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.

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.

Macro News 1. Foreign Ministry spokesperson Lin Jian hosted a regular press conference yesterday. A reporter asked that the US has recently been claiming that China has violated the consensus reached at the China-US Geneva Economic and Trade Talks and has taken a series of negative actions. Lin Jian pointed out that without any factual basis, the US has smeared and accused China, imposed export controls on chips to China, suspended the sale of chip design and software to China, and announced the revocation of visas for Chinese students, among other extreme repressive measures. These actions have seriously undermined the Geneva consensus and harmed China's legitimate rights and interests. China firmly opposes this and has lodged solemn representations. Lin Jian also stated that pressure and coercion are not the right way to engage with China. He urged the US to respect the facts, stop spreading false information, correct its erroneous practices, and take concrete actions to uphold the consensus reached by both sides. 2. At yesterday's regular press conference of the Foreign Ministry, another reporter asked whether China plans to ease export restrictions or accelerate the approval of export license applications, as executives and representatives from the automotive industries in Europe, the US, and India have claimed that China's export controls on rare earths pose a shortage risk that could soon lead to a halt in automobile manufacturing. Lin Jian suggested inquiring with the competent Chinese authorities. 3. At 6 a.m. local time on June 4, the Central Election Management Committee of South Korea held a plenary session and passed a motion on the results of the presidential election vote, officially marking the beginning of Lee Jae-myung's presidential term. Around 5:03 a.m. local time on June 4, the vote-counting process for South Korea's 21st presidential election concluded. According to the results, Lee Jae-myung, the candidate from the Democratic Party of Korea, received 49.42% of the votes, while Kim Moon-soo, the candidate from the People Power Party, received 41.15%, and Lee Jun-seok, the candidate from the Reform and Innovation Party, received 8.34%. 4. The Organisation for Economic Co-operation and Development (OECD) released an economic outlook report on June 3 local time, projecting that the global economy will grow at a rate of 2.9% in both 2025 and 2026, down 0.2 and 0.1 percentage points, respectively, from the forecast made in March this year. 5. According to information from the People's Bank of China, in May 2025, the China Development Bank, the Export-Import Bank of China, and the Agricultural Development Bank of China net repaid 270 billion yuan in pledged supplementary loans. As of the end of May, the balance of pledged supplementary loans stood at 1,793.9 billion yuan. Industry News 1. The Ministry of Commerce and four other departments have organized the 2025 New Energy Vehicle (NEV) Rural Promotion Campaign. They encourage market entities in various fields, including NEV production, sales, finance, charging/battery swapping, and after-sales services, to participate together. By combining policy tools such as trade-in programs and measures to address shortcomings in charging/battery swapping infrastructure in counties, they will customize integrated sales promotion plans that combine "car purchase discounts, energy use support, and service guarantees," and improve the after-sales service network covering the entire lifecycle of car purchase, use, and maintenance. 2. Lei Jun, founder of Xiaomi, disclosed at the Xiaomi Investor Conference that the selling price of the newly launched Xiaomi YU7 could not possibly be the rumored 235,900 yuan, and the official pricing would only be determined 1-2 days before the launch. Lei Jun stated that Xiaomi began investing in R&D in the robotics field five years ago, and currently, relevant capabilities are being trialed at its automobile factory. Xiaomi's automotive chips are also under development and are expected to be launched soon. Lei Jun indicated that losses in Xiaomi's automotive business are gradually narrowing, and it is expected to achieve profitability in the third to fourth quarters of this year. 3. A reporter from Cailian Press learned that a local securities regulator had issued a notice to entities involved in the capital market (including publicly listed firms and institutions) to investigate leads, cases, and suggestions related to "short essays" in the stock market. The aim is to better promote the rectification of the phenomenon of "black mouth" (online commentators spreading false information) harming enterprises in the capital market and jointly create a clean and upright public opinion environment in the capital market. 4. According to data from the State Post Bureau, during the Dragon Boat Festival holiday, the national postal and express delivery industry handled over 1.5 billion express parcels. Postal and express delivery enterprises enhanced the delivery efficiency of specialty fresh produce by increasing the use of intelligent equipment. The national postal and express delivery industry handled 1.511 billion express parcels, up 19.4% YoY. 6. Affected by the volatile increase in international oil prices, domestic gasoline and diesel prices were raised at 24:00 on June 3. The specifics of this oil price adjustment are as follows: Starting from 24:00 on June 3, domestic gasoline and diesel prices were raised by 65 yuan and 60 yuan per mt, respectively. On a national average, the prices of 92-octane gasoline, 95-octane gasoline, and 0-diesel were all raised by 0.05 yuan per liter. Based on this calculation, filling up a 50L tank of 92-octane gasoline will cost an additional 2.5 yuan. Corporate News 1. Guangkang Biochemical announced that shareholders plan to collectively reduce their holdings by no more than 6% of the company's shares. 2. *ST Zhongrun announced the revocation of delisting risk warnings and other risk warnings, with the stock abbreviation changing to "Zhongrun Resources." 3. Guoke Military Industry announced that shareholders plan to reduce their holdings by no more than 2.97% of the company's shares. 4. Lepu Medical announced that its "Youth Needle" has received NMPA registration approval. 5. Rongfa Nuclear Power announced that its wholly-owned subsidiary has won a bid for a project worth 189 million yuan. 6. Shutaishen announced that the conditional marketing authorization application for STSP-0601 for injection has been accepted by the National Medical Products Administration. 7. United Optoelectronics announced its intention to acquire 100% of the shares of Changyi Optoelectronics, and its stock will resume trading today. 8. LONGi Green Energy stated in the record of investor relations activities that orders for its HPBC2.0 products have increased, with overseas orders accounting for over 50%. 9. NavInfo announced the signing of a strategic cooperation framework agreement with Alibaba Cloud, planning to carry out cooperation in large model applications, assisted driving, and the Internet of Vehicles. 10. China CITIC Bank announced that it had received approval to establish CITIC Financial Asset Investment Co., Ltd., with a proposed registered capital of RMB 10 billion yuan. 11. Vohringer announced that Jin Yawei would become the actual controller, and the stock resumed trading. 12. Luoping Zinc & Electricity announced that its controlling shareholder had agreed to transfer 22.4% of the company's shares, and the stock resumed trading. 13. Cuiwei Co., Ltd. announced significant declines in revenue from its retail and acquiring businesses. 14. Seres announced that cumulative sales of the AITO M9 increased by 19.46% YoY from January to May. 15. Precision Forging Technology announced plans to invest RMB 50 million to acquire a stake in Wuhan Gelanruo Intelligent Robot Co., Ltd. 16. Xiamen Tungsten stated on an interactive platform that the company had supplied various tungsten products and components to domestic and overseas fusion customers, including ITER. Global Markets 1. The three major US stock indices closed higher collectively, with the Dow Jones up 0.51%, the Nasdaq up 0.81%, and the S&P 500 up 0.58%. The Nasdaq Golden Dragon China Index closed up 0.56%, with most popular Chinese ADRs rising. 2. WTI crude oil futures closed up 1.42% at $63.41 per barrel. Brent crude oil futures closed up 1.55% at $65.63 per barrel. 3. COMEX gold futures closed down 0.6% at $3,376.9 per ounce. COMEX silver futures closed down 0.05% at $34.675 per ounce. 4. The US White House issued a statement saying that President Trump had signed an order to increase tariffs on imports of steel, aluminum, and their derivatives from 25% to 50%, effective from 00:01 AM EST on the 4th. The statement indicated that tariffs on steel and aluminum imports from the UK would remain at 25%. Investment Opportunities Reference 1. 300-kilometer fully connected, new breakthrough in China's quantum direct communication field According to media reports, a Chinese research team has innovatively proposed a theoretical architecture for long-distance, large-scale, scalable, fully connected quantum direct communication and successfully implemented a 300-kilometer-level quantum direct communication network among four nodes. The relevant research findings were published in Science Bulletin. Experimental results showed that the fidelity of shared quantum states among nodes remained above 85% after communication, verifying the reliability of the scheme in long-distance communication. The number of photon pairs reaching the receiving node after 300 kilometers of transmission still reached 300-400 Hz, meaning that after encoding, the theoretical communication rate could reach several bits per second. Shanghai Securities believes that quantum computing has become a core area of technological competition among major powers. Overseas tech giants such as IBM and Google have continued to make breakthroughs in superconducting routes, while Microsoft has taken a topological approach. China occupies an important position in exploring multiple paths in quantum computing, and the development potential of China's quantum computing industry is enormous. According to data from ICVTA&K and PhotonBox Research Institute, the global quantum industry was valued at $5 billion in 2024 and is expected to exceed $800 billion by 2035, with a CAGR of 59%. The upstream market size is projected to reach $252.7 billion in 2035. 2. Institutions claim that the current global inventory cycle for analog chips has largely hit bottom. Media reports indicate that recently, the research group led by Assistant Professor Huan of the Shenzhen-Hong Kong Microelectronics Institute at the Southern University of Science and Technology has achieved multiple significant breakthroughs in analog and mixed-signal integrated circuit design, with applications spanning multiple critical fields such as the Internet of Things (IoT), wearable systems, and next-generation biomedical technologies. Analog chips are used to process analog signals and possess functions such as power conversion, distribution, detection, as well as signal amplification and conversion in the field of electronic device management. As a crucial component of the semiconductor industry, the growth of the analog chip market is primarily driven by long-term demand from sectors like consumer electronics, automotive electronics, and industrial control, as well as by emerging fields such as artificial intelligence (AI), high-performance computing, and new energy vehicles (NEVs). CITIC Securities' research report states that after nearly six quarters of adjustment, combined with the first-quarter financial data from seven major European and American analog chip companies and their public statements, CITIC Securities judges that the current global inventory cycle for analog chips has largely hit bottom. 3. This technology is rapidly transitioning from the laboratory to commercial applications. Recently, reporters learned from Beijing Tiantan Hospital, Capital Medical University, that the hospital's Clinical and Translational Ward for Brain-Computer Interface (BCI) was officially inaugurated. "This is the first ward in China to apply BCI technology in clinical settings. The establishment of a physical ward marks the official entry of the BCI clinical translation system into a phase of 'standardization, platformization, normalization, and replicability'," introduced Cao Yong, the ward director and executive deputy director of the Neurosurgery Center at Beijing Tiantan Hospital. 2025 is regarded as a pivotal year for China's BCI technology to officially enter clinical practice. Previously, Beijing, Shanghai, and other cities have introduced relevant industrial plans, aiming to complete clinical trials for more than five invasive products by 2030. Shanghai Securities points out that BCI is hailed as "the most disruptive technology of the 21st century," and the industry is developing rapidly: from 2023 to 2024, the global BCI field has witnessed key breakthroughs, including Neuralink obtaining FDA approval to conduct human clinical trials, China's "Beinao No. 1" completing its first wireless implantation surgery, and Meta unveiling a non-invasive wristband BCI interaction prototype. These milestones signify that BCI technology is rapidly transitioning from the laboratory to commercial applications. The Chinese market is experiencing rapid growth, with significant room for further expansion. Multiple regions have introduced action plans for the development of brain-computer interface (BCI) technology. China has launched major national science and technology projects such as the "Brain Science and Brain-Inspired Intelligence Research" initiative. The valuation of leading enterprises is expected to receive additional premiums. 4. Hong Kong's Stablecoin Ordinance Officially Enacted into Law According to media reports, the Government of the Hong Kong Special Administrative Region published the Stablecoin Ordinance in the Gazette on May 30, signifying its official enactment into law. Previously, the Legislative Council of Hong Kong had formally passed the bill on May 21, establishing a licensing regime for issuers of "fiat-backed stablecoins" (stablecoins pegged to legal tender) in Hong Kong. This legislation aims to promote financial innovation while maintaining financial stability, marking a significant step forward for Hong Kong in the digital assets sector. The refinement of the regulatory framework under the Stablecoin Ordinance provides more compliant and efficient settlement tools for global cross-border payments, facilitating the large-scale application of digital currencies in cross-border scenarios. Huaxi Securities believes that as the global regulatory framework gradually improves, stablecoins and Real-World Assets (RWA) will deeply integrate, becoming key infrastructure in the financial market. The compliance and programmability of stablecoins will drive the automation and globalization of RWA in areas such as green finance and supply chain finance, supporting the realization of a new digital financial landscape where traditional assets can achieve "on-chain liquidity and global allocation."

Macro News 1. Recently, there have been repeated claims from the US side that China has violated the consensus reached during the China-US Geneva Economic and Trade Talks. The Ministry of Commerce stated that the US has unilaterally and continuously provoked new economic and trade frictions, exacerbating the uncertainty and instability of bilateral economic and trade relations. Instead of reflecting on its own actions, the US has shifted the blame and unjustly accused China of violating the consensus, which is a serious departure from the facts. China firmly rejects these unfounded accusations. If the US continues to act unilaterally and harm China's interests, China will continue to take resolute and forceful measures to safeguard its legitimate rights and interests. 3. The Office of the United States Trade Representative announced an extension of the exemption period in the Section 301 investigation into China's acts, policies, and practices related to technology transfer, intellectual property, and innovation. The exemption period, originally set to expire on May 31, 2025, has now been extended to August 31, 2025. 4. On June 1 local time, the Investigative Committee of Russia classified the bridge sabotage incidents in Bryansk Oblast and Kursk Oblast as terrorist attacks. 5. On May 30 local time, US President Trump stated that he would raise tariffs on imported steel from 25% to 50%. On February 10, Trump signed an executive order announcing a 25% tariff on all steel and aluminum imported into the US. On March 12 local time, the measure imposing a 25% tariff on all steel and aluminum imported into the US officially took effect. 6. In a statement, the European Commission expressed regret over the US announcement to raise tariffs on imported steel and aluminum, and stated that the EU is prepared to take countermeasures. The statement claimed that the US government's decision further adds uncertainty to the global economy and undermines ongoing efforts to resolve issues through negotiations. It emphasized that the European Commission is currently conducting final consultations on expanding countermeasures. If a mutually acceptable solution cannot be reached, existing and additional EU measures will automatically take effect on July 14 or earlier if necessary. 7. On May 31, the China Federation of Logistics and Purchasing and the Service Industry Survey Center of the National Bureau of Statistics (NBS) released China's Purchasing Managers' Index (PMI) for May. The manufacturing PMI for China in May was 49.5%, an increase of 0.5 percentage points MoM. 8. Starting from June 1, China will implement a visa-free policy for holders of ordinary passports from five countries: Brazil, Argentina, Chile, Peru, and Uruguay. From June 1, 2025, to May 31, 2026, nationals of these five countries holding ordinary passports may enter China without a visa for business, tourism, visiting relatives and friends, exchange visits, or transit for no more than 30 days. Industry News 1. In order to implement the decisions and plans of the CPC Central Committee and the State Council, further reduce business operating costs, optimize the business environment, promote the development of the real economy, and advance the construction of the social credit system, the National Development and Reform Commission (NDRC) recently issued the "Notice on Further Reducing Credit Reporting Service Fees," significantly lowering the fees for credit reporting services. 2. Multiple regions across the country have taken various measures to strengthen control and prevent the illegal outflow of strategic minerals. Among them, the Office of the National Export Control Coordination Mechanism issued and implemented the "Overall Plan for Strengthening the Full-Chain Control of Strategic Mineral Exports" after approval through the established procedures. Guizhou will strictly adhere to the division of responsibilities outlined in the "Overall Plan" and carry out relevant work accordingly. Relevant authorities in Hunan Province have stated that they will earnestly fulfill their local regulatory responsibilities, systematically investigate and establish a ledger for strategic mineral export enterprises in Hunan, guide enterprises in strengthening the construction of compliance systems, enhance their awareness and capabilities in compliance, and ensure the effective implementation of control measures. Guangxi will continue to effectively supervise and manage the exploration and exploitation of national strategic minerals, intensify efforts to investigate and punish illegal mining activities such as unlicensed mining, cross-border mining, and mining under the guise of exploration, and resolutely prevent the illegal outflow of strategically important minerals. Additionally, relevant departments in Jiangxi and Yunnan have also indicated that they will unwaveringly implement all tasks in accordance with their respective responsibilities. 3. China Securities Index Co., Ltd. announced that it will adjust the sample stocks for indices such as the CSI 300, CSI 500, CSI 1000, CSI A50, CSI A100, and CSI A500. This adjustment is a regular, periodic revision of the index samples, and the revised scheme will officially take effect after the market closes on June 13. 4. In response to the "Initiative on Maintaining Fair Competition Order and Promoting Healthy Industry Development" issued by the China Association of Automobile Manufacturers (CAAM) on May 31, relevant officials from the Ministry of Industry and Information Technology stated that they will intensify efforts to rectify "cut-throat competition" in the automotive industry and resolutely maintain a fair and orderly market environment. 5. CAAM issued the "Initiative on Maintaining Fair Competition Order and Promoting Healthy Industry Development." For some time, the industry's profitability has declined, with "cut-throat competition" characterized by disorderly "price wars" being a significant factor contributing to the decline in industry benefits. Continuous investment is needed to ensure product after-sales service guarantees and support enterprises' innovative development. However, "price wars" seriously affect the normal operations of enterprises, impact the security of the industry chain and supply chain, and drive the industry into a vicious cycle. 6. A reporter from Cailian Press learned that recently, Ping An Asset Management Co., Ltd. received formal approval from the National Financial Regulatory Administration to establish Hengyi Chiying (Shenzhen) Private Equity Fund Management Co., Ltd. The company has a registered capital of 300 million yuan and will be based in Qianhai, Shenzhen. It is reported that Hengyi Chiyin will act as the fund manager to issue a contractual private securities investment fund exclusively to Ping An Life Insurance, with the initial fund size reaching 30 billion yuan. The fund will focus on investing in high-quality publicly listed firms that align with policy directives and meet the allocation needs of insurance capital. 7. The Hong Kong Special Administrative Region Government gazetted the Stablecoin Ordinance on May 30, signifying its formal enactment as law. 8. Sources revealed that a major state-owned bank branch received notice from its headquarters to halt the "high-interest, high-rebate" model for car purchase installments starting June 1, with the bank no longer accepting applications under this scheme. The "high-interest, high-rebate" model typically refers to businesses where bank commission payment standards exceed 3%. The source also indicated that most financial institutions nationwide are expected to phase out this model within approximately two months, pending unified regulatory guidance. 9. OPEC+ agreed to increase daily oil production by 411,000 barrels, marking the third consecutive month of output growth. Representatives disclosed that major countries led by Saudi Arabia approved this production hike for July during a video conference last Saturday, matching the increases implemented in May and June. Corporate News 1. China Communications Construction announced plans to repurchase its A-share shares with 500 million to 1 billion yuan. 2. *ST Tianyu disclosed that one of its actual controllers, Chunyu Yan, and others are under investigation for suspected embezzlement. 3. BYD reported NEV sales of 382,500 units in May. 4. Nationz Technologies proposed issuing H-shares for listing on the Hong Kong Stock Exchange. 5. Maxwell Technologies plans to issue convertible bonds to raise up to 1.967 billion yuan. 6. Aerosun Corporation suspended participation in military material engineering service procurement due to regulatory violations. 7. Fillinger is expected to undergo a change in control, with its shares suspended from trading starting June 3. 8. Emicron announced a private placement to raise no more than 310 million yuan for projects including temperature control products for computing infrastructure. 9. *ST Longyu received a delisting decision and will enter the delisting consolidation period on June 10. 10. *ST Pengbo received a delisting decision and will enter the delisting consolidation period on June 10. 11. Bohai Automobile is expected to acquire equity in BAIC Moulding and other companies, with its shares suspended. 12. ST Dongshi was investigated by the China Securities Regulatory Commission for suspected information disclosure violations. 13. Zhejiang Longsheng plans to purchase a 37.57% stake in DyStar for $697 million. 14. *ST Hengli announced that it was under investigation by the China Securities Regulatory Commission (CSRC) for suspected false disclosure of financial data. 15. *ST Jinglan announced that it was under investigation by the CSRC for suspected violations of information disclosure laws and regulations. 16. Baili Tianheng announced plans to raise no more than 3.764 billion yuan, all of which will be used for the R&D of innovative drugs. Global Markets 1. The three major U.S. stock indices closed higher collectively, with the Dow Jones Industrial Average rising 0.08%, the Nasdaq Composite Index rising 0.67%, and the S&P 500 Index rising 0.41%. The Nasdaq Golden Dragon China Index rose 0.53%, with most popular Chinese ADRs closing higher. 2. COMEX gold futures closed 2.74% higher at $3,406.4 per ounce, and COMEX silver futures closed 5.76% higher at $34.93 per ounce. 3. WTI crude oil futures closed 2.85% higher at $62.52 per barrel. Brent crude oil futures closed 2.95% higher at $64.63 per barrel. Investment Opportunities 1. The world's first! Zhiyuan Yuanzheng A2 becomes a humanoid robot with certifications from China, the US, and Europe According to media reports, the Yuanzheng A2 humanoid robot under Zhiyuan Robotics has passed four product certifications: China's CR, the EU's CE-MD, the EU's CE-RED, and the US's FCC, becoming the world's first humanoid robot with certifications from China, the US, and Europe, as well as the first humanoid robot in China to obtain CR and CE-MD certifications. As one of the representatives of embodied intelligence, the development of humanoid robots is accelerating towards the critical point of industrialisation. The year 2025 is widely regarded by the industry as the "first year of mass production" for humanoid robots. It is expected that the industry penetration rate will enter an exponential growth trajectory after 2030, with global shipments potentially reaching 4 million to 10 million units by 2035. Cinda Securities pointed out that the industrialisation progress of humanoid robots is accelerating, with domestic and overseas enterprises accelerating the deployment of robots, and it is optimistic about the domestic humanoid robot industry chain. 2. Yushi Space completes nearly 100 million yuan in Angel+ round financing, with 2025 expected to be the first year of accelerated development for satellite internet According to media reports, Yushi Space recently completed nearly 100 million yuan in Angel+ round financing, with Qiansheng Capital as the lead investor and Huacang Capital and Linge Venture Capital as co-investors. Yushi Space focuses on the R&D and manufacturing of large-capacity, low-cost, and rapidly reusable liquid rockets. The company is currently "the only team in China adopting a stainless steel rocket + 'chopstick' capture arm recovery solution," with a technological approach fully comparable to Musk's SpaceX. According to data from Cailian Press Venture Capital Tong - Zhizhong, with May 2025 as the forecast baseline, the financing forecast probability for the next two years is 66.08%. Western Securities believes that the current satellite internet industry is still dominated by thematic investment styles, with a focus on event catalysts brought about by breakthroughs at the industrial level. From a temporal perspective, 2025 is expected to be the first year of accelerated development for the satellite internet industry. As of May, Xingwang has completed the batch networking and orbit insertion of 29 satellites, while Qianfan Constellation has completed the orbit insertion and networking of 90 satellites. Meanwhile, public testing of direct-to-satellite mobile phone terminals will also commence in the second half of the year. It is recommended to continuously monitor investment opportunities in China's domestic low-Earth orbit satellite industry chain, including: 1) communication payloads; 2) phased array and RF components; 3) laser communication; 4) detection; 5) satellite ground stations; 6) satellite terminals; and 7) satellite operations. 3. Large aircraft may enter a stage of rapid development, with a significant boost in market supply capability According to media reports, the domestically produced large aircraft C919 has officially commenced regular commercial operations on the Shanghai-Xiamen route. With Xiamen joining the C919 route network, the C919's service coverage has expanded to 15 cities across the Chinese mainland over the past two years, and it has taken its first international step through the cross-border route from Shanghai to Hong Kong. On March 20, COMAC's 2025 Supplier Conference was grandly held. At the conference, COMAC provided forward-looking production planning guidelines for 2025-2029, explicitly mentioning for the first time that the C919's capacity will reach 200 aircraft per year by 2029. This fully indicates that the C919 will enter a stage of rapid development in the coming years, with a significant boost in market supply capability. Zheshang Securities pointed out that, according to disclosures from the "Aerospace Power Future" official account, COMAC's procurement volume in 2024 approached 20 billion yuan, and the procurement volume in 2025 is expected to increase by 70% compared to 2024. This substantial growth in procurement volume signifies that the C919 is expected to achieve comprehensive mass production acceleration and, at the same time, is expected to vigorously boost the development of the large aircraft industry chain. 4. Institutions claim that this specific industry chain segment will be a core beneficiary of the low-altitude economy's development Recently, reporters learned from a conference that Hubei has initiated the construction of a low-altitude flight service platform. After its launch at the end of the year, it will aggregate information from multiple sources, including low-altitude communications, navigation, surveillance, meteorology, and geographical environments, and provide various services such as flight plan submissions, supporting safe and efficient low-altitude flights. Zhiyan Consulting stated that UAVs are the pillar industry of the low-altitude economy, serving as the primary carriers for low-altitude flights. Currently, China's UAV policies are increasingly being refined, and the industry chain is becoming increasingly complete, providing foundational conditions for the development of the low-altitude economy. With the further implementation of airspace and route planning, existing major application demands in agriculture, forestry, animal husbandry, fisheries, surveying and mapping, and emergency response will be further released, while new application scenarios such as urban logistics, cargo transportation, and passenger transportation will also expand. The UAV industry chain will be the core beneficiary in the development of the low-altitude economy. In recent years, the Chinese government has encouraged the integration of logistics with the low-altitude economy. With a vast market for the low-altitude economy, it will drive the development of the logistics UAV industry. It is expected that by 2030, the market size of China's low-altitude economy will exceed 2 trillion yuan.

At the CLNB 2025 (10th) New Energy Industry Chain Expo - Low-Altitude Economy Forum hosted by SMM Information & Technology Co., Ltd. (SMM), Chen Congxi, Director of the Low-Altitude Economy Committee and Researcher at the Aircraft Owners and Pilots Association of China, introduced the topic of "Solutions for the Development of Urban Low-Altitude Economy."

In the upcoming year of 2025, we anticipate that the global economy will face a series of complex and volatile challenges. With the conclusion of the US presidential election, uncertainties in global trade policies are expected to further increase, bringing new issues to international trade cooperation.

Policy Release Hong Kong Hosts International Hydrogen Development Forum: On March 13, the "International Hydrogen Development Forum 2025" opened in Hong Kong. The Hong Kong SAR Government is amending the Gas Safety Ordinance to ensure the safe use of hydrogen fuel and promote the development of the local hydrogen industry. National Trillion-Level Guidance Fund Established: On March 6, Zheng Shanjie, Director of the National Development and Reform Commission (NDRC), announced the establishment of a "carrier-class" national venture capital guidance fund with a scale exceeding 1 trillion yuan. The fund, with a duration of up to 20 years, will focus on frontier fields such as hydrogen energy and ESS, providing strong financial support for technology R&D and project construction in the hydrogen industry. Corporate Developments Meijin Energy Signs Cooperation Agreement and Launches Projects: On March 7, Meijin Energy signed a strategic cooperation agreement with Guohydrogen Technology in Beijing to carry out comprehensive cooperation in areas such as technology synergy and product development. Additionally, the hydrogen energy industrial park project of Yixun Chuangneng, a company partially owned by Meijin Energy, officially launched in Lingang, Shanghai, with an annual planned production capacity of over 5,000 hydrogen fuel cell systems. Its coke oven coal gas hydrogen production project in Lvliang, Shanxi, has also been approved by the government, with an annual planned capacity of 20,000 mt. Mingyang Hydrogen Energy Cooperates with Re-Fire Technology: On March 5, Mingyang Hydrogen Energy signed a strategic cooperation agreement with Re-Fire Technology in Shanghai. The two parties will leverage their respective advantages and development visions in the hydrogen energy field to carry out comprehensive cooperation. Technological Advances LONGi Hydrogen Releases New Generation Electrolyzer: LONGi Hydrogen released a new generation electrolyzer, with single-cell hydrogen production capacity increased to 3,000 Nm³/h and energy consumption reduced to less than 4.3 kWh/Nm³. This advancement helps improve the production efficiency of green hydrogen and reduce costs, driving technological progress in the upstream hydrogen production segment of the hydrogen industry chain. Ultra-Thin Titanium Bipolar Plate Successfully Developed: The Dalian Institute of Chemical Physics, Chinese Academy of Sciences, has developed an ultra-thin titanium bipolar plate with corrosion resistance improved by three times and costs reduced by 40%. This breakthrough ends the monopoly of German producers and supports performance improvement and cost reduction for fuel cells.

According to SMM, from July 22 to July 26, the weekly average price of #1 copper cathode was 74,785 yuan/mt, down 4.68% WoW.