SMM, July 15 – In the morning session, the trading center of the SHFE aluminum 2606 contract was below the level at the same time of the previous trading day. Affected by the off-season, market procurement sentiment remained weak today, with mainly just-in-time procurement and ample circulating goods. Transactions were concluded at a discount of 10-20 yuan/mt against the SHFE aluminum Aug contract. The shipment sentiment index in east China today was 3.11, up 0.03 from the previous trading day; the procurement sentiment index was 3.00, down 0.16 from the previous trading day. The overall trading atmosphere in the central China market today turned subdued compared with the previous two days. Some downstream processing enterprises began to make small-scale purchases today, but traders' hedging sentiment declined significantly from the previous few days, leading to reduced procurement volumes. Some suppliers slightly lowered their selling offers. The final actual transaction price range in the central China market was centered around a discount of 150-170 yuan/mt against the SHFE aluminum Aug contract. The shipment sentiment index in central China today was 2.80, down 0.02 from the previous trading day; the procurement sentiment index was 2.22, down 0.01 from the previous trading day. In terms of inventory, aluminum ingot inventory in major consumption areas today fell 0.8 from the previous trading day, with the main destocking in Wuxi and Guangdong.

According to preliminary statistics from the People's Bank of China, the stock of aggregate financing to the real economy (AFRE) stood at 462.06 trillion yuan at end-June 2026, while the cumulative flow of AFRE in H1 2026 reached 20.84 trillion yuan, up 7.4% YoY. RMB loans increased by 10.72 trillion yuan in H1. At end-June, broad money (M2) balance was 356.71 trillion yuan, up 8% YoY. Narrow money (M1) balance was 118.48 trillion yuan, up 4% YoY. Currency in circulation (M0) balance was 14.74 trillion yuan, up 11.8% YoY. Net cash injection in H1 amounted to 641.7 billion yuan. Financial Statistics Report for H1 2026 I. Stock of AFRE up 7.4% YoY Preliminary statistics show that the stock of AFRE at end-June 2026 reached 462.06 trillion yuan, up 7.4% YoY. Specifically, outstanding RMB loans to the real economy were 279.16 trillion yuan, up 5.3% YoY; outstanding foreign currency loans to the real economy (RMB equivalent) were 1.18 trillion yuan, down 2.9% YoY; entrusted loans were 11.24 trillion yuan, up 0.5% YoY; trust loans were 4.62 trillion yuan, up 4% YoY; undiscounted bankers' acceptances were 2.02 trillion yuan, down 2.8% YoY; corporate bonds outstanding were 36.08 trillion yuan, up 8.9% YoY; government bonds outstanding were 101.36 trillion yuan, up 14.2% YoY; and domestic equity of non-financial enterprises stood at 12.49 trillion yuan, up 5% YoY. In terms of structure, at end-June, outstanding RMB loans to the real economy accounted for 60.4% of the total AFRE stock, down 1.2 percentage points YoY; foreign currency loans (RMB equivalent) accounted for 0.3%, flat YoY; entrusted loans accounted for 2.4%, down 0.2 ppt YoY; trust loans accounted for 1%, flat YoY; undiscounted bankers' acceptances accounted for 0.4%, down 0.1 ppt YoY; corporate bonds accounted for 7.8%, up 0.1 ppt YoY; government bonds accounted for 21.9%, up 1.3 ppt YoY; and domestic equity of non-financial enterprises accounted for 2.7%, down 0.1 ppt YoY. II. Cumulative AFRE Flow in H1 Reached 20.84 Trillion Yuan Preliminary statistics show that the cumulative AFRE flow in H1 2026 was 20.84 trillion yuan, 2.02 trillion yuan less than the same period last year. In detail, new RMB loans to the real economy increased by 10.76 trillion yuan, 1.98 trillion yuan less YoY; foreign currency loans (RMB equivalent) to the real economy increased by 160.9 billion yuan, 224.7 billion yuan more YoY; entrusted loans decreased by 78.8 billion yuan, with the decline widening by 27.5 billion yuan YoY; trust loans decreased by 44.6 billion yuan, with the decline widening by 188.9 billion yuan YoY; undiscounted bankers' acceptances decreased by 125.6 billion yuan, with the decline widening by 69.8 billion yuan YoY; net corporate bond financing was 2.07 trillion yuan, 916.7 billion yuan more YoY; net government bond financing was 6.44 trillion yuan, 1.22 trillion yuan less YoY; and domestic equity financing by non-financial enterprises was 293.3 billion yuan, 122.4 billion yuan more YoY. 3. Broad Money Increased 8% At the end of June, broad money (M2) balance stood at 356.71 trillion yuan, up 8% YoY. Narrow money (M1) balance stood at 118.48 trillion yuan, up 4% YoY. Currency in circulation (M0) balance stood at 14.74 trillion yuan, up 11.8% YoY. In H1, net cash injection into the economy was 641.7 billion yuan. 4. RMB Deposits Increased by 17.76 Trillion Yuan in H1 At the end of June, the balance of domestic and foreign currency deposits stood at 354.33 trillion yuan, up 8.2% YoY. At month-end, the balance of RMB deposits stood at 346.44 trillion yuan, up 8.2% YoY. In H1, RMB deposits increased by 17.76 trillion yuan. Specifically, household deposits increased by 7.58 trillion yuan, non-financial enterprise deposits increased by 3.2 trillion yuan, fiscal deposits increased by 971.5 billion yuan, and deposits of non-banking financial institutions increased by 4.65 trillion yuan. At the end of June, the balance of foreign currency deposits stood at $1.16 trillion, up 13.7% YoY. In H1, foreign currency deposits increased by $98 billion. 5. RMB Loans Increased by 10.72 Trillion Yuan in H1 At the end of June, the balance of domestic and foreign currency loans stood at 286.43 trillion yuan, up 5.1% YoY. At month-end, the balance of RMB loans stood at 282.63 trillion yuan, up 5.2% YoY. In H1, RMB loans increased by 10.72 trillion yuan. By sector, household loans decreased by 366.8 billion yuan, with short-term loans decreasing by 588.1 billion yuan and medium and long-term loans increasing by 221.2 billion yuan; loans to enterprises (including public institutions) increased by 11.13 trillion yuan, with short-term loans increasing by 4.59 trillion yuan, medium and long-term loans increasing by 5.55 trillion yuan, and bill financing increasing by 814.3 billion yuan; loans to non-banking financial institutions decreased by 422.3 billion yuan. At the end of June, the balance of foreign currency loans stood at $557.7 billion, down 0.6% YoY. In H1, foreign currency loans increased by $12.7 billion. 6. In June, the monthly weighted average interest rate for interbank RMB lending was 1.41%, and the monthly weighted average rate for pledged bond repos was 1.43% In H1, the interbank RMB market saw a total transaction volume of 1,169.05 trillion yuan through lending, outright bond trading, and repos, with a daily average turnover of 9.74 trillion yuan, up 20% YoY. Of this, the daily average turnover for interbank lending increased 36% YoY, for outright bond trading increased 6.9% YoY, and for pledged repos increased 22.5% YoY. In June, the weighted average interest rate for interbank lending was 1.41%, 0.1 percentage points higher than the previous month and 0.05 percentage points lower than the same period last year; the weighted average rate for pledged repos was 1.43%, 0.1 percentage points higher than the previous month and 0.07 percentage points lower than the same period last year. VII. Balance of Foreign Exchange Reserves at $3.42 Trillion At end-June, the balance of foreign exchange reserves stood at $3.42 trillion. At end-June, the RMB exchange rate was 6.8109 yuan per US dollar. VIII. Cross-border RMB Settlement under the Current Account in H1 Amounted to 9.83 Trillion Yuan, and Direct Investment Cross-border RMB Settlement Reached 4.17 Trillion Yuan In H1, cross-border RMB settlement under the current account amounted to 9.83 trillion yuan, of which goods trade and services trade & other current account items were 7.71 trillion yuan and 2.12 trillion yuan, respectively. Direct investment cross-border RMB settlement amounted to 4.17 trillion yuan, of which outward direct investment and foreign direct investment were 1.5 trillion yuan and 2.67 trillion yuan, respectively. Recommended Reading: Latest Financial Data Released: End-February M2 and Outstanding Aggregate Financing Up 8.7% and 9.0% YoY; Here's What Authoritative Experts Say! Aggregate Financing and New RMB Loans in First Two Months Hit Second-Highest on Record for Same Period; February M2 Up 8.7% YoY January 2024 New Aggregate Financing 6.5 Trillion Yuan, New Loans 4.92 Trillion Yuan, M2 Up 8.7% YoY PBoC: December Aggregate Financing Increment 1.94 Trillion Yuan, New RMB Loans 1.17 Trillion Yuan, M2 Up 9.7% YoY PBoC: November Aggregate Financing Increment 2.45 Trillion Yuan, New RMB Loans 1.09 Trillion Yuan, M2 Up 10% YoY November Financial Data Released: Aggregate Financing Continued to Grow YoY; Credit Support for Real Economy Remains Solid Will Trillion-Yuan Government Bonds "Prop Up" October Money and Credit Data? Market Expects Strong Aggregate Financing but Weak Lending; RRR Cut Expectations Still Brewing PBoC: October Aggregate Financing Increment 1.85 Trillion Yuan, New RMB Loans 738.4 Billion Yuan, M2 Up 10.3% YoY PBoC: September Aggregate Financing Increment 4.12 Trillion Yuan, New RMB Loans 2.31 Trillion Yuan, M2 Up 10.3% YoY PBoC Makes Major Announcement! Discusses China-U.S. Interest Rate Spread, September Financial Data, Existing Home Loan Rates... General Administration of Customs: China's Foreign Trade in First Three Quarters Improved; September Posted Highest Monthly Figure This Year PPI and CPI Improve for Third Month in a Row; Experts Say Price Recovery Further Confirmed, PPI YoY Improvement Expected to Persist NBS: September CPI Stable, PPI Decline Narrows for Third Straight Month, Both Up MoM September Phone Exports Value Doubled MoM; Auto Exports YoY Growth Continued to Lead PBoC: August Aggregate Financing Increment 3.12 Trillion Yuan, New RMB Loans 1.36 Trillion Yuan, M2 Up 10.6% YoY PBoC: Will Act Decisively to Prevent Exchange Rate Overshooting! Dollar Plunges Against Offshore Yuan PBoC: August Aggregate Financing 528.2 Billion Yuan, New RMB Loans 345.9 Billion Yuan, M2 Up 10.7% YoY PBoC: June Aggregate Financing, New RMB Loans Far Exceed Expectations; M2 Up 11.3% YoY PBoC: May Aggregate Financing Increment 1.56 Trillion Yuan, Up 331.2 Billion Yuan From Previous Month PBoC: May RMB Loans Rose 1.36 Trillion Yuan, Previous 718.8 Billion Yuan PBoC: May RMB Deposits Rose 1.46 Trillion Yuan, Down 1.58 Trillion Yuan YoY PBoC: April Aggregate Financing Increment 1.22 Trillion Yuan, New RMB Loans 718.8 Billion Yuan, M2 Up 12.4% YoY PBoC: Q1 RMB Deposits Rose 15.39 Trillion Yuan, Loans Rose 10.6 Trillion Yuan

[SMM Stainless Steel Daily Review] SS short-term maintains a relatively stable consolidation pattern; stainless steel spot prices stable, end-users cautiously wait and see On July 15, SMM reported that SS futures showed a relatively stable consolidation pattern. SS futures pulled back in the night session, but after the morning open, the decline was partially recovered, then moved sideways until the close, with the most-traded SS contract settling at 14,595 yuan/mt. Spot market side, demand was in the off-season, and recent volatility intensifies in SS futures with no clear directional guidance, so downstream end-users held a strong wait-and-see sentiment, overall transactions were sluggish; spot prices were largely stable, with only some traders under shipment pressure occasionally releasing low-priced goods. SS futures most-traded contract. At 10:15 a.m., SS2608 reported at 14,660 yuan/mt, up 120 yuan/mt from the previous trading day. Spot premiums for 304/2B in Wuxi area were in the 260-610 yuan/mt range. In the spot market: Wuxi cold-rolled 201/2B coil average flat; cold-rolled raw edge 304/2B coil (Wuxi +25 yuan/mt, Foshan flat); Wuxi cold-rolled 316L/2B coil -100 yuan/mt; hot-rolled 316L/NO.1 coil, Wuxi flat; cold-rolled 430/2B coil, both flat. This week, macro liquidity disturbances intensified, stainless steel futures moved independently with a weak trend, and futures noticeably deviated from the pace of SHFE nickel and other nonferrous metals. During the week, capital sentiment switched frequently, driving SS futures into wild swings, earlier 14,500...

[SMM Analysis: In-Depth Analysis of Anode Prelithiation Technology Panorama and Industrialisation Progress] Anode prelithiation is a key technology that pre-supplements active lithium into silicon-based anodes to compensate for the irreversible capacity loss during the initial charge-discharge cycle, aiming to overcome the industrialisation bottleneck of low initial coulombic efficiency and poor cycling stability of silicon-based anodes.

On July 15, at the , hosted by SMM Information & Technology Co., Ltd. and Shandong Aisi Information Technology Co., Ltd., co-organized by Guangxi Dasheng Power Equipment Co., Ltd., and strongly supported by Solarabic, a Middle Eastern new energy industry media, and the Guangdong Province Industrial and Trade Development Promotion Association, Shenzhen Bendakang Cable Co., Ltd. Chairman Hou Shaofan shared insights on “Copper Spot and Futures Price Fluctuations and the Status Quo of the Wire and Cable Industry”. Macro Insights: Global and Regional Copper Consumption Patterns 2026 Global and China Copper Consumption Overview ► Global copper cathode consumption grows mildly, supply-demand pattern tightens Global copper cathode consumption is expected to reach around 25 million mt in 2026, up 1.6% YoY. NEVs, PV and wind power, and AI computing centers become core drivers. The market will see a supply deficit, with ore supply tightness persisting. ► China's copper consumption leads the globe, driven by emerging fields China accounts for half of global copper consumption. Its apparent consumption is set to exceed 13 million mt in 2026, up around 2% YoY, leading the world. Power grid investment, new energy, and AI data centers are the core drivers. Demand in emerging sectors is robust, while growth in traditional sectors is slowing down. South China: A Growth Pole Driven by Export-Oriented and Emerging Momentum South China, especially Guangdong Province, as one of the core engines of China's manufacturing, exhibits a distinct "export-oriented" and "emerging momentum-driven" copper consumption structure. It closely relies on downstream industries such as electronic information and NEVs, with a notable export orientation, making it a key growth pole for domestic copper consumption. Regional Pattern: An Analysis of the Industrial Gap Between South China and East China North-South Industrial Divergence: Five Core Gaps Between South China and East China's Wire and Cable Industries ► In-depth Analysis of Regional Industrial Development Models and Core Competitiveness From five dimensions – enterprise structure, risk management, industry chain support, client resources, and industry ecosystem – the current development status of the wire and cable industries in the two regions is compared, revealing the underlying logic and development pain points behind the industrial divergence. Industry Growing Pains: In-depth Analysis of Three Core Pain Points Pain Point 1: Party A's "Imposed Terms" – Imbalanced Bargaining Power 01 Excessively long payment cycles; 02 "Back-to-back" payment terms shifting risk; 03 High security deposits squeezing capital; 04 Fixed prices disregarding cost fluctuations. Pain Point 2: Wild Swings in Copper Prices – The Risk of "High-Cost In, Low-Price Out" Losses 01 Two-way risk: both sharp rises and falls put pressure on; 02 Transmission lag: the core crux of losses; 03 Breakthrough solution: using financial instruments to build a solid defense. Pain Point Three: Industry Price Involution — the Meager Profit Dilemma of Being "Cheaper than Vermicelli" ►01 Fierce Price War: Survival Struggle in the Quagmire of Meager Profits The industry presents a pattern of “big industry, small enterprises,” with CR10 below 12%, over 90% being small and medium-sized enterprises, and the market highly fragmented. The price war in the low and mid-end cable sector is intensifying, even giving rise to the industry joke of being “cheaper than vermicelli,” directly resulting in the industry’s average net profit margin falling below 3%. Small and medium-sized enterprises are trapped in a survival dilemma with meager profits, or even negative profits. ►02 Vicious Cycle: The Industry Paradox of Bad Money Driving Out Good Low-price competition forces some enterprises to cut corners, causing product quality and safety risks. More seriously, substandard cable products directly threaten public property safety and even pose significant risks to the lives of the public. Entrepreneurs (this great group of people) who originally immersed themselves in industry with a craftsman’s spirit and aspired to contribute to social and economic development, once they breach the quality bottom line in the low-price involution, not only harm users and society but ultimately violate the law, end up imprisoned, and cause an irreparable tragedy. Meager profits prevent enterprises from investing in R&D and innovation, trapping them in a vicious cycle of “low price—low quality—even lower profits.” Meanwhile, the industry’s low-end capacity is severely surplus, while the high-end market has long been dominated by foreign brands, with technical barriers difficult to overcome. Future Outlook: Industry Chain Synergy and Development Trends Grasp the Industry Pulse · Co-Build a Synergistic Ecosystem · Open a New Chapter of Cooperation Based on the new stage of industrial development, we start from three dimensions—trend analysis, synergistic co-construction, and cooperation opportunities—to analyze the future direction of the copper wire and cable industry. The aim is to build industry consensus, promote deep integration of the upstream and downstream, and through institutional innovation and resource integration, build a safe, stable, and win-win new pattern of industrial development. 01 Industry Trends: Growth and Standardization Demand side benefits from the dual drivers of new energy and new infrastructure, with market growth continuously released; risk control side sees derivative tools becoming standard, with bare position models gradually phased out; the industry landscape is accelerating toward concentration among large-scale, compliant leading enterprises, with the Matthew effect prominent. 02 Synergy Initiatives: Shared Responsibility and Joint Governance We advocate for the industry-wide adoption of a copper price-linked adjustment mechanism to share price fluctuation risks; collaborate with financial institutions to promote the “option hedging + performance guarantee” model to build operational defenses; establish an industry alliance to unify pricing floors, resist low-price involution, and share risk control and market resources. 03 Cooperation Invitation: Openness and Win-Win Provide stable batch supply of national standard cables for PV, power grid, and new energy supporting applications; connect with professional institutions to offer copper option price insurance consulting and financial guarantee services; sincerely invite copper enterprises, financial institutions, and EPC contractors to engage in long-term strategic joint ventures to jointly create industry value. In addition, they shared the breakthrough path: Bendakang practical cases and solutions from such perspectives as Bendakang Cable—from scale leadership to value guidance; financial innovation practice: the "option price protection" policy, empowering industry chain win-win; practical reference: Bendakang's combined strategy of "option price protection + performance bond"; innovation engine: a high-end and intelligent product matrix; smart manufacturing upgrade: digitally driven lean production practice, etc.

SMM July 15: Overnight lead prices plunged. Today, most smelters lowered their quotes for waste lead-acid batteries by 50-100 yuan/mt. In east China, some smelters even halted quoting and purchasing to prevent raw material depreciation. Some enterprises maintained prices for three days and then adopted a 50 yuan/mt cut. Recyclers actively sold goods today, while a few took a wait-and-see stance.

The National Bureau of Statistics (NBS) released data showing that according to preliminary estimates, China's gross domestic product (GDP) in H1 reached 69,570.4 billion yuan, up 4.7% YoY at constant prices. By industry, value-added of the primary sector was 3,152.2 billion yuan, up 3.7% YoY; that of the secondary sector was 25,047.3 billion yuan, up 3.9%; and that of the tertiary sector was 41,370.9 billion yuan, up 5.2%. By quarter, GDP in Q1 grew 5.0% YoY, and Q2 grew 4.3%. On a QoQ basis, GDP grew 0.9% in Q2. Overall, the national economy performed within a reasonable range in H1, new quality productive forces were nurtured and strengthened, and high-quality development advanced toward greater innovation and excellence. At the same time, it should be noted that there are many external factors of instability and uncertainty, the contradiction of strong supply and weak demand in China is prominent, and the foundation for economic improvement still needs to be consolidated. In the next stage, China will adhere to the principle of seeking progress while maintaining stability, improving quality and efficiency, intensify counter-cyclical and cross-cyclical adjustments, continue to expand domestic demand and optimize supply, optimize new drivers and revitalize existing assets, strive to build a strong Chinese market, accelerate the cultivation and growth of new growth drivers, redouble efforts to stabilize employment, enterprises, markets, and expectations, and promote effective improvement in the quality and reasonable growth of the quantity of the economy. H1 Economy within Reasonable Range; New Growth Drivers Grow Rapidly In H1, under the strong leadership of the Central Committee of the Communist Party of China with Comrade Xi Jinping at its core, various regions and departments earnestly implemented the decisions and arrangements of the Party Central Committee and the State Council, adhered to the general principle of seeking progress while ensuring stability, fully and faithfully applied the new development philosophy, accelerated the formation of a new development pattern, focused on promoting high-quality development, effectively implemented more proactive macro policies, and the economy withstood pressure and performed within a reasonable range; production supply grew relatively fast, the employment situation remained generally stable, prices rose mildly, foreign trade saw sound growth momentum, new growth drivers grew rapidly, people's livelihoods were effectively ensured, and the resilience of development was continuously demonstrated. According to preliminary estimates, China's GDP in H1 reached 69,570.4 billion yuan, up 4.7% YoY at constant prices. By industry, value-added of the primary sector was 3,152.2 billion yuan, up 3.7% YoY; that of the secondary sector was 25,047.3 billion yuan, up 3.9%; and that of the tertiary sector was 41,370.9 billion yuan, up 5.2%. By quarter, Q1 GDP grew 5.0% YoY, and Q2 grew 4.3%. On a QoQ basis, GDP grew 0.9% in Q2. I. Bumper Summer Grain Harvest, Steady Growth in Livestock Farming In H1, value-added of agriculture (planting) grew 3.6% YoY. National summer grain output totaled 150.75 million mt, an increase of 1 million mt, or 0.7%, from the previous year. In H1, the output of pork, beef, mutton, and poultry reached 50.5 million tonnes, up 4.3% YoY. Within this, pork output was up 3.3% and poultry up 9.4%, while beef output was down 1.0% and mutton down 3.9%. Milk output increased 2.4%, and egg output declined 2.2%. At the end of Q2, the pig inventory stood at 424.91 million head, up 0.1% YoY; in H1, the pig slaughter was 372.46 million head, up 1.7%. 2. Industrial Production Grew Relatively Fast, and Equipment Manufacturing and High-Tech Manufacturing Performed Well In H1, the value-added of industrial enterprises above designated size increased 5.4% YoY. By sector, mining value-added rose 3.6% YoY, manufacturing was up 5.6%, and the production and supply of electricity, heat, gas, and water grew 5.5%. Equipment manufacturing value-added increased 9.3% YoY, and high-tech manufacturing value-added grew 13.3%, outpacing the overall growth of industrial enterprises above designated size by 3.9 and 7.9 percentage points, respectively. By ownership, the value-added of state-controlled enterprises was up 4.3% YoY; joint-stock enterprises grew 5.9%, and enterprises with investment from foreign investors and those from Hong Kong, Macao, and Taiwan rose 3.2%; private enterprises increased 4.6%. By product, the production of 3D printing equipment, lithium-ion batteries, and industrial robots rose 48.5%, 39.3%, and 28.0% YoY, respectively. In June, the value-added of industrial enterprises above designated size increased 5.3% YoY, 0.8 percentage points faster than in May, with a MoM growth of 0.76%. In June, the manufacturing PMI stood at 50.3%, up 0.3 percentage points MoM; the expectations index for production and business activities was 54.3%, up 0.4 percentage points. In the first five months, total profits of industrial enterprises above designated size reached 3,144 billion yuan, up 18.8% YoY. 3. Services Grew Steadily, and Modern Services Developed Well In H1, the value-added of services increased 5.2% YoY. Within this, the value-added of leasing and business services, information transmission, software and IT services, financial services, and accommodation and catering grew 11.9%, 10.7%, 6.7%, and 5.0%, respectively. In June, the National Services Production Index rose 4.7% YoY, 0.3 percentage points faster than in May. Within this, the production indices of leasing and business services, information transmission, software and IT services, and financial services rose 9.7%, 9.6%, and 5.8%, respectively. In the first five months, the business revenue of service enterprises above designated size increased 6.6% YoY. In June, the Services Business Activity Index stood at 50.4%, up 0.1 percentage points MoM; the Services Business Activity Expectations Index was 56.0%, up 0.6 percentage points. Among these, the Business Activity Indices for sectors such as telecommunications, broadcasting, television and satellite transmission services, internet software and information technology services, monetary and financial services, and insurance remained in the high prosperity range of 55.0% and above. 4. Consumer Market Continued to Expand, with Rapid Growth in Service Retail Sales In H1, the total retail sales of consumer goods and services grew 2.7% YoY, of which service retail sales rose 5.3%, and goods retail sales grew 1.1%. Within service retail sales, those of communication and information services, tourism consulting and leasing services, and cultural, sports, and leisure services grew rapidly. In H1, total retail sales of consumer goods reached 24,872.2 billion yuan, up 1.3% YoY. By location of business units, urban retail sales of consumer goods were 21,550.6 billion yuan, up 1.2% YoY; rural retail sales of consumer goods were 3,321.6 billion yuan, up 2.5%. By consumption type, retail sales of goods were 22,046.7 billion yuan, up 1.1% YoY; and catering revenue was 2,825.5 billion yuan, up 2.8%. Sales of basic living goods and some upgraded goods grew relatively fast. Retail sales of grain, oil and foodstuffs, clothing, footwear, hats, textiles, and communication equipment by enterprises above the designated size grew 7.4%, 6.7%, and 14.4% YoY, respectively. In June, the total retail sales of consumer goods reached 4,269.1 billion yuan, up 1.0% YoY, compared to a 0.6% decline in the previous month, and an increase of 0.38% MoM. In H1, China's online retail sales of goods and services totaled 10,071.5 billion yuan, up 5.2% YoY. Of this, online retail sales of goods were 6,429.6 billion yuan, up 4.8%, and online retail sales of services were 3,641.9 billion yuan, up 6.0%. 5. Fixed Asset Investment Declined, While Investment in Intellectual Property Products Accelerated In H1, China's fixed asset investment (excluding rural households) was 22,637 billion yuan, down 5.7% YoY; when excluding real estate development, it fell 2.7%. Among this, investment in intellectual property products rose 9.4% YoY, accelerating by 1.5 percentage points compared to Q1. By sector, infrastructure investment fell 2.4% YoY, manufacturing investment declined 1.2%, and real estate development investment dropped 18.0%. The floor space of newly built commercial buildings sold nationwide was 401.4 million m², down 11.6% YoY; the sales value of newly built commercial buildings was 3,794.5 billion yuan, down 13.6%. By industry, investment in the primary industry grew 0.9% YoY, in the secondary industry declined 1.1%, and in the tertiary industry fell 8.4%. Private investment dropped 8.5% YoY; excluding real estate development, private investment fell 4.9%. Investment in high-tech industries grew 4.6% YoY. Specifically, investment in aviation, spacecraft, and equipment manufacturing, computer and office equipment manufacturing, and information services rose 23.3%, 8.1%, and 15.5% YoY, respectively. In June, fixed asset investment (excluding rural households) fell 0.37% MoM. VI. Rapid Growth in Goods Imports and Exports, with Continued Optimization of Trade Structure In H1, total goods imports and exports reached 25,468.6 billion yuan, up 16.9% YoY. Of this, exports were 14,731.4 billion yuan, up 13.4%, and imports were 10,737.2 billion yuan, up 22.1%. Imports and exports to countries jointly building the Belt and Road grew 14.8%. Imports and exports by private enterprises grew 17.0%, accounting for 57.0% of the total. Exports of mechanical and electrical products rose 20.1%, accounting for 63.5% of total exports. In June, total imports and exports reached 4,782.3 billion yuan, up 24.2% YoY, 7.3 percentage points higher than the previous month. Of this, exports were 2,820.7 billion yuan, up 20.8%, and imports were 1,961.6 billion yuan, up 29.4%. VII. Mild Rise in Consumer Prices, YoY Increase in Industrial Producer Prices In H1, the national consumer price index (CPI) rose 1.0% YoY. By category, prices of food, tobacco, alcohol and dining out fell 0.2% YoY; clothing prices rose 1.6%; housing prices fell 0.2%; household goods and services prices rose 1.9%; transportation and communication prices rose 1.8%; education, culture and recreation prices rose 1.2%; healthcare prices rose 2.0%; and prices of other goods and services rose 11.6%. Within food, tobacco, alcohol and dining out, pork prices fell 13.4%, grain prices fell 0.3%, fresh fruit prices rose 1.5%, and fresh vegetable prices rose 4.1%. In June, the national CPI rose 1.0% YoY and fell 0.3% MoM. In H1, the core CPI, which excludes food and energy prices, rose 1.2% YoY, with the June core CPI up 1.0% YoY. In H1, the national industrial producer EXW prices rose 1.5% YoY. Specifically, in June, they rose 4.1% YoY, with the growth rate expanding by 0.2 percentage points from the previous month, and fell 0.3% MoM. In H1, the national industrial producer purchase prices rose 2.4% YoY, with a 6.4% YoY increase in June and a 0.2% MoM decline. VIII. Generally Stable Employment Situation, Decline in Urban Surveyed Unemployment Rate In H1, the averaged national urban surveyed unemployment rate was 5.2%. In June, the rate stood at 5.0%, down 0.1 percentage points from the previous month. The surveyed unemployment rate for the local registered labor force was 5.0%; for the non-local registered labor force, it was 4.9%, including 4.8% for the non-local agricultural registered labor force. The surveyed urban unemployment rate in 31 major cities was 5.0%, down 0.1 percentage point from the previous month. The average weekly working hours of employees in enterprises nationwide was 48.2 hours. At the end of Q2, the number of rural migrant workers totaled 192.27 million, up 0.5% YoY. IX. Household Income Grew Steadily, with Rural Income Growth Outpacing Urban In H1, the per capita disposable income of residents nationwide was 22,981 yuan, a nominal increase of 5.2% YoY and a real increase of 4.2% after deducting price factors. By permanent residence, the per capita disposable income of urban residents was 30,126 yuan, a nominal increase of 4.4% YoY and 3.4% in real terms; for rural residents, it was 12,699 yuan, a nominal increase of 6.4% YoY and 5.5% in real terms. By income source, the per capita wage income, net operating income, net property income, and net transfer income of residents nationwide increased nominally by 5.3%, 6.5%, 1.1%, and 5.8%, respectively. In H1, the ratio of per capita disposable income of urban to rural residents (with rural income as 1) was 2.37, narrowing 0.05 YoY. Overall, in H1, the national economy operated within a reasonable range, new quality productive forces were cultivated and strengthened, and high-quality development advanced toward new and higher levels. However, it should also be noted that there are numerous external instabilities and uncertainties, the contradiction of strong supply and weak demand in the domestic market is prominent, and the foundation for economic recovery still needs to be consolidated. In the next stage, we must adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, persist in seeking progress while maintaining stability, improving quality and efficiency, intensify counter-cyclical and cross-cyclical adjustments, continue to expand domestic demand and optimize supply, improve incremental growth and revitalize existing resources, focus on building a strong domestic market, accelerate the cultivation and strengthening of new growth drivers, and step up efforts to stabilize employment, enterprises, markets, and expectations, thereby promoting effective qualitative improvement and reasonable quantitative growth of the economy. Recommended Reading:

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