Core Viewpoint - Yunnan Chihong Zinc & Germanium Co., Ltd. has approved a proposal to establish a joint venture with related parties to extend the rare metal industry chain [1] Group 1: Joint Venture Details - The company will collaborate with China Aluminum Group Co., Ltd., China Aluminum Corporation, Yunnan Copper Co., Ltd., and Chalco Capital Holdings Co., Ltd. to set up a joint venture [1] - The company will contribute a total of RMB 300 million, which includes 100% equity of Yunnan Chihong International Germanium Co., Ltd. and cash, to hold a 20% stake in the joint venture [1] - The formal signing of the investment agreement for the joint venture took place on October 24, 2025 [1]

Core Viewpoint - China Aluminum announced the establishment of a joint venture with several partners, focusing on high-purity gallium production, indicating a strategic move to enhance its capabilities in the semiconductor materials sector [1] Group 1: Joint Venture Details - The joint venture is tentatively named China Aluminum Qianxing (Chengdu) Technology Co., Ltd. with a registered capital of 1.5 billion yuan [1] - China Aluminum will contribute 300 million yuan, holding a 20% stake, by valuing its high-purity gallium production line as part of its investment, with the remaining amount to be supplemented in cash [1] - All parties are required to complete their capital contributions by December 31, 2025, and the asset evaluation for the high-purity gallium production line is currently in progress [1]

Core Viewpoint - Rio Tinto is exploring a potential asset swap with China Aluminum, which could reduce China Aluminum's 11% stake in Rio Tinto and allow the company to restart buybacks and pursue new strategic transactions [2][3] Group 1: Asset Swap Details - The asset swap may involve China Aluminum exchanging part of its stake for collaboration in Rio Tinto's mining assets, potentially ending governance restrictions that have limited Rio Tinto's flexibility for 15 years [2] - Potential assets of interest for China Aluminum include the Simandou iron ore project in Guinea and the Oyu Tolgoi copper mine in Mongolia [2] - Another possible swap could involve Rio Tinto's titanium business, which is under strategic review by the new CEO Simon Trott [2] Group 2: Impact on Capital Management - The swap could reduce China Aluminum's stake by 2-3 percentage points, enabling Rio Tinto to conduct buybacks and large-scale mergers without diluting the largest shareholder's equity [3] - The discussions are occurring as CEO Simon Trott pushes for enhanced cost control and a restructuring of the company from four core business units to three, focusing on profitable assets [3] Group 3: Future Updates - Further updates regarding the restructuring may be announced in the next two weeks, with an investor day scheduled for December 4 [4]

Core Insights - The industrial metals sector experienced a rise of 1.39% on October 23, with Chang Aluminum leading the gains [1] - The Shanghai Composite Index closed at 3922.41, up 0.22%, while the Shenzhen Component Index also rose by 0.22% to 13025.45 [1] Summary by Category Stock Performance - Chang Aluminum (002160) closed at 4.96, up 9.98% with a trading volume of 784,800 shares and a transaction value of 383 million [1] - Other notable performers included: - Zheng Platinum (003038) at 19.73, up 9.98% [1] - Shihua Station (600595) at 6.56, up 5.98% [1] - Tianshan Aluminum (002532) at 12.94, up 5.12% [1] - Minfa Aluminum (002578) at 3.73, up 3.61% [1] Capital Flow - The industrial metals sector saw a net inflow of 676 million yuan from main funds, while retail investors experienced a net outflow of 634 million yuan [2] - The main funds' net inflow for China Aluminum (601600) was 434 million yuan, representing 10.32% of its trading volume [3] - Other companies with significant main fund inflows included: - Zheng Platinum (003038) with a net inflow of 194 million yuan [3] - Shihua Station (600595) with a net inflow of 104 million yuan [3] Market Trends - The overall trend in the industrial metals sector indicates a positive sentiment, with several stocks showing significant gains [1][2] - The divergence in capital flow suggests that while institutional investors are bullish, retail investors are more cautious, leading to a mixed outlook [2][3]

Core Insights - The Central State-Owned Enterprises Modern Energy ETF (561790) has shown a positive performance, with a recent increase of 0.16% and a two-week cumulative rise of 4.39% as of October 22, 2025 [3][4] - The index tracks 50 listed companies involved in modern energy sectors, reflecting the overall performance of state-owned enterprises in this field [4] Market Performance - The Central State-Owned Enterprises Modern Energy Index rose by 0.29%, with notable increases in constituent stocks such as China Nuclear Engineering (up 10.01%) and Petrochemical Machinery (up 8.24%) [3] - The ETF's trading volume was active, with a turnover rate of 10.96% and a transaction value of 4.92 million yuan [3] Industry Developments - As of mid-2025, China's operational power storage projects reached a cumulative installed capacity of 164.3 GW, marking a 59% year-on-year increase, with new energy storage growing by 110% [4] - The number of charging infrastructure units nationwide reached 17.34 million, reflecting a 57.72% increase [4] - The new power generation capacity added from January to August 2025 grew by 64.40%, with power investment totaling 499.2 billion yuan, a 0.50% increase [4] Technological Advancements - The successful operation of a 3kW@4.5K helium refrigerator developed by Zhongke Qingneng supports the stable operation of the CRAFT facility, a key project in China's nuclear fusion research [3] - XINWANDA has launched a polymer solid-state battery with an energy density of 400 Wh/kg, with plans to establish a 0.2 GWh production line by the end of 2025 [3]

Core Insights - The non-ferrous metal sector is experiencing volatility, with the non-ferrous leader ETF (159876) showing a decline of 1.05% amid market sentiment issues and fluctuations in gold prices [1][3] - Lithium and aluminum sectors are showing localized activity, with leading companies like Shengxin Lithium and Tibet Mining seeing gains, while others like Chuanjiang New Material and Yunnan Zhenye are underperforming [3][5] Market Performance - The non-ferrous metal ETF (159876) is tracking the performance of key components, with significant movements in stocks such as Shengxin Lithium up over 6% and Zhongfu Industrial up over 2% [3][4] - The overall market sentiment is reflected in the mixed performance of various stocks, with some major players reporting substantial profit increases, such as Zijin Mining with a 10.33% revenue growth and a 55.45% increase in net profit [5][6] Supply Chain Dynamics - Recent supply disruptions in aluminum production, particularly from Century Aluminum and South32, are raising concerns about future supply constraints, which could positively impact aluminum prices [5][6] - Analysts are optimistic about the aluminum sector's profitability due to these supply constraints, suggesting a potential upward trend in valuations [5] Industry Trends - The non-ferrous metal industry is entering a "new cycle" driven by global energy transitions and technological advancements, with increasing demand for metals like copper, lithium, and cobalt due to the growth of renewable energy and electric vehicles [6][7] - The sector is characterized by a "volume and price increase" phase, with leading companies showing improved profitability and return on equity (ROE), providing solid support for current valuations [5][6] Investment Strategy - The non-ferrous leader ETF (159876) offers a diversified investment approach, tracking a range of metals including copper, gold, aluminum, rare earths, and lithium, which helps mitigate risks associated with investing in single metal sectors [7]

Group 1: Liquidity and Performance of Rare Earth ETF - The liquidity of the Rare Earth ETF managed by Jiashi reached a trading volume of 97.241 million yuan [3] - Over the past two weeks, the scale of the Rare Earth ETF increased by 2.632 billion yuan, marking significant growth and ranking first among comparable funds [3] - In terms of shares, the ETF saw an increase of 10.7 million shares in the past week, also ranking first among comparable funds [3] - In the last five trading days, there were net inflows on three days, totaling 917 million yuan [3] - As of October 22, the net value of the Rare Earth ETF has risen by 88.51% over the past two years, ranking 88th out of 2358 index equity funds, placing it in the top 3.73% [3] - The highest monthly return since inception was 41.25%, with the longest consecutive monthly increase being four months and a maximum increase of 83.89% [3] Group 2: Market Dynamics and Policy Impact - The Ministry of Commerce, in conjunction with the General Administration of Customs and other departments, has issued multiple export control policies, highlighting the strategic nature of rare earth resources [4] - The combination of regulatory constraints and declining imports has strengthened the rigidity of rare earth supply [4] - Demand from sectors such as new energy vehicles, consumer electronics, variable frequency air conditioners, and wind power is expected to continue rising, providing strong support for rare earth prices [4] - Emerging fields like robotics, low-altitude economy, and industrial motors are anticipated to open up long-term demand growth opportunities [4] - The supply-demand dynamics in the rare earth industry are expected to reach a turning point, with a continued recommendation for strategic allocation in the rare earth industry chain [4] Group 3: Top Weighting Stocks in Rare Earth Industry - The top ten weighted stocks in the China Rare Earth Industry Index account for 61.96% of the index, including Northern Rare Earth, Wolong Electric Drive, Lingyi Technology, China Rare Earth, Shenghe Resources, Gree Environmental, Goldwind Technology, Baotou Steel, Xiamen Tungsten, and China Aluminum [3]

Group 1: Metal Industry Insights - The steel industry is experiencing a demand rebound, but the recovery is not as strong as in previous years, with short-term price fluctuations expected [2] - Copper prices have been under pressure due to previous U.S. tariff policies, but expectations surrounding U.S.-China trade talks and potential Federal Reserve interest rate cuts may alleviate downward pressure [2] - Aluminum prices are expected to fluctuate in the short term, supported by stable fundamentals and easing trade tensions between the U.S. and China [2] - Gold prices may face short-term correction risks due to upcoming U.S.-China negotiations and Federal Reserve meetings, but geopolitical tensions could provide support [2] - Lithium prices are expected to be supported by resilient demand, particularly in energy storage, as disruptions in mining operations in Jiangxi have eased [2] - Rare earth prices may face pressure if export controls are tightened, with attention on the impact of U.S.-China trade negotiations [2] Group 2: Strategic Recommendations - For the steel sector, policies promoting precise capacity control and quality improvement are expected to enhance the competitive landscape and profitability of steel companies [3] - The copper supply outlook is tightening due to incidents at major mines, suggesting a potential price floor; focus on companies with strong resource guarantees and environmental standards [3] - In the aluminum sector, the "anti-involution" policy is anticipated to improve the supply landscape, with a focus on demand recovery during peak seasons [4] - Gold prices are influenced by U.S. government stability and geopolitical issues, with long-term interest rate uncertainty potentially benefiting gold [4] - The rare earth sector is expected to see a revaluation of related companies due to heightened strategic importance and export control policies [5] - Cobalt supply constraints are anticipated due to limited export quotas from the Democratic Republic of Congo, while demand from electric vehicles and energy storage remains strong [5] Group 3: Machinery Equipment Industry Insights - The engineering machinery sector is witnessing a recovery, with significant growth in excavator sales and a favorable policy environment promoting effective demand expansion [6][7] - The import and export trade of engineering machinery in September reached $5.505 billion, marking a year-on-year increase of 29.1% [6] - The machinery equipment industry is currently valued at a P/E ratio of 31.63, with a premium of 133.41% over the CSI 300 index [6] - The sector's outlook is positive, driven by ongoing demand from infrastructure projects and a shift towards commercial competition in humanoid robotics [7]

Market Overview - The Shanghai Composite Index fell by 0.07% on October 22, with nine industries experiencing gains, led by the petroleum and petrochemical sector, which rose by 1.58% [1] - The total net outflow of funds from the two markets was 44.231 billion yuan, with four industries seeing net inflows, primarily in the petroleum and petrochemical sector, which had a net inflow of 558 million yuan [1] Industry Performance - The non-ferrous metals industry saw a decline of 1.36%, with a total net outflow of 4.502 billion yuan. Out of 137 stocks in this sector, 31 rose while 102 fell [2] - The top three stocks with the highest net inflow in the non-ferrous metals sector were Xinbo Co., which had a net inflow of 119 million yuan, followed by Zhongtung High-tech and China Aluminum, with net inflows of 65.536 million yuan and 62.256 million yuan, respectively [2] Fund Flow Analysis - The non-ferrous metals sector had 33 stocks with net inflows, while 11 stocks experienced net outflows exceeding 100 million yuan. The largest outflows were from Northern Rare Earth, Shenghe Resources, and Zhongjin Gold, with outflows of 709 million yuan, 340 million yuan, and 327 million yuan, respectively [2][3] - The top stocks with the highest net outflows included Northern Rare Earth, which fell by 2.98%, and Shenghe Resources, which dropped by 4.21% [3]

港交所消息：10月17日， 贝莱德 公司持有的 中国铝业 H股多头头寸从4.81%增至5.46%。 ...