According to Cailian Press, the optical fiber concept rebounded amid intraday volatility, with SDGI hitting the daily limit-up after Hangdian Holding earlier touched limit-up; Zhongtian Technology, SDGI, YOFC, and TDG Holding also rose in tandem. On the news front, a research report by China Securities said that in February this year, China exported 3,779.9 mt of optical fiber worth 790 million yuan, up 63.6% and 126.8% YoY, respectively. Converted into kilometers, China’s optical fiber exports in February were about 25.2 million core-km, accounting for about 65% of China’s monthly effective optical fiber production.

JPMorgan published a research report stating that BYD (01211.HK) recently launched the second-generation blade battery and announced the expansion of its fast-charging network. Meanwhile, its various brands jointly introduced 10 new all-electric/plug-in hybrid car models, with deliveries expected to begin in April or May. The bank believed that BYD’s sales would rebound quarter-on-quarter from about 700,000 units in the first quarter of this year to 1.1 million to 1.2 million units in the second quarter. The bank believed that investors’ next focus would be on the rebound in store foot traffic around the Beijing auto show on April 24. The bank maintained its target price at HK$110 and its rating at “Overweight”.

[SMM Tin Morning Brief: Macro Sentiment and Spot Trades in a Tug-of-War; Tin Prices Retreat After Rapid Rise and Enter Consolidation]

【Citi: Raise GAC Group's AH Share Target Price】Citi issued a research report stating that, considering the progress in robotics technology and the partnership with Huawei, it has raised the target price for GAC's H shares from 3 HKD to 3.8 HKD, maintaining a "neutral" rating; the A-share target price was raised from 7.2 yuan to 8.1 yuan, and the rating was upgraded from "sell" to "neutral". The bank believes that after a 11% decline in A-share prices over the past year, the current risk-reward profile appears neutral. Additionally, taking into account the actual sales performance in 2025 and the bank's relatively conservative industry outlook for 2026.

Huatai Securities' research report states that there is a price linkage between oil and coal. For instance, if the Israel-Iran conflict persists, coal prices are expected to rebound. Given the current bearish market expectations for coal prices, we believe that a price rebound presents a configuration opportunity where both the probability of success and the odds logic coexist. We still recommend paying attention to leading thermal coal companies with low valuations and high dividend yields as a safety cushion in the near term, to steadily gain from short-term event-driven returns.

China Nonferrous Mining Corporation Limited (01258) announced that on June 16, SM Minerals entered into a subscription agreement with AM shareholders, pursuant to which SM Minerals agreed to issue and allot subscription shares, and the company agreed to subscribe for such shares at the subscription price. The company will pay the subscription price through share subscription, acquiring a 10.5% stake in the issued share capital of SM Minerals. The subscription price will be primarily used for technical exploration and development work at the Benkala Mining Project. This strategy helps to reduce investment risks and effectively utilize the resources and expertise of SM Minerals. The subscription price amounts to US$11,763,850, and the company shall pay the amount to the escrow account or designated bank account of SM Minerals (as confirmed by SM Minerals, the company, and AM shareholders) in immediately available funds on the closing date in accordance with the subscription agreement. According to the subscription agreement, the three parties agree to use their best efforts to cooperate in good faith to negotiate and finalize the definitive agreements, including but not limited to entering into an option agreement for the company to further acquire an aggregate of 65% of the issued shares of SM Minerals from the original shareholders by the final date. The announcement by China Nonferrous Mining Corporation Limited outlined the contents of the preliminary agreement: the company, SM Minerals, and AM shareholders entered into preliminary agreements on November 20, 2024, January 24, 2025, and April 25, 2025, respectively, concerning the transfer of 5,265 shares of SM Minerals (representing 5% of the issued share capital of SM Minerals) for a consideration of US$5,000,000. The closing of the preliminary agreement was completed on May 16, 2025. Regarding the reasons and benefits of the acquisition, China Nonferrous Mining Corporation Limited stated: SM Minerals is registered at the Astana International Financial Centre (AIFC) in Kazakhstan and, through its subsidiaries, owns assets such as the Benkala North mining right (with copper metal reserves of approximately 1.5 million mt) and the Benkala South exploration right, meeting the conditions for large-scale mining. This investment provides an opportunity for the group to expand its business into the copper mining sector in Kazakhstan, optimize its mineral resource portfolio, and enhance its market position and competitiveness. The addition of copper resources will drive the optimization of the group's resource strategy and future growth, marking a crucial step for long-term development. By signing the preliminary agreement, subscription agreement, and option terms, the company hopes to achieve a controlling stake in SM Minerals in the future. China Nonferrous Mining Corporation Limited also announced on June 16 that its subsidiary, CNMC Hong Kong Holdings, signed the 2025 Gecamines Copper Cathode Purchase Agreement with Gecamines on June 16, 2025. The total value of the agreement is approximately US$67.03 million, for the purchase of 7,000 mt of high-grade copper cathode processed through the hydrometallurgical method by CNMC Huaxin. CNMC Hong Kong Holdings is a subsidiary of the company. Gecamines holds a 40% stake in the company's subsidiary, Kampombo Mining, and is a connected person at the subsidiary level of the company under the Listing Rules. Therefore, in accordance with Chapter 14A of the Listing Rules, the transactions proposed under the 2025 Gecamines Copper Cathode Purchase Agreement constitute connected transactions for the company. According to the 2024 annual report previously released by CNMC, the company achieved revenue of $3.817 billion in 2024, up 5.8% from $3.606 billion in 2023. Net profit was $558 million, up 46.2% from $381 million in 2023. Profit attributable to owners of the company was $399 million, up 43.6%. Basic earnings per share were approximately 10.34¢, an increase of approximately 2.91¢ from 7.43¢ in 2023. In the financial review, the cost of sales was $2.767 billion, up 1.4% from $2.729 billion in 2023, primarily due to increased sales of blister copper and copper anodes, as well as rising international copper prices. Gross profit was $1.049 billion, with the gross profit margin increasing from 24.3% to 27.5%. The company effectively controlled distribution and selling expenses, which decreased to $8.7 million. In terms of business segments, the hydrometallurgy and smelting segments performed well, with external sales revenue from the hydrometallurgy segment reaching $1.094 billion and from the smelting segment reaching $2.722 billion. Overall, despite a decline in the production of copper cathode and cobalt hydroxide, the overall revenue growth remained significant, primarily driven by rising copper prices and improved production efficiency. When commenting on CNMC's 2024 annual report and Q1 2025 results, Minsheng Securities stated that the company's net profit attributable to shareholders in 2024 reached a record high, mainly due to rising copper prices. In Q1 2025, the company's net profit attributable to shareholders increased significantly both YoY and QoQ, primarily due to rising copper prices and the normalization of copper production. Key highlights: ① Endogenous growth: CNMC's subsidiaries, including CNMC Africa Mining, CNMC Luanshya, and Chambishi Hydrometallurgy, will research and advance the following projects over the next 3-5 years: expansion of the Chambishi Southeast orebody, the new mine at CNMC Luanshya, the mining and beneficiation project at the Samba mine, and the production resumptions at the Gangpofu West orebody and MSESA orebody, indicating substantial room for endogenous growth. ② Extensive M&A: At the group level, to address horizontal competition, the DRC company and the Deziwa copper mine are expected to be injected into the publicly listed firm. ③ Rare high-dividend copper target. Risk warnings: Continuous decline in smelting and processing fees, decline in copper prices, and geopolitical risks. In its research report commenting on CNMC, Guosen Securities stated: Regarding core mines: In 2024, CNMC Africa Mining produced approximately 68,200 mt of copper anodes, down approximately 11% YoY; CNMC Luanshya produced approximately 44,400 mt of copper cathode, up approximately 2% YoY, and 4,159 mt of copper anodes, down approximately 47% YoY; Gangpofu Mining produced approximately 34,400 mt of copper cathode, up approximately 4% YoY. High Dividend Payout Ratio: The company plans to distribute a dividend of 4.2893¢ per share, with a total dividend amount of approximately $167 million, accounting for 42% of the company's net profit attributable to shareholders in 2024. The company has maintained a dividend payout ratio of over 40% for four consecutive years since 2020, with its dividend payout ratio and dividend yield ranking among the leading levels in the industry. The company's captive mine is expected to gradually increase its annual copper production to approximately 300,000 mt in the medium and long term. Risk Warnings: Risk of mineral product selling prices not meeting expectations, risk of the company's project construction progress not meeting expectations, and risk of changes in policies related to mineral resources in overseas countries.

On June 17, the share price of China Nonferrous Mining Corporation Limited (CNMC) rose. As of 14:29 on June 17, CNMC's shares increased by 2.03%, closing at HK$7.03 per share. On June 16, CNMC (01258) announced that its subsidiary, CNMC (Hong Kong) Holdings Limited, had signed the 2025 Gecamines Copper Cathode Purchase Agreement with Gecamines on June 16, 2025. The total contract value was approximately $67.03 million, involving the purchase of 7,000 metric tons of high-grade copper cathode processed by CNMC Huaxin Hydrometallurgy. CNMC (Hong Kong) Holdings Limited is a subsidiary of the company. Gecamines holds a 40% stake in the company's subsidiary, Kambove Mining, and is considered a connected person at the subsidiary level under the Listing Rules. Therefore, the transactions proposed under the 2025 Gecamines Copper Cathode Purchase Agreement constitute connected transactions of the company under Chapter 14A of the Listing Rules. According to CNMC's announcement, as one or more of the applicable percentage ratios in relation to the transactions proposed under the 2025 Gecamines Copper Cathode Purchase Agreement, when considered on a standalone basis, exceed 0.1% but are all below 5%, these transactions are subject to the reporting, annual review, and announcement requirements under Chapter 14A of the Listing Rules and are exempt from the requirement for independent shareholders' approval. Under Rule 14A.81 of the Listing Rules, if a series of connected transactions are all conducted within the same 12-month period or are interrelated, these transactions must be aggregated and treated as a single transaction. The transactions proposed under the 2025 Gecamines Copper Cathode Purchase Agreement are similar in nature to previous transactions and must be aggregated. When aggregated with previous transactions, all applicable percentage ratios for the transactions proposed under this agreement exceed 0.1% but are below 5%. Therefore, these transactions are subject to the reporting and announcement requirements under Chapter 14A of the Listing Rules and are exempt from the requirement for independent shareholders' approval. The key terms of the agreement include the agreement period from June 16, 2025, to December 31, 2025. Pricing: The price per metric ton for the copper cathode sold under the 2025 Gecamines Copper Cathode Purchase Agreement shall be determined by reference to the average price during the agreed quotation period (i.e., the month following the delivery month, hereinafter referred to as the "Quotation Period"). This price is calculated by deducting a discount of $425 per metric ton from the daily cash seller's quotation for Grade A copper on the London Metal Exchange during the Quotation Period, after fair negotiations between the contracting parties. Therefore, the total market value of the copper cathode is approximately $70,000,000 (before deducting the discount). Payment: The payment for the 2025 Gecamines Copper Cathode Purchase Agreement shall be made by CNMC (Hong Kong) Holdings Limited to Gecamines' designated account via telegraphic transfer within five (5) working days after the delivery of the copper cathode. Delivery Period: CNMC Hong Kong Holdings Limited is required to appoint a carrier to dispatch trucks to Gécamines' plant for cargo loading within ten (10) days from the date Gécamines provides the goods. Regarding the reasons for this transaction, the announcement by China Nonferrous Mining Corporation Limited (CNMC) indicates that the copper cathode purchased under the 2025 agreement will meet the demand for copper cathode from CNMC Hong Kong Holdings Limited and its customers. The Board believes that entering into this agreement is beneficial to the Group and aligns with the Group's business and commercial objectives. The agreement was negotiated on a one-off basis, taking into account the recent demand for copper cathode and the market supply and demand conditions at the time of signing. As of the announcement date, the Group has no plans to purchase copper cathode from Gécamines on an annual basis. If the Company plans to engage in continuous daily transactions with Gécamines in the future, it will comply with all applicable provisions of the Listing Rules. When commenting on CNMC's 2024 annual report and 2025 Q1 results, Minsheng Securities stated: "Historical best annual net profit attributable to shareholders, with expectations for sustained growth in self-produced copper." On April 25, 2025, the Company released its 2024 annual report and 2025 Q1 results. In 2024, the Company achieved revenue of $3.817 billion, up 5.8% YoY, and a net profit attributable to shareholders of $399 million, up 43.6% YoY. On a quarterly basis, the Company achieved a net profit attributable to shareholders of $85 million in 2024Q4, up 273.9% YoY and down 11.1% MoM; in 2025Q1, the Company achieved a net profit attributable to shareholders of $123 million, up 46% YoY and up 46% QoQ. The 2025Q1 results exceeded market expectations. The record-high net profit attributable to shareholders in 2024 was mainly due to the rise in copper prices. ① Production: Affected by the change of service providers and tight power supply in the DRC, the self-produced copper output declined slightly YoY. In 2024, the Company's production of blister copper and copper anode/copper cathode/sulphuric acid was 28.6/12.6/1.056 million mt, with YoY changes of +0.1%, -11.4%, and +10.5%, respectively. Among them, self-produced blister copper and copper anode/copper cathode were 7.77/81,500 mt, down 11.4% and 0.2% YoY, respectively. The total self-produced copper ore was 159,000 mt, down 6% YoY. The decrease in self-produced blister copper and copper anode output was mainly due to a 10.9% YoY decline in CNMC Nonferrous Mining's copper output to 68,000 mt, as the change of underground mining service providers in H1 affected the production of sulphide ore. From a quarterly production perspective, Q2-Q4 had recovered to a level of 17,000-18,000 mt per quarter. In addition, although self-produced copper cathode production remained basically flat, the production of copper cathode from externally purchased oxide ore decreased, leading to a YoY decline in total copper cathode output, mainly due to production losses at Huaxin Hydrometallurgy and Huaxin Mabende caused by power shortages in the DRC. ② Sales: Production and sales were basically balanced. It is worth noting that cobalt production was only 633 mt, down 49.6% YoY, possibly due to the prolonged downturn in cobalt prices. ③ Unit Price: Rising copper prices contributed to profit growth. ④ Cost: Cost control was strong, with overall costs remaining stable. ⑤ Lightly Equipped with Excellent Asset Quality. In Q1 2025, the company's net profit attributable to shareholders increased significantly both YoY and QoQ, mainly due to the rise in copper prices and the normalization of copper production. ① Production: In Q1 2025, the company's production of blister copper and copper anode/copper cathode/sulphuric acid was 10.97/3.50/271,400 mt respectively. Among them, the production of blister copper and copper anode, and sulphuric acid was basically flat YoY, while the production of copper cathode increased by 8% YoY. This was mainly because the production of copper cathode at Huaxin Mabende and Huaxin Hydrometallurgy, two hydrometallurgical smelters in the DRC, increased by 49% and 20% YoY respectively. The increase in production was due to the company's efforts to ensure power supply through multiple measures such as constructing PV power generation and diesel power generation facilities. The self-produced blister copper and copper anode (CNMC Luanshya + CNMC Nonferrous Mine + Chambishi Hydrometallurgy)/copper cathode (CNMC Luanshya + Chambishi Hydrometallurgy + Gambowe Mining) were 21,400/21,700 mt respectively, increasing by 22.4% and decreasing by 3.7% YoY respectively. The total self-produced copper ore was 43,000 mt, up 7.7% YoY. The increase in self-produced blister copper and copper anode production was mainly due to the 26.7% YoY increase in copper production at Chambishi Copper Mine of CNMC Nonferrous Mine, as the low base caused by the replacement of mine service providers in the same period last year affected production, which has now returned to normal this year. ② Unit Price: In Q1 2025, the prices of copper and cobalt were 77,300 yuan/mt and 170,000 yuan/mt respectively, changing by +11.3% and -17.1% YoY, and increasing by 2.4% and 4.6% QoQ respectively. The long-term contract TC for 2025 was $21.25/mt. The vast majority of the company's smelter raw materials come from copper concentrates locked in through long-term contracts. However, due to successful negotiations on freight sharing, the decline in some of the TC was offset, so the impact of the decline in smelting processing fees on the company was less than that on domestic companies. Core Highlights: ① Endogenous Growth: CNMC Africa Mining, CNMC Luanshya, and Chambishi Hydrometallurgy, subsidiaries of the company, will research and promote the following projects in the next 3-5 years: the expansion of the Chambishi Southeast Orebody, the new mine of CNMC Luanshya, the mining and beneficiation project of the Samba Mine, and the production resumptions of the Gambowe West Orebody and MSESA Orebody, indicating significant endogenous growth potential. ② Outward Mergers and Acquisitions: At the group level, to address horizontal competition issues, the DRC company and Deziwa Copper Mine are expected to be injected into the publicly listed firm. ③ Scarcity of High-Dividend Copper Targets. Risk Warnings: Continuous decline in smelting processing fees, decline in copper prices, and geopolitical risks. Guosen Securities commented on CNMC Mining in its research report, stating: Core Mines: In 2024, CNMC Africa Mining produced approximately 68,200 mt of copper anode, down about 11% YoY; CNMC Luanshya produced approximately 44,400 mt of copper cathode, up about 2% YoY, and 4,159 mt of copper anode, down about 47% YoY; Gambowe Mining produced approximately 34,400 mt of copper cathode, up about 4% YoY. High Dividend Payout Ratio: The company plans to distribute a dividend of 4.2893¢ per share, with a total dividend amount of approximately $167 million, accounting for 42% of the company's net profit attributable to shareholders in 2024. The company has maintained a dividend payout ratio of over 40% for four consecutive years since 2020, with its dividend payout ratio and dividend yield ranking among the leading levels in the industry. The company's captive mine is expected to gradually increase its annual copper production to approximately 300,000 mt in the medium and long term. Risk Warnings: Risk of mineral product selling prices not meeting expectations, risk of the company's project construction progress not meeting expectations, and risk of changes in policies related to mineral resources in overseas countries.

SMM June 17 news: Metal market: Domestic base metals showed mixed performance overnight, with SHFE tin slightly down. SHFE copper rose 0.45%. SHFE nickel fell 0.48%. SHFE lead gained 0.35%. SHFE aluminum edged down 0.02%, while SHFE zinc advanced 0.62%. Additionally, the most-traded alumina futures contract increased 0.18%, and the most-traded cast aluminum contract climbed 0.64%. Overnight ferrous metals series mostly rose, with iron ore up 0.07%, stainless steel down 0.2%, rebar gaining 0.17%, and HRC slightly higher. For coking coal and coke: coking coal rose 1.08%, coke increased 0.85%. Overnight overseas market metals saw LME base metals generally rise, with LME copper up 0.52%, LME aluminum gaining 0.56%, LME lead rising 0.8%, LME zinc jumping 1.41%, while LME tin fell 0.44% and LME nickel declined 0.42%. Overnight precious metals: COMEX gold dropped 1.4%; COMEX silver edged up 0.04%. SHFE gold fell 1.37%, SHFE silver decreased 0.08%. As of 8:15 am June 17, overnight closing quotes 》Click to view SMM futures data dashboard Macro front Domestic: [Notice: MOFCOM to hold press conference on 19th regarding key work in commerce sector] The Ministry of Commerce will hold a press conference at 3 pm on Thursday, June 19, 2025, where its spokesperson will introduce recent key work in the commerce sector and take questions from reporters. [NAFMII convenes symposium on supporting high-quality development of automakers in China's interbank market] NAFMII held a symposium on June 16, 2025, discussing interbank market support for high-quality development of automakers. Representatives from automakers and lead underwriters attended, with the meeting chaired by NAFMII Vice President Zhong Xu. The association presented interbank market support for the automotive industry. Representatives from 9 companies - FAW, SAIC, BAIC Group, BYD, Geely Holding, Great Wall Motor, NIO Group, XPeng Motors, and Xiaomi Group - described challenges faced amid cut-throat competition and proposed suggestions for optimizing financing environment. Lead underwriters conducted on-site matchmaking for automakers' financing needs. Next, NAFMII will implement the Party Central Committee and State Council's strategic deployment on developing new quality productive forces through technological innovation, strengthen bond market system building and product innovation, optimize financial services tailored for the automotive sector, encourage automakers to increase bond financing while maintaining healthy development and avoiding disorderly competition, and actively promote intelligent, high-end, green transformation to advance China's automotive industry toward high-quality development. Cailian Press) [CPCA: 52,000 Pickup Trucks Sold in May, Up 13.6% YoY] According to data from the China Passenger Car Association (CPCA), in May 2025, 51,700 pickup trucks were produced nationwide, up 20.8% compared to May 2024. From January to May 2025, 255,000 pickup trucks were produced, up 23.4% YoY. In May 2025, 52,000 pickup trucks were sold in the market, up 13.6% compared to May 2024, and down 8.1% MoM from the previous month, remaining at a high level in the past five years. From January to May 2025, 258,000 pickup trucks were sold, up 18.2% YoY compared to January-May 2024. [Goldman Sachs Bullish Again: Global Capital Returns to China, Optimistic About China's "Top 10" Stocks] Kinger Lau, Chief China Equity Strategist at Goldman Sachs, recently released a research report titled "The Return of China's Private Enterprises: The Tide Has Turned." Lau pointed out that driven by various macro, policy, and micro factors, the medium-term investment prospects for China's private enterprises are improving. Goldman Sachs has listed China's "Top 10," namely the ten Chinese private publicly listed firms that Goldman Sachs is particularly bullish on. They are: Tencent, Alibaba, Xiaomi, BYD, Meituan, NetEase, Midea, Hengrui Medicine, Ctrip, and Anta. 》Click for details US Dollar: The US dollar index rose 0.03% overnight, closing at 98.15. The market is focused on the tense situation between Israel and Iran, as well as the US Fed's policy meeting this week. The Fed meeting will conclude on Wednesday. The market generally expects the Fed to keep interest rates unchanged. However, the market will be watching how the Fed views recent data, which generally indicate softening economic activity, but the risk of rising price pressures remains high. Other Currencies: Leaders of the Group of Seven (G7) began their annual summit in Canada. With about three weeks left until Trump's deadline for trade agreements, the market remains nervous as agreements with major trading partners such as the EU and Japan have not yet been signed. They will be looking for any progress made in any bilateral talks with the US on the sidelines of the G7 leaders' summit. (Webstock Inc.) Data: Today, data such as the Bank of Japan's policy benchmark interest rate on June 17, the ZEW Economic Sentiment Index for the Eurozone in June, the ZEW Economic Sentiment Index for Germany in June, the US monthly import price index for May, the US annual import price index for May, the US monthly retail sales for May, the US monthly core retail sales for May, the US annual retail sales for May, the US monthly retail sales control group associated with GDP for May - seasonally adjusted, the US monthly industrial output for May, the US capacity utilization rate for May, the US monthly manufacturing output for May, the US manufacturing capacity utilization rate for May, and the US annual industrial output for May - seasonally adjusted, will be released. In addition, it is worth noting that: Today, 182 billion yuan of one-year medium-term lending facility (MLF) matured; Bank of Japan Governor Kazuo Ueda held a monetary policy press conference; the Bank of Japan announced its interest rate decision; US President Trump visited Canada from June 15 to 17 to attend the G7 Leaders' Summit. Crude oil: Both WTI and Brent crude oil futures fell, with WTI down 2.06% and Brent down 2.33%. Market concerns about disruptions to crude oil supplies in the Middle East eased, leading to a decline in oil prices. The US Navy said on Monday that electronic interference with commercial shipping navigation systems around the Strait of Hormuz had surged in recent days, affecting vessels passing through the area. Approximately one-fifth of global oil consumption, or about 18-19 million barrels per day (bpd) of oil, condensate, and fuels, passes through the Strait. Iran, a member of the Organization of the Petroleum Exporting Countries (OPEC), currently produces about 3.3 million bpd of oil and fuels and exports more than 2 million bpd. Analysts and OPEC observers said that the spare capacity of OPEC oil-producing countries to increase production to offset any disruptions is roughly equivalent to Iran's production. A preliminary survey showed that US crude oil and distillate inventories likely fell last week, while gasoline inventories may have increased. Before the weekly inventory report was released, the average forecast of four surveyed analysts was that US crude oil inventories increased by about 600,000 barrels in the week ending June 13. US distillate inventories, including diesel and heating oil, were expected to decrease by about 100,000 barrels, while gasoline inventories were expected to increase by 200,000 barrels. The American Petroleum Institute (API) will release its weekly crude oil inventory report at 4:30 AM Beijing time on Wednesday, and the US Energy Information Administration (EIA) will release its weekly crude oil inventory report at 10:30 PM Beijing time on Wednesday. (Webstock Inc.)

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.

Recently, Kinger Lau, Chief China Equity Strategist at Goldman Sachs, released a research report titled "The Return of China's Private Enterprises: The Tide Has Turned". Lau pointed out that driven by various macro, policy, and micro factors, the medium-term investment prospects for China's private enterprises are improving.