[SMM Tin Midday Review: The Center of the Most-Traded Contract Rebounded Slightly, and Market Transactions Weakened After Downstream Enterprises Restocked]

[SMM Tin Midday Review: Macro and Fundamental Bearish Factors Resonated, and the Most-Traded SHFE Tin Contract Once Fell Below the 370,000 yuan Mark]

The fundamental challenge in the 304 stainless steel industrial chain is Instrument Asymmetry, a scenario where the dominant cost driver, Nickel Pig Iron (NPI), lacks a direct futures contract and forces participants to manage 75% of their risk using standardized proxies like pure nickel. This creates a lethal threat not from price volatility itself, but from the Basis Risk that occurs when physical assets and hedging tools decouple.

[Zinc Price "Year-End Hurdle": Pre-Holiday Hedging and Post-Holiday Pace Management Suggestions]With the 2026 Chinese New Year approaching and the last trading week before the holiday, SMM has summarized several key points to focus on in the zinc market before and after the holiday:

The National Financial Regulatory Administration and the Shanghai Municipal People's Government have issued the Action Plan for Supporting the Construction of Shanghai as an International Financial Center. The plan proposes to promote the concentration of financial institutions and enhance the quality and strength of financial services. It encourages further concentration of banking and insurance institutions in Shanghai, urges the head offices of commercial banks to increase their support for the construction of Shanghai as an international financial center through the establishment of specialized institutions and the delegation of authority to their branches in Shanghai, supports foreign financial institutions in playing a greater role in the construction of Shanghai as an international financial center, promotes the priority landing of key opening-up projects in Shanghai, supports the establishment of more international financial organizations, international financial industry associations, and new-type multilateral financial organizations in Shanghai, optimizes and enhances the service functions of financial institutions in Shanghai, and guides financial institutions in Shanghai to strengthen collaborative cooperation. National Financial Regulatory Administration and Shanghai Municipal People's Government Issue Action Plan for Supporting the Construction of Shanghai as an International Financial Center To thoroughly implement the decisions and arrangements of the Party Central Committee and the State Council on accelerating the construction of Shanghai as an international financial center, further enhance the competitiveness and influence of Shanghai as an international financial center, and promote high-quality economic development through high-level financial opening-up, the National Financial Regulatory Administration, in conjunction with the Shanghai Municipal People's Government, has jointly issued the Action Plan for Supporting the Construction of Shanghai as an International Financial Center (hereinafter referred to as the "Action Plan"). The Action Plan mainly consists of five aspects: First, promote the concentration of financial institutions and enhance the quality and strength of financial services. Encourage further concentration of banking and insurance institutions in Shanghai, urge the head offices of commercial banks to increase their support for the construction of Shanghai as an international financial center through the establishment of specialized institutions and the delegation of authority to their branches in Shanghai, support foreign financial institutions in playing a greater role in the construction of Shanghai as an international financial center, promote the priority landing of key opening-up projects in Shanghai, support the establishment of more international financial organizations, international financial industry associations, and new-type multilateral financial organizations in Shanghai, optimize and enhance the service functions of financial institutions in Shanghai, and guide financial institutions in Shanghai to strengthen collaborative cooperation. Second, focus on the "five major tasks" to improve the quality and efficiency of financial services for the real economy. Enhance the quality and efficiency of technology finance work, support Shanghai in actively exploring financial service models suitable for technology enterprises under the premise of legal compliance and effective control of substantive risks, and provide better financial services for technological innovation. Encourage financial institutions in Shanghai to prudently and orderly carry out carbon finance-related businesses, support Shanghai in participating in the competition for international carbon finance pricing power, and build Shanghai into an international green finance hub. Vigorously develop inclusive finance, pension finance, and digital finance. Third, expand institutional opening-up and enhance the internationalization level of Shanghai's financial industry. We will persist in benchmarking against high-standard international economic and trade rules to explore institutional financial opening-up, and explore the development of non-resident loan businesses, such as cross-border syndicated loans based on international best practices, in the Shanghai Pilot Free Trade Zone. We will continue to optimize cross-border financial services, enhance the international operations of financial institutions, vigorously promote the construction of the Shanghai International Reinsurance Center and the development of shipping insurance, research and explore offshore financial innovation, and encourage institutions to actively participate in the construction of financial markets. Fourth, we will improve regulatory standards and coordinate financial development with security. We will encourage financial institutions in Shanghai to enhance their proactive risk management capabilities and promote prudent operations. We will adhere to the principle of inclusive and prudent supervision, support the organization and implementation of financial innovation pilot projects focusing on key areas such as serving the real economy and opening-up to the outside world, and explore the implementation of a due diligence exemption mechanism for financial innovation pilot projects. We will strengthen the collaboration between central and local governments to jointly build a safety net, promote the establishment and improvement of the working mechanism for financial risk prevention and disposal in Shanghai, and safeguard the bottom line of financial security under open conditions. Fifth, we will improve supporting policies and enhance the level of professional financial services. We will strengthen the deep integration of Party building with business operations. We will deepen the construction of the financial legal system, strengthen the legal safeguards for the construction of Shanghai as an international financial center, vigorously support the Shanghai Financial Regulatory Bureau in establishing a sound Shanghai Financial Consumer Protection Center, and further improve the business environment for finance in Shanghai. We will enhance the technological level of financial supervision and support the establishment of a data sub-center of the National Financial Regulatory Administration in Shanghai when conditions permit. We will support Shanghai in building a new-type asset management service platform and promoting the high-quality transformation and upgrading of asset management businesses towards risk-driven and data-driven models. We will support Shanghai in attracting and cultivating high-level financial talents. Going forward, the National Financial Regulatory Administration and the Shanghai Municipal People's Government will continue to promote the implementation of the Action Plan, improve policy support, comprehensively enhance the capabilities of Shanghai as an international financial center, better contribute to the construction of a strong financial country, and make greater contributions to advancing the construction of Chinese modernization. Q&A with Officials from the National Financial Regulatory Administration and Relevant Departments of the Shanghai Municipal People's Government on the Action Plan for Supporting the Construction of Shanghai as an International Financial Center To thoroughly implement the decisions and arrangements of the CPC Central Committee and the State Council on accelerating the construction of Shanghai as an international financial center, further enhance the competitiveness and influence of Shanghai as an international financial center, and promote high-quality economic development through high-level financial opening-up, the National Financial Regulatory Administration, in conjunction with the Shanghai Municipal People's Government, jointly issued the Action Plan for Supporting the Construction of Shanghai as an International Financial Center (hereinafter referred to as the "Action Plan"). Officials from the National Financial Regulatory Administration and relevant departments of the Shanghai Municipal People's Government answered questions from reporters regarding the Action Plan. 1. What is the background for the issuance of the Action Plan? The CPC Central Committee and the State Council attach great importance to the construction of Shanghai as an international financial center. The 2023 Central Financial Work Conference proposed to "enhance the competitiveness and influence of Shanghai as an international financial center." The Decision of the CPC Central Committee on Further Comprehensively Deepening Reforms to Advance Chinese Modernization, adopted at the Third Plenary Session of the 20th CPC Central Committee, proposed to "accelerate the construction of Shanghai as an international financial center." On April 29, 2025, a symposium was held in Shanghai for central financial institutions based in Shanghai to support the construction of Shanghai as an international financial center. He Lifeng, a member of the Political Bureau of the CPC Central Committee and Director of the Central Financial Commission Office, attended the symposium and delivered a speech, emphasizing the need to earnestly study, deeply understand, and thoroughly implement the important instructions and directives of Xi Jinping on accelerating the construction of Shanghai as an international financial center, fully implement the Opinions on Supporting the Accelerated Construction of Shanghai as an International Financial Center recently issued by the Central Financial Commission, strengthen the coordinated and synergistic development of Shanghai's "five centers," and comprehensively enhance the capabilities of Shanghai as an international financial center. To further thoroughly implement the decisions and deployments of the CPC Central Committee and the State Council, support the accelerated construction of Shanghai as an international financial center, better contribute to the construction of a financial powerhouse, and make greater contributions to advancing Chinese modernization, the National Financial Regulatory Administration, in conjunction with the Shanghai Municipal People's Government, jointly issued this plan. 2. What are the main contents of the Action Plan? The Action Plan is divided into six parts. The first part outlines the overall requirements, which are to be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, adhere to the centralized and unified leadership of the CPC Central Committee over financial work, adhere to the goal of serving high-quality economic development, adhere to steadily expanding institutional opening-up, and coordinate financial development and security. Parts two through six propose a total of 27 specific measures in the following five aspects: First, promote the clustering of financial institutions to optimize and strengthen financial service functions. Encourage further clustering of banking and insurance institutions in Shanghai, encourage the head offices of commercial banks to increase their support for the construction of Shanghai as an international financial center through the establishment of specialized institutions or the delegation of authority to institutions in Shanghai, support foreign financial institutions in playing a greater role in the construction of Shanghai as an international financial center, prioritize the implementation of key opening-up projects in Shanghai, optimize and enhance the service functions of financial institutions in Shanghai, and guide financial institutions in Shanghai to strengthen collaborative cooperation. Second, implement the "five major tasks" to improve the quality and efficiency of financial services for the real economy. Enhance the quality and efficiency of financial services for science and technology. Encourage financial institutions in Shanghai to prudently and orderly carry out carbon finance-related businesses and build Shanghai into an international green finance hub. Vigorously develop inclusive finance, pension finance, and digital finance. Third, expand institutional opening-up to enhance the internationalization level of Shanghai's financial industry. We will persist in aligning with high-standard international economic and trade rules to explore institutional financial opening-up. We will continue to optimize cross-border financial services, enhance the international operations of financial institutions, vigorously promote the construction of the Shanghai International Reinsurance Center and the development of shipping insurance, research and explore offshore financial innovation, and encourage institutions to actively participate in the construction of financial markets. Fourth, we will improve regulatory standards and coordinate financial development with security. We will encourage financial institutions in Shanghai to enhance their proactive risk management capabilities and promote prudent operations. We will adhere to an inclusive and prudent regulatory philosophy, supporting the implementation of financial innovation pilot programs in key areas such as serving the real economy and opening-up to the outside world, and exploring the implementation of a due diligence exemption mechanism for financial innovation pilot programs. We will strengthen central-local coordination to jointly build a safety net, promoting the establishment and improvement of a working mechanism for financial risk prevention and disposal in Shanghai, and safeguarding the bottom line of financial security under opening-up conditions. Fifth, we will improve supporting policies and enhance the level of professional financial services. We will strengthen the deep integration of Party building with business operations. We will deepen the construction of the financial legal system, vigorously support the Shanghai Financial Regulatory Bureau in establishing a sound Shanghai Financial Consumer Protection Center, and further improve the business environment for finance in Shanghai. We will enhance the technological level of financial supervision and support the establishment of a data sub-center of the National Financial Regulatory Administration in Shanghai when conditions permit. We will support Shanghai in building a new-type asset management service platform. We will support Shanghai in attracting and cultivating high-level financial talents. 3. How will the Action Plan better leverage Shanghai's role as a pilot zone for financial reform? First, we will establish and improve a working mechanism for the supervision of financial innovation, supporting the Shanghai Financial Regulatory Bureau in organizing and implementing financial innovation pilot programs in key areas such as serving the real economy and opening-up to the outside world through regulatory interaction mechanisms, under the premise of limiting business scope, setting quotas, restricting institutions, and establishing risk circuit breakers. Second, we will align with high-standard international economic and trade rules, expand institutional financial opening-up, and explore the development of non-resident loan businesses, such as cross-border syndicated loans based on international good practices, in the Shanghai Pilot Free Trade Zone. Third, we will deepen the coordinated construction of Shanghai as an international financial center and an international center for scientific and technological innovation, supporting Shanghai in actively exploring financial service models suited to the characteristics of technology enterprises under the premise of compliance with laws and regulations and effective control of substantive risks. Fourth, we will support Shanghai in building an international green finance hub, encouraging financial institutions in Shanghai to support the construction of the carbon emissions trading market, prudently and orderly carrying out carbon finance-related businesses, and supporting Shanghai in participating in the competition for international carbon finance pricing power.

A survey by the World Gold Council (WGC) indicates that central banks worldwide expect the proportion of gold in their reserves to continue increasing over the next five years, while the proportion of their US dollar reserves is expected to decline. The survey on central banks' gold reserves, conducted from February 25 to May 20 this year, received responses from 73 global central banks, marking the highest number of participating central banks since the survey's inception. Among them, 76% of central banks anticipate an increase in their gold holdings within five years, up from 69% last year. Additionally, a record number of respondents (95%) believe that central banks' gold reserves will increase over the next 12 months, up from 81% last year. The survey also reveals that the Bank of England remains the most popular location for gold reserves. Fifty-nine percent of the surveyed central banks consider potential trade conflicts and tariffs relevant to their reserve management plans. Notably, the proportion of respondents from emerging markets and developing economies (69%) is higher than that from advanced economies (40%), suggesting that this data may better underscore the views of emerging economy central banks on reserves. Risk Considerations The World Gold Council points out that central banks worldwide have increased their gold reserves by over 1,000 mt each year for the past three years, adding that this represents a significant increase compared to the average annual increase of 400 to 500 mt in the previous decade. The accelerated pace of central banks' gold purchases is linked to geopolitical and economic uncertainties. The survey also shows that 73% of respondents believe that the US dollar's share in global reserves will decline mildly or significantly over the next five years. During the same period, the share of other currencies such as the euro and the yuan, as well as gold, is expected to rise. This result also corroborates recent concerns among economists and analysts about the stability of the US dollar. Due to concerns about the Trump administration's trade policies and the US debt crisis, global investors are gradually reducing their dollar holdings to mitigate potential sovereign credit risks. Risk is also a key factor driving central banks worldwide to increase their gold holdings. The survey shows that the proportion of respondents actively managing their gold reserves has risen from 37% in 2024 to 44% in 2025. While return rates remain the primary reason for increasing gold holdings, risk management has surpassed tactical trading to become the second most chosen reason.

ASCC SMM (7th) Automotive Supply Chain Conference & Summit Forum on New Material Applications Officially Announced and Scheduled! See you in Wuhan from September 3-5, 2025! The global automotive industry is accelerating its transition towards electrification, intelligence, and low carbonization, with breakthroughs in new material technologies and supply chain innovations becoming the core driving forces for high-quality development. Facing new situations such as carbon neutrality, global adjustments in the industry chain, and the low-altitude economy, the automotive industry requires cross-sectoral collaborative innovation to build a resilient and sustainable supply chain. Against this backdrop, the ASCC 2025 7th SMM Automotive Supply Chain Conference & Summit Forum on New Material Applications is set to commence. The conference, themed "Dual Circulation at Home and Abroad, Pursuing Global Development," focuses on technological upgrades and strategic opportunities across the entire supply chain, bringing together global automakers, suppliers, R&D institutions, and others to explore core topics. Scan the QR code for conference details 01 Core Highlights and Topics of the Conference 01 / Commercial Vehicle Technology Forum This forum aims to gather domestic and international commercial vehicle OEMs to jointly discuss: the advancement of chassis intelligence, opportunities for Chinese commercial vehicles to go global, and innovations in business models. 02 / Innovations in Automotive Three Electric Systems (Battery, Motor, Electronic Control) Delve into material innovations and process optimizations in three electric technologies, exploring the industrialization paths for high-energy-density batteries, efficient motor drive systems, and intelligent electronic control. 03 / Chassis and Auto Body Structural Innovations Focus on cutting-edge technologies such as auto body parts and integrated die-casting, driving the evolution of automotive design and manufacturing towards modularity and high safety. 04 / Globalization of the Supply Chain and Go-Global Strategies Analyze changes in the international economic and trade environment, sharing practical experiences and risk management strategies of automakers and suppliers in overseas layouts, localized operations, and cross-border collaborations. 05 / Low-Altitude Economy and Future Mobility Anticipate the linkage demands of emerging fields such as drone logistics and eVTOL (electric vertical takeoff and landing aircraft) on the automotive supply chain, exploring the integrated applications of new materials and intelligent technologies in three-dimensional transportation. Scan the QR code for conference details 02 Agenda Overview 01 | September 3 13:00-18:00 Guest Registration 14:00-17:30 Automotive Three Electric Ecosystem Forum 14:00-17:30 Forum on Technological Leap and Globalization Opportunities for Commercial Vehicles 02 | September 4 09:00-12:00 Entrepreneurial Leadership Forum 14:00-17:00 Overseas International Forum 14:00-17:00 Automotive Chassis & Auto Body Forum 18:00-20:00 Automobile Industry Gala Night 03 | September 5 09:00-11:00 Low-Altitude Economy Forum 14:00-16:00 Company Tour Proposed Visits: Dongfeng, VOYAH Scan the QR code for conference details 03 Speaking Agenda · Afternoon of September 3 Automotive Three Electric Ecosystem Forum Forum on Technological Leap and Globalization Opportunities for Commercial Vehicles · Afternoon of September 4 Entrepreneurial Leadership Forum · Afternoon of September 4 Overseas International Forum Automotive Chassis & Auto Body Forum · Morning of September 5 Low-Altitude Economy Forum Scan the QR code for conference details 04 List of Previous Attendees Scan the QR code for conference details

Recently, Vallourec, a global leader in premium seamless tubular solutions, announced that its vertical gaseous hydrogen energy storage solution, Delphy, has officially passed DNV verification. As a globally pioneering solution, Delphy can store hydrogen ranging from 1 to 100 mt under the highest safety standards. This vertical system can extend up to 100 meters underground, occupying minimal land area, and is capable of meeting the challenges of complex and demanding industrial environments. Its target customers include green hydrogen producers, as well as industrial enterprises such as synthetic fuel (e-SAF, e-methanol) producers, green ammonia producers, steel companies, and refineries. The Delphy solution stems from Vallourec's long-term professional expertise and technological accumulation. Based on practically verified tubular and connection technologies, it exhibits excellent sealing and corrosion resistance. The project was initiated in 2022, bringing together approximately 30 researchers and experts, with particular emphasis placed on high-precision rebar processing, heat treatment, and non-destructive detection. In December 2023, the demonstration project for this solution was completed. Subsequently, Vallourec conducted a rigorous development, testing, and verification process for its hydrogen storage technology, ultimately leading to the successful verification of Delphy in recent days. This conformity statement issued by authoritative experts fully ensures the safety and reliability of the solution, marking a crucial milestone towards its commercialization. With the endorsement of authoritative verification, Vallourec has signed two Memoranda of Understanding (MoUs) with customers: one with H2V for green hydrogen production and utilization projects, and another with NextChem Tech for advancing green hydrogen and green ammonia projects. Currently, approximately 50 projects are under negotiation in France and globally, with potential revenue reaching around 2 billion euros. This verification result comes at a time when the demand for energy storage infrastructure is expected to grow—driven by the intermittent and flexible nature of green hydrogen production. The market demand for Delphy's energy storage solution will be propelled by both European regulations (requiring energy storage solutions to be paired with renewable electricity production) and France's hydrogen strategy (encouraging green hydrogen producers to operate flexibly to contribute to power grid stability). Philippe Guillemot, Chairman and CEO of Vallourec Group, stated: "The successful verification of Delphy underscores Vallourec's ability to transform industrial and technological expertise into new energy solutions. Thanks to the outstanding performance of our team, we have been able to launch this unique solution to address the challenges of global hydrogen energy development. This crucial milestone also solidifies our position in the hydrogen energy market and our leadership role in supporting the global decarbonization process." Santiago Blanco, Executive Vice President and Regional Director for Southern Europe at DNV Energy Systems, commented, "DNV is honored to provide validation services for Vallourec's Delphy hydrogen storage solution - a significant milestone in the field of safe and scalable hydrogen infrastructure. According to our Energy Transition Outlook model, the global demand for hydrogen is projected to reach 188 million mt per year by 2050. Flexible energy storage solutions like Delphy are crucial for bridging the gap between renewable energy supply and industrial demand. As hydrogen energy enables decarbonization in industries that are difficult to electrify, independent technical testing and validation will be key to accelerating deployment and building market confidence." About Vallourec Vallourec is a global leader in premium seamless tube solutions for the energy market and demanding industrial applications, with products spanning oil and gas wells in harsh environments, next-generation power plants, high-demand construction projects, and high-performance machinery equipment. Its pioneering spirit and cutting-edge R&D capabilities continuously push the boundaries of technology. With nearly 13,000 dedicated and passionate employees in over 20 countries worldwide, Vallourec collaborates with customers to provide not just tubular products, but innovative, safe, and cost-competitive smart tubular solutions that make every project possible. About DNV DNV is an independent certification and risk management services provider with operations in over 100 countries. Leveraging extensive experience and profound expertise, DNV is committed to enhancing safety and sustainable performance, setting industry standards, and inspiring and creating innovative solutions. Whether it's assessing new ship designs, providing certification for floating wind farm technologies, analyzing natural gas pipeline sensor data, or certifying food company supply chains, DNV empowers clients and their stakeholders to confidently navigate technological and regulatory complexities. DNV provides assurance across the entire energy value chain through consulting, monitoring, validation, and certification services. As a leading global independent energy expert and technical advisor resource, it helps industries and governments navigate the numerous complex and interconnected transformations occurring in the global and regional energy sectors. DNV is dedicated to achieving the goals of the Paris Agreement and supporting clients in their transition to a deeply decarbonized energy system at a faster pace.

Recently, the National Development and Reform Commission (NDRC) and the National Energy Administration jointly issued the Notice on Promoting the Orderly Development of Direct Green Electricity Connection (hereinafter referred to as the Notice), which clarifies the specific requirements for developing direct green electricity connection projects from five aspects: scope of application, planning guidance, operation management, pricing mechanisms, and organizational safeguards. I. Defining the Scope of Application for Direct Green Electricity Connection In recent years, there have been preliminary explorations into direct green electricity connection both domestically and overseas. European countries such as Denmark, the Czech Republic, Estonia, Latvia, and Lithuania have successively introduced policies and regulations related to direct connection lines. In 2021, China's 14th Five-Year Plan for Renewable Energy Development proposed the construction of a batch of demonstration factories and parks for direct green electricity supply, as well as the implementation of high-proportion new energy demonstration projects for power generation, supply, and consumption. However, there is currently no unified and clear standard for the definition of direct green electricity connection both domestically and overseas. The Notice clearly defines the scope of application for direct green electricity connection, specifying that it refers to the supply of green electricity from new energy sources such as wind power, solar power, and biomass power to a single power user through direct connection lines without directly connecting to the public power grid. From a technical perspective, direct green electricity connection can be categorized into two types: grid-connected and off-grid. For grid-connected projects, the power supply should be connected to the user side at the property rights demarcation point between the user and the public power grid, ensuring that the entire project is connected to the public power grid as a whole. Compared with power supply forms such as the public power grid and various incremental distribution networks, direct green electricity connection projects enable clear physical traceability of the supplied electricity, better meeting enterprises' needs for green energy consumption and enhancing the local consumption of new energy. II. Strengthening the Management of Direct Green Electricity Connection Projects The development of direct green electricity connection projects involves multiple aspects such as planning, operation, and the market. To achieve an organic unity of systematicness, sustainability, and fairness, project management must be carried out in a solid and meticulous manner. The Notice sets out clear requirements in the aforementioned aspects. In terms of planning, firstly, it is necessary to distinguish between existing and incremental loads to standardize project construction requirements. This involves encouraging the construction of new energy projects alongside new loads, while also leaving policy windows for existing loads such as export-oriented enterprises with rigid carbon reduction needs and those supplied by captive power plants, fully reflecting the support for direct green electricity connection projects and the flexibility of the policies. Secondly, it is essential to strengthen overall planning to ensure orderly development, adhering to the principle of "one chessboard" for new energy development, energy and power, and territorial spatial planning. This includes clarifying the requirements for project connection voltage levels and mandating that projects be constructed and put into operation simultaneously according to an integrated plan. Thirdly, it is encouraged to promote the diversification of investment entities through model innovation. Support is given for different entities to invest in the power supply and load of direct green electricity connection projects, with the load serving as the primary responsible entity. Various business entities, including private enterprises (excluding power grid enterprises), are encouraged to invest in direct green electricity connection projects. In terms of operation, first, the operation mode of green electricity direct-connection projects will be determined based on the progress of market-oriented reforms. To fully leverage price signals to guide the optimized operation of green electricity direct-connection projects while minimizing the impact on the public power grid, the Notice specifies that the type and installed capacity of new energy power supplies will be determined in accordance with the principle of "determining the source based on the load." Only projects in regions where spot cargo operates continuously are allowed to feed electricity back to the public power grid. The upper limit of the proportion of the project's on-grid electricity to the total available power generation is generally not to exceed 20%. Considering electricity curtailment, the proportion of self-generated and self-consumed electricity to the available power generation should be no less than 60%. The proportion of self-generated and self-consumed electricity of the project to the total electricity consumption should be no less than 30%, and no less than 35% before 2030. Second, the internal resource coordination and optimization of green electricity direct-connection projects will be strengthened to enhance system friendliness. Internal resources should be observable, measurable, adjustable, and controllable, and connected to the load management system or power dispatching automation system as required, accepting the management of the corresponding dispatching agency. Grid-connected projects should fully enhance their flexible regulation capabilities through reasonable configuration of ESS, tapping into the potential for flexible load regulation, and other means, thereby minimizing system regulation pressure. In terms of the market, the direction of market-oriented reforms in the power sector will be adhered to, promoting grid-connected green electricity direct-connection projects to participate in the power market transactions as a whole. Green electricity direct-connection projects will enjoy equal market status, arrange production based on market transaction results, and settle accounts according to the exchange power with the public power grid. III. Clarify the Main Responsibilities of Relevant Parties in Each Link of Direct-Connection Projects Clarifying the economic, technical, and safety responsibility boundaries between green electricity direct-connection projects and the public power grid is a key link in supporting the development of green electricity direct-connection projects and achieving their implementation and operation. The Notice clearly defines the responsibility boundaries in accordance with the principles of safety priority and equal rights and responsibilities. In terms of economics, green electricity direct-connection projects are required to reasonably pay relevant fees, including transmission and distribution fees, system operation fees, policy-based cross-subsidies, government funds, and surcharges. Localities are not allowed to reduce or exempt relevant fees in violation of national regulations. In terms of technology, green electricity direct-connection projects should be equipped with various secondary equipment such as relay protection. The grid-related performance of internal facilities should meet relevant standards. The internal power generation, plant power consumption, self-generated and self-consumed electricity, ESS, and other gateways should have the conditions for separate and bidirectional metering. The public power grid should provide fair and non-discriminatory grid access services to projects that meet grid-connection conditions, using the project's access point as the reference point for metering and settlement, and conducting electricity bill settlement as required. In terms of safety, grid-connected green electricity direct-connection projects and the public power grid form a clear and definite safety responsibility interface based on the property rights demarcation point, with each party fulfilling its corresponding power safety risk management and control responsibilities within the safety responsibility interface. The green electricity direct connection project should strictly implement various safety production management measures, promptly carry out risk control and hidden danger investigation and governance, independently declare grid connection capacity based on the internal power balance situation, and ensure proper internal power generation and load regulation. The public power grid should fulfill its power supply responsibilities in accordance with the declared capacity of the project and relevant agreements.

Macro News 1. The WTO Ministerial Conference was held in Paris, France. Chinese Minister of Commerce Wang Wentao attended the conference and delivered a speech. Wang Wentao stated that China had submitted the "Statement on Supporting the Multilateral Trading System under the Current Situation" to the WTO and was willing to work with all parties to safeguard the international economic and trade order and global trade stability, injecting more certainty into the world economy. 2. On June 4, Foreign Ministry Spokesperson Lin Jian hosted a regular press conference. A reporter asked about the White House's response to Lee Jae-myung's election as President of the Republic of Korea and mentioned China's influence on other socialist countries in the world. Lin Jian stated that China consistently adheres to the principle of non-interference in the internal affairs of other countries and has never and will never interfere in the internal affairs of any country. Lin Jian reiterated that the United States should abandon its old habit of imagining China based on its own actions, and stop provoking relations between China and the Republic of Korea. 3. Christopher Hui, Secretary for Financial Services and the Treasury of the Hong Kong Special Administrative Region, stated that the Hong Kong Securities and Futures Commission was considering introducing virtual asset derivatives trading for professional investors and would formulate robust risk management measures. 4. On June 4, the Ministry of Finance of the People's Republic of China issued RMB 12.5 billion in government bonds for the third issue of 2025 through tender to institutional investors in the Hong Kong Special Administrative Region. The bonds were widely welcomed by investors, with a subscription multiple of 3.96 times. 5. Recently, the Ministry of Finance and the Ministry of Housing and Urban-Rural Development organized the selection of cities supported by the central government's fiscal funds for the implementation of urban renewal actions in 2025. The 20 cities proposed for support are: Beijing, Tianjin, Tangshan, Baotou, Dalian, Harbin, Suzhou, Wenzhou, Wuhu, Xiamen, Jinan, Zhengzhou, Yichang, Changsha, Guangzhou, Haikou, Yibin, Lanzhou, Xining, and Urumqi. Industry News 1. Li Lecheng, Secretary of the Party Leadership Group and Minister of the Ministry of Industry and Information Technology, chaired a meeting on June 3 to study ideas and measures for promoting the development of the artificial intelligence industry and empowering new-type industrialization. The meeting emphasized promoting the deployment of large models in key industries of the manufacturing sector, accelerating the refinement of application scenario requirements, expediting the intelligent upgrading of the entire manufacturing process, and transforming production management models. 2. The National Energy Administration issued a notice on organizing the first batch of pilot work for the construction of a new-type power system, which mentioned that, based on the scientific integration of source-load-storage resources, it would coordinate the green electricity demand of existing and incremental data centers in various regions with the conditions of new energy resources, and collaboratively plan and layout computing power and power projects. It would also build or renovate a number of different types of virtual power plants according to local conditions, encourage the launch of pilot projects for the new generation of coal-fired power plants, and focus on building or renovating a number of new energy power stations in regions with tight power supply or high consumption pressure. 3. The National Energy Administration held the 2025 Training Course on Power Market Construction Capacity and the Symposium on Power Market Construction Work in Kunming, Yunnan. The meeting called for continued efforts to advance the construction of power markets in southern China and the Yangtze River Delta region, accelerate the transition of provincial (autonomous region, municipality) power spot markets to continuous operation, and steadily promote the full participation of new energy in the market. 4. FTSE Russell announced the results of the quarterly review of the FTSE China 50 Index and the FTSE China A50 Index for June 2025. Pop Mart and SF Holding were newly included in the FTSE China 50 Index, while China Merchants Securities and China Railway Group were removed. Jiangsu Bank was included in the FTSE China A50 Index, while Great Wall Motor was removed. 5. Based on preliminary monthly data, the China Passenger Car Association (CPCA) comprehensively estimated that nationwide wholesale sales of passenger NEVs by producers reached 1.24 million units in May 2025, up 38% YoY and 9% MoM. The cumulative wholesale sales for the period from January to May 2025 were comprehensively estimated at 5.22 million units, up 41% YoY. 6. In May 2025, the number of newly opened A-share accounts pulled back but remained stable. On a monthly comparison basis, the total number of newly opened A-share accounts in January 2025 was 1.57 million, nearly doubling to 2.84 million in February, surpassing 3 million in March, and then declining by 37.22% MoM in April due to market volatility caused by tariff frictions. In May, the number further pulled back due to the impact of holidays. Compared with the 1.27 million newly opened accounts in May 2024, the number of newly opened accounts in May 2025 increased by 22.86% YoY. 7. The Nansha Branch of the Guangzhou Municipal Planning and Natural Resources Bureau in Guangdong Province processed the first "delivery of sea area with issuance of certificate" business in the province. Guangzhou Port Nansha Port Operation Co., Ltd. obtained the real estate ownership certificate on the same day after submitting the payment voucher for the sea area use fee, becoming the first enterprise in the province to benefit from the "delivery of sea area with issuance of certificate" reform. 8. The official website of the Sichuan Provincial Health Commission recently released the "Sichuan Provincial Population and Family Planning Regulations (Draft Amendment for Public Consultation)." The draft proposes extending the marriage leave from 5 days to 20 days, with an additional 5 days of marriage leave for those who voluntarily participate in premarital medical examinations. It also proposes establishing a mechanism for increasing maternity leave based on the number of children born in compliance with laws and regulations. The maternity leave in Sichuan will be extended to 90 days for the first child, 120 days for the second child, and 150 days for the third child. Corporate News 1. Wantai Biological Pharmacy announced that its marketing authorization application for the nine-valent HPV vaccine has been approved. 2. Zhongke Electric announced its plan to invest no more than 8 billion yuan in the construction of an integrated base project for lithium-ion battery anode materials. 3. Bangji Technology announced that it is planning major matters, and its shares have been suspended from trading. 4. Hainan Huatie announced that it is planning to list on the Singapore Exchange. 5. Shanghai Construction Group announced that its overseas wholly-owned subsidiary issued US$600 million in bonds. 6. HiteVision announced the suspension of trading of its shares due to the planned change in control, with the counterparty engaged in investment and asset management businesses. 7. Kweichow Moutai announced that as of the end of May, it had repurchased 3.31 million shares at a cumulative cost of 5.1 billion yuan. 8. Jinjiang Hotels announced its intention to issue shares (H shares) overseas and list them on the Hong Kong Stock Exchange. 9. Winchip Microelectronics announced that its shareholder, Guiren Capital, and its concerted actors intend to reduce their shareholdings by no more than 3% of the company's shares. 10. Tyer Machine announced that its actual controller, Tai Zhengbiao, was released from custody and changed to being ordered to await further investigation. 11. *ST Jinbi announced the suspension of trading of its shares due to the planned change in control of the company. 12. PowerChina announced that a consortium led by its subsidiary had won a bid for an ESS project worth 6.282 billion yuan. 13. Kingsoft Office announced the continued appointment of Lei Jun as the company's honorary chairman. 14. Lier Chemical announced that its shareholder, Zhongtong Investment, intends to reduce its shareholdings by no more than 3% of the company's shares. 15. Kexing Pharmaceutical announced that its controlling shareholder, Keyi Pharmaceutical, intends to reduce its shareholdings by no more than 3% of the company's shares. Global Markets 1. The three major U.S. stock indices closed with mixed changes: the Dow fell 0.22%, the Nasdaq rose 0.32%, and the S&P 500 rose 0.01%. The Nasdaq Golden Dragon China Index closed up 2.04%, with most popular Chinese ADRs rising. 2. WTI crude oil futures closed down 0.88% at US$62.85 per barrel; Brent crude oil futures closed down 1.17% at US$64.86 per barrel. 3. COMEX gold futures closed up 0.6% at US$3,397.4 per ounce. COMEX silver futures closed up 0.06% at US$34.655 per ounce. Investment Opportunities Reference 1. AI Drives Demand Growth, with Microsoft, Google, and Meta All Placing Bets in This Field On Tuesday local time, tech giant Meta reached a 20-year agreement with Constellation Energy, the owner of the largest nuclear power plant in the US, to meet the electricity demand driven by the AI boom. Since the beginning of this year, tech giants such as Microsoft, Google, Amazon, and Meta have been strongly betting on nuclear energy. The market generally believes that this is aimed at planning energy supplementation in advance for the development of AI businesses. Yongxing Securities' research report indicates that supportive policies for nuclear power have been frequently introduced in 2025. The State Council has approved the construction of nuclear power plants and continued to increase investment in the research and development of new nuclear power technologies. According to Zhang Xing, Deputy Director-General of the General Office of the National Energy Administration, on April 27, the State Council Executive Meeting decided to approve five nuclear power projects, including the third phase of Sanmen in Zhejiang, Units 1 and 2 of the pressurized water reactor in Xiapu, Fujian, the third phase of Haiyang in Shandong, the second phase of Taishan in Guangdong, and the third phase of Fangchenggang in Guangxi. China's installed nuclear power capacity in operation and under approval for construction exceeds 120 million kW. In addition, the National Development and Reform Commission (NDRC) and the National Energy Administration will strongly support the R&D efforts for cutting-edge technologies such as fourth-generation nuclear power technology, small modular reactors, and nuclear fusion. 2. Lei Jun Says Xiaomi's Automotive Chips Are Expected to Launch Soon According to media reports, Xiaomi founder Lei Jun disclosed at the Xiaomi Investor Conference that the selling price of the newly launched Xiaomi YU7 is unlikely to be the rumored 235,900 yuan, and the official pricing will only be determined 1-2 days before the launch. Lei Jun stated that Xiaomi began investing in the R&D of the robotics sector five years ago. Currently, the car factory is testing relevant capabilities, and Xiaomi's automotive chips are under development, with an expected launch soon. China Research Institute of Industry Development (CRIID) stated that the market size of automotive chips in China reached 120 billion yuan in 2024 and is expected to exceed 300 billion yuan by 2030, with a compound annual growth rate (CAGR) exceeding 25%. Guosen Securities issued a research report stating that multiple chips were unveiled at the Shanghai Auto Show, and the localisation of automotive chips is timely. Domestic car makers are focusing on intelligence after electrification and are actively promoting the localisation of automotive chips. Domestically produced automotive chips are gradually transitioning from the early product development stage to the stage of large-scale sales. 3. Apple's Equity-Participating Company Advances Satellite Expansion Plan Recently, the Space Bureau of the US Federal Communications Commission (FCC) approved Globalstar's application to expand its second-generation "Direct-to-Device" (D2D) satellite constellation, aiming to provide network coverage services for Apple devices. It is understood that in November 2024, Globalstar announced plans for a new generation of C-3 satellite systems, which include Apple paying Globalstar up to $1.1 billion to enhance the non-terrestrial network connectivity capabilities of the iPhone. Previously, Apple also spent $400 million to acquire a 20% stake in Globalstar. The rapid advancement of aerospace technology has driven exponential growth in the global space economy. A report released by the World Economic Forum in 2024 shows that the global space economy is expected to grow from $630 billion in 2023 to $1.8 trillion by 2035, with an average annual growth rate of 9%, far exceeding the growth rate of global GDP, and will be an important engine driving global economic growth in the next decade. The US Federal Aviation Administration also predicts that commercial space activities will show strong growth momentum. Huaxi Securities stated that currently, the global commercial space sector is accelerating the development of reusable rockets and low-Earth orbit constellation networking, and China's commercial space industry is ushering in a dual turning point of "technological breakthrough" and "scale explosion". On the rocket manufacturing side, multiple top-tier enterprises in the commercial space sector are intensively conducting flight tests of reusable liquid rockets; on the satellite manufacturing side, greater manufacturing capacity and lower manufacturing costs are being achieved. In satellite applications, various scenarios are emerging, including direct satellite connectivity for mobile phones, direct satellite connectivity for automobiles, computing power satellites, and space broadband. 4. Capital market attention has increased significantly amid multiple catalysts, and the commercialization of Robo X has accelerated According to media reports, recently, Zheng Qinwen's match against top seed Aryna Sabalenka in the French Open women's singles quarterfinals attracted significant attention from domestic audiences. Beyond the tennis court, the event also showcased Guangzhou's technological elements. For two consecutive years, the only L4 autonomous minibus shuttle service at the French Open has been jointly provided by Guangzhou-based company WeRide and French automaker Renault Group. Driven by policy and industry synergy, the commercialization of Robo X (unmanned vehicles represented by Robotaxi and Robovan) has accelerated, and capital market attention has increased significantly amid multiple catalysts. Robotaxi: In 25Q1, fleets such as Pony.ai, WeRide, and Apollo Go have continued to expand, with orders growing rapidly and actively exploring overseas operations. Robovan has demonstrated significant potential in the logistics sector, forming a positive cycle of "cost reduction through technology - scenario validation - scale expansion." The business model has initially proven viable, and commercialization may accelerate in 2025. RoboX is expanding into broader unmanned applications, with commercialization accelerating in scenarios such as Robosweeper and Robotruck, while drone logistics is also emerging. Huatai Securities points out that the accelerated commercialization of Robo X is expected to bring investment opportunities across the entire industry chain.