in fiscal and trade balances, particularly rising pressure from treasury bond issuance, suggesting the depreciation pressure on the US dollar may not be fully released. On the other hand, China's financial cycle adjustment is slowing while technological progress accelerates, and potential US dollar depreciation could strengthen the motivation to settle accumulated foreign exchange from current account surpluses in recent years, supporting the yuan's exchange rate. Huatai Securities: Imminent Policy Interest Rate Reduction Expected to Lower Insurance Industry Costs Huatai Securities believes the recent yuan appreciation expectations and mutual fund reforms have boosted liquidity in both A and H markets, driving up insurance stocks. Fundamentally, under the dynamic adjustment mechanism for policy interest rates, life insurance product rates are expected to be lowered in Q3 this year, improving the cost-profit inversion since early this year and potentially enhancing overall sales momentum. Currently, insurance stock valuations are at historically low levels, with persistently low interest rates remaining the biggest factor suppressing life insurers' valuations. Even though concerns about interest spread losses persist, the insurance sector is still likely to achieve decent returns in H2 amid improved liquidity and fundamentals. Huatai Securities values the importance of asset-liability matching.

SMM June 3 News: Metal Market: As of the midday close, domestic base metals were mostly down, with SHFE copper slightly up. SHFE aluminum, SHFE zinc, and SHFE lead all fell less than 1%, SHFE tin dropped 1.01%, and SHFE nickel rose 0.25%. In addition, alumina rose 2.33%, lithium carbonate increased 0.57%, silicon metal fell 1.12%, and polysilicon declined 0.81%. The ferrous metals series all fell, with iron ore down 0.92%, rebar down 0.88%, HRC down 0.55%, and stainless steel down 0.39%. In the coking coal and coke sector, coking coal fell 2.97%, and coke dropped 0.91%. In the overseas metal market, as of 11:46 a.m., LME metals were all down, with LME zinc and LME nickel both falling 0.91%, LME copper down 0.43%, LME aluminum down 0.87%, and LME lead down 0.76%. LME tin fell 0.32%. In the precious metals market, as of 11:46 a.m., COMEX gold fell 0.22%, and COMEX silver dropped 1.29%. Domestically, SHFE gold rose 1.62%, and SHFE silver increased 2.32%. As of the midday close, the most-traded contract for the European Containerized Freight Index fell 0.9%, closing at 2065.6 points. As of 11:46 a.m. on June 3, some midday futures market movements: 》June 3 SMM Metal Spot Prices Spot and Fundamentals Copper: Today, spot #1 copper cathode in Guangdong was quoted at a discount of 120 yuan/mt to a premium of 0 yuan/mt against the front-month contract, with an average discount of 60 yuan/mt, down 75 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 180 yuan/mt to a discount of 160 yuan/mt, with an average discount of 170 yuan/mt, down 100 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 78,180 yuan/mt, up 70 yuan/mt from the previous trading day, and the average price of SX-EW copper was 78,070 yuan/mt, up 45 yuan/mt from the previous trading day. Spot Market: Guangdong's inventory increased significantly after the Dragon Boat Festival holiday, mainly due to increased arrivals and decreased outflows from warehouses... 》Click for details Macro Front Domestic: [Stable Demand Growth: Total Social Logistics Volume in China Increased 5.6% YoY from January to April] The China Federation of Logistics and Purchasing (CFLP) released logistics operation data for the first four months of this year today (June 3). In April, China's logistics operations withstood external shocks and pressures, demonstrating strong resilience and development potential, maintaining an overall stable and improving development trend. From January to April, the total social logistics volume in China reached 115.3 trillion yuan, up 5.6% YoY. [China Federation of Industry and Commerce Automobile Dealers Chamber of Commerce Proposes: Resolutely Resist "Cut-throat Competition" Primarily in the Form of "Price Wars"] The China Federation of Industry and Commerce Automobile Dealers Chamber of Commerce announced that, under the influence of the current industry market situation, the automobile dealership sector has been severely affected and impacted, facing a series of issues such as increased operating pressures, reduced profitability, high vehicle inventory, and tight working capital, which have had a serious impact on the sustainable and healthy development of the industry. Particularly since the second quarter of this year, amid the impact of a new round of "price wars," the situation faced by automotive dealers has become increasingly severe. To maintain a good, healthy, and fair market competition order and promote the high-quality development of the automotive industry, including the automotive dealership sector, the National Federation of Industry and Commerce Automotive Dealers Chamber of Commerce proposes the following initiatives: 1. The entire industry should prioritize the overall goal of achieving high-quality development in China's automotive industry, strictly adhere to the principle of fair competition, and resolutely resist cut-throat competition behaviors primarily in the form of "price wars." 2. Focus on brand image. Prevent frequent adjustments to sales policies and product selling prices from increasing the difficulty of sales for dealers and affecting the brand's image among consumers. 3. Improve the living conditions of automotive dealers. Adhere to the principle of producing based on sales, reasonably set annual production targets for enterprises and sales targets for dealers, refrain from shifting inventory burdens onto dealers or forcing them to purchase vehicles, and effectively reduce dealers' inventory levels. Address the issue of inverted purchase-sale prices, promptly provide rebates to dealers, shorten their payment collection cycles, reasonably determine the number of test-drive vehicles, and alleviate dealers' liquidity pressures. 4. Optimize business policies. Reasonably set evaluation indicators for dealers, exercise caution in using fines, and avoid coercing dealers to meet corresponding targets through evaluations. 5. Improve the network exit mechanism. Do not coerce dealers to exit the network or close stores under the pretext of optimizing network channels. Provide appropriate compensation to dealers who genuinely need to exit the network or close stores. [PBOC's Open Market Operations Net Withdraw 375.5 Billion Yuan Today] The People's Bank of China (PBOC) conducted 454.5 billion yuan in 7-day reverse repo operations today. As 830 billion yuan in 7-day reverse repos matured today, the net withdrawal for the day amounted to 375.5 billion yuan. [Over 1.6 Trillion Yuan in Reverse Repos Mature in the Open Market This Week] Over 1.6 trillion yuan in reverse repos will mature in the open market this week. Specifically, the maturity scales for reverse repos from Tuesday to Friday are 830 billion yuan, 215.5 billion yuan, 266 billion yuan, and 291.1 billion yuan, respectively, all with a 7-day tenor. [SZSE: Adjusts Constituent Stocks of Shenzhen Component Index, ChiNext Index, Shenzhen 100 Index, and Other Indices] The Shenzhen Stock Exchange (SZSE) announced that, in accordance with index compilation rules, the Shenzhen Stock Exchange and Shenzhen Securities Information Co., Ltd. have decided to implement regular adjustments to the constituent stocks of indices such as the Shenzhen Component Index, ChiNext Index, and Shenzhen 100 Index on June 16, 2025. ► The central parity rate of the RMB against the US dollar in the interbank foreign exchange market on June 3 was 7.1869 RMB per US dollar. US dollar updates: As of 11:46, the US dollar index rose by 0.24%, trading at 98.93. Uncertainty in the global trade situation has risen, with the US dollar index still hovering below 99. In terms of data, the US ISM manufacturing PMI for May fell to 48.5, remaining below the 50 mark for the third consecutive month, limiting the room for the US dollar to rebound. Currently, the market expects that there is about a 70% probability that the US Fed will implement at least two 25-basis-point interest rate cuts within the year. Chicago Fed Chairman Austan Goolsbee also stated that once the uncertainty surrounding tariff policies is eliminated, the Fed will begin the process of cutting interest rates. Regarding other currencies: According to CCTV News, on June 2 local time, a spokesperson for the European Commission expressed deep regret over the US announcement to increase steel and aluminum tariffs from 25% to 50%, a decision that further exacerbates economic uncertainty on both sides of the Atlantic. EU Trade Commissioner Maroš Šefčovič will meet with US Trade Representative Katherine Tai in Paris, France, on June 4. Bank of Japan Governor Kazuo Ueda stated in parliament that uncertainty surrounding trade policies is extremely high. The Japanese economy is experiencing a mild recovery, despite some signs of weakness. If economic and price trends align with expectations, interest rates will continue to be raised. Ueda noted that US tariffs may impact the Japanese economy through various channels, but the first impact is likely to be felt by export enterprises. (Financial Associated Press) In terms of data: Today, data such as Switzerland's May CPI year-on-year rate, the eurozone's May harmonized CPI year-on-year rate - unadjusted preliminary value, the eurozone's April unemployment rate, the revised month-on-month rate of US April durable goods orders, the month-on-month rate of US April factory orders, and the US April JOLTs job openings will be released. Additionally, South Korea held its presidential election on June 3, with the stock market closed for the day. The Zhengzhou Commodity Exchange's call auction period for all futures and options contracts was from 8:55 to 9:00 on June 3, with night session trading resuming that evening. Austan Goolsbee, a 2025 FOMC voting member and Chicago Fed Chairman, participated in a Q&A session. Fed Chairman Jerome Powell delivered opening remarks at an event. South Korea initially scheduled its presidential election for June 3. The Reserve Bank of Australia released the minutes of its June monetary policy meeting. Bank of Japan Governor Kazuo Ueda delivered a speech. South Korea held its general election. In terms of crude oil: As of 11:46, crude oil futures were all down, with US crude oil up 0.7% and Brent crude oil up 0.59%. The market is concerned about supply issues, which are supporting oil prices. Iran will reject the US nuclear agreement proposal, which is crucial for easing sanctions on Iran, thereby limiting Iran's supply and providing support for oil prices. Meanwhile, Canadian production has been affected by wildfires. In addition, the ongoing conflict between Russia and Ukraine continues to exacerbate supply concerns and regional risk premiums. Wildfires in Alberta, Canada, have led to the temporary shutdown of some oil and natural gas production, which may reduce supply and exacerbate supply concerns. The wildfires have affected over 344,000 barrels per day of oil sands production, accounting for approximately 7% of Canada's total crude oil production. (Webstock Inc.) Spot Market Overview: ► Post-holiday inventory increased significantly, with suppliers actively reducing prices to sell off goods. [SMM South China Spot Copper] ► No significant restocking activities were observed downstream post-holiday, with mediocre trading performance in the market. [SMM North China Spot Copper] ► [SMM Analysis] Demand growth remains stable, with an increase in manganese dioxide production in May. ► [SMM Analysis] Downstream demand remains robust, with an increase in production schedules for LMO enterprises in May. The noon review of spot prices for other metals will be updated later. Please refresh to view.

The market rebounded with fluctuations throughout the day, with the ChiNext Index leading the gains. The total trading volume on the Shanghai and Shenzhen stock exchanges reached RMB 1.19 trillion, an increase of RMB 175.5 billion compared to the previous trading day. On the futures market, hot topics rotated in and out of the spotlight, with more stocks rising than falling. Over 4,400 stocks across the market advanced, and more than 100 stocks hit their daily limits. In terms of sectors, stocks related to autonomous vehicles and intelligent driving concepts surged collectively, with over 20 stocks, including Tongda Electric, hitting their daily limits. Digital currency concept stocks also strengthened amid fluctuations, with multiple stocks such as GDYC hitting their daily limits. Innovative drug concept stocks became active again, with stocks like Shutai Pharmaceutical hitting their daily limits. On the downside, gold stocks underwent adjustments, with Lvsenton falling by the daily limit. By the close of trading, the Shanghai Composite Index rose by 0.7%, the Shenzhen Component Index rose by 1.24%, and the ChiNext Index rose by 1.37%. Sector Performance In the sector of autonomous vehicles and intelligent driving concepts, stocks surged across the board, with over 20 stocks, including Wanma Technology, Yunnan Neijiang Power, Deren Electronics, Qiming Information, Tongda Electric, Jinjiang Online, Desay SV, Fulongma, and Genvict Technologies, hitting their daily limits. On the news front, Tesla is rumored to be planning to launch its Robotaxi service in Austin, Texas, US, on June 12, marking a significant milestone in Musk's efforts to reshape the company's business. Additionally, recently, 9Z Intelligence, an L4-level urban distribution autonomous driving R&D and application enterprise, announced the completion of a US$100 million B3 round financing transaction. Xinshiqi, an L4-level autonomous commercial vehicle producer, also completed a RMB 1 billion C+ round financing. Institutions predict that 2025 will be the first year of explosive growth for unmanned logistics. Based on the number of express logistics outlets nationwide, the market potential for unmanned delivery vehicles is approximately RMB 468 billion. Driven by a series of recent news catalysts, the hype surrounding the autonomous vehicle concept has expanded from logistics vehicles at the beginning to sanitation vehicles yesterday, and further spread to the entire intelligent driving industry chain today. With the continuous expansion of the sector's capacity and sustained capital inflows, this theme may still have room for repeated activity in the future. However, in the short term, after the sector's overall surge today, short-term sentiment may reach a climax, and differentiation is expected to intensify tomorrow. Focus should be placed on leading core stocks. Digital currency stocks also strengthened, with stocks such as Lakala, Sifang Jinchuang, Xiongdi Technology, Digital China Information Service, Union Mobile Pay, Beijing Northern, GDYC, and China Finance Online hitting their daily limits. On the news front, the US Congress is advancing two key stablecoin legislations. Guohai Securities stated that stablecoin transactions offer higher efficiency compared to traditional European and American banks, particularly in cross-border payments. While traditional bank wire transfers may take several days to complete, stablecoin transfers often take only a few minutes. Moreover, stablecoins have lower transfer fees, which depend on network conditions (taking USDT as an example, typically only a few dollars), while some payment systems charge fees proportionally at higher rates. From a market perspective, compared to sectors like nuclear power, new consumption, and innovative drugs, the digital currency concept represents a relatively new hot topic, with more pronounced positional advantages among individual stocks. Additionally, it benefited from the spillover effect of ZhongAn Online's surge in Hong Kong. Consequently, it quickly gained capital favour during the collective rebound in short-term sentiment. However, it should be noted that this theme remains essentially driven by event-based sentiment speculation. After today's broad surge, its sustainability still requires further verification. The innovative drug concept remained active, with stocks like Medicilow, InventisBio, Staidson, Huasen Pharmaceutical, and Joinn Laboratories hitting the limit-up, while Changshan Pharma, Chengdu Pioneer, and Sansheng Pharmaceuticals rose over 10%. On the news front, the 2025 ASCO Annual Meeting is approaching, with 71 original research achievements from Chinese innovative drug companies selected for oral presentations. Companies like Dizal Pharma and Grand Pharma disclosed breakthrough clinical data. Analysts pointed out that the global exposure from ASCO backs the technical prowess of domestic pharmaceutical firms, while the implementation of international R&D outcomes further expands market potential. The record-high upfront payments for domestic innovative drugs going global validate overseas recognition of local innovation capabilities, significantly improving long-term profit expectations. Market-wise, the recent resonance between short-term active capital and long-term allocation funds has driven trend-based movements in related innovative drug stocks. Unless core targets show clear negative feedback, the sector may still have further upside, with potential catch-up opportunities within. On individual stocks Today, market profitability improved markedly, with over 100 stocks hitting limit-ups. While the number of limit-ups was notably higher in unmanned vehicle and digital currency concepts, the current market leaders remain tied to nuclear power (controlled fusion concept). For instance, Sunwire and Rongfa Nuclear both advanced, while Zhongchao Holdings surged for 12 limit-ups in 19 days, Prince New Materials recorded 7 in 14 days, and Hefei Metalforming achieved 3 in 4 days. Overall, some mid-to-low-tier stocks diverged, but as long as core leaders remain strong, the nuclear power sector may see repeated rebounds, offering intraday low-entry arbitrage opportunities. Additionally, high-position group stocks continued to diverge today. Yongan Pharma, Laixintongling, and Suzhou Longjie fell to limit-downs, while Zhengzhong Design, Jinlongyu, and Yushanxia A also posted significant declines. With the emergence of new themes, it is reasonable for some funds to switch between high and low positions. However, due to the improvement in short-term sentiment, the high-position clustering will not collapse all at once. It is expected that the market will continue to exhibit a pattern of reduced-capacity speculation, and the principle of retaining the strong and discarding the weak should be adhered to in response. Outlook Analysis Today's market saw a broad-based rebound, with all three major indices closing in the red. Over 4,400 stocks rose. Trading volume also increased, with a single-day surge exceeding 170 billion yuan, bringing the total trading volume of the two exchanges back to around 1.2 trillion yuan. From a technical perspective, the Shanghai Composite Index successfully held above the 30-day moving average while effectively standing above the 5-day moving average again, suggesting that the short-term repair rally may continue. However, from a medium-term structural perspective, the market is still mainly characterized by sideways movement. If trading volume fails to increase continuously in the future, it will still be difficult for the index to initiate a wave-like rally. Additionally, from the perspective of the futures market, recent hot topics such as the driverless car concept, innovative drugs, and nuclear power stocks have all maintained their strength, and newer themes like digital currency have also strengthened further during the trading session. However, given the current trading volume, it is not enough to support the simultaneous operation of so many hot topics. After today's broad-based rally, the market is likely to differentiate again. In this context, grasping the rotation rhythm among various themes will be the key focus for the market outlook. Market News Highlights 1. Domestic Airline Fuel Surcharge to Be Reduced Starting June 5, with Exemption for Flights Under 800 Kilometers Cailian Press reported on May 29 that an airline announced today that it would adjust the fuel surcharge collection standards for domestic passenger transportation starting from June 5, 2025 (including ticket issuance dates). Specifically, the fuel surcharge will be waived for flights under 800 kilometers (inclusive), while a 10-yuan fuel surcharge per passenger per flight segment will be collected for flights over 800 kilometers. The previous adjustment took effect from April 5, 2025 (ticket issuance dates), with adult passengers paying a 20-yuan fuel surcharge for flights over 800 kilometers and a 10-yuan fuel surcharge for flights under 800 kilometers (inclusive). (Yicai) 2. US Decides to Revoke Chinese Student Visas; Foreign Ministry: Discriminatory Practice Exposes So-Called "Free and Open" Lie Cailian Press reported on May 29 that Foreign Ministry spokesperson Mao Ning hosted a regular press conference on May 29. A reporter asked about the recent US decision to start revoking visas for Chinese students, including those "with ties to the Chinese government or studying in key fields." What is the Foreign Ministry's comment on this US decision? Mao Ning responded that the US side has unreasonably canceled visas for Chinese students under the pretext of ideology and national security, seriously infringing upon the legitimate rights and interests of Chinese students and interfering with normal people-to-people exchanges between the two countries. The Chinese side firmly opposes this and has lodged representations with the US side. "This politically discriminatory move by the US side has exposed the so-called lie of 'freedom and openness' that the US has always touted, and will only further damage the US's own international image and national credibility," Mao Ning emphasized.