On June 30, the solar cell and module sector moved higher, with Risen Energy (300118.SZ) surging over 10%, and AIKO (600732.SH), Junda Co. (002865.SZ), DMEGC (002056.SZ), Jolywood (300393.SZ), and Tongling Co. (301168.SZ) also following the uptrend. In market news, on June 30, data from the National Energy Administration revealed that in May 2026, a total of 6,173 new registered and filed new energy power generation projects (excluding household PV) were added nationwide, comprising 27 wind power projects, 6,136 solar power generation projects (39 centralized PV projects and 6,097 commercial and industrial distributed PV projects), and 10 biomass power generation projects.

SMM News, June 30: In the metals market: As of the midday close, base metals in the domestic market generally fell. SHFE copper edged down, SHFE aluminum fell 2.13%, SHFE lead fell 1.02%, SHFE zinc fell 0.16%, SHFE tin edged up, and SHFE nickel fell 1.8%. Additionally, the most-traded cast aluminum futures contract fell 1.41%, the most-traded alumina contract fell 1.56%, the most-traded lithium carbonate contract rose 4.82%, the most-traded silicon metal contract rose 0.24%, and the most-traded polysilicon futures contract rose 0.8%. Ferrous metals showed mixed performance. Iron ore rose 0.2%, HRC edged up, rebar fell 0.13%, and stainless steel fell 0.34%. For coking coal and coke: the most-traded coking coal contract rose 0.55%, and the most-traded coke contract fell 0.18%. In the overseas base metals market, as of 11:36, LME metals showed mixed performance. LME copper fell 0.24%, LME aluminum edged up, LME lead fell 0.18%, LME zinc fell 0.19%, LME tin rose 0.44%, and LME nickel rose 0.34%. In precious metals, as of 11:36, COMEX gold fell 1.48%, COMEX silver fell 1.19%. In domestic precious metals: SHFE gold fell 2.67%; the most-traded SHFE silver contract fell 2.16%. Additionally, as of the midday close, the most-traded platinum futures contract fell 3.29%, and the most-traded palladium futures contract was flat at 290.65 yuan/g. As of the midday close, the most-traded container shipping (European route) futures contract fell 1.7% to 3,662.5 points. As of 11:36 on June 30, some futures midday quotes: Spot and Fundamentals Zinc: In the Tianjin market, #0 zinc ingot mainstream traded at 24,030-24,250 yuan/mt, Zijin traded at 24,220-24,530 yuan/mt, #1 zinc ingot traded around 24,100-24,240 yuan/mt, Zijin against the 2608 contract reported a discount of around 30-40 yuan/mt, Huxin quoted at 25,090 yuan/mt, #0 zinc ingot against the 2608 contract reported a discount of around 50-100 yuan/mt, Tianjin market versus Shanghai market reported a discount of around 40 yuan/mt. Today contract rollover quotations... Macro Front Domestic side: [National Bureau of Statistics: June manufacturing PMI at 50.3%, China's economic prosperity level rebounded somewhat] According to NBS data, in June, the manufacturing PMI was 50.3%, up 0.3 percentage points from the previous month, returning to expansion territory. By enterprise size, large enterprises' PMI was 50.7%, down 0.4 percentage points month-on-month, still above the threshold; medium-sized enterprises' PMI was 50.5%, up 1.9 percentage points from the previous month, above the threshold; small enterprises' PMI was 48.2%, down 0.3 percentage points month-on-month, below the threshold. From the sub-indexes perspective, among the five sub-indexes that constitute the manufacturing PMI, the production index and new orders index were above the threshold, while the raw material inventory index, employment index, and supplier delivery time index were all below the threshold. Huo Lihui, chief statistician of the Service Survey Center at the National Bureau of Statistics (NBS), commented on China's PMI for June 2026: In June, the non-manufacturing business activity index stood at 50.2%, up 0.1 percentage point from the previous month, indicating a rebound in non-manufacturing activity. The expansion in the services sector accelerated. The services business activity index was 50.4%, up 0.1 percentage point from the previous month, showing an improvement in activity. By industry, business activity indexes for sectors such as telecommunication, radio and television, and satellite transmission services; internet, software, and information technology services; monetary and financial services; and insurance were all in the higher expansion zone above 55.0%, with relatively rapid growth in business volume. The indexes for air transport and real estate remained below the threshold. The services business activity expectations index was 56.0%, up 0.6 percentage point from the previous month, indicating improving expectations among enterprises regarding market development. The construction sector saw some improvement. The construction business activity index was 49.0%, up 0.2 percentage point from the previous month, a marginal rebound. The construction business activity expectations index was 51.1%, continuing to indicate expansion. [PBOC conducts 669.5 billion yuan reverse repo in open market, net withdrawal of 155 billion yuan for the day] The PBOC conducted a 69.5 billion yuan 7-day reverse repo operation today, with an operation rate of 1.4%, unchanged from before. Today, 524.5 billion yuan 7-day reverse repos mature. At the same time, the PBOC conducted a 600 billion yuan overnight reverse repo operation, and today 300 billion yuan overnight reverse repos mature. On the US dollar front: As of 11:36, the US dollar index rose 0.19% to 101.31. The US Supreme Court blocked Trump's attempt to fire Federal Reserve Governor Cook; the move was a forceful rebuke to the president's attack on the world's most important central bank. The 5-4 ruling is the latest major check on the Trump administration by the Supreme Court. Earlier this year, the court also ruled that the president does not have the authority to impose tariffs using emergency powers, a decision that shook a key pillar of the Trump administration's economic policy. The ruling released on Monday rejected the first-ever attempt by a US president to remove a Fed governor; critics have warned that such a move would undermine the central bank's independence. However, on Monday the US Supreme Court also cleared the way for Trump to fire Federal Trade Commission (FTC) members without cause; a move that grants the White House greater power and tightens control over independent regulatory agencies. According to CME FedWatch: The probability of the Fed keeping rates unchanged in July is 70.1%, and that of a cumulative 25bp hike is 29.9%. For September, the probability of unchanged rates is 37.2%, that of a 25bp cumulative hike is 48.8%, and that of a 50bp hike is 14.1%. (Jin10 Data APP) Data: Today’s releases include the US FHFA House Price Index MoM for April, the US S&P/Case-Shiller 20-City Home Price Index NSA YoY for April, the US Chicago PMI for June, the US JOLTS Job Openings for May, the US Conference Board Consumer Confidence Index for June, the UK Q1 GDP YoY Final, the UK Q1 Current Account, Germany’s June seasonally adjusted unemployment change, Germany’s June seasonally adjusted unemployment rate, Germany’s June CPI MoM Preliminary, France’s June CPI MoM Preliminary, Switzerland’s June KOF Economic Barometer, Canada’s April GDP MoM, Japan’s May unemployment rate, and other data. Also, watch for: ECB President Lagarde delivers opening remarks at the ECB Forum on Central Banking in Sintra, the Reserve Bank of Australia releases the minutes of its June monetary policy meeting, and the US and Iran hold technical negotiations. It is also worth noting that on July 1, the Hong Kong Stock Exchange will be closed for the Hong Kong Special Administrative Region Establishment Day, with northbound and southbound trading shut. The Toronto Stock Exchange will be closed for Canada Day. Other currencies: The minutes of the Reserve Bank of Australia’s June meeting showed the bank believed monetary policy needed to remain tight to eliminate surplus demand in the economy. As the minutes were compiled before Brent crude prices fell more than 10% last week, the hawkish tone reflected in them has become notably disconnected from current market moves. Currently, the market is pricing in only 10bp of further tightening by year-end, while the probability of easing by 2027 stands at 17bp. The tension for the Australian dollar lies in that, on one hand, the RBA clearly stated it is prepared to hike again if needed; on the other, the market believes rates have likely peaked. If upcoming data confirms that weaker oil prices are gradually feeding through to inflation expectations, the Australian dollar could face a repricing. Meanwhile, falling house prices in Sydney and Melbourne are adding to domestic growth risks and could reinforce the market’s dovish repricing, even as the RBA board’s rhetoric remains distinctly hawkish.((Jinshi Data APP) Crude oil: As of 11:36, oil prices in both markets edged down, with WTI falling 0.27% and Brent down 0.15%. The market was focused on possible talks between the US and Iran. An Iranian Foreign Ministry spokesperson said that Iran’s top priority at that time was to ensure the implementation of all provisions of the memorandum of understanding. With regard to Article 10 of the memorandum concerning the US commitment to allow Iranian oil exports, the US side had already issued the necessary permits, and Iran was following up on the implementation progress. As for Article 11 regarding the unfreezing of Iranian assets, the relevant implementation procedures were also progressing. This week, Iran would send a technical delegation to Qatar for consultations on the implementation of the memorandum of understanding, including Article 11. The spokesperson said that Iran had not yet initiated negotiations on a final agreement. According to Article 13 of the memorandum, the precondition for initiating final agreement negotiations was the commencement and continued implementation of Articles 1, 4, 5, 10, and 11. Furthermore, the spokesperson stressed that there would be no negotiations at any level between Iran and the US in the coming days. The trip by US representatives to Qatar was unrelated to the Iranian technical delegation’s visit; the Iranian delegation’s purpose in going to Qatar was to follow up on the implementation of the memorandum of understanding, including Article 11. (CCTV) According to trade sources and a document, Iraq’s State Oil Marketing Organization (SOMO) had sharply reduced its official selling prices to attract long-term buyers to lift Basrah crude from its terminals in the Middle East Gulf in July. The discount for Basrah Medium was $14 to $16 per barrel, and for Basrah Heavy, it was $16.8 to $18.8 per barrel, depending on the loading date. Discounts were larger for loadings from July 1 to 5, and smaller for loadings from July 6 to 10, and from July 11 to 31. SOMO said that buyers needed to submit their order quantities within one day of receiving the notification letter. Trade sources said that the steep discounts might attract buyers, but it remained to be seen whether passage through the Strait of Hormuz would be possible. (Jinshi Data APP) According to data from the US Department of Energy (DOE), crude oil inventories in the US Strategic Petroleum Reserve (SPR) fell by 5.5 million barrels to 325.7 million barrels, the lowest level since May 1983. The inventory decline was part of a US agreement to release 172 million barrels of crude from the reserve to fill a gap in global inventories following the Iran conflict and help push down fuel prices. US crude inventories fell rapidly in recent weeks due to strong crude exports and refining demand. From the outbreak of the conflict in late February to June 19, total US inventories, including commercial stocks and the SPR, had fallen by 111.4 million barrels to 743.3 million barrels, the lowest level since 1984. (Jin10 Data APP) Spot Market Overview: ► ► ► ► ► ► ► ► ► ► ►

Recently, the Shanxi Xiangyuan 42.5MW lithium-ion battery and supercapacitor hybrid energy storage project has entered the grid-connection commissioning phase. The project is jointly constructed by Shanxi Zhongsheng Smart Power Co., Ltd. and Shanxi Zhixian New Energy Co., Ltd., with a total investment of 206 million yuan. Among them, the lithium-ion battery installation scale is 32.5MW/130MWh, a standard "four-hour" configuration, while the supercapacitor installation scale is 10MW/0.083MWh, enabling "rapid power braking or acceleration" within tens of seconds. The lithium battery handles large-capacity energy storage, while the supercapacitor achieves millisecond-level fast frequency regulation. The system can serve both peak-valley arbitrage and grid auxiliary frequency regulation, stabilizing the output of new energy power generation.

On June 28, Guangzhou Rongjie Energy Technology Co., Ltd. and Indian energy storage integrator Lineage Power Systems Pvt Ltd formally signed a 3GWh cooperation agreement. According to the agreement, Rongjie Energy will supply a total of 3GWh of 314Ah lithium iron phosphate cells and related accessories to Lineage Power for its large-scale and commercial & industrial energy storage projects, covering both the Indian and international markets. The agreement also includes provisions on pricing, quality specifications, warranty terms, and delivery schedules, as well as clauses on joint quality assurance, system integration technical collaboration, and supply chain transparency, providing long-term supply chain security for Lineage Power's energy storage projects.

At the 2026 Annual Forum of the China Automotive Battery Industry Innovation Alliance held on June 30, Ma Chunsheng, Director of the Automobile Development Division of the Equipment Industry Department I of the Ministry of Industry and Information Technology (MIIT), stated: “The global new energy vehicle industry has now entered a new stage of accelerated development, which places higher demands on power batteries in terms of safety, greenness, durability, and other performance aspects, and requires us to further strengthen innovation-driven development.” He added: “In the next step, we will strengthen coordination, improve support policies, and continue to promote the high-quality development of the power battery industry. We will intensify R&D efforts on key technologies, support upstream and downstream enterprises in joint innovation, with a focus on breaking through all-solid-state batteries, high-specific-energy lithium-ion batteries, and other critical technologies. We will increase efforts on material breakthroughs for lithium-rich manganese-based cathodes, silicon-based anodes, solid-state electrolytes, and other materials, so as to consolidate our technological capabilities. We will also enhance large-scale intelligent flexible manufacturing and testing/verification capabilities, and continuously improve product performance and quality.”

[SMM Analysis: Going Global Advantages Stand Out amid Patent Barrier Pressures; Analyzing the Industry Impact of the Silicon Carbon Anode Facing a US Section 337 Investigation] SMM, June 30: On June 18, 2026, a US domestic enterprise formally filed a Section 337 complaint with the US International Trade Commission (ITC).

The ban took effect on June 27, with an exception for exports to Russia, dealing another heavy blow to global sulfur supply: According to Order No. 1363 signed by Kazakhstan's Ministry of Energy on June 26, Kazakhstan fully suspended sulfur exports starting June 27, 2026, and the ban will remain in effect "until further notice." Notably, sulfur shipments destined for railway stations within the Russian Federation are exempted. The ban covers all categories, with logistics operators responsible for enforcement: This ban includes all mainstream industrial sulfur categories such as liquid sulfur, granular sulfur, and lump sulfur. The responsibility for supervision and enforcement has been explicitly assigned to relevant railway structures and logistics operators, including Dar Rail LLC and TTT Service LLC. Russia and Kazakhstan Take Successive Actions, Global Supply Sees Precipitous Contraction: Just one day before Kazakhstan's ban—on June 25, the Russian government signed Decree No. 785, extending the ban on industrial sulfur exports, originally set to expire on June 30, to December 31, 2026. The Russian ban also covers liquid, granular, and lump sulfur, with officials stating the move aims to prioritize domestic fertilizer production and strengthen national food security.

Driven by the dual forces of global energy structure transformation and the "dual carbon" goals, battery technology is evolving from a traditional electricity storage medium into a core engine reshaping transportation, consumer electronics, and even the energy internet. From fundamental breakthroughs in materials science to the industrialisation of cutting-edge technologies such as solid-state and sodium-ion batteries, the battery industry is in a period of explosive technological advancement with intense competition. This conference brings together the world's top scholars, industry chain leaders, and capital forces, aiming to break down barriers between "industry, academia, research, and application." We will delve into key topics including high energy density, ultimate safety, ultra-fast charging technology, and recycling, jointly charting a new blueprint for green, efficient, and sustainable energy. Shenzhen Huanaxincai Co., Ltd. will attend this grand event to discuss industry development trends with industry peers and jointly drive battery technology to new heights. form to sign up immediately, and together witness and participate in this extraordinary and far-reaching industry event, co-creating a brilliant new chapter! Shenzhen Huanaxincai Co., Ltd. was founded in November 2021 by a doctoral team of high-level overseas talents. It is a national high-tech enterprise specialising in the R&D, industrialisation, and end-use applications of sodium-ion battery cathode materials. The company has been recognised as a "Shenzhen Specialised, Refined, Distinctive, and Innovative Enterprise" and a "Shenzhen 20+8 Industrial Cluster Enterprise." It has applied for or been granted nearly 80 patents, obtained ISO9001, ISO14001, and other system certifications, and served as the lead or major co-drafter of four sodium-ion battery standards. The company has received multiple rounds of financing from publicly listed firms including Meilian New Material and Zijian Electronics, and has won numerous industry awards. Core Business The company specialises in the R&D, production, and sales of sodium-ion battery cathode materials. With years of deep industry expertise and over 100 core patents accumulated, it possesses strong technological capabilities. Currently, the enterprise has fully mastered both mainstream sodium-ion battery cathode material technology routes — layered oxide and polyanion. Its products maintain a leading position in overall market performance. The layered oxide cathode materials feature high energy density, high working voltage, and excellent C-rate performance, making them widely suitable for application fields such as power batteries. The polyanion NFPP cathode materials are characterised by high safety, ultra-long cycle life, and outstanding wide-temperature adaptability, with excellent cycling performance, making them particularly suitable for scenarios with stringent safety and service life requirements such as utility-scale energy storage, backup power supplies, and starter batteries. The polyanion NFS cathode materials feature high voltage and high capacity performance, and are widely applied in scenarios such as light vehicle power and others. Leveraging a mature technology system and rigorous quality control management, the company's products have achieved large-scale mass production and stable supply, successfully entering various application segments and establishing in-depth partnerships with multiple Fortune Global 500 enterprises and leading industry clients. We remain committed to technological innovation as our core driving force, continuously iterating product performance, and dedicated to providing global clients with high-grade, highly reliable sodium-ion battery cathode materials to facilitate the high-quality development of the new energy industry. Long press 2026 SMM Battery Technology Conference

2026 is the opening year of the 15th Five-Year Plan period. Against a backdrop of intensifying global macro volatility and the deepening push for high-quality development in China, the zinc industry is undergoing profound changes: structural tensions arise from ore supply tightness alongside the release of smelting capacity, diverging domestic and overseas inventories reflect the complex supply-demand rebalancing, and technological innovation is becoming the key driver for resolving contradictions and reshaping the landscape. Key areas of the 15th Five-Year Plan, such as new energy and new-type infrastructure, are injecting fresh momentum into traditional zinc consumption, while green, low-carbon, and circular economy models are rapidly reshaping industry logic driven by technological innovation. With the joint support of upstream and downstream enterprises, industry associations, and relevant parties in the zinc industry, SMM's 2026 SMM Zinc Conference and the 8th Hot-Dip Galvanizing Industry Development and Technological Innovation Forum, the 14th Zinc Salt, Zinc Oxide, and Secondary Zinc Resources Development Forum, and the Die-Casting Zinc Alloy Development Forum are about to be held on August 6–8 in Qingdao, Shandong. Under the theme "Gathering Zinc Momentum · Building the Zinc Industry · Embarking on a New Journey," the conference is driven by the dual wheels of macro perspective and fundamental analysis, closely following the high-quality development mainline of the 15th Five-Year Plan, and focusing on four dimensions: macro policies, supply-demand patterns, global trade, and technological innovation. By breaking through with technology to drive cost reduction and efficiency gains, and by addressing market fluctuations through collaborative innovation, we will jointly chart a brand-new blueprint for the high-quality and sustainable development of the zinc industry. Jurong Ruixin Environmental Protection Materials Co., Ltd. will make a grand appearance at this grand event, discussing industry development trends with industry peers and jointly propelling the zinc industry to new heights. Click the to register immediately for the conference, and join us to witness and participate in this extraordinary and far-reaching industry event, creating a brilliant new chapter together! Jurong Ruixin – The Pioneer of New Hot-Dip Galvanizing Processes Established in 2015, Jurong Ruixin Environmental Protection Materials Co., Ltd. has been deeply cultivating the industry for a decade. Empowering the industry with technology and fulfilling its responsibilities through environmental protection, it is a high-tech enterprise integrating R&D, sales, and service. Located adjacent to Nanjing and covering the Suzhou-Wuxi-Changzhou area, the company, with its strong technological R&D capabilities, has become a pioneer of new hot-dip galvanizing processes and a leader in new technologies, writing a new chapter of green development in the industry with craftsmanship and innovation. Its products are widely used in multiple core fields and have garnered broad market recognition. In product R&D, Ruixin Environmental Protection always takes environmental protection as the core, avoiding the use of high-risk chemicals and optimizing formulation processes to solve industry challenges such as high zinc consumption, zinc fume emissions, zinc ash residue, and coating skips. This not only aligns with the requirements of the "dual carbon" strategy but also effectively controls costs for enterprises. In response to the process differences of different clients, the company provides customized products and full-cycle services, from raw material selection to on-site guidance, comprehensively helping clients improve production efficiency and product quality. Willing to join hands with colleagues from all directions, empowering the industry with technology, practicing responsibility with environmental protection, jointly promoting the high-quality development of the hot-dip galvanizing industry, and creating new brilliance in green manufacturing! For different client process requirements, we launch the following products: Ammonium-free plating aid, zinc smoke inhibitor, high-aluminum anti-leakage plating agent, zinc ash reduction and anti-explosion agent, pickling accelerator, pickling inhibitor Focused on solving hot-dip galvanizing leakage plating, reducing zinc consumption, and lowering zinc ash Our company adheres to the principles of customer first, environmental protection first, quality first, and service first! We are willing to join hands with you to create brilliance together! ◆ Contact Information ◆ 24H Service Hotline: Mr. Ding 17368753678 Company Address: Unit 1, Shimao Huijin Building, No. 818 Chongming West Road, Jurong City Long press to scan the code and register now! 2026 SMM Zinc Industry Conference

Data from the National Bureau of Statistics (NBS) show that in June, the manufacturing Purchasing Managers' Index (PMI) stood at 50.3%, up 0.3 percentage points MoM, returning to expansion territory. By enterprise size, the PMI for large enterprises was 50.7%, down 0.4 percentage points MoM but still above the threshold; the PMI for medium-sized enterprises was 50.5%, up 1.9 percentage points MoM, above the threshold; and the PMI for small enterprises was 48.2%, down 0.3 percentage points MoM, below the threshold. Looking at the sub-indices, among the five sub-indices that make up the manufacturing PMI, the production index and the new orders index were above the threshold, while the raw material inventory index, the employment index, and the supplier delivery time index were all below the threshold. Huo Lihui, chief statistician of the Service Industry Survey Center of the NBS, interpreted China's PMI for June 2026. In June, the non-manufacturing business activity index was 50.2%, up 0.1 percentage points MoM, indicating a rebound in the non-manufacturing sector. The expansion of the service sector accelerated. The business activity index for the service sector was 50.4%, up 0.1 percentage points MoM, showing an improvement in sector sentiment. By industry, business activity indices for sectors such as telecommunications, radio and television, and satellite transmission services, internet software and information technology services, monetary and financial services, and insurance all remained in the relatively high prosperity territory above 55.0%, with rapid growth in total business volume; the business activity indices for air transport, real estate, and other industries continued to be below the threshold. The business activity expectations index for the service sector was 56.0%, up 0.6 percentage points MoM, indicating that enterprises are optimistic about future market development. The construction sector saw some improvement. The business activity index for construction was 49.0%, up 0.2 percentage points MoM, with its sentiment edging up slightly. The business activity expectations index for construction was 51.1%, remaining in expansion territory. Performance of China's Purchasing Managers' Index for June 2026 I. Performance of China's Manufacturing Purchasing Managers' Index In June, the manufacturing Purchasing Managers' Index (PMI) was 50.3%, up 0.3 percentage points MoM, returning to expansion territory. By enterprise size, the PMI for large enterprises was 50.7%, down 0.4 percentage points MoM but still above the threshold; the PMI for medium-sized enterprises was 50.5%, up 1.9 percentage points MoM, above the threshold; and the PMI for small enterprises was 48.2%, down 0.3 percentage points MoM, below the threshold. Looking at the sub-indices, among the five sub-indices that make up the manufacturing PMI, the production index and the new orders index were above the threshold, while the raw material inventory index, the employment index, and the supplier delivery time index were all below the threshold. The production index was 51.4%, up 0.2 percentage points MoM, indicating that manufacturing production activity expanded at an accelerated pace. The new orders index was 51.2%, up 1.3 percentage points MoM, indicating a rebound in manufacturing market demand. The raw material inventory index was 48.4%, down 0.2 percentage points MoM, indicating that the inventory of major raw materials in manufacturing continued to decline. The employment index was 48.5%, down 0.1 percentage points MoM, indicating that the labor demand in the manufacturing sector pulled back slightly. The supplier delivery time index was 49.9%, up 0.7 percentage points MoM but still below the threshold, indicating that delivery times for manufacturing raw material suppliers slowed slightly. II. Performance of China's Non-Manufacturing Purchasing Managers' Index In June, the non-manufacturing business activity index was 50.2%, up 0.1 percentage points MoM, indicating that non-manufacturing sector sentiment rebounded somewhat. By industry, the business activity index for construction was 49.0%, up 0.2 percentage points MoM; the business activity index for the service sector was 50.4%, up 0.1 percentage points MoM. Within the service sector, business activity indices for sectors such as telecommunications, radio and television, and satellite transmission services, internet software and information technology services, monetary and financial services, and insurance all remained in the relatively high prosperity territory above 55.0%; the business activity indices for air transport, real estate, and other industries were all below the threshold. The new orders index was 48.0%, up 3.0 percentage points MoM, indicating a marked improvement in non-manufacturing market demand. By industry, the new orders index for construction was 46.3%, up 2.8 percentage points MoM; the new orders index for the service sector was 48.4%, up 3.1 percentage points MoM. The input price index was 49.7%, down 2.5 percentage points MoM, below the threshold, indicating that the overall level of input prices used by non-manufacturing enterprises for business activities pulled back. By industry, the input price index for construction was 50.4%, down 3.3 percentage points MoM; the input price index for the service sector was 49.6%, down 2.4 percentage points MoM. The selling price index was 48.4%, down 0.4 percentage points MoM, indicating that the overall level of non-manufacturing enterprise selling prices continued to decline. By industry, the selling price index for construction was 49.8%, up 1.2 percentage points MoM; the selling price index for the service sector was 48.2%, down 0.7 percentage points MoM. The employment index was 45.8%, up 0.2 percentage points MoM, indicating that labor demand in the non-manufacturing sector improved. By industry, the employment index for construction was 42.3%, up 0.9 percentage points MoM; the employment index for the service sector was 46.4%, unchanged MoM. The business activity expectations index was 55.3%, up 0.5 percentage points MoM, indicating that non-manufacturing enterprises are generally more optimistic about future market development. By industry, the business activity expectations index for construction was 51.1%, down 0.4 percentage points MoM; the business activity expectations index for the service sector was 56.0%, up 0.6 percentage points MoM. III. Performance of China's Composite PMI Output Index In June, the composite PMI output index was 50.6%, up 0.1 percentage points MoM, indicating that the overall expansion of production and business activities of Chinese enterprises accelerated slightly. Manufacturing PMI rose into expansion territory in June, while the non-manufacturing business activity index continued to expand —Interpretation of China's Purchasing Managers' Index for June 2026 by Huo Lihui, Chief Statistician of the Service Industry Survey Center of the NBS On June 30, 2026, the Service Industry Survey Center of the NBS and the China Federation of Logistics and Purchasing released China's Purchasing Managers' Index. Huo Lihui, chief statistician of the NBS Service Industry Survey Center, provided an interpretation. In June, the manufacturing PMI was 50.3%, up 0.3 percentage points MoM, returning to expansion territory; the non-manufacturing business activity index and the composite PMI output index were 50.2% and 50.6%, respectively, both up 0.1 percentage points MoM, indicating a rebound in China's overall economic sentiment. I. Manufacturing PMI Rose into Expansion Territory In June, the manufacturing PMI was 50.3%, with production and business activities in the manufacturing sector accelerating from the previous month. (1) Both production and demand expanded. The manufacturing production index was 51.4%, up 0.2 percentage points MoM, indicating that production activities at enterprises expanded at a faster pace; the new orders index rose into expansion territory, at 51.2%, up 1.3 percentage points MoM, showing an improvement in market demand. By industry, in sectors such as agricultural and sideline food processing, special-purpose equipment, and computer, communication, and electronic equipment, both the production index and the new orders index were above 54.0%, indicating robust supply and demand; in sectors such as chemical fibers, rubber, and plastic products, as well as the smelting and pressing of ferrous metals, both indices continued to be below the threshold, suggesting that supply and demand on both ends remained insufficient. (2) Both large and medium-sized enterprise PMIs were above the threshold. The manufacturing PMI for large enterprises was 50.7%, continuing to stay in expansion; the PMI for medium-sized enterprises was 50.5%, up 1.9 percentage points MoM, with their sentiment rebounding markedly; the PMI for small enterprises was 48.2%, with their sentiment pulling back somewhat. (3) High-tech manufacturing continued to perform well. The high-tech manufacturing PMI was 53.5%, up 0.6 percentage points MoM, noticeably higher than the overall manufacturing PMI, showing that high-end manufacturing development continued to be positive with a further strengthened leading role; the PMIs for the equipment manufacturing and consumer goods sectors were 52.5% and 50.2%, respectively, up 0.4 and 0.5 percentage points MoM, with sector sentiment strengthening somewhat; the PMI for high-energy-consuming industries was 47.1%, unchanged MoM. (4) Market expectations rebounded somewhat. The manufacturing production and business activity expectations index was 54.3%, up 0.4 percentage points MoM, indicating that enterprises' confidence in the market strengthened somewhat. By industry, in sectors such as special-purpose equipment, railway, shipbuilding, aerospace, and other transportation equipment, and electrical machinery and equipment, the production and business activity expectations indices were all in the relatively high prosperity territory above 57.0%, with relevant enterprises being more optimistic about the sector's development. II. Non-Manufacturing Business Activity Index Edged Up In June, the non-manufacturing business activity index was 50.2%, up 0.1 percentage points MoM, indicating that non-manufacturing sector sentiment rebounded somewhat. (1) The expansion of the service sector accelerated. The business activity index for the service sector was 50.4%, up 0.1 percentage points MoM, with sentiment improving somewhat. By industry, business activity indices for sectors such as telecommunications, radio and television, and satellite transmission services, internet software and information technology services, monetary and financial services, and insurance all remained in the relatively high prosperity territory above 55.0%, with rapid growth in total business volume; the business activity indices for air transport, real estate, and other industries continued to be below the threshold. The business activity expectations index for the service sector was 56.0%, up 0.6 percentage points MoM, indicating that enterprises are optimistic about future market development. (2) The construction sector sentiment improved somewhat. The business activity index for construction was 49.0%, up 0.2 percentage points MoM, with its sentiment edging up slightly. The business activity expectations index for construction was 51.1%, continuing to stay in expansion. III. Composite PMI Output Index Continued to Expand In June, the composite PMI output index was 50.6%, up 0.1 percentage points MoM, indicating that the overall expansion of production and business activities of Chinese enterprises accelerated slightly. The manufacturing production index and the non-manufacturing business activity index, which constitute the composite PMI output index, were 51.4% and 50.2%, respectively.