Group 1 - The rare earth permanent magnet sector in the A-share market has weakened, with Baotou Steel falling nearly 8% and Northern Rare Earth and Huicheng Environmental Protection dropping over 5% [1] - Other companies such as Zhongmin Resources, Yahua Group, and Ashi Chuang experienced declines of over 4%, while Dadi Bear, China Aluminum, Jiuling Technology, Benlang New Materials, and Zhongse Co. fell over 3% [1] Group 2 - Baotou Steel's market capitalization is 121.8 billion, with a year-to-date increase of 44.62% despite a recent drop of 7.88% [2] - Northern Rare Earth has a market capitalization of 135.3 billion, with a year-to-date increase of 76.66% and a recent decline of 5.43% [2] - Huicheng Environmental Protection's market capitalization is 33.3 billion, with a year-to-date increase of 74.35% and a recent drop of 5.30% [2] - Zhongmin Resources has a market capitalization of 26 billion, with a year-to-date increase of 3.01% and a recent decline of 4.96% [2] - Yahua Group's market capitalization is 16.1 billion, with a year-to-date increase of 19.91% and a recent drop of 4.51% [2] - Ashi Chuang has a market capitalization of 5.672 billion, with a year-to-date increase of 53.93% and a recent decline of 4.09% [2] - Dadi Bear's market capitalization is 3.610 billion, with a year-to-date increase of 52.97% and a recent drop of 3.84% [2] - China Aluminum has a market capitalization of 127.6 billion, with a year-to-date increase of 1.22% and a recent decline of 3.75% [2] - Jiuling Technology has a market capitalization of 4.16 billion, with a year-to-date increase of 243.03% and a recent drop of 3.67% [2] - Benlang New Materials has a market capitalization of 3.361 billion, with a year-to-date increase of 135.93% and a recent decline of 3.65% [2] - Zhongse Co. has a market capitalization of 11.8 billion, with a year-to-date increase of 20.63% and a recent drop of 3.59% [2] - Xiamen Aluminum has a market capitalization of 36.7 billion, with a year-to-date increase of 22.51% and a recent decline of 3.50% [2]

Fixed Income Research - The report indicates that the overall issuance guidance rates for credit bonds have mostly decreased, with a change range of -5 BP to 2 BP [2] - The issuance scale of credit bonds has increased on a month-on-month basis, with net financing amounts for medium-term notes and short-term financing bonds rising, while corporate bonds, company bonds, and targeted tools saw a decrease [2] - In the secondary market, the transaction amount of credit bonds has increased, with all varieties showing growth; however, credit bond yields have risen by 4-14 BP [2] - The report suggests that despite the recent yield adjustments, the conditions for a trend reversal in credit bonds remain insufficient, but the support from insufficient supply and strong demand may lead to a potential decline in yields [2] - The report emphasizes a cautious yet optimistic approach to current configurations and trading strategies, focusing on the trends in interest rate bonds and the coupon value of individual bonds [2] Industry Research - In the steel sector, prices have rebounded, leading to some replenishment intentions downstream, with macro "anti-involution" news positively impacting steel prices [5] - The aluminum market is expected to experience price fluctuations due to insufficient fundamental support, with attention on the outcomes of the July Politburo meeting and US-China trade negotiations [5] - Lithium prices have been positively influenced by "anti-involution" news, but there is still significant pressure from oversupply, necessitating caution regarding speculative demand [5] - The rare earth sector has seen a significant increase in exports, with June exports rising by 32.02% month-on-month, indicating potential for further price strength due to improving export demand [5] - The report maintains a "positive" rating for the steel industry and the non-ferrous metals sector, highlighting specific companies for potential investment [6]

Investment Rating - The steel industry is rated as "Positive" and the non-ferrous metals industry is also rated as "Positive" [4] Core Views - The report highlights a rebound in steel prices, driven by downstream replenishment intentions and macroeconomic "anti-involution" messages, while cautioning against price volatility due to speculative demand [4][16] - The report emphasizes the potential for demand growth in special steel sectors due to high-altitude corrosion environments [3][16] - The report notes that aluminum prices are expected to fluctuate in the short term due to insufficient fundamental support, despite positive macro sentiment [3][48] - Lithium prices are supported by "anti-involution" news, but there are concerns about oversupply and speculative demand [3][54] - The report indicates a significant increase in China's rare earth exports in June, with expectations for further growth in July [3][67] Summary by Sections Steel Industry - Steel prices have rebounded, with downstream purchasing intentions increasing; however, speculative demand may lead to price fluctuations [4][16] - As of July 25, the total steel inventory was 13.30 million tons, down 0.11% from the previous week and down 22.78% year-on-year [26] - The average price index for steel on July 25 was 3,606.18 CNY/ton, up 4.16% from the previous week [39] Copper - The copper market is experiencing tight supply and low inventory, which supports prices; however, the market is currently in a seasonal lull [41] - As of July 25, LME copper spot prices were 9,800 USD/ton, up 1.25% from the previous week [46] Aluminum - The aluminum market is under pressure from seasonal demand, with expectations of inventory accumulation; however, macroeconomic sentiment remains positive [48] - As of July 25, LME aluminum spot prices were 2,700 USD/ton, up 2.53% from the previous week [49] Precious Metals - Gold prices are under pressure due to reduced risk aversion following trade agreements between the US and other countries [51] - As of July 25, COMEX gold closed at 3,338.50 USD/oz, down 0.51% from the previous week [51] New Energy Metals - The lithium sector is expected to see accelerated capacity clearance, with prices for battery-grade lithium carbonate rising to 74,000 CNY/ton, up 12.12% from the previous week [55] - The report highlights the potential for new demand in the lithium sector due to government policies supporting solar energy [54] Rare Earths and Minor Metals - The report notes a significant increase in the price of light rare earths, with praseodymium-neodymium oxide priced at 513,500 CNY/ton, up 7.31% from the previous week [67] - Tungsten concentrate prices rose to 188,000 CNY/ton, up 4.44% from the previous week [69]

Core Insights - The A-share rare earth permanent magnet sector has shown renewed activity, with significant market interest in related products, particularly the rare earth ETF (516780) which recorded a trading volume of 253 million yuan on July 28, marking seven consecutive trading days with over 200 million yuan in daily trading volume, indicating strong capital inflow [1] - The rare earth ETF has seen a net inflow of 127 million yuan over the past five trading days, with its total scale reaching 1.731 billion yuan as of July 28, the highest in nearly four years [1] - The price of praseodymium has increased, reflecting the strategic value of rare earth resources amid the global energy revolution and geopolitical tensions [1] Industry Analysis - A recent report from Founder Securities indicates that the rare earth magnetic materials sector is experiencing tightening supply expectations due to the ban on rare earth mining in Myanmar's Kachin region by the end of 2025 and the zero imports of rare earth metals by the U.S. in June, leading to a price surge for praseodymium and neodymium oxide, which has surpassed 500,000 yuan per ton [2] - The rare earth ETF (516780) closely tracks the CSI Rare Earth Industry Index, which includes companies involved in rare earth mining, processing, trading, and applications, with the top five constituent stocks being Northern Rare Earth, China Rare Earth, China Aluminum, Greeenmei, and Lingyi Technology, all of which are competitive leaders in the industry [2] - The management of the rare earth ETF, Huatai-PB Fund, has over 18 years of ETF operation experience and has created several benchmark ETFs, with its total ETF scale exceeding 520 billion yuan as of July 28, placing it in the top tier of the industry [2] Market Outlook - With improving demand and expectations of tightening rare earth supply, prices in the rare earth industry are likely to be supported, presenting potential investment opportunities in the rare earth sector, particularly in the rare earth ETF (516780) and its linked funds [3]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Greater China Materials - **Date**: July 25, 2025 - **Analysts**: Morgan Stanley Asia Limited Key Takeaways Production and Sales of Industrial Goods - Average crude steel output from key steel mills was 2.141 million tons in mid-July 2025, reflecting a 2.1% increase compared to early July [1] - Planned production of household air conditioners is expected to decline by 7.1% year-over-year in August [1] - Passenger vehicle (PV) sales are projected at 1.85 million units in July, marking an 8% year-over-year increase but an 11% month-over-month decrease, with new energy vehicle (NEV) sales at 1.01 million units [1] - Shipbuilding delivery volume for the first half of 2025 was 24.13 million compensated gross tons (CGT), down 3.5% year-over-year [1] Infrastructure and Property Developments - Construction has commenced on a massive hydro station at the Yarlung Tsangpo River in Tibet, with a total investment of RMB 1.2 trillion [2] - Water conservancy investment in China reached RMB 532.9 billion in the first half of 2025, a decrease of 6.3% year-over-year [2] - Renovation of old urban communities saw 16,500 new starts, achieving approximately 66% of the annual target in the first half of 2025 [2] Supply Policies - The National Development and Reform Commission (NDRC) and the State Administration for Market Regulation (SAMR) are working to improve standards for recognizing low-price dumping and regulating market price order [3] - The National Energy Administration (NEA) has issued a notice to check coal overproduction in eight major coal-producing provinces for 2024 and year-to-date 2025 [3] Building Materials Activity - Weekly cement shipments in July 2025 were 665 million tons, with a year-to-date total of 2,778 million tons, reflecting a 56% increase [4] - Daily molten iron production was reported at 2,422 thousand tons, showing a slight decrease of 0.1% [4] - Planned production of battery materials in July 2025 includes 145.1 GWh of batteries, a 1% increase year-over-year, while lithium production is expected to reach 102.2 thousand tons of lithium carbonate equivalent (LCE), a 3% increase [4] Additional Insights - The hydro station project is significant for future energy supply and infrastructure development in the region, indicating a strong government push towards renewable energy sources [8] - Supply-side policies may lead to increased market stability and reduced competition pressures in the materials sector [3] - The decline in household AC production and fluctuations in vehicle sales may indicate broader economic trends affecting consumer demand [1][2] Conclusion The conference call highlighted a mixed outlook for the Greater China materials sector, with positive developments in infrastructure and energy projects, but challenges in consumer goods production and sales. The ongoing supply-side policies are expected to play a crucial role in shaping market dynamics in the coming months.

Summary of Key Points from the Conference Call Industry Overview - **Industry Focus**: Greater China Materials, specifically in the Asia Pacific region [6][62] - **Current Industry View**: Attractive, indicating positive expectations for performance over the next 12-18 months [6][33] Key Market Movements Base Metals - **Copper**: Prices increased by 1.2% week-over-week (WoW) to Rmb79,640/t, with inventories down by 13.2% [2][10] - **Aluminum**: Prices rose by 0.4% WoW to Rmb20,780/t, while inventories increased by 6.4% [2][10] Battery Metals - **Lithium Hydroxide**: Domestic industrial-grade prices rose by 6.5% WoW to Rmb55,370/t, and battery-grade prices increased by 5.4% to Rmb60,520/t [2][10] - **Lithium Carbonate**: Industrial-grade prices saw an 8.8% increase WoW to Rmb68,900/t, while battery-grade prices rose by 8.6% to Rmb70,550/t [2][10] Steel - **Hot Rolled Coil (HRC)**: Prices increased by 1.5% WoW to Rmb3,400/t [3][10] - **Cold Rolled Coil (CRC)**: Prices rose by 4.0% WoW to Rmb3,914/t [3][10] - **Rebar**: Prices increased by 1.3% WoW to Rmb3,296/t [3][10] - **Tangshan Billet**: Prices rose by 5.4% WoW to Rmb3,120/t [3][10] Cement and Coal - **Cement**: Prices decreased by 1.0% WoW to Rmb324/t [3][10] - **Coal**: Prices for QHD5500 increased by 0.3% WoW to Rmb662/t, with inventories up by 1.2% to 5.85 million tonnes [3][10] Glass - **Float Glass**: Prices increased by 2.4% WoW to Rmb1,281/t [4][10] - **Glass Fiber**: Prices remained stable at Rmb3,900/t [4][10] Regulatory and Infrastructure Developments - **Regulatory Actions**: NDRC and SAMR are working to improve standards for recognizing low-price dumping and regulating market price order [8] - **Infrastructure Investment**: Construction of a hydro station in the Yarlung Tsangpo River in Tibet has commenced, with a total investment of Rmb1.2 trillion [8] Analyst Insights - **Analysts Involved**: Rachel L Zhang, Chris Jiang, Hannah Yang, and Davven Xu are the key analysts providing insights on the Greater China Materials sector [5][62] - **Investment Banking Relationships**: Morgan Stanley has received compensation for investment banking services from several companies in the materials sector, indicating potential conflicts of interest [17][20] Conclusion - The Greater China Materials sector is experiencing positive price movements across various commodities, with a favorable outlook for the coming months. Regulatory actions and significant infrastructure investments are also shaping the market landscape.

Investment Rating - The industry investment rating is "Positive" and maintained [8] Core Views - The macroeconomic outlook is improving, leading to a comprehensive rise in metal prices, particularly strategic metals [2][4] - The report emphasizes the importance of strategic metals and bottom energy metal allocation opportunities, highlighting the revaluation of rare earths and tungsten [4] - The report suggests that the domestic growth stabilization and anti-involution policies are enhancing expectations, which is driving up domestic commodity prices [5][6] Summary by Sections Strategic Metals - Strategic metals such as rare earths and tungsten are experiencing a revaluation, with significant price increases expected due to government focus and international supply chain developments [4] - The price of rare earth concentrate has increased to 19,100 CNY/ton, reflecting a 1.5% increase [4] - Tungsten prices are also on the rise, supported by strong supply dynamics and improving company performance [4] Energy Metals - The report indicates a high probability of short-term price increases for cobalt, with a significant drop in imports noted [4] - Cobalt intermediate imports in June fell to 18,991 tons, a decrease of 61.6% month-on-month [4] - Nickel prices are expected to stabilize, with long-term price expectations likely to rise [4] Lithium - The report notes a bottoming out of lithium prices, with recent regulatory changes indicating stricter domestic mining controls [4] - The price of battery-grade lithium carbonate has rebounded by 15.2% to 76 CNY/kg [24] - The report suggests monitoring potential resource releases in the lithium sector [4] Precious Metals - Gold prices are fluctuating due to improved risk appetite and easing trade tensions, with a recommendation to increase allocation to precious metal stocks [4][6] - The report highlights that gold stocks have underperformed, suggesting a strategic buying opportunity [4] - Silver is noted for its potential upside, with a recommendation to consider silver stocks for recovery [4] Industrial Metals - The report indicates that industrial metals are experiencing mixed performance, with domestic prices leading international trends [5][6] - Copper prices on the SHFE increased by 1.1%, while aluminum prices rose by 1.2% [5] - The report emphasizes the importance of monitoring macroeconomic policies and their impact on metal demand [6]

Investment Rating - The report maintains a "Buy" rating for the industry and specific companies within the sector [6]. Core Views - The report highlights a positive outlook for industrial metals driven by domestic policies aimed at reducing competition and boosting infrastructure investment, alongside U.S. fiscal expansion and ongoing interest rate cuts [2][3]. - Energy metals, particularly lithium and cobalt, are expected to see price increases due to supply disruptions and strong demand from the new energy sector [3]. - Precious metals are favored due to heightened demand for gold as a safe haven amid global trade tensions and ongoing central bank purchases [4]. Summary by Sections Industrial Metals - The report notes that industrial metal prices are rising due to domestic "anti-involution" policies and infrastructure investment, with copper prices experiencing short-term fluctuations due to trade changes [2]. - Key statistics include a weekly increase in aluminum prices by 1.22% and copper prices by 1.07%, while zinc prices rose by 2.65% [11]. - Recommended companies include Zijin Mining, Luoyang Molybdenum, and China Nonferrous Mining [2]. Energy Metals - Lithium prices are rebounding significantly due to supply concerns from regions like Jiangxi and Qinghai, with expectations for continued price increases [3]. - Cobalt prices are also anticipated to rise due to raw material shortages and increased demand as the market recovers from a low trading volume [3]. - Recommended companies in this sector include Huayou Cobalt and Zangge Mining [3]. Precious Metals - The report emphasizes the increasing demand for gold driven by global trade uncertainties and central bank purchases, predicting a long-term upward trend in gold prices [4]. - Gold prices have shown a weekly increase of 0.68%, while silver prices rose by 2.13% [11]. - Recommended companies include Shandong Gold and Zhongjin Gold [4].

Group 1 - The core index, the Guozheng Free Cash Flow Index, has decreased by 0.37% as of July 25, 2025, with mixed performance among constituent stocks, including leading gains from companies like Lianxu Electronics and Huaren Health, while companies like Yaxiang Integration and Zhejiang Construction led the declines [1] - The Free Cash Flow ETF (159201) also fell by 0.37%, with the latest price at 1.07 yuan. Over the past week, the ETF has seen a cumulative increase of 3.47%, ranking first among comparable funds [1] - In terms of liquidity, the Free Cash Flow ETF had a turnover of 0.91% during the trading session, with a transaction volume of 36.4183 million yuan. The average daily transaction volume over the past week reached 335 million yuan, ranking first among comparable funds [1] Group 2 - The Free Cash Flow ETF has attracted a total of 170 million yuan in the last five trading days, with its latest scale reaching 4.007 billion yuan, marking a new high since its inception and ranking first among comparable funds [1] - The management fee for the Free Cash Flow ETF is 0.15%, and the custody fee is 0.05%, making it the lowest among comparable funds [3] - As of June 30, 2025, the top ten weighted stocks in the Guozheng Free Cash Flow Index accounted for 57.97% of the index, including SAIC Motor, China National Offshore Oil, Midea Group, and Gree Electric [3][5]

Group 1 - The announcement details the resignation of Mr. Ge Xiaolei as the Chief Financial Officer (CFO) of China Aluminum Corporation, effective July 24, 2025, due to work-related reasons [1] - Mr. Ge confirmed that there were no disagreements with the board and his resignation will not adversely affect the company's normal operations [1] - The board expressed gratitude for Mr. Ge's contributions during his tenure as CFO [2] Group 2 - The company appointed Ms. Zhu Dan as the new CFO, effective immediately following the board meeting on July 24, 2025 [2] - Ms. Zhu has over 20 years of professional experience in financial management and capital operations, having held various positions within the company [3] - Ms. Zhu's qualifications were reviewed and deemed suitable by the board's nomination committee, with no regulatory penalties or disqualifications noted [2][3]