Core Viewpoint - The People's Bank of China has issued a notice regarding the implementation of anti-money laundering and counter-terrorism financing management measures for precious metals and gemstone industry institutions, effective from August 1, 2025 [1]. Group 1: Regulatory Requirements - Institutions must fulfill anti-money laundering obligations for cash transactions of 100,000 RMB or more, or equivalent foreign currency [1]. - For single or daily cumulative cash transactions of 100,000 RMB or more, institutions are required to conduct customer due diligence based on the "Know Your Customer" principle [1]. - Institutions must submit a large transaction report to the Anti-Money Laundering Monitoring and Analysis Center within five working days of the transaction [1].

1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - In June, the manufacturing, non - manufacturing, and composite PMIs in China all rebounded, indicating that the overall economic prosperity level remained in the expansion zone [2][17]. - The central bank has been precisely regulating the mid - year capital market, injecting sufficient liquidity. However, the capital market in July may be affected by fiscal factors [16]. - The bond market in China is experiencing a complex situation. The current bond market has high congestion, but the fundamentals and capital still support it, though the room for growth is limited [31]. - The A - share market rose on Monday, while the Hong Kong stock market declined, and the Taiwan stock market suffered a "stock - exchange double - kill" [33][34]. 3. Summary by Directory 3.1 Macro Data Quick View - In Q1 2025, China's GDP grew by 5.4% year - on - year, the same as the previous quarter [1]. - In June 2025, the manufacturing PMI was 49.7%, up 0.2 percentage points from the previous month; the non - manufacturing business activity index was 50.5%, up 0.2 percentage points [1][2][17]. - In May 2025, the year - on - year growth rates of M0, M1, and M2 were 12.1%, 2.3%, and 7.9% respectively [1]. - In May 2025, the CPI decreased by 0.1% year - on - year, and the PPI decreased by 3.3% year - on - year [1]. 3.2 Commodity Investment Reference 3.2.1 Comprehensive - In June, the three major PMI indexes in China rebounded, and the overall economic prosperity level remained in the expansion zone [2][17]. - From January 1, 2025, to December 31, 2028, eligible overseas investors can get a 10% tax credit for direct investment in China [2][18]. - Trump criticized the Fed for not cutting interest rates and said the US should pay an interest rate of 1% [3][21]. - On June 30, the Baltic Dry Index fell 2.10% to 1489 points, falling for four consecutive days [4]. 3.2.2 Metals - The central bank issued regulations on anti - money laundering and anti - terrorist financing for precious metals and gemstone institutions [5]. - On June 27, zinc, copper, lead, nickel, and tin inventories decreased, while aluminum inventory increased [6]. - Citi expects the gold price to fall to $2500 - 2700 per ounce by the second half of 2026 [7]. - As of June 30, the SPDR Gold Trust's holdings decreased by 0.24% [7]. - Japan's aluminum price premium for July - September is set at $108 per ton, down 41% from the current quarter [8]. 3.2.3 Coal, Coke, Steel, and Minerals - In June 2025, the steel industry PMI was 45.9%, down 0.5 percentage points month - on - month, indicating continued pressure [9]. - Starting from July 1, 2025, anti - dumping duties will continue to be imposed on imported stainless steel billets and hot - rolled stainless steel sheets/coils from the EU, UK, South Korea, and Indonesia for 5 years [9]. - As the July 9 tariff negotiation deadline approaches, Indonesia will relax or cancel import restrictions on ten categories of goods and raw materials [9]. - Japan plans to extract rare earth minerals from seabed deposits starting from January next year [10]. 3.2.4 Energy and Chemicals - On July 1, domestic refined oil prices are expected to increase by about 230 yuan per ton [11]. - OPEC+ plans to increase production by 411,000 barrels per day in August [11]. - The number of active oil drilling platforms in the US decreased by 6 to 432 last week [11]. - In May, Japan's crude oil imports increased by 13.9% year - on - year, while refined oil sales decreased [11]. - Morgan Stanley expects non - OPEC oil supply to grow strongly from 2025 to 2026, and the Brent crude oil price to fall to about $60 per barrel early next year [12]. 3.2.5 Agricultural Products - Datagro estimates Brazil's 2024/25 soybean production at 1.691 billion tons and corn production at 1.269 billion tons [13]. - Malaysia's palm oil exports in June were 1.382 million tons, up 4.7% year - on - year [14]. - US exporters sold 204,000 tons of bean cake and soybean meal [15]. - In 2025, the number of food products with price increases or planned price increases in Japan may exceed 20,000 [15]. 3.3 Financial News Compilation 3.3.1 Open Market - On June 30, the central bank conducted 3315 billion yuan of 7 - day reverse repurchase operations, with a net investment of 1110 billion yuan [16]. - The central bank's precise regulation has ensured sufficient liquidity, but the capital market in July may be affected by fiscal factors [16]. 3.3.2 Key News - In June, China's manufacturing, non - manufacturing, and composite PMIs all rebounded [17]. - The Politburo emphasized the role of decision - making and coordinating institutions [18]. - Overseas investors can get a 10% tax credit for eligible direct investment in China from 2025 to 2028 [18]. - The State Administration of Foreign Exchange issued $3.08 billion in QDII investment quotas [18]. - In the third quarter, 11 issues of ultra - long - term special treasury bonds will be issued [18]. - As of May, overseas institutions' bond holdings in China were 4.4 trillion yuan [19]. - On June 30, the "North - bound Swap Connect" product contract term was extended to 30 years [19]. - In the first half of 2025, the total bond market stock in China reached 188.11 trillion yuan [19]. - The issuance scale of green financial bonds in the inter - bank market has increased significantly this year [19]. - As of June 30, 387 science and technology innovation bonds were issued, with a scale exceeding 580 billion yuan [20][21]. - Trump criticized the Fed for not cutting interest rates [21]. - The US Treasury Secretary said there is no reason to increase the issuance of long - term treasury bonds [21]. - Some bond - related events such as rating changes, redemption, and litigation occurred [22]. - Some overseas credit ratings were confirmed or maintained [22]. 3.3.3 Bond Market Summary - China's bond market declined, with bond yields rising and futures prices falling [24]. - Some bonds in the exchange bond market rose or fell slightly [24]. - The CSI Convertible Bond Index rose 0.35% [25]. - Most money market interest rates rose [26]. - US bond yields fell, and European bond yields mostly rose [27][28]. 3.3.4 Foreign Exchange Market Express - The on - shore RMB against the US dollar rose 34 points, and the central parity rate rose 41 points [29]. - The US dollar index fell 0.50%, and non - US currencies mostly rose [29]. 3.3.5 Research Report Highlights - CITIC Construction Investment believes that the bond market may have short - term profit - taking pressure but may rise in the medium - term [30]. - Huatai Fixed Income turns neutral and cautious on convertible bonds and suggests choosing relatively cheap varieties [31]. - Huatai Fixed Income believes the bond market is highly congested and has weak odds [31]. - CITIC Securities believes that new policy - based financial tools will support key areas [31]. 3.3.6 Today's Reminders - On July 1, 136 bonds will be listed, 86 bonds will be issued, 38 bonds will be paid, and 135 bonds will have principal and interest repaid [32]. 3.4 Stock Market Key News - The A - share market rose on Monday, with over 4000 stocks rising [33]. - The Hong Kong stock market declined, with the Hang Seng Index down 0.87% [34]. - The Taiwan stock market suffered a "stock - exchange double - kill" [34]. - The IPO applications of 5 companies on the Science and Technology Innovation Board were accepted [34]. - The IPO of Kaiyuan Securities was terminated [35]. - In the first half of 2025, 43 new stocks were listed in Hong Kong, and the funds raised exceeded that of 2024 [35]. - In the first half of 2025, 163 public funds conducted 40,093 research visits to 1943 A - share listed companies [35]. - In the first half of 2025, 1493 A - share companies planned 1984 merger and acquisition plans, with 102 being major reorganizations [36]. - The Zheng Yutong family in Hong Kong received HK$88.2 billion in refinancing [36].

Core Viewpoint - The People's Bank of China has issued a notice regarding the implementation of the "Anti-Money Laundering and Counter-Terrorist Financing Management Measures for Precious Metals and Gemstone Practitioners" [1] Group 1: Customer Due Diligence Requirements - Practitioners must diligently adhere to the "Know Your Customer" principle based on customer characteristics and transaction activities, particularly in cases where: - The transaction amount is 100,000 RMB or more (including 100,000 RMB) or equivalent foreign currency cash transactions [1] - There are reasonable grounds to suspect that the customer and their transactions are involved in money laundering activities [1] - There are doubts regarding the authenticity, validity, or completeness of previously obtained customer identity information [1] - Practitioners are required to complete customer due diligence before or after the transaction based on the customer's money laundering risk status [1]

Core Point - The European Commission has added Monaco to its updated list of high-risk jurisdictions due to strategic deficiencies in their anti-money laundering and counter-terrorism financing systems [1] Group 1 - The inclusion of Monaco indicates a growing concern regarding the effectiveness of its financial regulations [1] - The decision reflects the European Commission's ongoing efforts to enhance financial security and combat illicit financial activities [1] - This move may impact Monaco's financial services sector and its attractiveness to international investors [1]

Core Viewpoint - The Financial Regulatory Bureau has issued a new management measure for the qualifications of directors and senior management in banking institutions, effective from June 1, 2025, aimed at tightening the entry standards and enhancing the integrity and compliance of high-level personnel [1][2]. Summary by Sections General Principles - The revised measure includes seven chapters and 45 articles, focusing on the qualifications and management of directors and senior management in banking institutions [2]. Qualification Conditions - The new measure introduces stricter qualification conditions, including a "clean record of integrity" and specific disqualifications for individuals with serious credit violations or ongoing investigations [5][6]. Administrative Penalties - Different types of administrative penalties have been categorized with specific impact periods: one year for warnings and fines, and five years for market entry bans [3][4]. Training Requirements - Financial institutions are required to ensure that candidates for senior positions undergo necessary anti-money laundering and anti-terrorist financing training before assuming their roles [7]. Management Responsibilities - Financial institutions must establish robust procedures for selecting and appointing directors and senior management, ensuring compliance with the new qualification conditions [7][8]. Regulatory Oversight - Regulatory bodies are empowered to conduct thorough checks on candidates' qualifications, including reviewing their professional history and compliance records [6][8]. Transition Provisions - Existing qualified personnel can transfer between similar positions without reapplying for qualifications, except for specific high-responsibility roles that require a new application [8][9].