Group 1: Market Overview - The A-share market showed a positive trend with major indices rising, particularly the Shanghai Composite Index reaching a new closing high for the year [2] - Resource cyclical stocks were prominent, with the rare earth permanent magnet sector experiencing significant gains, alongside lithium and coal sectors [2][3] - The overall market is transitioning from a "weight-driven" to a "theme-driven" approach, indicating a structural market trend [8] Group 2: Rare Earth Sector - The rare earth permanent magnet sector saw active trading, with several stocks hitting the daily limit up, including Jiuwu High-Tech and Huahong Technology [3] - The discovery of a new mineral, "Nedun River Mineral," by a research team from China University of Geosciences, highlights the complexity and resource diversity of the Baiyun Obo mine, the world's largest rare earth deposit [3] - As of July 18, 17 companies in the rare earth permanent magnet sector have released half-year performance forecasts, with 9 expecting profit increases and 5 turning losses into profits [4] Group 3: Lithium Sector - The lithium mining sector experienced significant movements, with stocks like Shengxin Lithium Energy and Jinyuan Co. hitting the daily limit up [6] - A recent announcement from Cangge Mining regarding the suspension of lithium resource development due to compliance issues has raised concerns about supply constraints in the lithium market [6] - Major lithium companies Tianqi Lithium and Ganfeng Lithium reported improved performance forecasts, indicating a potential recovery in the sector [7] Group 4: Investment Outlook - Financial institutions suggest that the market is likely to continue focusing on structural opportunities, particularly in technology growth sectors supported by policy and industrial upgrades [8] - The trend indicates a shift from capital-driven to profit-driven industry operations, with expectations of dual recovery in performance and valuation across various sectors [8]

Investment Rating - The report maintains a standard rating for the non-ferrous metals industry [2] Core Views - The non-ferrous metals industry has shown a mixed performance, with the small metals sector rising by 6.58% and the industrial metals sector declining by 3.49% in the past two weeks [3][12] - The rare earth and magnetic materials sector is experiencing a significant profit increase, driven by improved supply-demand dynamics and price recovery [5][65] - Lithium prices continue to decline due to oversupply, but leading companies are expected to recover as high-cost production is phased out [66] Industry Performance Overview - As of July 17, 2025, the non-ferrous metals industry has decreased by 0.87% over the past two weeks, underperforming the CSI 300 index by 2.55 percentage points [12] - Year-to-date, the industry has increased by 20.08%, outperforming the CSI 300 index by 17.55 percentage points, ranking first among 31 industries [12] - The small metals sector has shown a year-to-date increase of 24.87%, while the industrial metals sector has increased by 16.89% [18] Price Trends - As of July 17, 2025, LME copper is priced at $9,678 per ton, LME aluminum at $2,589 per ton, and LME nickel at $15,065 per ton [24] - The rare earth price index has risen to 192.03, with significant increases in prices for praseodymium-neodymium oxide and dysprosium oxide [42][65] - Lithium carbonate prices are stabilizing, with battery-grade lithium carbonate at 64,800 yuan per ton [40][66] Company Performance Highlights - Northern Rare Earth expects a net profit increase of 1,882.54% to 2,014.71% for the first half of 2025 [56] - Ningbo Yunsheng anticipates a net profit increase of 133.55% to 250.33% for the same period [57] - Xiamen Tungsten's revenue for the first half of 2025 is projected at 19.178 billion yuan, with a net profit of 972 million yuan, a decrease of 4.41% year-on-year [52][67]

Market Overview - On July 18, the Shanghai Composite Index rose by 0.50%, the Shenzhen Component Index increased by 0.37%, the ChiNext Index went up by 0.34%, and the CSI 300 Index gained 0.60% [1] - Among the tradable A-shares, 2,603 stocks rose, accounting for 48.15%, while 2,567 stocks declined [1] Capital Flow - The main capital saw a net outflow of 22.987 billion yuan throughout the day [1] - The ChiNext experienced a net outflow of 11.028 billion yuan, while the STAR Market had a net outflow of 2.009 billion yuan [1] - The CSI 300 constituent stocks had a net inflow of 2.142 billion yuan [1] Industry Performance - Out of the 28 primary industries classified by Shenwan, 22 industries saw an increase, with the non-ferrous metals and basic chemicals sectors leading with gains of 2.10% and 1.36%, respectively [1] - The media and electronics sectors had the largest declines, with drops of 0.98% and 0.49% [1] Industry Capital Inflow and Outflow - The non-ferrous metals industry had the highest net inflow of capital, totaling 3.794 billion yuan, and rose by 2.10% [1] - The non-bank financial sector saw a net inflow of 0.897 billion yuan, with a daily increase of 0.33% [1] - The electronics industry had the largest net outflow, with a total of 8.341 billion yuan and a decline of 0.49% [1] - The computer sector experienced a net outflow of 4.375 billion yuan, despite a daily increase of 0.35% [1] Individual Stock Performance - A total of 1,835 stocks had net inflows, with 661 stocks seeing inflows exceeding 10 million yuan, and 70 stocks with inflows over 100 million yuan [2] - The stock with the highest net inflow was Northern Rare Earth, which rose by 9.87% with a net inflow of 2.109 billion yuan [2] - Other notable inflows included China Oil Capital and Wanhua Chemical, with net inflows of 1.150 billion yuan and 0.849 billion yuan, respectively [2] - Conversely, 101 stocks had net outflows exceeding 100 million yuan, with Changshan Beiming, Shenghong Technology, and Hengbao shares leading the outflows at 1.302 billion yuan, 1.087 billion yuan, and 0.716 billion yuan, respectively [2]

Market Overview - The three major A-share indices collectively rose on July 18, with the Shanghai Composite Index up by 0.5%, Shenzhen Component Index up by 0.37%, and ChiNext Index up by 0.34. The total trading volume in the Shanghai and Shenzhen markets reached 15,710.55 billion yuan, an increase of 316.8 billion yuan compared to the previous day [1][2]. Sector Performance - The non-ferrous metals sector led the market, with significant gains in lithium and rare earth stocks. The Non-Ferrous Metals ETF (159876) saw a peak intraday price increase of 2.64%, closing up 2.15%, marking a new high for the year [4][5]. - The chemical sector also performed strongly, with the Chemical ETF (516020) reaching a maximum intraday increase of 2.28% and closing up 1.95%. The price surge was driven by TDI price increases due to supply shortages [12][14]. - The food and beverage sector, particularly leading liquor stocks, also showed strength, with the Food ETF (515710) closing up 1.16% [1][2]. Investment Insights - Analysts from Shenwan Hongyuan noted that under the "anti-involution" policy, the expectations for the midstream manufacturing sector are shifting towards 2026, creating more short-term investment opportunities. The passing of the "Big and Beautiful" bill in the U.S. has reduced the risk of a deep recession, enhancing visibility for China's supply-demand dynamics in 2026 [2][3]. - Guojin Securities highlighted that domestic manufacturing companies' capital returns are expected to stabilize and improve, making A-shares more attractive compared to overseas markets. They recommend focusing on upstream resource products, capital goods, and intermediate goods that benefit from both domestic policies and rising overseas demand [3][4]. Rare Earth and Lithium Market Dynamics - The rare earth sector is experiencing a surge due to several favorable factors, including government actions to secure resource safety and the discovery of new rare earth minerals in Inner Mongolia. The leading company, Northern Rare Earth, is expected to see a net profit increase of up to 2014% in the first half of the year [5][6]. - In the lithium market, a recent production halt due to regulatory issues at a lithium mining company in Qinghai has raised concerns about supply constraints. This, combined with a rebound in lithium carbonate futures prices, has led to increased market interest in the sector [6][7]. Chemical Sector Outlook - The chemical sector is benefiting from a supply crunch in TDI, with major players like Wanhua Chemical expected to gain significantly from rising TDI prices. The company is the largest global supplier of MDI and TDI, with plans to expand its production capacity [12][16]. - Analysts predict that the chemical sector will enter a new upward cycle due to improved demand and supply-side adjustments driven by domestic policy changes [17][18]. Hong Kong Market Trends - The Hong Kong market is showing strength, particularly in the technology sector, with significant gains in internet stocks. The Hong Kong Internet ETF (513770) rose by 1.61%, reflecting strong performance from major tech companies [18][21]. - The innovative drug sector is also gaining traction, with the Hong Kong Innovative Drug ETF (520880) seeing a cumulative increase of 58.95% in the first half of the year, outperforming other indices [23][24].

Group 1 - The small metal concept index rose by 1.81%, ranking 8th among concept sectors, with 116 stocks increasing in value [1] - Notable gainers included Dongfang Zirconium, Shengxin Lithium Energy, and Jinyuan Co., which hit the daily limit, with respective increases of 10.02%, 10.00%, and 9.98% [3][1] - The top decliners were Dazhong Mining, Lingyi Technology, and Western Gold, with declines of 2.95%, 1.93%, and 1.92% respectively [1] Group 2 - The small metal concept sector saw a net inflow of 3.99 billion yuan, with 80 stocks receiving net inflows, and 8 stocks exceeding 100 million yuan in net inflow [2] - The largest net inflow was recorded for Northern Rare Earth at 2.11 billion yuan, followed by Dongfang Zirconium and Shengxin Lithium Energy with net inflows of 434 million yuan and 327 million yuan respectively [2][3] - The net inflow ratios for Jinyuan Co., Dongfang Zirconium, and Shengxin Lithium Energy were 45.14%, 42.43%, and 35.30% respectively [3] Group 3 - The top performing concept sectors included Salt Lake Lithium Extraction with a rise of 3.30%, and Rare Earth Permanent Magnet with an increase of 3.15% [2] - Other notable sectors included Metal Cobalt and Metal Recovery, which rose by 2.29% and 2.08% respectively [2] - Conversely, sectors such as Animal Vaccines and Avian Influenza saw declines of 0.96% and 0.90% respectively [2]

Market Overview - The two markets experienced a net outflow of 10.322 billion yuan, with 1,755 stocks seeing net inflows and 2,928 stocks seeing net outflows [1] - The Shanghai Composite Index closed up by 0.50% [1] Industry Performance - Among the 12 industries with net inflows, the non-ferrous metals sector led with a net inflow of 4.006 billion yuan and an index increase of 2.10% [1] - The non-bank financial sector followed with a net inflow of 1.013 billion yuan and a 0.33% increase [1] - Other notable sectors with net inflows included basic chemicals and transportation [1] - Conversely, 19 industries experienced net outflows, with the electronics sector seeing the largest outflow of 5.671 billion yuan, followed by the computer sector with 2.436 billion yuan [1] Individual Stock Performance - A total of 21 stocks had net inflows exceeding 200 million yuan, with Northern Rare Earth leading at 2.237 billion yuan [2] - Other significant net inflows were seen in China Oil Capital (1.253 billion yuan) and Magpow (759 million yuan) [2] - Stocks with the highest net outflows included Changshan Beiming (1.169 billion yuan), Shenghong Technology (1.082 billion yuan), and Dongfang Wealth (608 million yuan) [2] Stock Price Movements - Stocks with net inflows over 200 million yuan saw an average increase of 7.45%, outperforming the Shanghai Composite Index [2] - Notable stocks that hit the daily limit up included Dongfang Zirconium and Hengwei Technology [2] Sector Concentration - The stocks with the highest net inflows were concentrated in the non-ferrous metals, computer, and non-bank financial sectors, with 5, 4, and 2 stocks respectively [2]

Core Insights - The rare earth permanent magnet sector saw a significant increase of 3.15%, ranking second among concept sectors, with 56 stocks rising, including Jiu Wu Gao Ke which hit a 20% limit up [1] - Major gainers in the sector included Dongfang Zirc, Huahong Technology, and Zinc Industry, with increases of 15.05%, 9.87%, and 9.11% respectively [1] Market Performance - The rare earth permanent magnet sector attracted a net inflow of 3.539 billion yuan, with 40 stocks receiving net inflows, and 7 stocks exceeding 100 million yuan in net inflow [2] - The top net inflow was from Northern Rare Earth, which saw 2.109 billion yuan, followed by Dongfang Zirc, Zhongse Co., and Huahong Technology with net inflows of 434 million yuan, 294 million yuan, and 150 million yuan respectively [2] Fund Flow Ratios - The highest net inflow ratios were observed in Dongfang Zirc (42.43%), Zhongse Co. (34.26%), and Zinc Industry (23.22%) [3] - Northern Rare Earth had a daily turnover rate of 12.69% with a price increase of 9.87%, indicating strong trading activity [3] Stock Performance - Notable performers included Northern Rare Earth, Dongfang Zirc, and Zhongse Co., all showing significant price increases and healthy turnover rates [4] - Stocks like Lingyi Zhi Zao and Longci Technology experienced declines of 1.93% and 1.07% respectively, indicating some volatility within the sector [5]

Group 1 - The metal recycling sector saw an increase of 2.08%, ranking fifth among concept sectors, with 50 stocks rising, including Nanmin Group, Jinyuan Co., and Huahong Technology hitting the daily limit [1][2] - Notable gainers in the sector included Huaxin Environmental Protection, Kaida Catalysis, and Northern Rare Earth, which rose by 15.05%, 10.67%, and 9.87% respectively [1][2] - The sector experienced a net inflow of 2.542 billion yuan from main funds, with 26 stocks receiving net inflows, and 9 stocks seeing inflows exceeding 50 million yuan [2][3] Group 2 - Northern Rare Earth led the net inflow with 2.109 billion yuan, followed by Huahong Technology, Jinyuan Co., and Fulongma with net inflows of 150.21 million yuan, 114 million yuan, and 81.686 million yuan respectively [2][3] - The top three stocks by net inflow ratio were Jinyuan Co. at 45.14%, Nanmin Group at 31.26%, and High Energy Environment at 16.33% [3][4] - The overall performance of the metal recycling sector was supported by significant trading volumes, with Northern Rare Earth achieving a turnover rate of 12.69% [3][4]

Core Viewpoint - The metal industry experienced a significant increase, with a rise of 2.10% on July 18, driven by strong capital inflow, particularly in the rare earth sector [2][3]. Market Performance - The Shanghai Composite Index rose by 0.50% on July 18, with 22 out of 28 sectors showing gains, led by the metal and basic chemical industries, which increased by 2.10% and 1.36% respectively [2]. - The electronic and media sectors faced declines, with drops of 0.49% and 0.98% respectively [2]. Capital Flow - The total net outflow of capital from the two markets was 229.87 billion yuan, with 10 sectors experiencing net inflows [2]. - The metal industry had the highest net capital inflow of 37.94 billion yuan, while the non-bank financial sector saw a modest inflow of 8.97 billion yuan [2]. Individual Stock Performance in Metal Industry - Out of 137 stocks in the metal sector, 107 stocks rose, with 5 hitting the daily limit up [3]. - The top three stocks with the highest net capital inflow were: - Northern Rare Earth: 2.10 billion yuan [3] - Dongfang Zircon: 434 million yuan [3] - Shengxin Lithium Energy: 327 million yuan [3]. - The stocks with the highest net outflow included: - Mingtai Aluminum: 115 million yuan [3] - Haixing Shares: 87 million yuan [3] - Zhongkuang Resources: 84 million yuan [3]. Capital Inflow and Outflow Rankings - The top stocks by capital inflow included: - Northern Rare Earth: 9.87% increase, 210.89 million yuan inflow [4] - Dongfang Zircon: 10.02% increase, 43.38 million yuan inflow [4] - Shengxin Lithium Energy: 10.00% increase, 32.65 million yuan inflow [4]. - The top stocks by capital outflow included: - Mingtai Aluminum: 0.81% increase, 115.29 million yuan outflow [6] - Haixing Shares: 10.03% increase, 87.20 million yuan outflow [6] - Zhongkuang Resources: 4.15% increase, 84.52 million yuan outflow [6].

Core Viewpoint - The total trading volume of the Shanghai and Shenzhen Stock Connect reached 194.62 billion, with Northern Rare Earth and Xinyi Technology leading in individual stock trading volume. The non-ferrous metals sector saw the highest net inflow of funds, while the electronic sector experienced significant outflows [1][4][5]. Trading Volume Summary - The total trading amount for the Shanghai Stock Connect was 92.08 billion, while the Shenzhen Stock Connect was 102.54 billion [1]. - The top traded stocks in the Shanghai Stock Connect included Northern Rare Earth (1st, 1.343 billion), Guizhou Moutai (2nd, 1.329 billion), and Shanxi Fenjiu (3rd, 1.107 billion) [2]. - In the Shenzhen Stock Connect, Xinyi Technology topped the list (1st, 2.367 billion), followed by Zhongji Xuchuang (2nd, 2.246 billion) and CATL (3rd, 1.791 billion) [3]. Sector Performance Summary - The non-ferrous metals sector led with a net inflow of 3.873 billion, followed by small metals (0.806 billion) and diversified finance (0.798 billion) [4]. - The electronic sector had the highest net outflow of 8.962 billion, followed by the computer sector (5.595 billion) and transportation equipment (3.374 billion) [5]. Individual Stock Fund Flow Summary - The top stocks with net inflows included Northern Rare Earth (2.028 billion), Zhongyou Capital (1.047 billion), and Wanhua Chemical (0.660 billion) [6]. - The stocks with the highest net outflows were Changshan Beiming (-1.307 billion), Shengzuo Technology (-1.094 billion), and Hengbao Co., Ltd. (-0.736 billion) [7]. ETF Trading Summary - The top ETF by trading volume was the Hong Kong Securities ETF (1.397 billion), followed by the Hong Kong Innovative Drug ETF (0.877 billion) [8]. - The ETF with the highest growth in trading volume was the Wine ETF (1.10189 billion, up 141.46%), followed by the Rare Earth ETF (0.33435 billion, up 113%) [9]. Futures Position Summary - In the futures market, the IH contract saw a net increase in long positions of 3,760 contracts, while the IF contract had an increase of 2,660 contracts [10]. Institutional Activity Summary - Institutional buying was notable in Northern Rare Earth (0.5423 billion) and Lisheng Pharmaceutical (0.630 billion) [11]. - Significant selling was observed in Spring Wind Power (-2.77 billion) and Mankun Technology (-0.5819 billion) [12]. Retail and Quantitative Activity Summary - Retail investors showed increased activity, with notable buying in Maigemi Te (over 2.4 billion) and selling in Hengbao Co., Ltd. (-1.16 billion) [14][15].