On August 14, Xingye Silver&Tin's share price fell. As of 10:24 on August 14, Xingye Silver&Tin was down 1.58% at RMB37.28/share. In response to the question "What is the construction progress of Atlantic Tin?", Xingye Silver&Tin said on the interactive platform on August 13 when answering an investor's question, the Atlantic Tin project is currently advancing preliminary work such as construction of the explosives magazine, engineering surveys and preparations for equipment transportation. Construction teams have entered the site for preliminary preparations, and the project is expected to officially start construction in Q4. When asked "I have repeatedly suggested that the company's underground mining use tunnel boring machines to transform them into mineral excavation equipment. Does the company have any ideas or plans in this regard? Why has it not logged in on the interactive platform? Thank you!", Xingye Silver&Tin said on the interactive platform on August 13 that the company had carried out early-stage evaluation and feasibility studies on the application of tunnel boring machines and currently has no relevant implementation plan. On August 6, Xingye Silver&Tin said on the interactive platform in response to investor questions that the company takes deeply cultivating its main business and steady operations to consolidate intrinsic value as the foundation of its market value management, continues to optimize internal control and standardize information disclosure, carries out regular public opinion monitoring and responses to market concerns, promptly clarifies false rumors, keeps online and offline investor communication channels open, objectively conveys the company's long-term development value, and protects the right to information and legitimate rights and interests of minority shareholders in all respects. On August 6, Xingye Silver&Tin said on the interactive platform in response to investor questions that the company always adheres to a prudent cash dividend policy, continues to reward all shareholders with stable cash returns, and effectively safeguards the long-term interests of minority shareholders. On August 6, Xingye Silver&Tin said on the interactive platform in response to investor questions that the company will strictly implement its primary responsibility for production safety, strengthen the defense line for safe development, improve its inherent safety level, and address shortcomings in safety management. A progress announcement issued by Xingye Silver&Tin on July 31 regarding a safety incident at its subsidiary showed that on July 30, 2026, Yinman Mining received the On-site Handling Measures Decision ((Xi) Emergency On-site Decision (2026) No. 260) issued by the West Ujimqin Banner Emergency Management Bureau, requiring the simultaneous suspension of Yinman Mining's mineral processing and tailings systems. As of the disclosure of this announcement, both Yinman Mining's mining system and its mineral processing and tailings systems had been suspended. The specific circumstances of the incident disclosed by Xingye Silver&Tin showed that at about 15:30 on July 26, 2026, an accident occurred during underground production and construction at the mine of the company's wholly owned subsidiary, West Ujimqin Banner Yinman Mining Co., Ltd., causing one death and no injuries. After the accident, Yinman Mining suspended production in the underground mining area in accordance with the On-site Handling Measures Decision ((Xi) Emergency On-site Decision (2026) No. 257) issued by the West Ujimqin Banner Emergency Management Bureau. Regarding the impact on the company's production, operations and results: Yinman Mining is mainly engaged in the mining, processing and sale of nonferrous metals including silver, tin, copper, lead and zinc, with a production scale of 1.65 million mt/year. In 2025, Yinman Mining recorded operating revenue of RMB3,062.0434 million, accounting for 55.12% of the company's consolidated operating revenue, and net profit of RMB1,346.2785 million. In Q1 2026, Yinman Mining recorded operating revenue of RMB961.5985 million, accounting for 45.15% of the company's consolidated operating revenue, and net profit of RMB474.7488 million. The cause of the accident and the cause of the death are still under investigation, and Yinman Mining will fully cooperate with the accident investigation and subsequent work. Since the duration of Yinman Mining's production suspension cannot be determined at present, the impact of the suspension on the company's current-period and full-year results cannot be accurately estimated for the time being. The company will perform its information disclosure obligations in a timely manner according to the progress of the accident investigation and relevant regulations, and investors are reminded to pay attention to investment risks. In terms of results, Xingye Silver&Tin earlier disclosed its semi-annual results forecast in the evening, showing that it expects net profit attributable to the parent company of RMB2.14 billion to RMB2.37 billion in H1 2026, up 168.95%-197.86% YoY. Regarding the reasons for the change in results, Xingye Silver&Tin said: 1. Yubang Mining's capacity was gradually released, and ore-derived silver production and sales increased significantly YoY. 2. During the reporting period, affected by factors such as the macroeconomic environment and changes in market demand for products, the selling prices of the company's main mineral products such as silver and tin rose from the year-earlier period. 3. During the reporting period, the company transferred a 60% equity interest in Shuangyuan Nonferrous Metals; the equity transfer resulted in non-recurring gains of RMB454 million. The company realized investment income of RMB321 million. Since Shuangyuan Nonferrous Metals was originally a loss-making enterprise with excessive losses, the equity transfer increased the parent company's deductible losses, which in turn reduced income tax expense by RMB133 million. Xingye Silver&Tin's 2025 annual report showed that in 2025, the company recorded operating revenue of RMB5,555.2536 million, up 30.09% YoY; total profit of RMB2,096.2370 million, up 18.75% YoY; and net profit attributable to shareholders of the listed company of RMB1,704.2393 million, up 11.40% YoY. An announcement by Xingye Silver&Tin showed that in 2025, the proportions of the company's main mineral product revenue in total operating revenue were as follows: ore-derived silver RMB2,175.7825 million, accounting for 39.17%; ore-derived tin RMB1,649.6398 million, accounting for 29.70%; ore-derived zinc RMB975.8673 million, accounting for 17.57%; ore-derived lead RMB220.9450 million, accounting for 3.98%; ore-derived iron RMB180.3799 million, accounting for 3.25%; ore-derived copper RMB133.0043 million, accounting for 2.39%; ore-derived antimony RMB100.3568 million, accounting for 1.81%; ore-derived gold RMB82.3402 million, accounting for 1.48%; ore-derived bismuth RMB16.6744 million, accounting for 0.30%. Of these, combined revenue from ore-derived tin and ore-derived silver accounted for 68.86%. Regarding the company's main business and key performance drivers, Xingye Silver&Tin stated in its 2025 annual report that the company is a large mining group mainly engaged in the exploration, mining and mineral processing of nonferrous and precious metals. As of the disclosure date of this report, the company has more than 20 subsidiaries, including eight operating mining companies: Yinman Mining, Qianjinda Mining, Yubang Mining, Rongguan Mining, Xilin Mining, Rongbang Mining, Ruineng Mining and Bosheng Mining. The Achmmach tin mine of AtlasTinSAS under Atlantic Tin is in the construction phase; Tanghe Shidai Mining is in a construction suspension phase; and Yitong Mining and Yunnan Xigui are in the exploration phase. Hainan Fund is mainly engaged in equity investment management. Xingye Gold (Hong Kong) is mainly engaged in metals and mining trade and corporate acquisitions, and is responsible for expanding overseas markets and acquiring high-quality overseas mineral resources. Hainan International Trade and Tianjin International Trade are mainly engaged in the sale of nonferrous metal ore products and the procurement of some raw materials. Xingye Ruijin mainly carries out process research, technology development and upgrading for exploration, mining and mineral processing, and comprehensive recovery and utilization of tailings. Tibet Shannan Antimony-Gold, Tibet Xinda Mining and Xing'an League Fuxingtun Mining serve as the company's regional resource integration platforms. During the reporting period, the company successfully acquired an 85% equity interest in Yubang Mining. According to data from the Silver Institute as of the end of 2023, Yubang Mining's single silver mine ranked first in Asia and fifth globally. The acquisition further strengthened the company's resource advantages and laid a solid resource foundation for its sustainable development. Meanwhile, the company, through its subsidiary Xingye Gold (Hong Kong) as the investment vehicle, increased investment in overseas mineral resources and successfully acquired a 100% equity interest in Atlantic Tin. The acquisition was an important step in implementing the company's "going global" strategy. According to the large tin mine classification criteria in the Standards for Classification of Mineral Resource Reserves (DZ/T0400-2022), the Achmmach tin mine held by Atlantic Tin is currently equivalent to five large deposits. Through the integration of overseas tin resources, the company further improved its international tin layout and reserved important strategic resources for its long-term development. The company's main results come from its nonferrous metal mining and processing business. During the reporting period, revenue from the nonferrous metal mining and processing business accounted for 99.64% of total operating revenue in 2025. The main factors affecting the operating results of the mining and processing segment include production and sales volumes of major products, market prices, and costs of the nonferrous and precious metal mining and processing business. Regarding its operating plan, Xingye Silver&Tin stated in its 2025 annual report that 2026 is the closing year of the company's "Second Three-Year" plan. The board will focus closely on high-quality development, fully implement the established objectives, continue to deepen the philosophy of trust and collaboration, and make every effort to achieve the final goals of the "Second Three-Year" plan, with the following priorities: 1. Hold the bottom line for safety and environmental protection. With 2026 as the "Year of Implementing Safety Management," comprehensively strengthen safety responsibilities, consolidate the achievements of the "Year of Collective Calm in Safety," enhance risk anticipation and process control, and resolutely prevent all kinds of safety and environmental accidents to achieve safe, stable, green and low-carbon development. 2. Make every effort to advance key project construction; strengthen full-process management of project budgets, schedules and quality; coordinate the implementation of projects such as the 2.97 million mt expansion at Yinman Mining, the 8.25 million mt expansion at Yubang Mining, the Morocco project, and the Budun Yin'gen Mining (trusteeship) project; and ensure they are completed and reach full production on schedule to release capacity benefits. 3. Continue to strengthen exploration and reserve expansion; properly balance production and geological exploration; steadily advance exploration at existing mines and surrounding areas; accelerate the conversion and upgrading of resources into reserves; and steadily strengthen the resource base. 4. Deepen industrial synergy and resource integration; leverage the advantages of the core region of Inner Mongolia; steadily expand the overseas resource layout; maintain silver and tin as the main business direction and enrich and optimize resource types. Solidly advance the follow-up acquisition and integration of Weiling Co., and actively track high-quality mineral project opportunities at home and abroad to enhance overall competitiveness through synergistic industrial M&A. 5. Further strengthen institutional enforcement and internal control management; ensure all systems, processes and control requirements are effectively implemented; improve the company's refined management; strengthen enforcement capacity; ensure production plans, comprehensive budgets and all work arrangements are fully implemented; and promote deep integration of corporate culture and business management. 6. Make every effort to advance preparations for the Hong Kong listing; accelerate the establishment of dual capital market platforms at home and abroad; enhance cross-border capital operation capabilities; provide stronger funding support for the company's resource integration and strategy implementation; and push the company's high-quality sustainable development to a new level. A research report from Huaxin Securities on August 7 showed that key performance drivers included the official start of Yinman Phase II and steady progress in capacity expansion, and a dual-track layout of domestic acquisitions and overseas expansion with the resource map steadily expanding. Silver and tin prices remain high, and the company's long-term capacity growth is expected, so the rating is maintained at "Buy." Risk warnings: 1) downstream demand falls short of expectations; 2) metal price downside risk; 3) the company's expanded capacity is released less than expected; 4) the company's acquisition progress falls short of expectations. A research report from Huaxi Securities on July 25 said that the macro logic for silver is similar to that for gold, while silver has stronger industrial attributes, and its price is driven by the resonance of fundamentals, policy and trading. From the perspective of core support, silver has been included in the US "critical minerals" list, which has triggered sustained attention from funds and a stockpiling effect, serving as an important policy catalyst for price increases. Although short-term demand has pulled back somewhat, the supply-side gap remains prominent, providing the core fundamental support for silver prices. The supply-demand gap for silver is expected to continue widening in the coming years. Coupled with demand improvement from the industrial recovery during the easing cycle, silver's price elasticity is significantly higher than gold's, and silver is expected to rise under the resonance of a loose environment and industrial demand, with a favorable long-term silver price trend. The silver sector is currently in a stage of consolidation at lows after a pullback. Although it is pressured in the short term by a stronger US dollar and delayed interest rate cut expectations, it still has medium and long-term allocation value. Beneficiaries of silver include: [Shengda Resources] and [Xingye Silver&Tin].

Platinum prices fell under pressure today. The US Fed released hawkish signals again, and with the digestion of recent bullish factors for precious metals, along with profit-taking by bulls, upward momentum was suppressed. As of 11:00 in the morning session, the most-traded GFEX platinum futures contract PT2610 closed at 422.85 yuan/g, down 2.32%. The best ask price for SGE platinum 9995 was about 1 yuan/g below the GFEX PT2610 contract. In the spot market, mainstream platinum quotations were at a discount of 3 to 2 yuan/g against the PT2610 contract. With some deeply discounted cargoes cleared and the import price spread narrowing, and with the futures market falling today, mainstream quotation discounts continued to narrow slightly from the previous trading day. Inquiries from downstream buyers for price negotiations and procurement based on orders increased. Consumption recovered slightly, but overall trading remained sluggish.

[SMM Precious Metal Express] Fed officials delivered mixed signals: Hammack reiterated the need for rate hikes now and expressed uncertainty over continued inflation improvement; Barkin suggested rate hikes may be needed to achieve Fed goals — both leaning hawkish. Goolsbee, however, noted that much of the inflation is tariff- and oil-driven, hoping for one-off effects — a more dovish stance. While internal divisions widen, the hawkish tone continues to weigh on precious metals in the near term.

[SMM Daily Review: Bullish Factors Digested, Silver Prices Pulled Back; Spot Held at Parity] SMM, August 14 – Gold purchases by the Bank of Korea and a lower-than-expected PPI boosted silver prices, but hawkish comments from US Fed officials capped gains, and silver prices pulled back mildly. Trading in the spot market was sluggish, with the spot-futures price spread narrowing and quotes concentrated near parity.

SMM August 14 news: On the metals market front: Overnight, base metals in both overseas and domestic markets broadly fell, with only LME copper, LME tin, and SHFE tin rising together. LME copper rose 0.18%, LME tin rose 0.52%, LME aluminum led losses with a 2.28% decline, SHFE nickel fell 0.88%, SHFE lead fell 0.81%, and the remaining metals saw modest fluctuations in their declines. The main alumina contract rose 0.26%, while the main cast aluminum contract fell 0.9%. Overnight, ferrous metals broadly rose, with stainless steel the only decliner, down 0.83%. Rebar, hot-rolled coil, and iron ore all gained around 0.4%. For coking coal and coke, coking coal rose 1.7%, and coke rose 0.55%. On the precious metals front, overnight COMEX gold fell 1.35%, and COMEX silver fell 1.7%. On the domestic front, SHFE gold fell 1.24%, and SHFE silver fell 1.48%. As of 6:38 on August 14, overnight closing prices: Macro Front On the domestic front: [China's New Round of Continuous Air Quality Improvement Action Plan Is Being Formulated] The State Council Information Office held a press conference today (13th) as part of the themed series "Getting Off to a Good Start in the 15th Five-Year Plan". At the briefing, it was noted that China's air pollution control achievements are encouraging, but there is still no room to relax or take a break, and patience and resolve must be maintained. At present, a new round of continuous air quality improvement action plans is being formulated at an accelerated pace, and the battle to defend blue skies will focus on being "higher, more accurate, and more scientific." (CCTV News) [National Carbon Emissions Trading Market Cumulative Trading Volume Exceeds 900 Million mt] Huang Runqiu, Minister of Ecology and Environment, said at the press conference on the themed series "Getting Off to a Good Start in the 15th Five-Year Plan" held by the State Council Information Office on August 13 that as of the end of July, cumulative trading volume in the national carbon emissions trading market had exceeded 930 million mt, which has effectively promoted green and low-carbon transformation while driving low-cost carbon reduction across industries. (Xinhua News Agency) [Shanghai: Promote the Issuance of "Computing Power Vouchers," "Model Vouchers," and "Corpus Vouchers" to Lower the Cost of Using Digital Factors such as Public Data, Computing Power, Models, and Corpora] Shanghai issued the "Shanghai Action Plan for Implementing the Several Measures on Further Promoting Private Investment Development." It mentions carrying out computing power subsidies in accordance with laws and regulations, supporting private enterprises in renting intelligent computing resources for R&D training and application of large models, and encouraging universities, research institutions, and state-owned enterprises to use data storage and computing power resources built by various types of business entities, including private enterprises. It will publish and dynamically update a public data openness list, support private enterprises in conducting deep development and scenario-based utilization of specific public data, promote the issuance of "computing power vouchers," "model vouchers," and "corpus vouchers," and reduce the cost of using digital factors such as public data, computing power, models, and corpora. It will cultivate benchmark enterprises and platform enterprises for urban digital transformation, guide private enterprises to participate in digital transformation project construction and scenario operations in areas such as transportation, logistics, and public services. It will encourage private enterprises to build new-type infrastructure demonstration projects such as blockchain applications and large-scale robotics applications. (Jinshi Data APP) On the US dollar front: As of the overnight close, the US dollar index fell 0.01% to 99.96. The US July PPI data came in below expectations, helped by further declines in energy and food costs. The PPI report followed consumer price data, which showed inflation is slowing, further confirming signs that the energy shock from the early stage of the war is continuing to fade. However, the recent re-escalation of Middle East tensions has raised concerns about stubborn inflation. Fed officials will receive additional consumer and producer price data as well as another labour market report before their next policy decision in mid-September. At present, policymakers need to balance persistent inflation pressures against a recent slowdown in hiring. Several PPI components are also particularly watched by the Fed because they feed into its preferred inflation measure—the personal consumption expenditures price index. The signals released by these components were mixed. Portfolio management fees recorded their largest increase in more than a year, hospital outpatient care costs also rose sharply, while prices for physician services and hospital inpatient care were mild. (Jinshi Data APP) Market pricing showed an increase in bets that the Fed would keep interest rates unchanged in September. The probability that the Fed would keep interest rates in the 3.50%-3.75% range in September was around 65%, up from around 60% before the PPI report. (Jinshi Data APP) Fed official Hammack said in the latest remarks: "The Fed must raise interest rates now because current policy is not restrictive, and inflation has risen amid recent shocks. Excessively rapid growth could put additional pressure on prices. Rate hikes may bring pain, but we cannot allow economic and investment growth to become so rapid that the economy overheats. Current inflation is broad-based, not limited to certain sectors. The Fed must be held accountable for inflation data, which is very important." (Jinshi Data APP) According to CME "FedWatch": The probability that the Fed will keep interest rates unchanged in September is 65.2%, and the probability of a cumulative 25 bps rate hike is 34.8%. The probability that the Fed will keep rates unchanged in October is 50.1%, the probability of a cumulative 25 bps rate hike is 41.8%, and the probability of a cumulative 50 bps rate hike is 8.1%. (Jinshi Data APP) On the macro front: Data due for release today include China's July total electricity consumption YoY (TBD), China's July total electricity consumption (TBD), the US July retail sales MoM, the US August preliminary one-year inflation expectations, the US June business inventories MoM, the US August preliminary University of Michigan consumer sentiment index, France's final July CPI MoM, the Eurozone Q2 GDP YoY revision, the Eurozone Q2 seasonally adjusted employment QoQ final, the Eurozone June seasonally adjusted trade balance, and Canada's June wholesale sales MoM. In addition, a new round of price adjustment windows for domestic refined oil products will open (TBD), and the National Energy Administration will release total electricity consumption data around the 15th of each month (TBD). On the crude oil front: As of the overnight close, oil prices in both markets fell together, with WTI crude down 2.47% and Brent crude down 2.23%, both notching a second consecutive decline. According to the Islamic Republic of Iran Broadcasting, a spokesman for Iran's Joint Military Command said: "Without approval, no ship can safely pass through the Strait of Hormuz. Any ship transiting the Strait of Hormuz must obtain Iran's permission, and Iran is in full control of the Strait of Hormuz. Iranian forces are monitoring US movements in the region. Trump's claims about controlling the Strait are lies and merely a display of his military's helplessness. From past to present, the US military has long had a full taste of the strength and steadfastness of the Iranian nation. The US keeps seeking to do evil and create instability in the region, and its groundless threats, in the face of the unprecedented comprehensive readiness of heroic Islamic fighters in the armed forces, will only appear even more helpless and powerless. Iran's armed forces will not hesitate in the slightest in defending the nation's rights, national sovereignty, the ideals of the Islamic Revolution, and our dear country, and will respond to any type and any level of threat with heavier and fiercer responses than before." (Jinshi Data APP) Iraq's Oil Marketing Company said that a major Abu Dhabi energy company is among the companies that purchase its crude and ship cargoes out through the Strait of Hormuz. Earlier reports said the trading arm of Abu Dhabi National Oil Company moved cargoes through the Strait of Hormuz to offer Iraqi crude supplies to Asian buyers, a practice that typically involves tankers switching off their transponders to avoid detection, ensuring Middle Eastern oil continues to flow to global markets. Ali Nizar, director general of Iraq's Oil Marketing Company, said Iraq's oil exports through the Strait of Hormuz jumped to about 2 million barrels per day this month. While that is up from levels in the months after the start of the Iran war, it remains below the country's total exports of about 3.4 million barrels per day before the conflict. (Jinshi Data APP)

This week, platinum and palladium retreated after a rapid rise and then consolidated at highs. Weaker nonfarm payrolls and a mild pullback in CPI fueled a cooling of rate-hike expectations. However, the US and Iran became embroiled in a compensation dispute and the strait remained closed. Together with technical resistance and profit-taking, prices came under pressure and pulled back. Spot market quotes were marked by relative involution, and consumption remained subdued.

Precious metals fluctuated at highs overall this week, with spot gold rallying from $4,240 to above $4,440 and hitting a two-month high. The core drivers were a sharp downside surprise in July nonfarm payrolls and a mild pullback in CPI; expectations for a US Fed interest rate hike in September cooled significantly, the US dollar and US Treasury yields both pulled back, and central bank gold purchases accelerated. Watch for a rebound in oil prices, supply pressure in US Treasuries, and a short-term technical pullback.

SMM, August 13: Metals market: As of the midday close, domestic base metals were mostly lower. SHFE copper fell 0.5%, SHFE aluminum fell 0.9%, SHFE lead rose 0.63%, SHFE zinc fell 0.27%, SHFE tin fell 0.86%, and SHFE nickel fell 0.16%. In addition, the most-traded cast aluminum futures contract fell 1.33%, the most-traded alumina contract fell 1.62%, the most-traded lithium carbonate contract was flat at 148,840 yuan/mt, the most-traded silicon metal contract fell 0.64%, and the most-traded polysilicon futures contract rose 0.75%. Ferrous metals all fell. Iron ore fell 0.14%, rebar fell 0.5%, hot-rolled coil fell 0.37%, and stainless steel fell 0.93%. Coking coal and coke: the most-traded coking coal contract fell 1.27%, and the most-traded coke contract fell 0.73%. Overseas base metals: as of 11:45, LME metals were nearly all lower. LME copper fell 0.2%, LME aluminum fell 0.89%, LME zinc fell 0.4%, LME tin fell 0.18%, LME nickel fell 0.59%, and LME lead rose 0.21%. Precious metals: as of 11:45, COMEX gold rose 0.02%, and COMEX silver fell 0.08%. Domestic precious metals: SHFE gold rose 0.34%, and the most-traded SHFE silver contract rose 0.28%. Additionally, as of the midday close, the most-traded platinum futures contract fell 0.52%, and the most-traded palladium futures contract fell 0.57%. As of the midday close, the most-traded European container shipping futures contract rose 1.75% to 1,630 points. As of 11:45 on August 13, midday quotes for selected futures: Spot and fundamentals Copper: Today, Guangdong #1 copper cathode spot prices against the front-month contract: high-quality copper was quoted at a discount of 20 yuan/mt, down 40 yuan/mt from the previous trading day; standard-quality copper was quoted at a discount of 120 yuan/mt, down 40 yuan/mt from the previous trading day; and SX-EW copper was quoted at a discount of 200 yuan/mt, down 60 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 108,250 yuan/mt, down 160 yuan/mt from the previous trading day, and the average price of SX-EW copper was 108,100 yuan/mt, down 200 yuan/mt from the previous trading day. Spot market: Guangdong inventories fell for two consecutive days, with arrivals declining and warehouse withdrawals increasing slightly... Macro front China: [China Is Formulating a New Round of Action Plans for Continuous Air Quality Improvement] The State Council Information Office held a themed press conference today (13th) in the series "Opening and Starting the '15th Five-Year Plan'." At the press conference, it was noted that China has made gratifying progress in air pollution control, but there is still no room for complacency or letting up; patience and resolve must be maintained. Currently, a new round of action plans for the continuous improvement of air quality is being expedited, and the battle to keep skies blue will focus on being "higher, more precise, and more scientific." (CCTV News) [Cumulative Trading Volume of the National Carbon Emissions Trading Market Tops 900 Million mt] Huang Runqiu, Minister of Ecology and Environment, said at the "Launching the 15th Five-Year Plan" press conference series held by the State Council Information Office on August 13 that by the end of July, cumulative trading volume in the national carbon emissions trading market had exceeded 930 million mt, effectively promoting the green and low-carbon transition while driving low-cost carbon reduction across industries. (Xinhua News Agency) [Shanghai: Promote Issuance of "Computing Power Vouchers," "Model Vouchers," and "Corpus Vouchers" to Reduce the Cost of Using Digital Factors Such as Public Data, Computing Power, Models, and Corpora] Shanghai issued the "Shanghai Action Plan for Implementing the Several Measures on Further Promoting Private Investment Development." The plan states that Shanghai will provide computing power subsidies in accordance with laws and regulations, support private enterprises in renting intelligent computing resources for the R&D, training, and application of large models, and encourage universities, research institutions, and state-owned enterprises to use data storage and computing power resources built by various market entities, including private enterprises. It will publish and dynamically update the public data opening list, support private enterprises in the in-depth development and scenario-based use of specific public data, and promote the issuance of "computing power vouchers," "model vouchers," and "corpus vouchers" to reduce the cost of using digital factors such as public data, computing power, models, and corpora. It will cultivate benchmark and platform enterprises for urban digital transformation, and guide private enterprises to participate in the construction and scenario operation of digital transformation projects in areas such as transportation, logistics, and public services. It also encourages private enterprises to build demonstration projects of new-type infrastructure such as blockchain applications and large-scale robot applications. (Jin10 Data APP) [PBOC Reverse Repo Operations Post Net Withdrawal of CNY1 Billion on the Day] The PBOC did not conduct reverse repo operations today, as CNY1 billion in 7-day reverse repos matured, resulting in a net withdrawal of CNY1 billion on the day. On the Dollar Side: As of 11:45, the US dollar index was up 0.01% at 100. US core inflation in July was mild, which likely eased pressure on the US Fed to raise interest rates. Data released by the US Bureau of Labor Statistics on Wednesday showed that, excluding volatile food and energy categories, core CPI rose 0.2% MoM in July. The YoY increase was 2.5%, matching the slowest pace since March 2021. Overall, July CPI rose 0.1% MoM and 3.4% YoY. This report indicated that the energy price shock from the Iran war continued to fade in July. As the US Fed discusses whether to raise rates at its September meeting, these figures may give the US Fed more room to weigh inflation pressures against the recent slowdown in hiring. Before the September meeting, policymakers will also see more reports on employment and inflation, while investors will closely watch a speech that Fed Chairman Warsh is expected to deliver at the annual Jackson Hole symposium later this month. US stock index futures rose, while US Treasury yields were basically flat. Investors lowered their bets on a September rate hike. According to CME "FedWatch": the probability that the US Fed will keep rates unchanged by September is 59.9%, and the probability of a cumulative 25bp rate hike is 40.1%. By October, the probability that the US Fed will keep rates unchanged is 45.3%, the probability of a cumulative 25bp rate hike is 44.9%, and the probability of a cumulative 50bp rate hike is 9.8%. (Jin10 Data App) A CITIC Securities research report said that US July CPI was fully in line with expectations, core inflation remained mild, and second-round inflation effects were modest, which helped further ease market concerns about inflation risks. We continue to believe that US inflation is not sticky, and we expect headline CPI YoY growth to generally continue its mild slowdown trend in Q3 and hit bottom in September, then rebound slightly in Q4 this year and decline rapidly in March next year. We still expect the US Fed to keep rates unchanged for the whole year, and there is further room for downward revision in rate hike expectations priced into derivatives markets. A CICC research report said that US July CPI rose 0.1% MoM on a seasonally adjusted basis and 3.4% YoY, while core CPI rose 0.2% MoM and 2.5% YoY, all in line with market expectations. Energy prices continued to pull back, but international oil prices have risen again since August, increasing uncertainty about future energy prices. On the core inflation front, goods were strong while services were weak; in particular, prices of information technology products such as computers and software continued to rise, reflecting that the supply-demand mismatch caused by AI capital spending expansion is gradually transmitting to the consumer side. We believe US inflation may have entered a new phase, with its drivers gradually shifting from supply shocks such as tariffs and oil prices to demand expansion from AI investment, and the duration of inflation may be correspondingly prolonged. For the US Fed, this data eased near-term pressure to raise rates, but compared with supply-driven inflation, demand-pull inflation requires more attention from policymakers. Other currencies: RBA Assistant Governor Kent said that Australian monetary policy is currently restrictive, the three consecutive rate hikes early this year are now weighing on the economy, and the stronger Australian dollar has further reinforced this effect. He said: "Evidence suggests that monetary policy in Australia is somewhat restrictive, and the tightening earlier this year is working. Borrowing costs have risen, mortgage repayments have increased, conditions in the established housing market have weakened, and the Australian dollar has also appreciated year-to-date." He said aggregate demand growth appears to be slowing, adding that this is what policymakers want to see and is necessary to bring inflation back to target. (Jin10 Data APP) Data Front: Today will bring the US 10-year Treasury auction high yield and bid-to-cover ratio for Aug 12, US initial jobless claims for the week ending Aug 8, US July PPI y/y and m/m, UK Q2 GDP y/y preliminary, UK June three-month GDP m/m, UK June manufacturing production m/m, UK June seasonally adjusted goods trade balance, UK June industrial production m/m, and Eurozone June industrial production m/m, among others. In addition, JD.com will hold its Q2 earnings call; 2026 FOMC voter and Cleveland Fed President Hammack will speak, and 2027 FOMC voter and Richmond Fed President Barkin will speak on the economic outlook. Crude Oil: As of 11:45, both benchmark oil prices fell, with WTI down 0.96% and Brent down 0.82%. Oil prices edged down as traders waited for signs of progress on the reopening of the Strait of Hormuz. On the Middle East front, there has been almost no sign of progress on the reopening of the Strait of Hormuz. US President Trump said the United States has "complete control" over the waterway. The International Energy Agency (IEA) said that as the US-Iran war continues, the global oil market faces a supply shortfall of 1.8 million barrels per day this quarter, more than double its earlier forecast; the 2026 oil supply gap could reach its largest level in five years. According to the American Automobile Association, gasoline and diesel prices in the US have never been this high at this time of year. (Jin10 Data APP) Spot Market at a Glance: ► ► ► ► ► ► ► ► ► ► ►

[SMM Daily Review: Cooling CPI, Slight Correction in Silver Prices, Spot Deals Probe Deeper into Discount Territory] SMM, August 13 – The US July CPI was in line with expectations, and the signal of an inflation slowdown strengthened; rate-hike bets were trimmed slightly, and silver futures prices pulled back. Spot market demand was weak, with transactions probing further into discount territory.

SMM, August 13: Metals: Overnight, base metals in both domestic and overseas markets showed mixed performance, with LME aluminum leading losses by falling 1.46%, SHFE lead leading gains with a 0.57% rise, SHFE aluminum falling 0.62%, and the remaining metals all edging down slightly. The most-active alumina contract fell 0.81%, and cast aluminum fell 1.06%. Overnight, ferrous metals broadly fell, with only iron ore rising, by 0.42%. Stainless steel, rebar, and hot-rolled coil all saw modest declines; in the coking coal and coke segment, coking coal fell 1.08% and coke fell 0.47%. In precious metals, overnight COMEX gold rose 0.63% and posted a four-day winning streak, while COMEX silver rose 0.92%. In China, SHFE gold rose 0.36% and SHFE silver rose 0.63%, both notching a seven-day winning streak. Overnight closing quotes as of 6:37 on August 13: Macro Front China: [PBOC: Timely Plan and Introduce Practical and Effective Incremental Policies and Strengthen Counter-Cyclical Adjustment] The PBOC released its Q2 2026 monetary policy implementation report. It will promptly plan and introduce pragmatic and effective incremental policies, strengthen counter-cyclical adjustment, step up efforts to expand domestic demand and optimize supply, and promote sustained, higher-quality and improving economic development. It will unswervingly follow the path of financial development with Chinese characteristics, further deepen financial reform and high-standard opening up, accelerate the building of a strong financial sector, improve the central bank system, build a scientific and sound monetary policy system and a comprehensive macroprudential management framework, and smooth the monetary policy transmission mechanism. US Dollar: As of the overnight close, the US dollar index rose 0.15% to 99.97. US core inflation in July was mild, which likely eased pressure on the Fed to raise interest rates. Data released by the US Bureau of Labor Statistics on Wednesday showed that core CPI, which excludes volatile food and energy categories, rose 0.2% MoM in July. The YoY increase was 2.5%, matching the slowest pace since March 2021. Overall, July CPI rose 0.1% MoM and 3.4% YoY. The report indicated that the energy-price shock from the Iran war continued to fade in July. As the Fed discusses whether to raise interest rates at its September meeting, the data may give the Fed more room to balance inflation pressures against the recent slowdown in hiring. Before the September meeting, policymakers will also see more reports on employment and inflation, while investors will closely watch a speech by Fed Chairman Warsh, expected later this month at the annual Jackson Hole symposium. US stock index futures moved higher, and Treasury yields were basically flat. Investors reduced bets on a September rate hike. (Jinshi Data App) CITIC Securities said in a research note that US July CPI was fully in line with expectations, core inflation remained mild, and second-round inflation effects were subdued, which helped further ease market concerns about inflation risks. The firm still believes US inflation is not sticky and expects headline CPI YoY to broadly continue its mild slowdown in Q3 and bottom in September, before rebounding slightly in Q4 this year and falling rapidly next March. It still expects the Fed to stay on hold throughout this year, and there is still room for the rate-hike expectations priced into derivatives markets to be revised further downward. (Jinshi Data App) CICC said in a research note that US July CPI rose 0.1% MoM seasonally adjusted and 3.4% YoY, while core inflation rose 0.2% MoM and 2.5% YoY, all in line with market expectations. Energy prices continued to fall, but international oil prices have moved higher again since August, adding uncertainty to future energy prices. On the core inflation front, goods were firm and services were soft; in particular, prices of information technology products such as computers and software continued to rise, reflecting that the supply-demand mismatch brought by AI capital expenditure expansion is gradually being transmitted to the consumer side. We believe US inflation may have entered a new phase, with its drivers gradually shifting from supply shocks such as tariffs and oil prices to demand expansion from AI investment, which may extend the persistence of inflation. For the Fed, this data has eased near-term pressure to raise rates, but compared with supply-driven inflation, demand-driven inflation requires more attention from policymakers. (Jinshi Data App) J.P. Morgan Asset Management’s chief global strategist said the Fed should keep interest rates unchanged and expects inflation to gradually decline as mounting evidence shows that a sustained wage-price spiral will not form. David Kelly said after the July CPI release, “The Fed absolutely should stay on hold, and I actually think they will.” The report showed that US core inflation remained mild in July, and after the release, Treasuries extended gains. Kelly noted that three forces are working together to drive a clear cooling in inflation: tariff costs will decline on a YoY basis; oil prices will fall as the market turns optimistic that the Iran war will end; and wage growth continues to lag inflation. He added that the last point weakens the momentum needed for price pressures to form a self-reinforcing cycle and also means the Fed does not need to raise rates to contain inflation. Kelly noted that financial markets are currently highly leveraged, and even a small rate hike could trigger asset repricing. (Jinshi Data App) According to CME FedWatch: the probability that the Fed will keep interest rates unchanged by September is 59.9%, and the probability of a cumulative 25 bp rate hike is 40.1%. The probability that the Fed will keep rates unchanged by October is 45.3%, the probability of a cumulative 25 bp rate hike is 44.9%, and the probability of a cumulative 50 bp rate hike is 9.8%. (Jinshi Data App) Macro Front: Today will bring data including the US August 12 10-year Treasury auction high yield and bid-to-cover ratio, US initial jobless claims for the week ending August 8, US July PPI YoY, US July PPI MoM, UK Q2 GDP YoY preliminary, UK June three-month GDP MoM, UK June manufacturing output MoM, UK June seasonally adjusted goods trade balance, UK June industrial output MoM, and eurozone June industrial output MoM. In addition, JD.com will hold its Q2 earnings call; 2026 FOMC voting member and Cleveland Fed President Hammack will speak; and 2027 FOMC voting member and Richmond Fed President Barkin will speak on the economic outlook. Crude Oil: Overnight, both oil benchmarks fell, with US crude down 0.75% and Brent down 0.4%. Oil prices edged down after five straight sessions of gains, as traders awaited signs of progress in reopening the Strait of Hormuz. WTI crude fell below $82 a barrel after rallying 11% over the previous five sessions; Brent briefly fell below $87. On the Middle East front, there were almost no signs of progress in reopening the Strait of Hormuz, and US President Trump said the US has “full control” over the waterway. The International Energy Agency (IEA) said that as the US-Iran war continues, the global oil market faces a supply shortfall of 1.8 million barrels per day this quarter, more than double its previous forecast; the 2026 oil supply gap could be the largest in five years. According to the American Automobile Association (AAA), gasoline and diesel prices in the US have never been this high at this time of year. (Jinshi Data App) Satellite imagery showed that very large crude carriers docked at the Juaymah terminal near Ras Tanura, Saudi Arabia’s main export port on the Persian Gulf, for the first time in weeks, indicating that Saudi Arabia is working to maintain crude exports. However, due to the Iran war, the situation in the Strait of Hormuz and threats from Houthi forces, shipping activity at Saudi ports remains affected. As the world’s largest oil exporter, Saudi Arabia has recently shifted some crude transport to the Red Sea port of Yanbu and is exporting to the Mediterranean via the SUMED pipeline. At the same time, activity at Yanbu port has declined from earlier, with only three tankers currently observed at berth, capable of carrying about 3.4 million barrels of crude. Analysts believe that Saudi export routes are shifting from the traditional route to Asian markets via the Bab el-Mandeb Strait toward an alternative route that runs north through the Red Sea and connects to the Suez Canal, in order to reduce regional security risks. Because some tankers have turned off their automatic identification systems and satellite observations have gaps, the actual scale of Saudi crude loadings remains difficult to fully confirm. (Jinshi Data App) Russia’s July crude production was nearly 1 million bpd below its OPEC+ quota, because Ukraine has been attacking Russian oil infrastructure almost every day. According to OPEC’s monthly report, Russia’s average daily crude output last month was 8.887 million barrels. Although this was only 6,000 bpd lower than the revised June average, July’s daily average output was clearly below Russia’s 9.824 million barrel monthly target under its agreement with allies. The data came as the Russian oil industry faces continued attacks from Ukraine. Last month, Kyiv shifted targets from refineries to tankers and other facilities, with the focus of attacks constantly changing, threatening Russia’s crude processing volumes and exports while the global energy market was already under pressure from the Middle East conflict. (Jinshi Data App) The latest IEA monthly report showed that, due to the rekindling of the Middle East conflict and disruptions to maritime transport, the global oil market is currently facing a supply shortfall of about 1.8 million barrels per day, and the IEA has doubled its Q3 oil supply shortfall forecast and expects the full-year 2026 gap could be the largest in five years. Since the conflict broke out, global observed oil inventories have fallen by 410 million barrels, including a decline of 69 million barrels in July alone. Meanwhile, the IEA has raised its forecast for the decline in global oil demand in 2026 by 510,000 bpd to 1.6 million barrels per day, implying that global oil demand this year will see its largest annual decline since 2020. But even with demand suppressed by high oil prices, supply losses continue to keep inventories under pressure. (Wallstreetcn)