Report Industry Investment Rating - Not provided Core Viewpoints of the Report - Macroeconomic policies aim to strengthen the domestic market, with China's August CPI, core CPI, and PPI showing specific trends, and US inflation unexpectedly falling. Fundamentally, zinc ore imports and processing fees are rising, along with increased smelter profits and supply growth. Import losses are widening, reducing imported zinc inflows. On the demand side, downstream is at the end of the off - season, with stable and rising processing enterprise operating rates. Zinc prices are at a low level, downstream purchases on - demand, domestic social inventories are increasing, and overseas LME inventories are decreasing, supporting zinc prices. Technically, with decreasing positions and price fluctuations, it's recommended to wait and see or go long on dips [3]. Summary by Relevant Catalogs Futures Market - The closing price of the Shanghai Zinc main contract is 22,250 yuan/ton, up 35 yuan; the 10 - 11 month contract spread is - 5 yuan/ton, down 10 yuan. The LME three - month zinc quote is 2,887.5 dollars/ton, up 20.5 dollars. The total Shanghai Zinc open interest is 222,719 lots, up 970 lots; the net position of the top 20 in Shanghai Zinc is - 6,229 lots, up 3,619 lots. Shanghai Zinc warehouse receipts are 44,925 tons, up 596 tons. The SHFE inventory is 87,032 tons, up 1,052 tons; the LME inventory is 50,825 tons, down 200 tons [3]. Spot Market - The SMM 0 zinc spot price is 22,180 yuan/ton, up 90 yuan; the Yangtze River Non - ferrous market 1 zinc spot price is 22,180 yuan/ton, up 260 yuan. The ZN main contract basis is - 70 yuan/ton, up 55 yuan; the LME zinc cash - 3 months spread is 23.01 dollars/ton, up 5.39 dollars. The Kunming 50% zinc concentrate arrival price is 16,860 yuan/ton, down 50 yuan; the Shanghai 85% - 86% broken zinc price is 15,600 yuan/ton, unchanged [3]. Upstream Situation - The WBMS zinc supply - demand balance is - 124,700 tons, down 104,100 tons; the ILZSG zinc supply - demand balance is - 69,100 tons, up 10,400 tons. The ILZSG global zinc mine production is 1,007,500 tons, down 4,300 tons; domestic refined zinc production is 617,000 tons, down 11,000 tons. Zinc ore imports are 455,900 tons, up 124,900 tons [3]. Industry Situation - Refined zinc imports are 35,156.02 tons, down 22,615.39 tons; refined zinc exports are 483.88 tons, up 266.83 tons. Zinc social inventories are 140,100 tons, up 1,800 tons [3]. Downstream Situation - Galvanized sheet production is 2.32 million tons, down 130,000 tons; sales are 2.34 million tons, down 120,000 tons. The new housing construction area is 352.06 million square meters, up 48.4168 million square meters; the housing completion area is 250.34 million square meters, up 24.6739 million square meters. Automobile production is 2.51 million vehicles, down 298,600 vehicles; air - conditioner production is 19.6788 million units, up 3.4764 million units [3]. Option Market - The implied volatility of the at - the - money zinc call option is 13.01%, down 0.03%; the 20 - day historical volatility of the at - the - money zinc option is 6.16%. The implied volatility of the at - the - money zinc put option is 13.02%, down 0.02%; the 60 - day historical volatility of the at - the - money zinc option is 11.12%, down 0.04% [3]. Industry News - China aims to stabilize employment, enterprises, markets, and expectations, implement active fiscal and moderately loose monetary policies, and promote various aspects of development. China's August CPI, core CPI, and PPI show specific trends, and US inflation unexpectedly falls [3].

Core Viewpoint - The report presented by the National Development and Reform Commission indicates that the execution of the national economic and social development plan for this year is generally good, with positive progress in various economic indicators despite external and internal challenges [1][2]. Group 1: Economic Performance - Economic growth, employment, consumption, foreign trade, and residents' income have shown smooth progress [1]. - The report highlights six key areas of work effectiveness, including proactive macro policies, expansion of domestic demand, optimization of industrial development, deepening reform and opening up, and steady progress in regional coordination and urban-rural integration [1][2]. Group 2: Future Economic Work - The focus for the second half of the year will be on maintaining stability while seeking progress, implementing new development concepts, and enhancing domestic and international economic coordination [2][3]. - Key tasks include promoting domestic demand, advancing technological and industrial innovation, and ensuring the stability of employment, enterprises, and market expectations [2][3]. Group 3: Policy Implementation - The report emphasizes the need for effective implementation of central policies, including proactive fiscal and moderately loose monetary policies to maximize policy effects [3]. - It also calls for the release of consumption potential through targeted actions and the removal of restrictive measures, alongside the promotion of high-quality investment projects [3].

Group 1 - The core viewpoint of the report emphasizes the implementation of a more proactive fiscal policy to ensure stable budget execution and financial operations [1][2] - The report outlines the intention to accelerate budget execution, improve fund utilization efficiency, and ensure fund security [1] - Key areas of focus include supporting employment and foreign trade, fostering new growth drivers, enhancing public welfare, and mitigating risks in critical sectors [1] Group 2 - The strategy will prioritize strengthening domestic circulation and implementing flexible macro policies to address uncertainties while ensuring high-quality development [2] - The government aims to maintain policy continuity and stability while enhancing flexibility and predictability in economic management [2]

Group 1 - The report highlights the implementation of various policies and measures deployed by the central government to stabilize employment, businesses, markets, and expectations [1] - It emphasizes the need for a more proactive fiscal policy and moderately loose monetary policy to fully unleash policy effects [1] - The report calls for a thorough evaluation of policy implementation and suggests optimizing policies and measures based on assessment results to enhance their effectiveness [1] Group 2 - There is a focus on normalizing policy research and reserve, continuously improving the policy toolbox [1] - The report stresses the importance of addressing capacity governance in key industries and implementing measures to resolve structural contradictions while promoting quality upgrades [1] - It also mentions the need for comprehensive regulation of irrational competition and strengthening policy coordination and expectation guidance [1]

Core Insights - The provincial government emphasizes the need to balance the positive aspects of economic performance with the challenges faced, aiming to stabilize employment, businesses, markets, and expectations to achieve annual development goals [1] Economic Strategy - The government plans to enhance policy implementation to maintain industrial growth, boost consumption, increase effective investment, and improve service sector development [1] - There is a focus on stabilizing foreign trade and foreign investment while promoting a healthy real estate market [1] Social Welfare and Safety - The government aims to ensure the improvement of people's livelihoods by implementing beneficial policies [1] - Continuous efforts will be made to ensure safety in production and to prevent natural disasters, while also addressing risks in key areas [1] Governance and Efficiency - The government is committed to implementing important directives from the central leadership and enhancing administrative efficiency [1] - There is a push for ongoing improvements in government operations to ensure effective execution of policies [1]

Core Viewpoint - The article emphasizes the importance of the "Four Stabilizations" policy aimed at stabilizing employment, enterprises, markets, and expectations, as outlined in the Central Political Bureau meeting held at the end of July [1]. Group 1: Policy Implementation - The Shanghai Securities News has launched a column titled "'Four Stabilizations' Look at Implementation" to track the progress and effectiveness of various central and local government measures [1]. - The focus is on showcasing the implementation, landing, and refinement of policies related to the "Four Stabilizations" [1]. Group 2: Economic Measures - The article highlights the need for multiple measures to increase investment and effectively stimulate productivity development [8]. - There is a continuous enhancement of market attractiveness and support for key areas and weak links in the economy [18].

Group 1 - The meeting emphasized the importance of implementing the recent important speeches and directives from Xi Jinping and Li Qiang, focusing on aligning thoughts and actions with the central government's decisions [1] - The government aims to stabilize employment, enterprises, markets, and expectations while increasing investment, promoting consumption, and stabilizing foreign trade to achieve economic and social development goals for the year [1] - There is a strong focus on ensuring public safety, particularly in response to severe weather events, with an emphasis on risk assessment and management [1] Group 2 - The meeting highlighted the need to reinforce the educational outcomes of the central eight regulations, integrating ongoing learning with current work and inspections [1] - Continuous improvement in service to the public and addressing economic development issues is a priority, with a mechanism for regular review and correction established [1]

Core Viewpoint - The national economy has maintained stable growth amidst pressures, with a focus on high-quality development to address uncertainties from external changes [1] Group 1: Economic Stability Measures - The Central Political Bureau meeting on April 25 emphasized the importance of stabilizing employment, enterprises, markets, and expectations to ensure high-quality development [1] - Various departments have introduced a series of measures aimed at promoting high-quality development [1] Group 2: Future Policy Directions - The discussion includes insights from officials on how future policies can be more effective in driving economic stability and growth [1]

Core Viewpoint - The newly introduced policy measures in Henan Province aim to support enterprises in reducing costs and enhancing efficiency, addressing key challenges in production and operation, thereby boosting investment attractiveness and economic growth potential in the region [1] Group 1: Policy Features - The policy measures have a broad coverage, addressing the complex and diverse cost structures and influencing factors of enterprises, combining institutional arrangements with phased measures, and integrating cost reduction with transformation and upgrading [1] - The measures are precisely targeted, focusing on key issues and providing specific cost-reduction initiatives to support enterprises during the critical period of transitioning from old to new growth drivers [1] - The support measures are substantial, with clear financial backing for reducing costs related to research and development, transformation, logistics, and import/export, providing tangible benefits to enterprises [1]

Core Viewpoint - The Chinese government has issued a notification to enhance employment stability through a comprehensive policy framework aimed at stabilizing employment, enterprises, markets, and expectations, reflecting the high priority given to employment issues by the central government [1] Group 1: Employment Stability Measures - The notification includes 19 measures to support employment, emphasizing the importance of stable jobs for income growth and consumer spending, which are crucial for economic stability [1] - The central government prioritizes employment stability as a response to external uncertainties, indicating a strategic focus on high-quality development [1] Group 2: Financial Support for Enterprises - The policy aims to improve financing access for small and micro enterprises by expanding the scope of special loans and enhancing cooperation between government and banks, with credit limits raised to 50 million yuan for small enterprises and 1 million yuan for individuals [2] - A significant increase in unemployment insurance refunds is introduced, with small and micro enterprises receiving a refund rate of 90% and large enterprises 50%, providing immediate cash flow relief [2] - Incentives for job creation include subsidies for enterprises hiring key demographics, with a one-time subsidy of up to 1,500 yuan for hiring unemployed youth aged 16 to 24 [2] Group 3: Focus on Small and Micro Enterprises - Small and micro enterprises are identified as key beneficiaries of the policy, contributing over 80% of urban employment and facing challenges such as financing difficulties and low risk resilience [3] - Financial management departments have implemented differentiated support for small enterprises, including reduced risk weights for loans and expanded financing channels [4] Group 4: Policy Implementation and Collaboration - The effectiveness of the policies is beginning to show, with the urban unemployment rate stabilizing at 5.2% from January to May, and increased job demand in emerging sectors [4] - Successful implementation requires collaboration among various stakeholders, including government departments, financial institutions, enterprises, and workers, to ensure that policies translate into sustainable employment growth [4]