A reporter exclusively learned from China Reform Holdings Corporation Ltd. (hereinafter referred to as "China Reform") that China Reform announced the issuance of 23 billion yuan in special bonds to support investment in major projects under the "implementation of major national strategies and the development of security capabilities in key areas" and the "program of large-scale equipment upgrades and consumer goods trade-ins." The "implementation of major national strategies and the development of security capabilities in key areas" refers to the implementation of major national strategies and the development of security capabilities in key areas. The "program of large-scale equipment upgrades and consumer goods trade-ins" refers to large-scale equipment upgrades and consumer goods trade-ins. Since 2024, China has vigorously implemented the policies related to the "implementation of major national strategies and the development of security capabilities in key areas" and the "program of large-scale equipment upgrades and consumer goods trade-ins" to stimulate domestic demand potential and provide support for promoting economic rebound and improvement. The Central Economic Work Conference at the end of 2024 clearly stated the need to "intensify and expand the scope of the implementation of the 'program of large-scale equipment upgrades and consumer goods trade-ins' policy" and "provide greater support for 'implementation of major national strategies and the development of security capabilities in key areas' projects." According to a reporter from Caixin, since 2024, to drive central state-owned enterprises to make every effort to stabilize growth, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) decided to support China Reform in issuing 300 billion yuan in special bonds for stabilizing growth and expanding investment in batches to inject capital into relevant central state-owned enterprises. The first batch of 30 billion yuan in special bonds was implemented in 2024, and this is the second batch of special bonds being issued. It is understood that the special bonds for stabilizing growth and expanding investment are mainly used to support investment in projects under the "implementation of major national strategies and the development of security capabilities in key areas" and the "program of large-scale equipment upgrades and consumer goods trade-ins," including investment in major equipment upgrades and technological transformations, major scientific and technological innovation projects, and major strategic emerging industries. In recent years, the proportion of direct financing in China's social financing structure has been relatively low, with social financing overly relying on bank credit, which is prone to accumulating systemic risks. As an effective way of allocating financial resources in the past, indirect financing has shown certain limitations in serving the development of the real economy under the power transformation in the stage of high-quality development. As a national-level capital operation platform, China Reform, as learned by a reporter from Caixin, has currently established 10 actively managed funds, including the China State-owned Capital Venture Capital Fund, the Central State-owned Enterprise Operation Fund, the Science and Technology Innovation Fund, the Double Hundred Fund, the State-owned Enterprise Reform Science and Technology Fund, the Comprehensive Reform Pilot Fund Group, and the China Reform High-level Talent Fund. By contributing 29.3 billion yuan in paid-in capital to these funds, it has driven the raising of over 87 billion yuan in funds and led the investment in over 100 projects, driving over 90 billion yuan in social capital. Recently, under the direct guidance of SASAC, a special fund for the development of strategic emerging industries of central state-owned enterprises and the China Reform Venture Capital Fund have been established, with a total scale of 60 billion yuan, to provide greater support for central state-owned enterprises to accelerate the development of strategic emerging industries and future industries. A representative from China Reform told a reporter from Caixin that China Reform continues to provide long-term and stable financial support to science and technology innovation enterprises. As of the end of April 2025, it has invested a cumulative total of over 346 billion yuan in strategic emerging industries, deploying a number of leading enterprises in fields such as semiconductors, memory chips, new energy batteries, and biotechnology. "We have increased investment in the 'bottleneck' areas of key core technologies in strategic emerging industries, with cumulative investment in original technology source projects exceeding 67 billion yuan, achieving full coverage of investment in the first batch of 29 central state-owned enterprises that are original technology sources. The amount invested in projects of central state-owned enterprises with long industry chains is nearly 40 billion yuan," said China Reform Holdings Corporation. A reporter from Cailian Press also learned that China Reform Holdings Corporation has supported major reforms of state-owned enterprises through direct investment services, implementing the deployment requirements of the SASAC. It has invested over 260 billion yuan in a market-oriented and professional manner to support the establishment of new central state-owned enterprises, the diversification of equity in central state-owned enterprises, strategic restructuring, specialized integration, and the prevention and resolution of risks in relevant enterprises. For example, it has participated in the establishment of new central state-owned enterprises such as PipeChina, China Green Development Group, and China Electrical Equipment Group, supported the restructuring of Ansteel Group and Bensteel Group, participated in the equity diversification reform of China Eastern Airlines Group, and supported the return of core assets of central state-owned enterprises such as China Telecom, China Mobile, and CNOOC to A-share IPOs. It has become an important shareholder of central state-owned enterprises and their affiliated enterprises, appointed directors to the enterprises it holds shares in, and played a "key minority" role in decision-making on major issues. Since 2023, amid a relatively sluggish capital market and weak investor expectations, China Reform Holdings Corporation has strengthened counter-cyclical investment and provided support by actively increasing its holdings or announcing share purchases, firmly safeguarding the value of publicly listed firms of central state-owned enterprises and playing the role of a "stabilizer" for the value of central state-owned enterprises. It has made concentrated investments in publicly listed firms of central state-owned enterprises in the technology sector on the secondary market on a "large-scale, high-proportion, and long-term" basis, investing in a cumulative total of 341 publicly listed firms of central state-owned enterprises involving 77 central state-owned enterprise groups. Actively becoming an active shareholder of 10 publicly listed firms controlled by central state-owned enterprises through market-oriented means and appointing directors, it has played a key role as an active shareholder in governance optimization, mechanism innovation, strategic synergy, and other aspects through targeted strategies. It has collaborated with central state-owned enterprises to carry out mergers and acquisitions in strategic emerging industries on the secondary market, vigorously promoting the strengthening and extension of the industry chains of central state-owned enterprises and enhancing their control and competitiveness. On April 7, the A-share market experienced a significant decline. A reporter from Cailian Press learned that, as an important strategic force in maintaining the stability of the capital market, China Reform Holdings Corporation immediately took action, firmly optimistic about the development prospects of China's capital market, and announced that it would increase its holdings of stocks of central state-owned enterprises, technology innovation stocks, and ETFs through special relending for stock repurchases and shareholding increases, with an initial amount of 80 billion yuan, demonstrating the responsibility and commitment of the operating company.

Macro News 1. On the evening of June 5, Chinese President Xi Jinping had a scheduled phone call with US President Donald Trump. Xi Jinping pointed out that to steer the course of China-US relations in the right direction, it is crucial for both sides to navigate the ship well and set the right course, particularly by eliminating various distractions and even disruptions. Both sides should enhance exchanges in various fields such as diplomacy, economy and trade, military affairs, and law enforcement, to increase consensus, reduce misunderstandings, and strengthen cooperation. Xi Jinping emphasized that the US should handle the Taiwan issue with caution to prevent a small number of "Taiwan independence" separatists from dragging China and the US into a dangerous situation of conflict and confrontation. 2. On the afternoon of June 5, the Ministry of Commerce held a regular press conference. A reporter asked about the new restrictive measures taken by the US against China. He Yongqian, the spokesperson for the Ministry of Commerce, stated that after the Geneva talks, the US had taken a series of restrictive measures against China, seriously undermining the existing consensus and severely damaging China's legitimate rights and interests. China expressed strong dissatisfaction and firm opposition to this, demanding that the US immediately cease such actions. If the US persists in its course and continues to harm China's interests, China will resolutely take strong measures to safeguard its legitimate rights and interests. 3. On June 5, Foreign Ministry spokesperson Lin Jian hosted a regular press conference. A reporter asked about the US's plan to tighten regulations on foreign companies listing in the US. Lin Jian stated that the US should adhere to the market principle of fair competition, stop politicizing economic and trade issues, and provide a fair, just, and non-discriminatory business environment for companies from all countries, including Chinese enterprises. 4. At yesterday's regular press conference, a reporter asked about reports that due to delays in parts procurement caused by China's rare earth export controls, Japanese automaker Suzuki had suspended production of its main compact car in Japan. Lin Jian stated that China's export control measures are in line with international common practices, are non-discriminatory, and are not targeted at specific countries. 5. The People's Bank of China announced that to maintain ample liquidity in the banking system, on June 6, 2025, it will conduct a 1,000 billion yuan outright reverse repo operation through fixed-quantity, interest-rate tendering, and multiple-price bidding, with a term of 3 months (91 days). Industry News 1. The State Council recently issued the "Notice on Conducting the Fourth National Agricultural Census." The Notice states that the main contents of the Fourth National Agricultural Census include agricultural production conditions, grain and food production, new quality productive forces in agriculture, basic conditions of rural development, and the living conditions of rural residents. The standard time point for the census is 24:00 on December 31, 2026, and the period data will be for the year 2026. 2. Following the adjustment of deposit interest rates by the six major state-owned banks on May 20, the "wave of interest rate cuts" has gradually spread to small and medium-sized banks. Small and medium-sized banks, including joint-stock banks, city commercial banks, rural commercial banks, village and township banks, and private banks, have successively followed suit in reducing deposit interest rates, with significant differentiation observed in interest rate adjustments among these banks. During this wave of deposit interest rate cuts, some local rural commercial banks and village and township banks with relatively small scales have experienced "interest rate inversion," where their listed interest rates are even lower than those of large state-owned banks. 3. The national standard "Residential Project Specifications" has garnered widespread attention since its release and implementation. Yao Tianwei, Director of the Standard Quota Department of the Ministry of Housing and Urban-Rural Development, stated on the 5th that building "good houses" does not equate to building "big houses" or "expensive houses." Instead, it involves addressing pain points in housing through good design, construction, materials, services, and more, to comprehensively enhance housing quality. 4. At a regular press conference held by the Ministry of Commerce on the 5th, a reporter posed questions related to the automotive industry. He Yongqian, spokesperson for the Ministry of Commerce, stated that in response to the "cut-throat competition" phenomenon currently present in the automotive industry, the Ministry of Commerce will actively cooperate with relevant departments to strengthen comprehensive rectification and compliance guidance, maintain a fair and competitive market order, and promote the healthy development of the industry. 5. It has been learned from the National Data Bureau that China will deploy and establish 10 national data element comprehensive pilot zones in Beijing, Zhejiang, Anhui, and other regions, supporting localities in conducting pilot initiatives in cultivating market entities, thriving the data market, and fully unleashing the efficiency of the integration between the real economy and the digital economy. 6. According to local time news from the Indonesian military on June 5th, the Indonesian government is conducting a feasibility assessment on the procurement of China-made J-10 fighter jets. Dofanto, Deputy Minister of Defense of Indonesia, stated that this move aims to enhance the modern combat capabilities of the Indonesian Air Force while also considering the cost-effectiveness of the national defense budget. Dofanto pointed out that the performance of China's J-10 fighter jets in the India-Pakistan conflict is one of the important factors considered by Indonesia for this aircraft model. Corporate News 1. Asia Potash International announced that Peng Zhiyun, a supervisor, is under investigation for suspected insider trading. 2. Beijing North Star Technology Group stated on an interactive platform that the company has deep reserves in the underlying blockchain and smart contract technologies for stablecoins. 3. Staidson Biopharma announced that STSP-0601 for injection has been included in the priority review process. 4. ChipMOS TECHNOLOGIES announced that China-Singapore Venture Capital intends to reduce its stake in the company by no more than 2%. 5. Chow Tai Fook announced that Dongguan Group intends to reduce its stake in the company by no more than 3%. 6. Lianhe Chemical Technology released an announcement on the record of investor relations activities, stating that the company's K-amine product has stable gross profit margins and has not yet received any notice of increased customer demand. 7. Wingtech Technology announced that its shareholder, Wuxi Guolian Integrated Circuit Investment Center, plans to reduce its stake in the company by no more than 3%. 8. 3S Bio announced that the New Drug Application for its recombinant anti-IL-1β humanized monoclonal antibody injection has been accepted. 9. Chengdi Xiangjiang announced that its consortium has won the bid for the 440 million yuan data center power system construction project for China Mobile's Zhejiang branch. 10. D&O Home Furnishings announced that its actual controller has signed strategic cooperation and concerted action agreements, and its shares will resume trading today. 11. Fulin Precision Machining announced that its subsidiary has signed a supplementary agreement with CATL to expand capacity cooperation. 12. Zai Lab announced that it has signed an exclusive market promotion service agreement for recombinant human thyroid-stimulating hormone for injection. 13. Paion Biotech announced that it is planning changes to its control rights, and its shares will be suspended from trading starting June 6. 14. Medprism Medical announced that it intends to acquire 100% equity in EasyJet Medical, and its shares will resume trading. 15. Haitai Development announced that it is planning to acquire controlling equity in Zhixueyun, which is expected to constitute a major asset restructuring. 16. Wanchen Group announced that its General Manager Wang Liqing, Deputy General Manager Li Bo, and Deputy General Manager Wang Song plan to reduce their stakes in the company. Global Markets 1. US President Trump expressed that he is "very disappointed" with Musk, who is unhappy with the government's decision to revoke the "mandate" for electric vehicles. Trump claimed that he could win Pennsylvania even without Musk. Musk responded that without him, Trump would lose the election, calling Trump "so ungrateful." 2. The three major US stock indices closed lower collectively, with the Dow Jones falling 0.25%, the Nasdaq dropping 0.83%, and the S&P 500 declining 0.53%. Amid the "feud" between Trump and Musk, Tesla's shares fell more than 14%. The Nasdaq Golden Dragon China Index closed up 0.54%, with popular Chinese ADRs showing mixed performance. 3. WTI crude oil futures closed up 0.83% at $63.37 per barrel. Brent crude oil futures closed up 0.74% at $65.34 per barrel. 4. COMEX gold futures closed down 0.68% at $3,376.1 per ounce. COMEX silver futures closed up 3.31% at $35.7955 per ounce. Investment Opportunities Reference 1. The global exoskeleton robot market is entering a period of rapid growth According to "CAS Voices," the Shenyang Institute of Automation of the Chinese Academy of Sciences has recently developed a "rigid-flexible coupling" multi-joint rehabilitation exoskeleton robot for the lower limbs, which is expected to provide motor function reconstruction and behavioral assistance services for patients with lower limb hemiplegia. Exoskeleton robots are wearable intelligent mechanical devices that, through the collaboration of motors, sensors, control systems, and other technologies, provide power support similar to animal exoskeletons for humans, enhancing or restoring human mobility. They are mainly applied in military, industrial, medical, and civilian fields. According to a research report by Everbright Securities, the global exoskeleton robot market is entering a period of rapid growth. Data from GrandViewResearch shows that the market size reached $1.8 billion in 2024 and is expected to exceed $12 billion by 2030, with a compound annual growth rate of 28%. 2, The National Energy Administration organized the first batch of pilot work for new-type power system construction According to media reports, the National Energy Administration organized the first batch of pilot work for new-type power system construction. Focusing on cutting-edge directions related to the new-type power system, it conducts single-direction pilots based on typical projects and multi-directional comprehensive pilots based on typical cities, exploring new technologies and models for the construction of the new-type power system, and promoting breakthroughs in its development. CICC released a research report stating that State Grid Corporation of China's Q1 power grid investment was up 27.7% YoY, setting a record high for the first quarter. UHV project construction proceeded in an orderly manner, and the tender volume for EHV equipment continued to grow significantly. It remains optimistic about the accelerated construction of the new-type power system, with domestic power grid investment momentum trending upward. 3, Safety requirements for intelligent connected vehicle integrated driving assistance systems were proposed for formulation The National Standard Information Public Service Platform announced a notice soliciting opinions on the proposed mandatory national standard project "Safety Requirements for Intelligent Connected Vehicle Integrated Driving Assistance Systems." The national standard plan "Safety Requirements for Intelligent Connected Vehicle Integrated Driving Assistance Systems" was proposed by MIIT and entrusted to the Intelligent Connected Vehicle Branch of the National Automotive Standardization Technical Committee for execution. With the rapid development of artificial intelligence technology, autonomous driving is undergoing unprecedented transformation. From intelligent perception to precise decision-making, from efficient control to data-driven approaches, AI has injected powerful momentum into autonomous driving. Haitong Securities believes that the main barriers to the development of large-scale autonomous driving models previously included computing power and data loops, with leading enterprises mostly being top tech companies; after Deepseek released a faster inference model, latecomers (including whole vehicle manufacturers and solution providers) may have new opportunities. According to the "Internet of Vehicles White Paper," it is estimated that by 2025, the market size of smart cars in China will approach 1 trillion yuan.

On May 27, a delegation led by Yu Hui, Secretary of the Party Committee, Chairman, and General Manager of China Mobile Communications Group Tianjin Co., Ltd., visited Rockcheck Group and held discussions with Zhang Ronghua, Chairman of the Board of Directors of Rockcheck Group. Zhang Ronghua extended a warm welcome to Yu Hui and his delegation. She pointed out that Rockcheck is firmly committed to the main theme of digital and intelligent transformation, green, low-carbon, and high-quality coordinated development. From promoting the construction of a full-process industrial ecosystem chain for iron to exploring comprehensive life cycle management for people, centered around "life, lifestyle, ecology, production, and biology," Rockcheck is anchoring its development direction towards high-end, intelligent, and green development, building a modern enterprise that integrates "intelligent cloud, intelligent transportation, and intelligent manufacturing," with a seamless integration of heaven and earth, and cloud and network convergence. China Mobile boasts significant advantages in the fields of information and communication technology services, technological innovation, and artificial intelligence, which align closely with Rockcheck Group's development needs. It is hoped that both parties will deepen cooperation in areas such as intelligent park construction and industrial internet development, strengthen information technology support, empower traditional industries, jointly create benchmarks for digital and intelligent transformation in the industry, and forge a new pattern of win-win development. Yu Hui highly commended Rockcheck Group's remarkable achievements in digital and intelligent transformation. He pointed out that Rockcheck Group, with a broad vision for the country's greater good, actively integrates into national strategic deployments, achieving coordinated progress across its five major business segments, with remarkable development results. China Mobile has consistently aimed to build a world-class information service and technological innovation company, steadily advancing its transformation and development. The "Three Major Initiatives" have been effectively implemented, and governance efficiency has continued to improve. Tianjin Mobile is actively constructing a capability system centered around "AI + network, products, services, operations, innovation, and talent," continuously deepening innovative applications in production, lifestyle, social governance, and other fields, empowering economic and social development and improving people's livelihoods through digital and intelligent means. It is expected that both parties will further strengthen strategic alignment, expand cooperation opportunities, and jointly create a new landscape of mutual benefit and win-win results. Liu Peiying, Director and Deputy General Manager of China Mobile Tianjin Co., Ltd., along with relevant heads from the Integrated Department, Planning and Technology Department, Government and Enterprise Customer Department, Key Customer Center, and Jinnan Branch; as well as Chai Shuman, Deputy Secretary of the Party Committee of Rockcheck Group, and relevant heads from the Digital and Intelligent Transformation Center of Rockcheck Group, the Operation and Maintenance Department of the Digital and Intelligent Transformation Center of Rockcheck Iron and Steel Group, and the Digital and Intelligent Equipment Department, participated in the discussions.

[Rare Earth Forum Live Stream | Outlook for Rare Earth Market, Development Opportunities in Wind Power, Humanoid Robots, and Other Industries, Latest Technology Sharing] ►Analysis of the Current Situation in the Rare Earth Industry ►In-situ Short-process Regeneration Technology and Application of Sintered NdFeB Magnetic Sludge ►Recent Developments in the Overseas Rare Earth Industry ►Research Progress in Hot-pressed and Hot-deformed Rare Earth Permanent Magnet Materials ►Interpretation of China's Rare Earth Industry Data and Market Outlook for 2024-2025 ►Outlook for the Latest Technology and Application Market of Cerium-containing Permanent Magnets ►Outlook and Technical Discussion on the EVTOL Propeller Motor Industry ►Trends and Industry Chain Analysis of the Humanoid Robot Industry ►Rare Earths & Wind Power: Contributing to Carbon Neutrality

Xinjiang's Shitoumei No. 1 Open-Pit Coal Mine has become a model for intelligent and green mining through a 185 million yuan ($25.67 million) investment in smart technologies, including full 5G coverage and integration of six major systems such as intelligent drilling, mine design, and unmanned operations. Located in Hami’s Santanghu mining area and developed in collaboration with China Mobile, the mine currently operates 91 autonomous trucks and aims for full driverless deployment by 2026, potentially removing 1,500 drivers from hazardous work. With proven reserves of 3.575 billion tons and an annual production capacity of 35 million tons, it supplies high-quality coal to nearby power plants and ships the remainder to provinces including Yunnan, Guizhou, and Sichuan.

Macro News 1. On May 15, the State Council convened a meeting to advance the work of strengthening the domestic economic cycle. Li Qiang, Member of the Standing Committee of the Political Bureau of the CPC Central Committee and Premier of the State Council, emphasized at the meeting that the strategic focus of development should be placed on strengthening the domestic economic cycle, leveraging its inherent stability and long-term growth potential to hedge against uncertainties in the international cycle, thereby promoting steady and sustained economic growth in China and striving to achieve high-quality development. Li Qiang pointed out that a domestic demand-driven and internally circulated economy is a unique advantage of a major economy. Efforts should be made to prioritize strengthening the domestic economic cycle in accelerating the construction of a new development paradigm. 2. The General Offices of the CPC Central Committee and the State Council issued the "Opinions on Continuously Advancing the Urban Renewal Initiative." The Opinions propose advancing the renovation and transformation of old urban residential communities, steadily promoting the transformation of hazardous housing, accelerating the demolition and reconstruction of Category D hazardous housing, strengthening the renovation of urban infrastructure, advancing the construction of new-type urban infrastructure, supporting the implementation of the urban renewal initiative with central fiscal funds, and encouraging various types of financial institutions to actively participate in urban renewal on the premise of legal compliance, risk controllability, and commercial sustainability. 3. China has decided to expand the scope of visa-free countries. From June 1, 2025, to May 31, 2026, a visa-free policy will be implemented on a trial basis for holders of ordinary passports from Brazil, Argentina, Chile, Peru, and Uruguay. Holders of ordinary passports from these five countries who come to China for business, tourism, visiting relatives and friends, exchange visits, or transit for no more than 30 days may enter the country without a visa. 4. The Ministry of Commerce held a regular press conference yesterday afternoon. Spokesperson He Yongqian stated that China will release relevant information on China-US economic and trade consultations in a timely manner. Regarding the US's Section 232 tariffs on imported automobiles, steel, and aluminum, as well as the initiation of a Section 232 investigation on imported pharmaceuticals, He Yongqian stated that China urges the US to cease the Section 232 tariff measures as soon as possible and properly address the concerns of all parties through equal dialogue. 5. The People's Bank of China, the Hong Kong Securities and Futures Commission, and the Hong Kong Monetary Authority plan to further enrich the product types under the "Swap Connect" initiative. This includes extending the maturity of contracts, extending the maturity of interest rate swap contracts to 30 years, and expanding the product spectrum by introducing interest rate swap contracts referencing the Loan Prime Rate (LPR). Industry News 1. A recent announcement by the Bureau of Industry and Security under the US Department of Commerce indicates that the use of Huawei's Ascend chips anywhere in the world violates US export controls. Spokesperson He Yongqian of the Ministry of Commerce stated that the US has abused export control measures, imposing unjustified restrictions on Chinese chip products, seriously undermining the legitimate rights and interests of Chinese enterprises. China urges the United States to immediately correct its erroneous practices and will take resolute measures to safeguard the legitimate rights and interests of Chinese enterprises. 2. On May 15, Li Lecheng, Minister of Industry and Information Technology, presided over the 14th Manufacturing Enterprise Symposium, focusing on accelerating the high-quality development of the industrial mother machine industry and listening to the situation briefings, suggestions, and opinions from industrial mother machine enterprises. Li Lecheng emphasized the need to attach great importance to the construction of the industrial ecosystem, avoiding "cut-throat competition" and homogeneous development. It is essential to leverage the leading role of industry leaders, establish closer industry-university-research-application cooperation, strengthen the alignment between production and demand, and promote the integrated development of large, medium, and small-sized enterprises. 3. The Supreme People's Court and the China Securities Regulatory Commission (CSRC) jointly issued the "Guiding Opinions on Strict and Fair Law Enforcement and Judicial Services to Support the High-Quality Development of the Capital Market." The opinions propose the regular implementation of representative litigation for securities disputes to facilitate investors in safeguarding their legitimate rights and interests in accordance with the law. The opinions also mention that for "small essays" that harm the rights and interests of others and constitute a crime, criminal responsibility will be pursued in accordance with the law. 4. The CSRC issued the "Regulatory Rules on the Supervision of Raised Funds by Publicly Listed Firms." Among other things, it proposes overall requirements for the use of raised funds, emphasizing that they should be used exclusively for their intended purposes and for the main business. It clarifies that the final use of excess raised funds should be for ongoing and new projects, share buybacks and cancellations, and should not be used for permanent replenishment of working capital or repayment of bank loans. 5. At Alibaba's earnings analyst conference call, Wu Yongming, CEO of Alibaba Group, stated that in fiscal year 2026, the company will continue to focus on the growth of its core businesses in e-commerce and AI+cloud, and, with a medium and long-term perspective, shape a second growth curve driven by technology. 6. On May 15, the People's Bank of China (PBOC), the Ministry of Science and Technology, the National Financial Regulatory Administration, and the China Securities Regulatory Commission jointly held a meeting to promote exchanges and advances in science and technology finance. Pan Gongsheng, Governor of the PBOC, Yin Hejun, Minister of Science and Technology, Xiao Yuanqi, Deputy Governor of the National Financial Regulatory Administration, and Li Ming, Vice Chairman of the China Securities Regulatory Commission, attended the meeting and delivered speeches. The meeting emphasized comprehensive support for technological innovation, with a strong focus on early-stage, small-scale, long-term, and hard-core technology investments. 7. The IEA's monthly report indicates that global supply is expected to significantly exceed demand growth in 2025, with oil inventories increasing by approximately 720,000 barrels per day. The global supply growth forecast for 2025 has been revised up to 1.6 million barrels per day, an increase of 380,000 barrels per day from the previous month's report, due to a more optimistic outlook for Saudi Arabia's production. Corporate News 1. China National Chemical Engineering announced that its subsidiary, Saiding Ningbo, is involved in a lawsuit regarding securities misrepresentation liability disputes with Kangde Xin. 2. Alibaba's earnings report shows that in the fourth fiscal quarter (ending March 31), revenue was 236.45 billion yuan, up 7% YoY; adjusted net profit was 29.85 billion yuan, a year-on-year increase of 22%. 3. ST Huijin announced that it has applied for the removal of other risk warnings. 4. Hengrui Medicine announced that it has completed its share repurchase program, with a total expenditure of approximately 600 million yuan. 5. Daye shares announced that as of now, its production site in Mexico is still in the trial operation phase. 6. Chengdi Xiangjiang announced that its wholly-owned subsidiary has signed an EPC general contracting contract worth 1.632 billion yuan for the China Mobile machine room building project. 7. Jingyuan Environmental Protection announced that its wholly-owned subsidiary has signed a contracting contract worth 365 million yuan for a computing power cluster construction project. 8. Xinhuajin announced that the company and its related parties may face the risk of administrative penalties from the China Securities Regulatory Commission or disciplinary actions from the stock exchange. 9. AVIC Xi'an Aircraft Industry (Group) Co., Ltd. stated at an investor relations event that the delivery volume of C919 aircraft parts has significantly increased. 10. Zowee Technology announced that 12.48% of the company's shares held by its controlling shareholder and actual controller, Xia Chuanwu, will be auctioned off by the court. Global Markets 1. On Thursday, US stocks closed with mixed results. The Dow Jones Industrial Average rose 0.65%, the S&P 500 index rose 0.41%, and the Nasdaq index fell 0.18%. Popular Chinese ADRs generally declined, with the Nasdaq Golden Dragon China Index closing down 2.37%. Alibaba and WeRide fell more than 7%, while JD.com, Baidu, and NIO fell more than 3%. NetEase surged over 14% as its Q1 revenue exceeded expectations, with its share price approaching an all-time high. European stocks closed higher across the board, with the German DAX index rising 0.72%, the UK FTSE 100 index rising 0.57%, and the French CAC 40 index rising 0.21%. 2. In commodities, WTI crude oil futures for June delivery fell 2.42% to close at $61.62 per barrel, while Brent crude oil futures for July delivery fell 2.36% to close at $64.53 per barrel. 3. International precious metal futures generally closed higher. COMEX gold futures rose 1.74% to close at $3,243.90 per ounce, while COMEX silver futures rose 1.07% to close at $32.79 per ounce. Investment Opportunities Reference 1. Jieyue Xingchen Open-Sources 3D Large Model Step1X-3D According to media reports, Jieyue Xingchen officially released and open-sourced its 3D large model, Step1X-3D, with a total parameter count of 4.8B (1.3B for the geometric module and 3.5B for the texture module), capable of generating high-fidelity, controllable 3D content. The capabilities of domestic large models continue to improve at the application level, and the demand for computing power continues to strengthen. According to CIO estimates, China's AI computing power expenditure will grow from $18 billion in 2024 to $90 billion in 2029. Yongxing Securities believes that the continuous improvement of underlying computing capabilities will drive the continuous enhancement of large model capabilities, and the computing power industry chain will continue to benefit. 2. Computing Power Takes to the Skies! "Three-Body Computing Constellation" Successfully Launched Recently, the Long March 2D carrier rocket took off from the Jiuquan Satellite Launch Center and successfully placed the space computing satellite constellation into its predetermined orbit, marking a complete success for the launch mission. This signifies that China's first whole-orbit interconnected space computing constellation has officially entered the networking phase. The launch of twelve computing satellites in a single rocket is the first launch of the "Three-Body Computing Constellation" led by the Zhejiang Lab, a new-type R&D institution in Zhejiang Province, and also the first launch under the Nationalstar Aerospace's "Star Computing" plan. According to Wang Jian, an academician of the Chinese Academy of Engineering and director of the Zhejiang Lab, the "Three-Body Computing Constellation" is a space computing infrastructure on a thousand-satellite scale jointly built by the Zhejiang Lab in collaboration with global partners, with a total computing power of up to 1000 POPS (100 quadrillion operations per second) upon completion. The Three-Body Constellation enables whole-orbit satellite interconnection and is equipped with an 8-billion-parameter space-based model, capable of on-orbit processing of L0-L4 level satellite data. According to calculations by Yu Menglun, an expert in China's aerospace flight mechanics and rocket trajectory design, to achieve cost parity between space-based solar power generation and ground-based solar power generation, the transportation cost of rockets must be reduced to at least 1,000 yuan per kilogram. Therefore, the deployment of computing power in space will further drive the development of China's domestic commercial aerospace industry. 3. WeChat Establishes E-commerce Product Department to Explore New In-App Transaction Models According to media reports, Tencent recently issued a company-wide letter announcing adjustments to its WXG business group. The main changes include: establishing an e-commerce product department responsible for exploring in-app transaction models within WeChat, accelerating the development of transaction infrastructure and ecosystem, and operating new in-app transaction models; renaming the Open Platform Infrastructure Department to the Open Platform Department, which will be responsible for the planning, R&D, and operation of WeChat official accounts and Mini Programs. AI e-commerce is reshaping the traditional e-commerce ecosystem through functions such as intelligent product selection, AI shopping guides, and personalized recommendations. Guojin Securities stated that the current e-commerce retail industry has entered a mature stage, making it difficult to achieve rapid growth in terms of scale. Therefore, the focus is on whether new technologies like AI can bring about improvements in monetization efficiency and cost optimization. It is recommended to pay attention to leading retail and internet companies. 4. The Third Biotechnology Revolution: The Demand for Industrial Implementation Continues to Grow Stronger According to media reports, the use of synthetic biology to transform microorganisms into "super factories" for the efficient synthesis and green manufacturing of new substances and materials has become an important driver for promoting the development of new quality productive forces in cutting-edge regions. Facing this new industrial frontier, Qingdao has achieved a seamless connection from source innovation to industrial application, taking the lead in development. Synthetic biology is regarded as the third biotechnology revolution following the "discovery of the DNA double helix structure" and the "Human Genome Project," and it stands at the forefront of the global biotechnology field. Hua'an Securities pointed out that as the demand for the implementation of the bio-manufacturing industry continues to grow stronger, new programmatic documents are expected to emerge, further guiding the development of the industry and achieving a healthy value cycle in the synthetic biology sector. On the other hand, through machine learning models and algorithms, AI can analyze vast amounts of data and model and simulate biological systems within a short period, thereby rapidly evaluating design plans and experimental conditions, predicting and optimizing R&D results, and reducing the blindness and repetitiveness of experiments. With the continuous development of domestic AI technology, it will provide strong support for research in synthetic biology.

The market bottomed out yesterday, with the three major indices showing mixed changes. The total trading volume of the Shanghai and Shenzhen stock exchanges for the day was 1.08 trillion yuan, a decrease of 200.3 billion yuan compared to the previous trading day. In terms of sectors, beauty care, e-commerce, food, and banking led the gains, while duty-free, ports, Hainan, and rail transit sectors led the declines. As of yesterday's close, the Shanghai Composite Index rose 0.15%, the Shenzhen Component Index fell 0.27%, and the ChiNext Index fell 0.13%. At today's brokerage morning meetings, China Securities suggested that the rare earth sector is both offensive and defensive, recommending active attention; Huatai Securities stated that the AI healthcare industry trend is accelerating; CICC believes that the total telecom capital expenditure in 2025 will be under pressure, with attention on structural growth opportunities such as computing power and 5G-A. China Securities: The Rare Earth Sector Is Both Offensive and Defensive, Recommend Active Attention China Securities stated that recently, two ministries issued an announcement on export control measures for seven types of medium-heavy rare earth-related items, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. Driven by both export control policies and the release of end-use demand, downstream performance has been strong, with increased procurement activity pushing prices slightly higher. Trump's aggressive tariff policies, combined with China's control of about 70% of global rare earth mines, about 90% of rare earth smelting and separation, and about 90% of rare earth magnet capacity, give China a complete industry chain and strong self-control capabilities. The introduction of dual controls on production and exports provides a strong countermeasure to US tariff policies. On the demand side, rare earth magnets are essential materials for high-performance, energy-efficient motors. A single humanoid robot uses over 2kg of rare earth permanent magnets, comparable to the amount used in a NEV. Musk predicts that the demand for humanoid robots will reach the level of 10 billion units in the future, far exceeding the demand for NEVs, indicating a very broad future space. The rare earth sector is both offensive and defensive, and active attention is recommended. Huatai Securities: The AI Healthcare Industry Trend Is Accelerating Huatai Securities stated that on April 10, the US FDA announced a series of methods to reduce, improve, or replace animal testing requirements in the R&D of monoclonal antibody therapies and other drugs, including AI-based toxicity calculation models and cell line and organoid toxicity tests conducted in laboratory environments. A pilot project is planned to launch in 2025, allowing some pharmaceutical companies to completely skip animal experiments under FDA supervision, with a full policy update expected to be completed by 2026. This FDA policy will further promote the coverage of AI in new drug development, accelerating from chemical synthesis to preclinical and clinical trial biological stages, driving innovative drug companies to increase investment in AI drug discovery platforms. It is reiterated that 2025 will see a leap in "AI + healthcare," and related investment opportunities should be valued. CICC: Total Telecom Capital Expenditure in 2025 Under Pressure, Focus on Structural Growth Opportunities Such as Computing Power and 5G-A CICC stated that the 2024 financial reports of the three major telecom operators show that their total capital expenditure for 2024 was 318.9 billion yuan, down 9.7% YoY, a decline higher than the 4.5% guidance at the beginning of 2024. Looking ahead to 2025, the total capital expenditure guidance for the three operators is down 9.1% YoY to 288.9 billion yuan, with the investment scale continuing to narrow. Structurally, the investment focus of operators is further tilting towards computing power networks, with China Mobile/Telecom/Unicom guiding computing power investments up 0.5%/22%/28% YoY, while traditional mobile & fixed network construction has entered a period of high-quality and steady development focusing on investment efficiency. Future upgrades in 5G-A, 400G OTN, and 50G PON are expected to boost incremental investment in wireless/wired networks.

Junzhi Group (01300.HK) announced that on April 11, 2025, China Mobile published the results of the concentrated procurement project for feeder connectors and bundled jumpers for 2025-2026 on its procurement and tender website (hereinafter referred to as the "tender results announcement"). The group's wholly-owned subsidiary, Jiangsu Junzhi Technology Co., Ltd. (hereinafter referred to as "Junzhi Technology"), was listed as a relevant candidate for the tender.

During the 2025 China Mobile Cloud Intelligence Computing Conference, Dong Zhang, Deputy General Manager of China Mobile, stated that motion intelligence and perception intelligence technologies are rapidly maturing, transitioning from experimental fields to production lines. These technologies are driving the "new three" in information consumption—smart cars, smartphones, and smart robots—becoming a new engine for promoting high-quality economic development in the future.

[SMM Lead Morning Meeting Summary: Tight Balance in Raw Material Supply Still Supports Lead Prices, Future Supply Changes Need Observation] … Recently, the circulation of lead ingots in the market has been relatively ample. Downstream battery producers mostly produce based on sales, with only some operating at full capacity, leading to limited demand for lead ingot procurement. In the short term, there are more bearish factors for lead prices. Currently, the tight balance in raw material supply still provides moderate support for lead prices; however, some smelters in certain regions have reported moderate arrivals of scrap batteries. Future changes in raw material supply need to be observed.