Group 1 - Steel stocks collectively declined, with Chongqing Steel down 4.72% to HKD 1.21, Ansteel down 4.06% to HKD 1.89, and Maanshan Steel down 3.64% to HKD 2.38 [1] - Guosheng Securities reported that the execution of production restriction policies this year has been ineffective, and there is an expectation for steel mills to implement anti-involution policies to accelerate production cuts and improve industry profitability [1] - Since the third quarter of last year, the sector's valuation has significantly recovered, moving from an absolute undervaluation to a moderately low position, indicating limited valuation bubble and still offering absolute return potential [1] Group 2 - Guotai Junan Securities indicated that demand is expected to gradually bottom out; despite not considering supply policies, the industry has been experiencing prolonged losses, and market-driven supply clearance has begun [1] - The expectation is that the fundamentals of the steel industry will gradually improve, and if supply policies are implemented, the speed of supply contraction will accelerate, leading to quicker industry recovery [1]