[SMM Morning Meeting Summary: Macro Factors and Fundamentals Resonated, and LME Zinc Logged a Three-Day Winning Streak] Overnight, LME zinc logged a three-day winning streak, with support from the 20-day moving average below and resistance from the 40/60-day moving averages above. Overnight, as geopolitical tensions in the Middle East may have de-escalated, the US dollar index moved lower, nonferrous metals rose, and LME zinc inventory continued destocking......

The first meeting of the National Task Force on the Recycling of Power Batteries from New Energy Vehicles (NEVs) emphasized the need to improve the regulatory and standards system, accelerate the formulation of relevant laws and regulations, and develop and revise mandatory standards such as safety technical specifications for various types of lithium batteries, in order to regulate recycling practices through legal means and lead the high-quality development of the industry with standards.

The 2025 SMM (3rd) Wire and Cable Industry Development Conference & Wire and Cable Industry Exhibition has successfully concluded! SMM reported on May 24: Metal Market: Overnight, metals in both domestic and overseas markets generally rose, with only SHFE zinc, SHFE tin, and SHFE nickel in the domestic market falling. SHFE zinc dropped by 0.09%, SHFE tin by 0.1%, and SHFE nickel by 0.26%. The rest of the metals rose, with LME copper and LME lead increasing by over 1%, specifically, LME copper rose by 1.19% and LME lead by 1.22%. The remaining increases were all within 1%. Most ferrous metals series declined, except for stainless steel, which rose by 0.27%. Iron ore fell by 0.76%, HRC by 0.91%. In the coking coal and coke sector, coking coal dropped by 1.59% and coke by 1.32%. In the precious metals sector, as of the overnight close, COMEX gold rose by 1.9%, with a weekly gain of 5.35%, marking its best performance in six weeks. Investors sought refuge in gold amid renewed tariff threats from US President Trump and a weaker US dollar. COMEX silver rose by 1.27%. Domestically, SHFE gold rose by 1.27%, with a weekly gain of 3.76%. SHFE silver rose by 0.62%, with a weekly gain of 1.95%. Independent metal analyst Tai Wong stated, "Trump has been very active in the past 24 hours. He threatened to impose a 50% tariff on the EU starting June 1, while also pressuring Apple and launching an offensive against Harvard University. This has sent the stock market into a slump but has been positive for the gold market." Overnight closing prices as of 8:46 AM on May 24 》Click to view SMM Futures Data Dashboard Macro Front Domestic Aspects: [PBOC and SAFE: Funds raised from overseas listings, share reductions, or transfers should, in principle, be repatriated to China] ① The notice proposes that funds raised from overseas listings, share reductions, or transfers can be repatriated in foreign currency or RMB, and relevant funds can be remitted in and out using capital account settlement accounts. ② The use of raised funds within China and foreign exchange risk management for enterprises have become more flexible and convenient. Listed entities can independently choose foreign exchange risk management channels, conducting spot foreign exchange settlement and sales, as well as hedging transactions through banks or securities firms. [MOFCOM: Online sales of digital products increased by 8.4% from January to April, with smart robots and smart home systems growing by 87.6% and 16%, respectively] The head of the Department of E-commerce at the Ministry of Commerce introduced the development of China's e-commerce sector from January to April 2025. Digital consumption growth accelerated, with online sales of digital products increasing by 8.4% according to MOFCOM big data monitoring. Among them, smart robots and smart home systems grew by 87.6% and 16%, respectively. Trade-in products have seen rapid growth, with online sales of 15 categories of home appliances and digital products increasing by 11.5%. Among them, three expanded categories of digital products, including mobile phones, grew by 18.5%. Service consumption has led the growth, driven by factors such as policy efforts, supply optimization, and holiday economy. The monitored online service consumption increased by 12.1%, with online entertainment and online tourism growing by 31.9% and 25.4%, respectively. US dollar: The overnight US dollar index fell by 0.84% to close at 99.1, touching an intraday low of 99.04, the lowest in nearly three weeks. The US dollar's weekly line fell by 1.84% this week, marking the largest weekly decline since April 11. Earlier, the US once again threatened to escalate trade conflicts, proposing to impose a 50% tariff on the EU starting from June 1, prompting investors to sell off the US dollar. This has once again raised concerns about the impact of tariffs on the world economy and global trade. After Moody's downgraded the US debt rating last week, investors' attention has focused on the US's $36 trillion debt and the tax cut bill, which could increase the US debt by several trillion dollars. The bill narrowly passed in the Republican-controlled US House of Representatives and is now submitted to the Senate, where senators may engage in weeks of debate, keeping investor sentiment fragile in the short term. Other currencies: In afternoon trading, the US dollar fell by 1% against the safe-haven Japanese yen to 142.48 yen, after earlier hitting a two-week low. The US dollar fell by 2.2% against the yen this week, on track for its largest weekly decline since April 7. Meanwhile, the yen received a boost. Earlier, Japan announced that its core annual inflation rate in April hit the highest in more than two years, increasing the likelihood of another interest rate hike before the end of the year. This data highlights the dilemma faced by the Bank of Japan, which must address price pressures from rising food prices and economic headwinds from Trump's tariffs. The euro rose by 0.8% against the US dollar to $1.1363. Earlier, the euro touched a two-week high against the US dollar and is on track for its largest weekly gain in six weeks. The British pound rose by 0.9% against the US dollar to $1.3533, after earlier climbing to its highest in more than three years. This week, the pound rose by 1%, marking its largest weekly gain in five weeks. Data: Next week, in China, the year-on-year profit data for industrial enterprises above designated size in April (single month) will be released. In the US, data such as initial jobless claims for the week ending May 24, the preliminary monthly rate of durable goods orders in April, the Conference Board Consumer Confidence Index for May, the revised annualized quarterly rate of real GDP for Q1, the revised annualized quarterly rate of core PCE price index for Q1, the revised annualized quarterly rate of consumer spending for Q1, the revised seasonally adjusted quarterly rate of the implicit GDP deflator for Q1, the monthly rate of the seasonally adjusted pending home sales index for April, the monthly rate of personal spending for April, the annual rate of the PCE price index for April, the annual rate of the core PCE price index for April, the preliminary monthly rate of wholesale inventories for April, the final value of the University of Michigan Consumer Sentiment Index for May, and the Chicago PMI for May will be released. In the Eurozone, data such as the final value of the consumer confidence index for May, the industrial and economic sentiment indices for May, and the annual rate of seasonally adjusted M3 money supply for April will be released. In Germany, data such as the Gfk consumer confidence index for June, the seasonally adjusted unemployment rate for May, the change in the seasonally adjusted number of unemployed persons for May, the annual rate of actual retail sales for April, the monthly rate of actual retail sales for April, and the preliminary annual rate of CPI for May will be released. In Canada, data such as the annualized quarterly rate of GDP for Q1, the seasonally adjusted quarterly rate of GDP for Q1, and the annual rate of seasonally adjusted GDP for March will be released. In addition, the CBI retail sales balance for May in the UK, the ANZ consumer confidence index for the week ending May 25 in Australia, the official cash rate decision for May 28 in New Zealand, the final value of the annual GDP rate for Q1 in France, the official reserve assets for April in Switzerland, the annual rate of Tokyo CPI for May in Japan, and the unemployment rate for April in Japan will all be released. Additionally, the US Fed released the minutes of its May monetary policy meeting. Fed Chairman Powell will deliver a commencement speech at Princeton University's graduation ceremony. European Central Bank President Lagarde will speak at the Hertie School in Berlin. FOMC permanent voter and New York Fed President Williams will participate in a panel discussion at the Bank of Japan Institute for Monetary and Economic Studies conference. The Reserve Bank of New Zealand will announce its interest rate decision and monetary policy statement, and Reserve Bank of New Zealand Governor Orr will hold a monetary policy press conference. On May 30, the Taiwan Stock Exchange in China was closed for the day due to the Dragon Boat Festival holiday. The Shanghai Gold Exchange, SHFE, Zhengzhou Commodity Exchange, and DCE did not have night session trading on the eve of the Dragon Boat Festival. Crude Oil: As of the overnight close, oil prices in both markets rose together, each gaining 0.92%. International oil prices increased as US buyers covered positions ahead of the three-day Memorial Day long weekend, while concerns about Iran's supply outlook also lingered. The Memorial Day weekend marks the start of the US summer driving season, which is also the period of highest demand for automotive fuels. Next Monday (May 26) is Memorial Day in the US, and US financial markets will be closed. According to Xinhua News Agency, the US and Iran held their fifth round of indirect talks in Rome, the capital of Italy, on the 23rd. The Omani side, which chaired the talks, said that some progress had been made, but no decisive results had been achieved. Flynn said that if the talks failed to reach an agreement, traders were concerned that crude oil supplies might be affected. OPEC, which consists of the Organization of the Petroleum Exporting Countries (OPEC) and its Russia-led allies, will hold a meeting next week and is expected to increase production by another 411,000 barrels per day in July. Media reports this month indicated that the group might lift the remaining portion of its voluntary production cut plan of 2.2 million barrels per day by the end of October, after having already raised its daily production targets for April, May, and June by about 1 million barrels. US energy services company Baker Hughes said in its closely watched report on Friday that the number of oil and natural gas rigs operated by US energy companies fell for the fourth consecutive week this week to the lowest level since November 2021. (Comprehensive report from Wenhua)

At 3 p.m. on May 22, the State Council Information Office held a press conference, inviting Qiu Yong, Vice Minister of the Ministry of Science and Technology (MOST), Zhu Hexin, Vice Governor of the People's Bank of China (PBOC) and Director of the State Administration of Foreign Exchange (SAFE), and other relevant officials to introduce the policies related to science and technology finance and answer questions from journalists. Qiu Yong, Vice Minister of MOST: We will fully leverage the role of the leading department to further refine the task division for constructing the science and technology finance system Qiu Yong, Vice Minister of MOST, stated that the "Several Policy Measures to Accelerate the Construction of a Science and Technology Finance System to Strongly Support High-Level Self-Reliance and Strength in Science and Technology" recently issued by seven departments is a foundational and leading institutional arrangement to achieve the mutual integration of science and technology and finance. MOST will fully leverage the role of the leading department, further refine the task division, clarify the milestones for task implementation, and promote the implementation of these policy measures to achieve early results. We hope to establish a long-term investment mechanism for financial support of scientific and technological innovation Qiu Yong, Vice Minister of MOST, said that recently, MOST and six other departments issued the "Several Policy Measures to Accelerate the Construction of a Science and Technology Finance System to Strongly Support High-Level Self-Reliance and Strength in Science and Technology." Through this document, we hope to establish a long-term investment mechanism for financial support of scientific and technological innovation. We will form a policy framework system for the development of science and technology finance, improve the incentive and restraint mechanisms, build a bridge between financial capital and scientific and technological innovation, and construct a diversified, multi-layered, and multi-channel pattern of scientific and technological investment. The science and technology finance mechanism requires strengthening the synergy between science and technology and finance, enhancing central-local coordination, and leveraging the guiding role of fiscal and tax policies in financial investment Qiu Yong, Vice Minister of MOST, stated that the development of science and technology finance is a complex systematic project that requires collaborative efforts from all parties. It requires strengthening the synergy between science and technology and finance, as well as enhancing central-local coordination. The "Several Policy Measures to Accelerate the Construction of a Science and Technology Finance System to Strongly Support High-Level Self-Reliance and Strength in Science and Technology" establishes a mechanism for the coordinated promotion of science and technology finance involving multiple departments, carrying out regional innovation practices, and comprehensively utilizing various financial instruments. In terms of investment methods, it emphasizes shifting from a fiscal mindset to a financial mindset and leveraging the guiding role of fiscal and tax policies in financial investment. Zhu Hexin, Vice Governor of the PBOC and Director of the SAFE: The "Science and Technology Board" in the bond market will primarily support top equity investment institutions with strong rankings and extensive investment experience in issuing bonds Zhu Hexin stated that the "Science and Technology Board" in the bond market supports issuers in flexibly issuing bonds in installments, simplifying information disclosure requirements, and reducing or exempting some fees for bond issuance and trading. The "Science and Technology Board" in the bond market most needs to support equity investment institutions, as they are the main force in investing in early-stage, small-scale, and hard-core technology companies. These institutions mainly have characteristics such as being asset-light and having long investment cycles. If they rely on their own bond issuance for financing, they may face issues such as short financing terms and high financing costs. The "Science and Technology Board" in the bond market can address these issues. In addition, we have also established a risk-sharing mechanism for science and technology innovation bonds, with the PBOC providing low-cost re-lending funds. The "Science and Technology Board" in the bond market will primarily support leading equity investment institutions with strong rankings and extensive investment experience in issuing bonds. Through the "Science and Technology Board" in the bond market, we aim to address the issues of short bond issuance tenors and high financing costs faced by equity investment institutions. Zhu Hexin stated that among the three types of entities issuing science and technology innovation bonds, equity investment institutions are the most in need of support. Equity investment institutions play a crucial role in "investing early, investing small, and investing in hard technology." However, the current challenge is that equity investment institutions, being asset-light with long investment cycles, face short bond issuance tenors and high financing costs when relying on their own bond issuances. Therefore, through the "Science and Technology Board" in the bond market, we aim to resolve the issues of short bond issuance tenors and high financing costs for equity investment institutions. Nearly 100 institutions have issued science and technology innovation bonds, with the total amount exceeding 250 billion yuan. Zhu Hexin, the Deputy Governor of the People's Bank of China, stated that multiple institutions have already registered or issued science and technology innovation bonds. According to our statistics, nearly 100 institutions have issued such bonds, with the total amount exceeding 250 billion yuan. Moving forward, we will continue to closely monitor the situation, advance our efforts, and jointly build a robust "Science and Technology Board" in the bond market. Meanwhile, we also hope to continuously improve the supporting mechanisms to enable the "Science and Technology Board" to play a greater role. Guo Wuping, spokesperson for the National Financial Regulatory Administration: We will soon approve the third batch of long-term investment reform pilots for insurance funds, with a total amount of 60 billion yuan. Guo Wuping, spokesperson for the National Financial Regulatory Administration and Director of the Policy Research Department, stated that the first batch of long-term investment reform pilots for insurance funds had a scale of 50 billion yuan, and the second batch was 112 billion yuan. Recently, we will also approve the third batch, totaling 60 billion yuan, bringing the cumulative scale to 222 billion yuan. As of the end of Q1, the loan balance for high-tech enterprises reached 17.7 trillion yuan, up nearly 20% YoY. Guo Wuping, spokesperson for the National Financial Regulatory Administration, stated that as of the end of the first quarter this year, the loan balance of the banking sector for high-tech enterprises reached 17.7 trillion yuan, up nearly 20% YoY. Yan Bojin, CSRC: The number of listed companies in strategic emerging industries on the Shanghai, Shenzhen, and Beijing Stock Exchanges has approached 2,000, with a market capitalization ratio of nearly 40%. Yan Bojin, Chief Risk Officer and Director of the Issuance Supervision Department of the China Securities Regulatory Commission (CSRC), stated that in response to the characteristics of technology enterprises, the CSRC has streamlined and optimized listing conditions, continuously enhancing the technological content of newly listed companies. The number of listed companies in strategic emerging industries on the Shanghai, Shenzhen, and Beijing Stock Exchanges has approached 2,000, with a market capitalization ratio of nearly 40%. Currently, the cumulative issuance of science and technology innovation bonds in the exchange bond market has reached 1.2 trillion yuan, with the raised funds mainly invested in industries such as semiconductors and artificial intelligence. Yan Bojin, Chief Risk Officer of the China Securities Regulatory Commission (CSRC), stated that the exchange bond market has now become an important channel for direct financing for technology enterprises. The cumulative issuance of science and technology innovation bonds has reached 1.2 trillion yuan, including 53.9 billion yuan issued in 2024, with an issuance scale of 6,100 yuan, representing an overall growth of 10%. The raised funds are mainly invested in industries such as semiconductors, artificial intelligence, new energy, and high-end manufacturing. We will provide more transparent, efficient, and predictable regulatory policies for the overseas listing of technology enterprises. Yan Bojin, Chief Risk Officer of the CSRC and Director of the Issuance Supervision Department, stated that the CSRC is unwavering in its commitment to advancing high-level opening-up and strongly supports technology enterprises in making good use of both domestic and overseas capital markets. Since the implementation of the new regulations on overseas listing filings, as of the end of April this year, 242 domestic enterprises have completed overseas listing filings, including 83 technology enterprises, mainly concentrated in fields such as information technology, new energy, and advanced manufacturing. The CSRC will continue to support eligible technology enterprises in utilizing domestic and overseas capital markets for development and provide more transparent, efficient, and predictable regulatory policies for their overseas listings. Further strengthen the safety and regulatory compliance of the use of raised funds by publicly listed firms. Yan Bojin, Chief Risk Officer of the CSRC and Director of the Issuance Supervision Department, stated that while supporting the development of technology enterprises, the CSRC also places great emphasis on the supervision of raised funds. The capital market in China has always had strict regulatory, disclosure, and usage requirements for the raised funds from initial public offerings (IPOs) and refinancing by publicly listed firms. Recently, the CSRC revised and issued regulatory rules for the raised funds of publicly listed firms, proposing that raised funds should be used for their designated purposes and focused on the core business to support the development of the real economy. The CSRC strictly regulates changes in the use of raised funds and further strengthens the safety and regulatory compliance of their use by publicly listed firms.

From May 19 to 20, the 2025 Global Investors Conference, hosted by the Shenzhen Stock Exchange, was held in Shenzhen. Themed "New Quality Productive Forces: New Investment Opportunities in China – Shenzhen's Open and Innovative Market," the conference attracted nearly 400 representatives from domestic and overseas exchanges and asset management institutions. The event showcased the investment value of Chinese assets and the A-share market through various formats. At the conference, Li Ming, Vice Chairman of the China Securities Regulatory Commission (CSRC), stated that in recent years, the CSRC has resolutely implemented the important deployment of the CPC Central Committee and the State Council to promote high-level financial opening-up. It has advanced the two-way opening-up of markets, products, and institutions, continuously enhancing the convenience and stability of cross-border investment and financing. Currently, the market capitalization of A-shares held by various types of foreign investors has stabilized at around RMB 3 trillion, making them an important participating force in the A-share market. Regarding key issues such as the value of China's economy and A-share investors, the vitality of publicly listed firms, and the commitment to opening up the capital market, as well as the future policy direction of the capital market, six major points in Li Ming's speech are worth noting. The first point is about long-term investment. Since the beginning of this year, medium and long-term funds, including those from social security, insurance, and annuities, have cumulatively net purchased over RMB 200 billion worth of A-shares, reflecting the formation of a virtuous cycle where medium and long-term funds are accelerating their inflows while the stock market remains stable with moderate growth. The second point is about A-share listed firms. Since 2024, over 90% of newly listed companies have been high-tech enterprises, indicating a continuous improvement in the technological prowess and innovative momentum of A-share listed firms. The third point is about returns to investors. In 2024, A-share listed firms distributed a total of RMB 2.4 trillion in dividends and repurchased RMB 147.6 billion worth of shares, both hitting record highs. More and more companies are distributing dividends multiple times a year, with the dividend yield of the CSI 300 Index approaching 3.6%. The fourth point is about A-share valuations. The price-to-earnings ratio of the CSI 300 Index stands at 12.6, significantly lower than major indices in overseas markets, further highlighting its allocation value. The fifth point is about the opening-up of the capital market. China's capital market will remain steadfast in its opening-up efforts. The CSRC will strengthen the top-level institutional design for opening-up in accordance with the deployment requirements of institutional opening-up, focusing on promoting the compatibility and interoperability of rules, regulations, management, and standards, so that institutions can better play a fundamental role in advancing two-way opening-up, anchoring the foundation and benefiting the long term. The sixth point is that policies and measures to deepen the reform of the Science and Technology Innovation Board (STAR Market) and the ChiNext Market will be introduced. These will provide more suitable and inclusive institutional support for the innovative growth of enterprises. The CSRC will continue to guide listed firms to actively enhance their investment value through methods such as cash dividends, share repurchases and increases, mergers and acquisitions, and restructuring, continuously cultivating a group of high-quality and dynamic listed firms to provide more quality investment targets for global investors. In addition, mechanisms such as the Qualified Foreign Institutional Investor (QFII) scheme will be optimized to support eligible foreign institutions in applying for new businesses and launching new products. Investing in China means greater certainty. Li Ming introduced the value of investing in China from the perspectives of China's economic fundamentals and capital markets. He stated that amid the backdrop of a slowing global economic growth, China has consistently emphasized both expanding domestic demand and opening up, accelerating the construction of a new development paradigm, and remained a major contributor to global GDP growth. This year, China's GDP achieved a strong start in the first quarter, demonstrating robust resilience. In recent years, a series of policy measures aimed at advancing the construction of a unified national market, expanding domestic demand, safeguarding people's livelihoods, and preventing and mitigating risks in key areas have yielded remarkable results. Turning to the capital markets themselves, Li Ming noted that since last year, the new "State Council's Nine-Point Plan" and the "1+N" policy framework have been gradually implemented, with regulatory enforcement and investor protection efforts continuously strengthened. Key initiatives, such as the influx of medium and long-term funds into the market and the reform of publicly offered funds, have been advancing in depth, and the market ecosystem is being improved at an accelerated pace. With the continuous deepening of comprehensive reforms in investment and financing in the capital markets, the inherent stability of China's capital markets will be further enhanced. "In particular, the central government attaches great importance to strengthening the reserve of strategic forces and the construction of market stabilization mechanisms. The stabilization model, with the Central Huijin Investment Ltd. playing a role akin to a 'stabilization fund' at the forefront, the People's Bank of China providing strong support from behind, and other parties collaborating, has greatly enhanced the confidence and capability of the capital markets to respond to various risks and challenges in complex environments," Li Ming said. From a global perspective, at a time when stability has become a scarce resource, a more resilient Chinese economy and a more robust A-share market will provide irreplaceable investment opportunities for global investors. Since the beginning of this year, medium and long-term funds, including those from social security, insurance, and annuities, have cumulatively net purchased over 200 billion yuan worth of A-shares, reflecting the formation of a virtuous cycle where the accelerated inflow of medium and long-term funds coincides with the steady rise of the stock market. The valuation level of A-shares remains relatively low. Currently, the A-share market boasts over 5,000 publicly listed firms, covering various sectors of the national economy. This is a vivid portrayal of China's comprehensive industrial categories and its accelerated transformation and upgrading. Li Ming stated that in the face of multiple pressures, the performance of A-share listed companies has generally maintained resilience, with three-quarters of the companies achieving profitability and half of the enterprises sustaining profit growth. Two aspects of change are particularly noteworthy. First, the technological prowess and innovation momentum of A-share listed companies are continuously improving. Among the companies newly listed since 2024, high-tech enterprises account for over 90%. A batch of leading enterprises have rapidly emerged in fields such as advanced manufacturing, digital economy, and green and low-carbon sectors, standing out in global competition and attracting widespread attention from global investors. Publicly listed firms are demonstrating strong innovation momentum. In 2024, the total R&D expenses of physical publicly listed firms reached 1.6 trillion yuan, up 3.1% YoY. Over 800 publicly listed firms had an R&D intensity exceeding 10%. "Recently, we will also introduce policy measures to deepen the reform of the Science and Technology Innovation Board and the ChiNext Market, providing more suitable and inclusive institutional support for the innovative growth of enterprises," Li Ming stated. Secondly, publicly listed firms are placing greater emphasis on rewarding investors. In 2024, A-share publicly listed firms distributed a total of 2.4 trillion yuan in dividends and repurchased shares worth 147.6 billion yuan, both hitting record highs. An increasing number of enterprises are distributing dividends multiple times a year. The dividend yield of the CSI 300 Index is approaching 3.6%, further enhancing the stability and predictability of returns to investors. Li Ming emphasized that the current valuation level of A-shares remains relatively low, with the CSI 300 price-to-earnings ratio at 12.6, significantly lower than the major indices of overseas markets, highlighting the increased allocation value. Recently, the China Securities Regulatory Commission (CSRC) issued the revised "Administrative Measures for Major Asset Restructuring of Listed Companies," strengthening support for asset restructuring of publicly listed firms. Going forward, we will continue to guide publicly listed firms to actively enhance their investment value through cash dividends, share repurchases and increases in holdings, mergers and acquisitions, and restructuring, continuously cultivating a group of high-quality and dynamic publicly listed firms to provide more high-quality investment targets for global investors. Four Focuses to Strengthen the Pace of China's Capital Market Opening-up In recent years, the CSRC has actively expanded cross-border connectivity, comprehensively removed foreign ownership restrictions in industry institutions, and continuously expanded the range of futures and options varieties that foreign institutions can participate in trading. A series of measures have achieved positive results. Li Ming stated that China's capital market opening-up will remain resolute. We will, in accordance with the deployment requirements for institutional opening-up, strengthen the top-level institutional design for opening-up, and advance the pace of opening-up by focusing on the compatibility and interoperability of external systems, transparency, systematicness, and multilateral cooperation. Specifically, firstly, we will focus on promoting the compatibility and interoperability of rules, regulations, management, and standards, allowing institutions to better play a fundamental role in advancing two-way opening-up that stabilizes the foundation and benefits the long term. Secondly, we will focus on enhancing the transparency and predictability of institutions, improving communication mechanisms with international investors, further enhancing the quality and efficiency of overseas listing filing management, optimizing institutional arrangements such as qualified foreign institutional investors, supporting eligible foreign institutions to apply for new businesses and launch new products, and continuously improving the cross-border financial services system. Thirdly, we will focus on enhancing the systematicness of opening-up, strengthening the coordination of opening-up in the stock, bond, and futures markets, increasing the supply of internationalized futures and options varieties, and enriching tools for asset allocation and risk management. Fourth, we will focus on strengthening bilateral and multilateral cross-border regulatory cooperation, actively participating in the formulation of international standards and rules, further enhancing cooperation between the mainland and Hong Kong markets, and consolidating Hong Kong's status as an international financial center. Li Ming stated that foreign investors are important participants and contributors to China's capital market. He hoped that global investors would offer valuable insights and share beneficial experiences to jointly create a market ecosystem where various types of funds are "willing to come, able to stay, and can thrive."

The Shenzhen Stock Exchange (SZSE) hosted the two-day 2025 Global Investors Conference in Shenzhen from May 19 to 20. Themed "New Quality Productive Forces: New Investment Opportunities in China - Shenzhen's Open and Innovative Market," the conference showcased the investment value of Chinese assets and the A-share market through keynote speeches, roundtable discussions, company roadshows, and other formats. Li Ming, Vice Chairman of the CSRC: The current valuation of A-shares remains relatively low Li Ming, Vice Chairman of the China Securities Regulatory Commission (CSRC), stated at the 2025 Global Investors Conference hosted by the SZSE that the current valuation of A-shares remains relatively low. The price-to-earnings ratio of the CSI 300 Index stands at 12.6, significantly lower than major indices in overseas markets, further highlighting its allocation value. Currently, the market value of A-shares held by various types of foreign investors remains stable at around 3 trillion yuan Li Ming noted that currently, the market value of A-shares held by various types of foreign investors remains stable at around 3 trillion yuan, making them an important participating force in the A-share market. We believe that as the achievements of China's high-quality economic development become more evident and as the vitality of reform and opening up is further unleashed, China's capital market will undoubtedly become a crucial platform for more foreign investment and business development, offering more opportunities for global investors to share in the dividends of China's development. Policy measures to deepen reforms of the STAR Market and ChiNext will be introduced in the near future Li Ming stated that in the near future, we will also introduce policy measures to deepen reforms of the STAR Market and ChiNext, providing more suitable and inclusive institutional support for the innovative growth of enterprises. We will optimize institutional arrangements for qualified foreign institutional investors and support eligible foreign institutions in applying for new businesses and launching new products Li Ming stated that next, the CSRC will, in accordance with the deployment requirements for institutional opening-up, strengthen the top-level institutional design for opening up, focus on promoting the compatibility and interoperability of rules, regulations, management, and standards, and allow institutions to better play a fundamental role in advancing two-way opening up that stabilizes the foundation and benefits the long term. We will focus on enhancing the transparency and predictability of institutions, improving communication mechanisms with international investors, further enhancing the quality and efficiency of overseas listing filing management, optimizing institutional arrangements for qualified foreign institutional investors, supporting eligible foreign institutions in applying for new businesses and launching new products, and continuously improving the cross-border financial services system. We will focus on enhancing the systematic nature of opening up, strengthening the coordination of opening up in the stock, bond, and futures markets, increasing the supply of internationalized futures and options varieties, and enriching tools for asset allocation and risk management. We will focus on enhancing bilateral and multilateral cross-border regulatory cooperation, actively participating in the formulation of international standards and rules, further strengthening cooperation between the mainland and Hong Kong markets, and consolidating Hong Kong's status as an international financial center. We hope global investors will offer valuable insights and share beneficial experiences, working with us to create a market ecosystem where various types of funds are "willing to come, able to stay, and can thrive." Medium and long-term funds, including those from social security, insurance, and annuities, have cumulatively net purchased over RMB 200 billion worth of A-shares this year. Li Ming stated that since the beginning of this year, medium and long-term funds, including those from social security, insurance, and annuities, have cumulatively net purchased over RMB 200 billion worth of A-shares, reflecting the formation of a virtuous cycle where the accelerated inflow of medium and long-term funds coincides with a steady and rising stock market. Last year, the total dividends paid by A-share companies and the amount spent on share buybacks both reached record highs. In his speech, Li Ming stated that efforts will continue to guide publicly listed firms to actively enhance their investment value through cash dividends, share buybacks and increases in holdings, mergers and acquisitions, and restructuring. In 2024, A-share listed firms distributed a total of RMB 2.4 trillion in dividends and repurchased shares worth RMB 147.6 billion, both setting new historical highs. An increasing number of enterprises are distributing dividends multiple times a year. The dividend yield of the CSI 300 Index is approaching 3.6%, further enhancing the stability and predictability of returns to investors. Currently, the valuation level of A-shares remains relatively low, with the CSI 300 price-to-earnings ratio at 12.6, significantly lower than the major indices of overseas markets, further highlighting their allocation value. Last year, high-tech enterprises accounted for over 90% of newly listed companies. In his speech, Li Ming stated that since 2024, high-tech enterprises have accounted for over 90% of newly listed companies. The market capitalization of listed firms in strategic emerging industries across the entire market has exceeded 40%. A group of leading enterprises has rapidly emerged in advanced manufacturing, digital economy, green and low-carbon sectors, standing out in global competition and attracting widespread attention from global investors. Listed firms exhibit strong innovation momentum, with the total R&D expenses of physical listed firms reaching RMB 1.6 trillion in 2024, up 3.1% YoY. Over 800 listed firms have an R&D intensity exceeding 10%. We will strengthen the top-level institutional design for the opening-up of the capital market and improve the quality and efficiency of overseas listing filing management. Li Ming stated that China's capital market will remain steadfast in its opening-up efforts. In line with the deployment requirements for institutional opening-up, China will strengthen the top-level institutional design for opening-up, focusing on promoting compatibility and interoperability in rules, regulations, management, and standards, allowing institutions to better play a fundamental role in advancing two-way opening-up that anchors the foundation and benefits the long term. Efforts will be made to enhance the transparency and predictability of institutions, improve communication mechanisms with international investors, further enhance the quality and efficiency of overseas listing filing management, optimize institutional arrangements such as those for qualified foreign institutional investors, support eligible foreign institutions in applying for new businesses and launching new products, and continuously improve the cross-border financial services system.

The Hong Kong IPO journey of Junda Co., Ltd. (002865.SZ), a top-tier enterprise in solar cells, has been experiencing twists and turns: since the second failure of its Hong Kong IPO prospectus on April 14 this year, the company quickly initiated the third submission. Tonight's announcement revealed that the company's 76th meeting of the fourth board of directors was held today, approving the relevant arrangements for the global offering of its H shares and listing on the Hong Kong Stock Exchange.

On March 25, Contemporary Amperex Technology Co. Limited (CATL) announced that it had received the "Notice of Filing for Overseas Issuance and Listing" from the China Securities Regulatory Commission (CSRC). The main contents of the notice include the following: CATL is permitted to issue up to 220,169,700 shares of overseas-listed common stock and list them on the Hong Kong Stock Exchange. If any significant events occur during the period from the issuance of this notice to the completion of the overseas listing, the company should report them through the CSRC Filing Management Information System. Within 15 working days after the completion of the overseas issuance and listing, the company should also report the issuance and listing situation through the CSRC Filing Management Information System and strictly abide by the relevant laws, regulations, and rules both domestically and overseas. If the overseas issuance and listing are not completed within 12 months from the issuance of this notice and the company intends to continue to proceed, it should update the filing materials. The application for this issuance and listing still requires approval from relevant government authorities in Hong Kong, and there is uncertainty regarding the matter.

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On June 17, according to China Securities Regulatory Commission (CSRC)’s website, the CSRC has received the overseas listing application materials from the autonomous driving solution developer Mome...