Core Viewpoint - Tongling Nonferrous Metals Group Co., Ltd. focuses on copper products, which are essential materials in various industries due to their excellent conductivity, thermal conductivity, mechanical properties, and high-temperature resistance [1] Company Overview - The company's main product is copper, widely used in power electronics, real estate, transportation, consumer goods, and industrial equipment [1] - The company also produces by-products including gold, silver, sulfuric acid, and various rare metals such as platinum, palladium, and rhenium, which are indispensable materials in the industrial system [1]

Group 1 - The A-share market for non-ferrous metals continues to strengthen, with zinc companies reaching a limit-up, and several other companies like China Uranium, Hunan Silver, and Jiangxi Copper seeing significant gains [1] - Gold, silver, copper, and tin have all reached historical highs simultaneously, indicating strong investor interest and concerns over geopolitical tensions in regions like Venezuela and Iran [1] - Analysts suggest that investors are reassessing asset allocations in light of reshaped geopolitical and trade dynamics, with further upside potential for gold and silver prices [1] Group 2 - Specific stock performance includes: - Zinc Industry Co. (涨幅 8.28%, 总市值 84.50 billion, 年初至今涨幅 27.87%) - China Uranium (涨幅 7.32%, 总市值 155.6 billion, 年初至今涨幅 23.49%) - Hunan Silver (涨幅 7.02%, 总市值 31.8 billion, 年初至今涨幅 63.01%) - Jiangxi Copper (涨幅 6.50%, 总市值 228.6 billion, 年初至今涨幅 20.23%) - Xiamen Tungsten (涨幅 5.95%, 总市值 87.3 billion, 年初至今涨幅 33.97%) [2] - Other notable performers include Yunlu Co. (涨幅 4.70%, 总市值 13 billion, 年初至今涨幅 11.82%) and Western Mining (涨幅 4.49%, 总市值 76.5 billion, 年初至今涨幅 16.21%) [2]

Core Viewpoint - The A-share market is experiencing a strong performance in the non-ferrous metal sector, with multiple companies reaching historical highs, driven by rising prices of gold, silver, copper, and tin amid geopolitical tensions [1] Group 1: Market Performance - Zinc Industry Co. saw a peak increase of 8.28%, with a total market value of 8.45 billion [2] - China Uranium Industry rose by 7.32%, with a market capitalization of 155.6 billion [2] - Hunan Silver increased by 7.02%, with a market value of 31.8 billion [2] - Jiangxi Copper surged by 6.50%, reaching a market cap of 228.6 billion [2] - Xiamen Tungsten climbed by 5.95%, with a total market value of 87.3 billion [2] - Yunlu Co. and Western Mining both increased by over 4%, with market values of 13 billion and 76.5 billion respectively [2] Group 2: Metal Prices and Investor Sentiment - Gold, silver, copper, and tin have all reached historical highs, indicating strong investor interest [1] - Analysts suggest that concerns over geopolitical tensions, particularly in Venezuela and Iran, are prompting investors to reassess asset allocations [1] - There is potential for further increases in gold and silver prices as the market reacts to changing geopolitical and trade dynamics [1]

Core Insights - The industrial metal sector experienced a rise of 1.18% on January 14, with Xingye Silver Tin leading the gains [1] - The Shanghai Composite Index closed at 4126.09, down 0.31%, while the Shenzhen Component Index closed at 14248.6, up 0.56% [1] Industrial Metal Sector Performance - Xingye Silver Tin (000426) closed at 50.38, up 7.74% with a trading volume of 1.01 million shares and a transaction value of 50.13 billion [1] - Baiyin Nonferrous (601212) closed at 7.05, up 7.63% with a trading volume of 4.97 million shares and a transaction value of 34.46 billion [1] - Shengda Resources (000603) closed at 40.92, up 6.23% with a trading volume of 482,300 shares and a transaction value of 19.37 billion [1] - Xibu Mining (601168) closed at 30.06, up 5.77% with a trading volume of 1.09 million shares and a transaction value of 32.84 billion [1] - Jiangxi Copper (600362) closed at 59.80, up 4.53% with a trading volume of 971,200 shares and a transaction value of 57.89 billion [1] Fund Flow Analysis - The industrial metal sector saw a net outflow of 2.12 billion from main funds, while retail funds had a net inflow of 1.56 billion [2] - The main funds' net inflow for Yuguang Jin Lead (600531) was 297 million, accounting for 14.47% of its total [3] - Yunnan Copper (000878) had a net inflow of 187 million from main funds, representing 5.26% [3] - The net inflow for North Copper (000737) was 145 million, accounting for 5.89% [3]

Core Viewpoint - Tongling Nonferrous Metals Group Co., Ltd. has seen its stock price increase by 7.37% over the past four days, closing at 6.12 CNY per share with a market capitalization of 82.066 billion CNY [1] Group 1: Company Overview - Tongling Nonferrous Metals Group was established on November 12, 1996, and listed on November 20, 1996 [1] - The company's main business includes copper mining, smelting, and processing, with revenue composition as follows: copper products 83.78%, gold and other by-products 13.58%, chemical and other products 2.18%, and others 0.46% [1] Group 2: Shareholder Information - Huaxia Fund's Huaxia CSI 300 ETF (510330) reduced its holdings by 985,600 shares in Q3, now holding 70.5015 million shares, representing 0.63% of circulating shares [2] - The ETF has generated a floating profit of approximately 9.8702 million CNY today and 29.6106 million CNY during the four-day price increase [2] Group 3: Fund Performance - The Huaxia CSI 300 ETF (510330) has a total asset size of 228.061 billion CNY, with a year-to-date return of 2.85% and a one-year return of 31.25% [2] - The fund manager, Zhao Zongting, has been in position for 8 years and 275 days, achieving a best return of 122.22% during his tenure [3] Group 4: Fund Holdings - The Huaxia CSI Zhongzheng Hong Kong Gold Industry Stock ETF (159562) holds 15.5816 million shares of Tongling Nonferrous, accounting for 3.47% of the fund's net value [4] - This ETF has generated a floating profit of approximately 2.1814 million CNY today and 6.5443 million CNY during the four-day price increase [4] Group 5: Additional Fund Information - The Huaxia CSI Zhongzheng Hong Kong Gold Industry Stock ETF (159562) was established on January 11, 2024, with a total asset size of 2.409 billion CNY [4] - The fund manager, Hualong, has been in position for 3 years and 147 days, with a best return of 139.26% during his tenure [5]

Group 1 - Domestic copper and aluminum futures prices have risen significantly as of January 14, 2026, indicating a positive trend in the industrial metals market [1] - The Industrial Nonferrous ETF (560860) closely tracks the CSI Industrial Nonferrous Metals Theme Index, which includes leading companies in copper, aluminum, and rare earths, attracting substantial capital inflows [1][3] - The fund experienced a net inflow of 250 million on January 13, with a total of 1.825 billion in net inflows over the past five trading days, and nearly 2.7 billion in the last ten days [1] Group 2 - The CSI Industrial Nonferrous Metals Theme Index comprises 30 leading companies in the industrial nonferrous metals sector, with copper (34.4%), aluminum (21.8%), and rare earths (13.6%) making up nearly 70% of the index as of January 9 [5] - The top ten constituent stocks of the index include major players such as Luoyang Molybdenum, Northern Rare Earth, and China Aluminum, collectively accounting for 56.18% of the index [7] - The Industrial Nonferrous ETF (560860) is the only ETF product tracking the CSI Industrial Nonferrous Metals Theme Index, providing investors with an efficient solution to invest in this sector [7]

Investment Rating - The report maintains a "Positive" investment rating for the non-ferrous and steel industry in China [5] Core Insights - The report emphasizes that investing in resource stocks is not only about bullish metal prices but also serves as a hedge against rising inflation. The recent surge in metal prices, including gold, silver, copper, and aluminum, is attributed to a significant drop in market expectations for a Federal Reserve rate cut, alongside rising inflation expectations [8][13] - The aluminum sector is expected to benefit from geopolitical events, with China's electrolytic aluminum industry poised to enjoy valuation premiums due to its supply chain security and competitive advantages. The report highlights the increasing domestic supply of bauxite and alumina, which enhances the industry's resource security [14] - The precious metals sector is viewed positively as the long-term debt cycle enters its late stage, with rising physical prices reflecting a loss of trust in fiat currency systems. The report anticipates that precious metal prices will continue to reach historical highs in 2026 [15] - The copper sector faces supply chain vulnerabilities, with recent labor disputes leading to production cuts. The report suggests that the basic fundamentals support the equity side of copper investments, which are expected to rise alongside copper prices [16] Summary by Sections Non-Ferrous Metals - The report indicates that the recent collective rise in metal prices is a response to inflationary pressures and a re-evaluation of physical asset values as the dollar debt cycle matures [8][13] - The aluminum sector is highlighted for its strong supply chain capabilities, with domestic production of bauxite and alumina expected to increase, providing a competitive edge [14] - The precious metals market is projected to see continued price increases, driven by a shift in investor sentiment towards physical assets as a safeguard against debt risks [15] Steel Industry - The steel industry is currently experiencing a weak fundamental outlook as it approaches the year-end off-season, with a slight increase in iron and steel production but a decrease in demand [17][22] - Inventory levels for both social and steel mill stocks have increased, indicating a potential oversupply situation [24] - Steel prices have shown a slight overall increase, with specific products like hot-rolled steel experiencing marginal price rises [36][37] New Energy Metals - The report notes a significant year-on-year increase in lithium carbonate production, with December 2025 figures showing a 69.09% rise [40] - The demand for new energy vehicles remains strong, with production and sales figures for November 2025 reflecting substantial growth [44] - Prices for lithium and cobalt have risen sharply, indicating a robust market for new energy metals [49][50]

Core Insights - The northbound trading of the Stock Connect has shown significant enthusiasm from foreign capital, with a total trading volume exceeding 200 trillion yuan in 2025, marking a historical high and reflecting strong confidence in the long-term investment value of the Chinese capital market [1][5] Group 1: Holdings Overview - As of the end of Q4 2025, northbound funds held a total of 4,014 securities, with a stable overall holding scale [1] - The holdings of foreign capital exhibit a "head concentration" feature, with over 213 stocks having more than 100 million shares held, and 37 stocks exceeding 500 million shares [1] - Notable stocks favored by northbound funds include JD.com, Industrial and Commercial Bank of China, Zijin Mining, Agricultural Bank of China, and others, with holdings exceeding 1 billion shares, primarily in low-valuation or high-dividend sectors [1] Group 2: Trading Activity - In Q4 2025, northbound funds engaged in significant portfolio adjustments, increasing holdings in over 1,600 stocks, with more than 1,000 stocks seeing an increase of over 1 million shares [2] - The top ten stocks with the largest increases in holdings included China Aluminum, Weichai Power, and others, each with increases exceeding 100 million shares [2][4] - The trading activity of northbound funds has notably increased, with a daily trading volume exceeding 300 billion yuan for four consecutive trading days, indicating a strong return of foreign capital to A-shares [4] Group 3: Long-term Trends - Since the establishment of the Stock Connect mechanism, the cumulative trading volume of northbound funds has surpassed 200 trillion yuan, with 2025's total trading volume reaching 50.33 trillion yuan, a growth of over 40% compared to 2024 [5] - The significant increase in trading volume and the focus on bank and resource stocks in Q4 2025 signal multiple positive trends, including sustained foreign interest in Chinese assets and a balanced investment strategy [5] - The ongoing optimization of capital market systems and deepening of openness are expected to lead to more normalized and rational flows of northbound funds, providing stable liquidity support for the A-share market [5]

Market Observation - The Shanghai Composite Index experienced narrow fluctuations on January 8, with the ChiNext Index dropping over 1% during the session. The total trading volume in the Shanghai and Shenzhen markets was 2.8 trillion yuan, a decrease of 53.8 billion yuan compared to the previous trading day, marking the fourth consecutive day of trading volume exceeding 2.5 trillion yuan. By the close, the Shanghai Composite Index fell by 0.07%, the Shenzhen Component Index by 0.51%, and the ChiNext Index by 0.82% [1]. Sector Performance - The commercial aerospace sector has seen a resurgence, highlighted by the recent groundbreaking of a large liquid rocket assembly and recovery reuse base by Arrow Yuan Technology in Qiantang. This marks the establishment of China's first offshore recovery reusable rocket production base and the launch of the first stainless steel rocket super factory [2]. Commodity Market Dynamics - Experts warn that investors are now living in a new era of geopolitical risk, which has increasingly influenced commodity pricing mechanisms. The ongoing conflicts, from Ukraine to Venezuela, have impacted the prices of oil, gold, copper, and other commodities. Oxford Economics noted that geopolitical risks are becoming a persistent pricing factor rather than a temporary shock, with markets now incorporating a fixed risk premium reflecting supply chain vulnerabilities and resource nationalism [3][4]. Investment Opportunities - For those considering commodity investments, it is suggested to look into non-ferrous metal ETFs, which include top holdings such as Northern Rare Earth, Luoyang Molybdenum, and China Aluminum, among others. The report indicates that the non-ferrous metal sector is expected to benefit from the ongoing geopolitical tensions and supply chain issues [4][5][6]. Commercial Aerospace Insights - The commercial aerospace sector is characterized by a focus on energy technology companies linked to the growth of satellite solar cells. Perovskite solar cells, particularly flexible and ultra-thin variants, are seen as a promising alternative to traditional materials due to their lightweight, low-cost, and high conversion efficiency, aligning with the needs of large-scale low-orbit satellite constellations [10][13]. Yunnan Zinc Industry's Position - Yunnan Zinc Industry is a significant player in the indium phosphide (InP) sector, with its subsidiary, Yunnan Xinyao Semiconductor Materials, focusing on expanding production capacity to meet the growing demand in the industry. The company has reported a substantial increase in orders and revenue, particularly in the context of AI and data center applications [33][35][38].

Core Viewpoint - The company aims to effectively hedge against price fluctuations of commodities and raw materials, as well as foreign exchange risks, through its hedging business [2] Group 1: Hedging Business - The company's hedging activities have successfully achieved the goal of stable operations, effectively avoiding and controlling operational risks [2] - The company enhances its ability to withstand market risks through its hedging strategies [2] - Investors are encouraged to monitor the company's announcements regarding the impact of its hedging business on performance for the fiscal year 2025 [2]