Investment Rating - The report rates the petrochemical industry as "Positive" [4] Core Insights - The petrochemical industry focuses on processing and selling crude oil and natural gas to produce various chemical products, with a significant emphasis on achieving green sustainable development and safe production [4][9] - The establishment of an ESG evaluation system for state-owned enterprises in the petrochemical sector is crucial, particularly in light of national policies aimed at promoting green and low-carbon transitions [4][10] - The ESG evaluation system incorporates specific indicators related to energy transition and safety production, highlighting the importance of environmental and social issues [4][11] Summary by Sections 1. ESG Policies in the Petrochemical Industry - The industry is primarily concerned with sustainable development and safe production, as emphasized by recent national policies [10] - Key policies include the "Action Plan for Accelerating Oil and Gas Exploration and Development and Integration with New Energy (2023-2025)" and guidelines for promoting green innovation in the refining industry [10][11] 2. Construction of the ESG Evaluation System - The ESG evaluation system includes five secondary indicators: "New Energy Business Transformation," "Oil Leak Risk Management," "Public Awareness Investment," "Overseas Community Development," and "Safety Production," all of which are considered positive factors [4][11] - The evaluation system is built on general indicators and includes 18 primary indicators and 45 secondary indicators, with a focus on environmental, social, and governance aspects [4][11] 3. Environmental Indicators - Environmental indicators are aligned with national dual carbon policies and include specific metrics such as "New Energy Business Transformation" and "Oil Leak Risk Management," with a total of 4 secondary indicators and 10 tertiary indicators [13][21] - The report highlights the importance of waste management and biodiversity protection as critical areas of focus for the petrochemical industry [13][14] 4. Climate Change Response Indicators - The climate change response indicators reflect the industry's commitment to managing climate change and adhering to domestic dual carbon policies, comprising 1 primary indicator and 4 secondary indicators [21][22] 5. Social Responsibility Indicators - Social indicators assess the industry's responsibility, particularly in raising public environmental awareness and ensuring safety in production, with 3 primary indicators and 9 secondary indicators [23][24] - The report emphasizes the need for effective training and awareness programs for employees and communities, especially in overseas projects [25] 6. Governance Indicators - Governance indicators are fundamental for sustainable development and include 3 primary indicators and 10 secondary indicators, focusing on corporate governance structures and mechanisms [28][30]

Investment Rating - The report indicates a positive outlook for the coal industry, emphasizing the importance of ESG (Environmental, Social, and Governance) practices in the sector [3][6]. Core Insights - The coal industry is under dual pressure to ensure energy security while transitioning to a low-carbon economy, with ESG practices being a key solution to balance these demands [3][6]. - A new ESG evaluation system tailored for coal enterprises has been developed, incorporating indicators such as "green mining," "safety production," and "intelligent management" to better reflect industry characteristics [3][11]. - The report highlights the necessity for coal enterprises to enhance their ESG management and information disclosure quality in response to evolving regulatory requirements [10][11]. Summary by Sections 1. Coal Central Enterprises ESG Policies: Green Transition in a Critical Phase - The coal industry is a pillar of national energy security and economic development, facing increasing policy guidance towards green transformation [7][9]. - Recent policies have detailed ESG management requirements, particularly in energy conservation, emissions reduction, and low-carbon transition [7][9]. 2. Constructing the ESG Evaluation System for Coal Central Enterprises: Balancing Green and Safety - The ESG evaluation system includes four categories of positive indicators and one category of negative indicators, with a total of 23 primary indicators and 59 secondary indicators [11][20]. - The system emphasizes the importance of environmental, social, and governance aspects, with specific indicators for green mining and safety management [11][16]. - The evaluation framework aims to ensure objective, comparable, and actionable results, with a total score of 100 points [11][20]. 3. Key Assumptions of Risks - The report does not provide specific details on risks but acknowledges the potential challenges in the implementation of ESG-related policies and the uncertainties surrounding global climate risks [3][21].

Investment Rating - The report rates the coal industry as "Positive" [1] Core Insights - The coal industry faces dual pressures of green transformation and safety production as ESG disclosure becomes mandatory by 2025 [4] - A tailored ESG evaluation system for coal enterprises is proposed, focusing on "green mining," "safety production," and "smart management" [4] - The evaluation system includes 4 categories of positive indicators and 1 category of negative indicators, totaling 23 primary indicators and 59 secondary indicators, with a maximum score of 100 [4] Summary by Sections 1. Coal Central Enterprises ESG Policies: Green Transformation in a Critical Phase - The coal industry is a pillar of national energy security and economic development, facing pressures to ensure energy security while promoting low-carbon transformation [9][10] - Recent policies emphasize high-quality development in the coal sector, focusing on green, safe, intelligent, and efficient growth paths [10] 2. Building the ESG Evaluation System for Coal Central Enterprises: Balancing Green and Safety - The ESG evaluation system is based on general indicators and tailored to the coal industry's characteristics, with 4 categories of positive indicators and 1 negative indicator [14] - The system includes general, environmental, social, and governance indicators, with a total of 22 primary indicators and 56 secondary indicators [14] - Environmental indicators focus on carbon reduction and include new metrics for "green mining and ecological restoration" [15][17] - Social indicators assess the coal enterprises' contributions to social development, with a new focus on "energy supply responsibility" [18][19] - Governance indicators emphasize safety production and smart management, with new metrics for "safety production governance" and "dividend mechanisms" [20][21] 3. Detailed ESG Evaluation Framework - The evaluation framework includes specific scoring for each indicator, ensuring a comprehensive assessment of ESG performance [28][29] - Positive indicators cover various aspects, including energy consumption, greenhouse gas emissions, pollution prevention, and community engagement [28] - Negative indicators focus on violations and penalties, with a scoring system that deducts points for each infraction [24][29]

Group 1: Rare Earth Industry - The rare earth industry experienced significant improvement in the first three quarters of 2025, with major product prices rising notably. The average market price of praseodymium and neodymium oxide reached 467,300 yuan/ton, a year-on-year increase of 21.81% [1] - In Q3 2025, the average price reached 540,000 yuan/ton, reflecting a year-on-year increase of 39.10% and a quarter-on-quarter increase of 24.96% [1] - Benefiting from price increases and production growth, Northern Rare Earth's net profit attributable to shareholders grew by 280.27% year-on-year in the first three quarters, with a quarter-on-quarter increase of 21.84% in Q3 [1] - The recovery in the rare earth industry has led to increased production and sales of functional materials and permanent magnet motors, indicating a phase of simultaneous volume and price growth [1] - With the consensus reached between China and the US on export control issues, the export channels for rare earth products are expected to improve, leading to a significant increase in overseas demand and a potential rise in praseodymium and neodymium oxide prices [1] Group 2: Lithium Industry - The lithium industry is gradually improving its supply-demand balance, with core resource attributes becoming more prominent. Supply-side high-cost capacity is being phased out, and environmental compliance efforts are increasing [1] - Capital expenditures are significantly slowing down, leading to limited supply growth in the medium to long term [1] - Short-term demand is benefiting from the release of energy storage both domestically and internationally, while medium to long-term lithium battery demand is expected to enter a long-term boom cycle due to power reform and breakthroughs in solid-state battery technologies [1] Group 3: Cobalt and Tin Industries - The Democratic Republic of Congo has implemented a cobalt export quota policy, with quotas set at 18,125 tons for 2025 and 96,600 tons for 2026 and 2027, which is less than half of the 2024 production [2] - In the context of export restrictions, cobalt resources are expected to continue depleting, potentially leading to supply shortages and upward pressure on cobalt prices [2] - In the tin sector, recent actions by Indonesia to crack down on illegal tin mines and smuggling routes are expected to disrupt off-market supply, making it difficult for tin prices to decline significantly [2] Group 4: ESG and Policy Support - The ESG evaluation system in the non-ferrous metals industry is improving, with new indicators related to "green mining," "green energy use," and "emission reduction measures" being added [2] - The Ministry of Industry and Information Technology and other departments released a work plan for stable growth in the non-ferrous metals industry for 2025-2026, emphasizing green upgrades, digital transformation, and scientific capacity layout to support sustainable development [2] Group 5: ETF Performance - As of November 7, 2025, the China Rare Metals Theme Index rose by 1.80%, with the Rare Metals ETF (159608) increasing by 1.61%, marking a three-day consecutive rise [4] - Over the past two weeks, the Rare Metals ETF has accumulated a rise of 5.53%, with significant increases in component stocks such as Tianhua New Energy and Shengxin Lithium Energy [4] - The ETF has seen a scale increase of 559 million yuan over the past three months, with a total inflow of 148 million yuan over the last 21 trading days [4]

Investment Rating - The report rates the industry as "Overweight" indicating a positive outlook for the sector compared to the overall market performance [38]. Core Insights - The non-ferrous metals industry is crucial for manufacturing, characterized by high energy consumption and emissions, with a focus on energy saving, low carbon, and environmental protection as key industry goals [4][10]. - Recent policies emphasize the need for green development and pollution control, with specific targets set for energy efficiency and carbon emissions reduction during the 14th Five-Year Plan [4][10]. - The establishment of an ESG evaluation system for central enterprises in the non-ferrous metals sector includes new indicators focusing on green mining and safety production, reflecting the industry's commitment to sustainability [4][15]. Summary by Sections 1. ESG Policies in the Non-Ferrous Metals Industry - The industry is a key focus for energy saving and low carbon initiatives, with multiple government policies guiding its development [10][11]. - Recent policies include the "14th Five-Year Plan for Energy Saving and Emission Reduction" and the "Implementation Plan for Carbon Peaking in the Non-Ferrous Metals Industry" [10][12]. 2. ESG Evaluation System for Central Enterprises - The ESG evaluation system includes five main categories of indicators, with a total of 17 primary indicators and 52 secondary indicators [15][20]. - New indicators specific to the non-ferrous metals industry include "Green Mining," "Green Energy Use," and "Emission Reduction Measures," which are designed to enhance the evaluation framework [15][18][19]. 3. Environmental Indicators - The environmental indicators focus on energy management, pollution control, and biodiversity, with specific targets for reducing energy consumption and carbon emissions [22][24]. - The report highlights the importance of integrating climate governance into corporate strategies, with a comprehensive set of indicators to measure performance [22][24]. 4. Social Responsibility Indicators - The social indicators reflect the industry's commitment to safety and social responsibility, with a focus on preventing accidents and ensuring worker health [25][27]. - The inclusion of "Safety Production" as a key indicator emphasizes the need for rigorous safety standards in the industry [25][27]. 5. Governance Indicators - Governance indicators are essential for sustainable development, focusing on corporate governance structures and mechanisms [28][29]. - The evaluation system includes measures for stakeholder communication and compliance with anti-corruption standards [28][29].

Investment Rating - The report assigns a "Buy" rating for several key companies in the public utility sector, including China Resources Power, Guodian Power, and Inner Mongolia Huadian [28]. Core Insights - The public utility sector is crucial for achieving national "dual carbon" goals, with a strong emphasis on environmental and social issues in the ESG evaluation framework [5][4]. - The ESG evaluation system for public utilities includes four categories of positive indicators and one category of negative indicators, focusing on objective assessment metrics [8][23]. - Recent policies from various government departments emphasize the need for green transformation, pollution prevention, and social welfare in the public utility sector [5][4]. Summary by Sections 1. ESG Policy in Public Utilities - The public utility sector is a major contributor to energy consumption and carbon emissions, making its green transformation essential for national goals [5]. - Key policies include the "14th Five-Year" energy conservation and emission reduction plan, which outlines specific requirements for green transformation and public service stability [5][4]. 2. ESG Evaluation System Construction - The ESG evaluation system consists of four positive categories: General Indicators, Environmental Indicators, Social Indicators, and Governance Indicators, with a total of 18 primary indicators and 35 secondary indicators [8][23]. - The negative category focuses on violations and penalties, with specific metrics for environmental, social, and governance aspects [23]. 3. General Indicators - General indicators assess the authenticity and standardization of ESG reports, including the basis for report preparation, third-party verification, and the publication of ESG-specific reports [10][9]. 4. Environmental Indicators - Environmental indicators are based on energy conservation, low carbon, and circular economy principles, with a total of four primary indicators focusing on emissions management, ecological compliance, resource utilization, and climate strategy [11][12]. 5. Social Indicators - Social indicators highlight the public utility sector's role in community development and social stability, with six primary indicators covering community contributions, employee development, innovation, supply chain responsibility, product safety, and core operational responsibilities [15][16][17]. 6. Governance Indicators - Governance indicators aim to enhance corporate governance and decision-making, with five primary indicators focusing on party leadership, industry reform, compliance risk management, governance structure, and information transparency [19][20][21]. 7. Negative Indicators - The negative indicators focus on compliance issues, with penalties for violations in environmental, social, and governance areas, deducting points for each violation [23][25].

Investment Rating - The report maintains a positive outlook on the public utility sector's central enterprises with a focus on the ESG evaluation system [1]. Core Insights - The establishment of the ESG evaluation system for public utilities is based on a balanced emphasis on environmental and social issues, crucial for achieving national carbon neutrality goals [3][9]. - The evaluation system consists of four categories of positive indicators and one category of negative indicators, with a total of 18 primary indicators and 35 secondary indicators [12][28]. - Key policies guiding the sector include promoting renewable energy, enhancing energy efficiency, and ensuring equitable public services [9][11]. Summary by Sections 1. ESG Policy: Balancing Environmental and Social Issues - The public utility sector is a major contributor to energy consumption and carbon emissions, making its green transition vital for national carbon goals [3][9]. - Recent policies emphasize the development of clean energy and pollution control, with specific directives from various government bodies [9][11]. 2. Constructing the ESG Evaluation System: Multi-Dimensional Assessment - The ESG evaluation system is structured with four positive categories: General Indicators, Environmental Indicators, Social Indicators, and Governance Indicators, along with one negative category for violations [12][28]. - Each category has specific indicators designed to objectively assess the performance of enterprises in the public utility sector [12][28]. 3. General Indicators - General indicators assess the authenticity and standardization of ESG reports, including the basis for report preparation, third-party verification, and the publication of ESG-specific reports [12][14]. 4. Environmental Indicators - Environmental indicators focus on energy efficiency and circular economy principles, with metrics for emissions management, ecological compliance, resource utilization, and climate strategy [15][17]. 5. Social Indicators - Social indicators highlight the sector's role in public service, with metrics for community contributions, employee development, innovation, supply chain responsibility, and customer rights [19][21]. 6. Governance Indicators - Governance indicators aim to enhance corporate governance standards, focusing on party leadership, industry reform, compliance risk management, governance structure, and information transparency [23][26]. 7. Negative Indicators - The negative category includes penalties for violations, with specific metrics for environmental, social, and governance infractions, where each violation results in a deduction of points [28][31]. 8. Valuation of Key Companies - The report includes a valuation table for key companies in the public utility sector, indicating ratings and projected earnings per share (EPS) for the years 2025 to 2027 [34].

Core Viewpoint - The development of China's public REITs market is a product of deep integration between financial supply-side reform and national strategy, transitioning from an exploratory phase to a quality improvement phase since its pilot launch in 2020 [1] Group 1: Market Development and Challenges - The public REITs market in China has evolved through a process of identifying problems, conducting scientific research, innovating practices, summarizing experiences, and continuously addressing new challenges [2] - The market's growth requires balancing economic growth, high-quality development, and risk management, involving coordination among local government actions, financial policies, and real estate policies [1][2] - The current REITs market, valued in the hundreds of billions, is just a starting point compared to the trillion-level stock of real estate assets, indicating significant room for growth [3] Group 2: Policy and Regulatory Framework - The pilot phase adopted a "public fund + ABS" product structure, which aligns with existing regulatory frameworks but raises concerns about governance complexity and unclear responsibilities [2] - Future institutional transitions must clarify the legal and market positioning of REITs while establishing a supportive policy ecosystem across various sectors, including industry, finance, and taxation [2] Group 3: Strategic Alignment and Market Potential - China's REITs are closely aligned with national strategies, such as the "dual carbon" goals and housing policies, demonstrating their role in addressing financing challenges in key sectors [3] - The REITs market has expanded to cover over ten asset classes, including energy, transportation, and affordable housing, showcasing its versatility and potential for further development [3] Group 4: Pricing Mechanism and Valuation - The pricing mechanism of REITs has been a focal point, with past issues of excessive price volatility and liquidity challenges needing resolution through improved institutional design and technological innovation [4] - The introduction of ESG evaluation frameworks is expected to provide new dimensions for value discovery, addressing the limitations of traditional valuation models [4] Group 5: Internationalization and Global Competitiveness - The domestic REITs market has the potential for international development, with plans to establish an independent international REITs trading platform in Hong Kong and attract foreign capital [4] - The goal is to create a globally competitive REITs market centered in China, enhancing its influence in the global financial system [4]

Investment Rating - The report gives a positive outlook on the industry, indicating a "Look Favorably" investment rating for the transportation sector in the context of ESG evaluation [4][9]. Core Insights - The report emphasizes the importance of building an ESG evaluation system for central enterprises in the transportation sector, focusing on green energy and low-carbon transformation [4][10]. - It highlights the integration of new indicators specific to the transportation industry, including "Green Transportation," "Safe Operations," "Safety Risk Management," and "Supply Chain Management," enhancing the existing ESG evaluation framework [4][13]. - The report outlines a comprehensive evaluation system with 5 categories of positive indicators and 1 category of negative indicators, totaling 100 points for the evaluation [4][13]. Summary by Sections 1. Transportation Central Enterprises ESG Policies - The transportation sector is recognized as a crucial support for sustainable development, with policies focusing on green low-carbon transformation and high-quality development [10][11]. - The "14th Five-Year Plan for Modern Comprehensive Transportation System Development" aims to achieve carbon peak and carbon neutrality goals, emphasizing resource conservation and safety in operations [9][10]. 2. Building the ESG Evaluation System - The ESG evaluation system for transportation central enterprises includes 5 categories of positive indicators and 1 negative indicator, with a total of 20 primary indicators and 54 secondary indicators [4][13]. - The "Environmental Issues" category emphasizes ecological protection and circular economy, introducing specific indicators for "Green Transportation" [15][16]. - The "Social Issues" category reflects the responsibilities of transportation enterprises in society, with new indicators related to technology and safety [19][20]. - The "Governance Issues" category includes new indicators for "Safety Risk Management" and "Supply Chain Management," focusing on the governance structure and mechanisms [21][22]. 3. Evaluation Framework - The evaluation framework consists of various indicators across different categories, with specific scoring criteria for each indicator [28]. - The negative indicator for "Violations or Penalties" deducts points for any infractions in environmental, social, or governance aspects [25][26].

Investment Rating - The report does not explicitly state an investment rating for the automotive industry, but it emphasizes the importance of ESG (Environmental, Social, and Governance) management in the context of technological innovation and sustainable development [3][6]. Core Insights - The automotive industry is undergoing a technological transformation with the rise of electrification, and balancing technological innovation with green sustainable development is a critical issue [3][6]. - The report outlines the establishment of an ESG evaluation system for state-owned enterprises (SOEs) in the automotive sector, focusing on environmental and supply chain indicators [3][8]. - The report highlights the need for SOEs in the automotive industry to enhance their supply chain ESG management to mitigate risks associated with complex and lengthy supply chains [3][8]. Summary by Sections 1. Automotive Industry SOE ESG Policies - The automotive industry is facing new technological changes and must adhere to various national policies aimed at promoting electric, connected, and intelligent development [7][8]. - Key policies include the "14th Five-Year Plan for Automotive Industry Development" and the "New Energy Vehicle Industry Development Plan (2021-2035)" [6][7]. - Recent policies emphasize the need for a safe and controllable supply chain and significant improvements in green development levels [7][8]. 2. Constructing the Automotive Industry SOE ESG Evaluation System - The ESG evaluation system includes five additional indicators specific to the automotive industry: contributions to industry standards, internationalization, technological progress, employee training, and supply chain capability enhancement [8][9]. - The evaluation system consists of five main categories of positive indicators and one category of negative indicators, with a total of 19 primary indicators and 53 secondary indicators [8][9]. - The environmental indicators are aligned with national carbon neutrality policies and include aspects such as waste management and energy management [10][11]. 3. Core Assumptions of Risks - The report notes that the pace of policy implementation related to ESG may not meet expectations, which could impact the automotive industry's transition to sustainable practices [28].