At 9 a.m. on May 7, the State Council Information Office held a press conference, where Pan Gongsheng, Governor of the People's Bank of China (PBOC), Li Yunze, Director of the National Financial Regulatory Administration (NFRA), and Wu Qing, Chairman of the China Securities Regulatory Commission (CSRC), introduced the situation regarding the "package of financial policies to support market stability and stabilize expectations". The statements related to the capital market have sparked significant attention and discussion in the market. The following are the key points related to the capital market from this press conference: 1. Implement a stimulus policy package to stabilize the market through policy hedging, capital hedging, and expectation hedging; 2. The PBOC will reduce the reserve requirement ratio (RRR) by 0.5 percentage points, which is expected to provide approximately 1 trillion yuan in long-term liquidity to the market. Starting from May 8, the interest rate for the 7-day reverse repo operations in the open market will be adjusted from 1.50% to 1.40%; 3. The NFRA will further expand the scope of pilot programs for long-term investment by insurance funds, introducing more incremental capital into the market; 4. Emphasize "stability" in market operations and "progress" in stimulating market vitality and enhancing market functions; 5. Introduce policy measures to deepen the reform of the Science and Technology Innovation Board (STAR Market) and the ChiNext Market, further enhancing the inclusiveness and adaptability of the system; 6. Expedite the release of the newly revised "Measures for the Administration of Major Asset Restructuring of Publicly Listed Firms" and relevant regulatory guidelines to better leverage the capital market's role as the main channel for mergers and acquisitions (M&A); 7. Provide comprehensive and "relay-style" financial services to science and technology innovation enterprises; 8. Promote the implementation of an action plan for the high-quality development of public funds. Fund managers should share both the joys and sorrows with investors, achieve common development and mutual success, and foster a virtuous cycle of "increased returns—inflow of funds—market stability"; 9. The stability of the stock market is crucial to the overall economic and social landscape and to the vital interests of hundreds of millions of investors; 10. We are fully confident, have the conditions, and possess the capabilities to achieve the stable and healthy development of China's stock market; 11. A-share listed firms demonstrate strong resilience and adaptability; 12. Listed firms are an important component of China's economy and the cornerstone of the capital market; 13. While strengthening supervision, we will also convey warmth in regulatory efforts and do our utmost to help affected enterprises cope with the impact of tariff hikes imposed by the United States; 14. Provide greater support for M&A activities among listed firms, focusing on industrial logic to "strengthen and build", stimulate vitality, and improve quality; 15. Foreign securities financial institutions and foreign capital have become important participants in the A-share market; 16. Adhere to respecting laws and regulations and actively shape a stable, transparent, and predictable regulatory environment; 17.Create conditions to support the return of high-quality Chinese concept stocks to the mainland and Hong Kong stock markets; 18. Four "highlights" to promote the high-quality development of public funds. Highlight the strengthening of interest alignment with investors; highlight the enhancement of the stability of fund investment behavior; highlight the improvement of the ability to serve investors; highlight the development and expansion of equity funds. Wu Qing: Fully Consolidate the Momentum of Market Stabilization and Improvement Wu Qing stated at a press conference held by the State Council Information Office that efforts will be made to fully consolidate the momentum of market stabilization and improvement. Strengthen market monitoring and comprehensive risk assessment, dynamically improve work plans to respond to various external shocks, fully support the role of Central Huijin as a quasi-stabilization fund, and cooperate with the People's Bank of China to improve the long-term mechanism of monetary policy tools supporting the capital market, better leveraging the inherent market stabilization functions of all market participants. Wu Qing said that further measures will be introduced to deepen the reform of the Sci-Tech Innovation Board and the Growth Enterprise Market, enhancing the inclusiveness and adaptability of the system in terms of market hierarchy and investor protection. Pan Gongsheng mentioned that the People's Bank of China firmly supports Central Huijin in increasing its holdings of stock market index funds when necessary and provides sufficient re-lending support to it, resolutely maintaining the stable operation of the capital market. Wu Qing stated that the allocation value and attractiveness of Chinese assets are continuously improving. "On the road ahead, there will be winds and rains, whether gentle breezes and light rains, or storms and downpours, whether high winds and rough waves, or towering waves and billows, we have the confidence, conditions, and ability to achieve stable and healthy development," Wu Qing frankly said. A-share Listed Companies Have Strong Resilience and Adaptability Wu Qing mentioned that in response to the impact of the US tariff hike, many listed companies have disclosed through announcements and performance briefings. Overall, the US tariff policy has impacted the global economic and trade order, and the operations of listed companies have inevitably been affected, with many companies with a high proportion of exports to the US being significantly impacted. As an important and excellent representative group of Chinese enterprises, A-share listed companies have strong resilience and adaptability, with the vast domestic demand and potential demand being their confidence. Nearly 90% of the income of A-share listed companies comes from the domestic market. The first-quarter report shows that the net profit of listed companies increased by 3.6% year-on-year, and the net profit of listed companies in the real economy increased by 4.3%. Wu Qing stated that for listed companies significantly affected by the tariff policy, regulatory tolerance will be further enhanced in terms of equity pledge, refinancing, and the use of raised funds to help alleviate difficulties. Wu Qing revealed that since April 7, more than 350 listed companies have disclosed share buyback and increase plans, reflecting the confidence of listed companies in their own value and development.The China Securities Regulatory Commission (CSRC) will continue to promote the functioning of the capital market, conveying regulatory warmth while strengthening supervision, and strive to assist affected enterprises in coping with tariff impacts. Wu Qing stated that the CSRC supports publicly listed firms in transforming through mergers and acquisitions (M&A) and restructuring. Currently, the CSRC is expediting the revision of the Administrative Measures for the Major Asset Restructuring of Publicly Listed Firms to further improve the supporting measures for the six M&A guidelines, thereby providing stronger support for M&A and restructuring activities of publicly listed firms. Wu Qing expressed that the CSRC will strengthen products and services in the multi-tiered capital market, encouraging eligible domestic enterprises to list overseas in accordance with laws and regulations, and enhancing their global market expansion capabilities. The Action Plan for Promoting High-Quality Development of Publicly Offered Funds will be released as soon as possible. Wu Qing stated that the CSRC will release the Action Plan for Promoting High-Quality Development of Publicly Offered Funds on the same day. He introduced that the reform emphasizes strengthening the alignment of interests between publicly offered funds and investors. It will optimize the fee structure for actively managed equity funds, requiring lower management fees for underperforming funds. Through a floating management fee mechanism, it aims to reverse the phenomenon of fund companies enjoying stable profits regardless of market conditions. Meanwhile, indicators directly related to investors' vital interests, such as whether performance outperforms benchmarks and investors' profit and loss situations, will be incorporated into the evaluation system for fund companies and fund managers, urging fund companies to shift their focus from "emphasizing scale" to "emphasizing returns." The Action Plan for Promoting High-Quality Development of Publicly Offered Funds is relatively mature and will be released as soon as possible. The plan emphasizes enhancing the stability of fund investment behaviors. To address issues such as style drift and mismatched products, it will establish clear performance benchmarks for each fund as a measure of the product's true performance, preventing product investment behaviors from deviating from their names and positioning. Additionally, it will establish a comprehensive incentive and restraint mechanism within the company, specifying that the evaluation weight for periods exceeding three years should be no less than 80%, reducing the phenomenon of fund managers rushing to buy amid continuous price rise and panic selling, and improving long-term product returns. Meanwhile, Wu Qing mentioned that the CSRC will expedite the introduction of regulations on the management of publicly offered fund investment advisors to promote standardized development. Furthermore, Wu Qing stated that the CSRC will strengthen bilateral and multilateral cross-border regulatory cooperation, shaping a stable, transparent, and predictable regulatory environment, safeguarding the legitimate interests of enterprises in overseas markets, and supporting the return of high-quality Chinese concept stocks to the mainland and Hong Kong markets. Wu Qing said that the market value of A-shares held by foreign investors has stabilized at around 3 trillion yuan, and the CSRC will unwaveringly promote a high-level opening-up of the capital market. Central Bank: Reduces Reserve Requirement Ratio (RRR) by 0.5 percentage points. Pan Gongsheng stated that the RRR will be reduced by 0.5 percentage points, which is expected to provide approximately 1 trillion yuan in long-term liquidity to the market.The policy interest rate was lowered by 0.1 percentage point, meaning the interest rate for 7-day reverse repo operations in the open market was reduced from the current 1.5% to 1.4%. It is expected to drive the Loan Prime Rate (LPR) to decline by approximately 0.1 percentage point in tandem. The interest rates for structural monetary policy tools were lowered by 0.25 percentage point, including: the interest rates for various special structural tools and re-lending rates for supporting agriculture and small businesses, which were all reduced from the current 1.75% to 1.5%; the interest rate for Pledged Supplementary Lending (PSL) was reduced from the current 2.25% to 2%. Pan Gongsheng stated that two monetary policy tools supporting the capital market would be optimized. The quotas for the 500 billion yuan swap facility for securities, funds, and insurance companies and the 300 billion yuan re-lending facility for share buybacks and increases in shareholdings would be combined, bringing the total quota to 800 billion yuan. Last year, the People's Bank of China, in collaboration with the China Securities Regulatory Commission, the National Financial Regulatory Administration, and other departments, established two capital market support tools: the swap facility and the re-lending facility for share buybacks and increases in shareholdings. As of now, the swap facility has been operated twice, with a total amount of 105 billion yuan. Over 500 publicly listed firms and major shareholders have announced the use of loans to repurchase and increase their shareholdings, with a total loan amount of approximately 300 billion yuan. These two tools have built-in counter-cyclical adjustment attributes, primarily playing a stabilizing role. When the capital market is significantly undervalued, securities institutions, publicly listed firms, and major shareholders will have a stronger willingness to use the low-cost funds provided by these two tools to purchase shares, thereby interrupting the negative cycle of market weakness. For example, during the impact of excessive tariff impositions by the US in November last year, around the New Year's Day this year, and in early April, the usage of the swap facility increased significantly, and share buybacks and increases in shareholdings by publicly listed firms were also more active. The inherent stabilization mechanism established in this way has played a role in correcting over-adjustments in the capital market and stabilizing market expectations through these two tools. Li Yunze: Three Major Measures to Support Stabilizing and Invigorating the Capital Market At a press conference of the State Council Information Office, Li Yunze stated that the role of insurance funds as patient and long-term capital would be fully leveraged to increase market entry and stabilization efforts. Three measures would be introduced in the next step to support stabilizing and invigorating the capital market: first, expanding the pilot scope for long-term investments by insurance funds to inject more incremental funds into the market; second, adjusting regulatory rules for solvency by further reducing the risk factor for equity investments by 10% to encourage insurance companies to increase their market entry; third, promoting a long-term assessment mechanism to facilitate long-term investments. Li Yunze stated that an additional 60 billion yuan would be approved to further expand the pilot scope for long-term investments by insurance funds. Li Yunze indicated that a total of eight incremental policies had been launched recently, including accelerating the introduction of a series of financing systems compatible with the new model of real estate development, further expanding the pilot scope for long-term investments by insurance funds to introduce more incremental funds into the market, adjusting and optimizing regulatory rules, reducing the risk factor for equity investments by insurance companies, and supporting the stabilization and invigoration of the capital market.

[Pan Gongsheng: The PBOC Firmly Supports Huijin's Increase in Holdings of Stock Market Index Funds When Necessary and Provides It with Sufficient Relending Support] People's Bank of China Governor Pan Gongsheng stated at a press conference held by the State Council Information Office on the 7th that the PBOC firmly supports Huijin in increasing its holdings of stock market index funds when necessary and provides it with sufficient relending support to resolutely maintain the stable operation of the capital market.

SMM April 8 News: Metal Market: By the close of the day, base metals in the domestic market mostly fell, with only SHFE aluminum rising by 0.46%. SHFE copper, SHFE lead, and SHFE tin all dropped by more than 1%, with SHFE copper down 1.29%, SHFE lead down 1.08%, and SHFE tin down 1.72%. The declines of other metals were all within 1%. The main contract of alumina fell 1.26%. In addition, the main contract of lithium carbonate fell 1.43%, silicon metal fell 0.26%, polysilicon fell 1.9%, and the main contract of European container shipping fell sharply by 8.32%. In the overseas market, as of 15:03, only LME nickel and LME copper rose among the base metals, with LME copper up 0.38% and LME nickel up 1.57%. LME tin fell 1.71%. The declines of other metals were all within 1%. In the ferrous metals series, iron ore fell 3.48%, and stainless steel fell 1.2%. Rebar and HRC both fell by more than 1%, with rebar down 1.21% and HRC down 1.9%. In the coking coal and coke sector, coking coal fell 4.68%, and coke fell 4.08%. In the precious metals sector, as of 15:03, COMEX gold rose 1.81%, ending the previous three-day decline, and COMEX silver rose 1.61%. Domestically, SHFE gold rose 0.37%, and SHFE silver rose 0.26%. BMI, a research institution under Fitch, stated: "Escalating trade uncertainties, heightened tensions, a weaker US dollar, increased central bank purchases, and rising recession risks continue to support gold." As of 15:03 today 》Click to view SMM Market Dashboard Macro Front Domestic: 【Breaking! PBOC, Financial Regulatory Bureau, and Central Huijin Jointly Speak Out】 On the morning of April 8, the PBOC, Financial Regulatory Bureau, and Central Huijin Company successively spoke out to maintain the stable operation of the capital market. A spokesperson for the PBOC stated that the PBOC firmly supports Central Huijin Company in increasing its holdings of stock market index funds and will provide sufficient relending support to Central Huijin Company when necessary, resolutely maintaining the stable operation of the capital market. The National Financial Regulatory Administration issued a notice on adjusting the regulatory ratio of equity assets for insurance funds. It mentioned guiding insurance funds to increase equity investments in national strategic emerging industries, precisely and efficiently serving new quality productive forces. A relevant person from Central Huijin Company stated that Central Huijin Company will continue to play the role of a "stabilizer" in the capital market, effectively smoothing abnormal market fluctuations, and will act decisively when necessary. The next step will be to firmly increase holdings of various market-style ETFs, increase the scale of holdings, and balance the structure of holdings. Central Huijin Company has full confidence and sufficient capability to resolutely maintain the stable operation of the capital market. 》Click for details ► On April 8, the central parity rate of the RMB in the interbank foreign exchange market was 7.2038 yuan per US dollar. US Dollar: As of 15:03, the US dollar index fell 0.6%. Federal Reserve Governor Kugler stated on Monday that some recent increases in goods and market service inflation may be an "expectation" of the effects of current US government policies, adding that keeping inflation under control is a "priority" for the Fed. Chicago Fed President Goolsbee stated on Monday that businesses are very anxious about Trump's tariffs, but it is still unclear whether the tariffs will persist or be canceled through negotiations. The Fed needs to respond to what actually happens and will focus on "hard data." The market will closely watch the latest policy meeting minutes of the Federal Reserve (Fed) scheduled to be released on Wednesday. The market is also waiting for the US Consumer Price Index to be released on Thursday and the Producer Price Index on Friday for clues on US interest rates. (Wenhua Comprehensive) Data: Today, France's February trade balance, Canada's March IVEY seasonally adjusted PMI, and Canada's March IVEY unadjusted PMI will be released. Crude Oil: As of around 15:03, oil prices in both markets rose, with US oil up 1.14% and Brent oil up 1.06%. Warren Patterson, head of commodity strategy at ING, stated that oil prices rebounded with relief, recovering some losses, supported by the stabilization of the stock market. He said that in recent days, there has been a lot of selling as the market began to price in a significant hit to demand; however, it is still unclear how big the hit to demand is. An ING report on Tuesday also pointed out that market risks remain tilted to the downside. A preliminary survey on Monday showed that US crude oil inventories are expected to increase by about 1.6 million barrels last week, another sign of weak market demand expectations. The American Petroleum Institute (API) will release industry inventory data at 4:30 Beijing time on Wednesday, and the official data from the US Energy Information Administration (EIA) will be released at 22:30 on Wednesday. (Wenhua Comprehensive) SMM Daily Review ► Exchange Rate Decline and Domestic Price Cuts Continue to Widen Import ADC12 Losses [ADC12 Price Daily Review] ► Aluminum Prices Fluctuate Downward, Weak Demand Maintains Aluminum Scrap Purchasing as Needed [Aluminum Scrap Daily Review] ► April 8: SHFE Aluminum Continues to Fall, but Demand Remains Weak with Overall Weak Trading [Aluminum Billet Spot Daily Review] ► [SMM Daily Review] Downstream Purchasing Remains Weak, Spot Market Fluctuates Downward ► Strong Sentiment to Stand Firm on Quotes, Spot Prices Rise Slightly [SMM EMM Daily Review] ► Tariff Policy Continues to Ferment, Low Prices Frequently Appear in Stainless Steel Spot Market [SMM Stainless Steel Spot Daily Review] ► Silver Consolidates at the Bottom, Spot Market Offers Premium Quotes [SMM Daily Review]

SMM April 8 News: In the metal market: As of the midday close, domestic base metals generally fell, with SHFE copper down 1.39%. SHFE tin fell 1.3%, SHFE nickel rose 0.14%. SHFE aluminum rose 0.67%, SHFE lead fell 0.81%, and SHFE zinc fell 0.49%. Additionally, alumina fell 1.12%. Lithium carbonate fell 0.95%, silicon metal fell 0.26%, and polysilicon fell 1.18%. Ferrous metals all fell, with iron ore down 2.72%, rebar down 0.51%, HRC down 0.98%, and stainless steel down 0.73%. In the coking coal and coke sector: coking coal fell 2.37%, and coke fell 0.63%. In the overseas metal market, as of 11:46, overseas base metals were almost all up. LME nickel rose 1.61%. LME lead rose 0.48%, LME copper rose 0.86%, LME aluminum rose 0.38%, and LME zinc rose 0.23%. LME tin fell 0.6%. In precious metals, as of 11:46, COMEX gold rose 1.2%, and COMEX silver rose 1.37%. Domestically, SHFE gold fell 0.25%; SHFE silver fell 0.08%. Deutsche Bank raised its 2025 and 2026 average gold price estimates to $3,139 per ounce and $3,700 per ounce, respectively. As of the midday close, the most-traded contract for European line container shipping futures fell 5.77% to 1,816 points. As of 11:46 on April 8, some futures midday performance: 》April 8 SMM Metal Spot Prices Spot and Fundamentals Copper: According to SMM data, the operating rate of copper pipe enterprises in March was 85.23%, up 14.95 percentage points MoM and down 0.74 percentage points YoY... 》Click for more details Macro Front Domestic: 【Major Announcement! PBOC, Financial Regulatory Bureau, Central Huijin Speak Out】 On the morning of April 8, the PBOC, the Financial Regulatory Bureau, and Central Huijin Company successively spoke out to maintain the stable operation of the capital market. The spokesperson of the People's Bank of China stated that the PBOC firmly supports Central Huijin Company in increasing its efforts to buy index funds and will provide sufficient relending support when necessary, resolutely maintaining the stable operation of the capital market. The National Financial Supervision and Administration issued a notice on adjusting the regulatory ratio of insurance funds' equity assets. It mentioned guiding insurance funds to increase investment in national strategic emerging industries, serving new quality productive forces precisely and efficiently. A responsible person from Central Huijin Company stated that Central Huijin Company will continue to play the role of a "stabilizer" in the capital market, effectively smoothing out abnormal market fluctuations, and will act decisively when needed. Next, Central Huijin Company will firmly increase the purchase of various market-style ETFs, increase the purchase intensity, and balance the purchase structure. Central Huijin Company has full confidence and sufficient ability to resolutely maintain the stable operation of the capital market. 》Click for more details 【Institutional Calculation: If Insurance Funds Use the Full Equity Asset Ratio Limit, It Can Bring 166 Billion Yuan of Incremental Funds】 The National Financial Supervision and Administration issued a notice on adjusting the regulatory ratio of insurance funds' equity assets, optimizing the investment ratio. According to calculations by Fullgoal Fund, the total amount of funds used by the insurance industry in 2024 is expected to be 3.326 trillion yuan. If the full equity asset ratio limit is used, it can bring 166 billion yuan of incremental funds into the market. From a practical perspective, by the end of 2024, the comprehensive solvency adequacy ratio of listed insurance companies is generally between 150% and 300%. Under the new regulations, the upper limit of the equity asset allocation ratio is 30%-40%. In 2024, the actual allocation ratio of "stocks + securities investment funds" for insurance funds is between 10% and 20%, still leaving significant theoretical room. (Cailian Press) 【Multiple First-Tier Cities Are Studying and Reserving Policies to Further Stabilize the Real Estate Market】 The 2025 government work report first included stabilizing the real estate market in the overall requirements for economic and social development. It is reported that multiple first-tier cities are conducting research and reserving policies to stabilize the real estate market. The relevant departments of Wuhan City stated that they are doing policy research and reserve work, combining with the actual market situation, and will introduce and implement them at an appropriate time, continuously promoting the further stabilization of the real estate market. (Securities Times) The PBOC conducted 167.4 billion yuan of 7-day reverse repo operations today, with an operation interest rate of 1.5%. As 64.9 billion yuan of 7-day reverse repos matured today, a net injection of 102.5 billion yuan was achieved. ► On April 8, the central parity rate of the RMB exchange rate in the interbank foreign exchange market was 7.2038 yuan per US dollar. US Dollar: As of 11:46, the US dollar index fell 0.48% to 103.01. Concerns over global trade and economic recession have put pressure on the US dollar. The market will closely watch the minutes of the latest policy meeting of the Federal Reserve (Fed) to be released on Wednesday. The market is also waiting for the US Consumer Price Index to be released on Thursday and the Producer Price Index on Friday to find clues about US interest rates. Other Currencies: EUR/USD rose. The EU tends to negotiate with the US and proposes zero-for-zero tariffs but will take the first countermeasures next week. EU Trade Commissioner Valdis Dombrovskis said that the US imposed tariffs on 380 billion euros worth of exports, and a compromise on tariffs must be found, or the world will face a recession. (Huitong Finance) Data: Today, France's February trade balance, Canada's March IVEY seasonally adjusted PMI, and Canada's March IVEY unadjusted PMI will be released. Crude Oil: As of 11:46, crude oil futures were up, with WTI rising 1.35% and Brent rising 1.26%. Oil prices rebounded after a sharp decline in recent trading sessions. However, the market expects that the decline in oil prices may be limited. A preliminary survey on Monday showed that US crude and distillate inventories are expected to increase by about 1.6 million mt on average last week, another sign of weak demand expectations. The weekly inventory report from the American Petroleum Institute (API) will be released at 4:30 on Wednesday, and the EIA will release its weekly crude oil inventory report at 22:30 on Wednesday. It is estimated that the breakeven cost of oil production in the US is around $60 per barrel; as some countries choose to cut investments and drilling, oil prices may receive support. (Webstock Inc.) Spot Market Overview: ► March Copper Pipe Production Increased as Expected, April Peak Season Production Stabilized at High Levels [SMM Analysis] ► [SMM Coal and Coke Monthly Shipping] Total Domestic Coal Arrivals in March 33.45 million mt, Up 19.3% MoM Other metal spot reviews will be updated later, please refresh to check~