Group 1 - The industrial metals sector is significantly boosted by policy support, with the "Work Plan" expected to expand demand and optimize supply, enhancing industry confidence [1] - The Ministry of Industry and Information Technology aims to promote structural adjustments in key industries, optimize supply, eliminate outdated capacity, and implement high-quality development plans for copper and aluminum industries to stabilize growth and promote transformation [1] - In the strategic metals sector, prices for praseodymium and neodymium oxides have rebounded from a low point, while black tungsten concentrate prices have reached a historical high, indicating potential valuation reconstruction opportunities amid global supply chain autonomy pursuits [1] Group 2 - The Nonferrous 60 ETF (159881) tracks the CSI Nonferrous Metals Index (930708), which is compiled by the China Securities Index Company and includes listed companies involved in the mining, smelting, and processing of precious and industrial metals, reflecting the overall performance of the nonferrous metals industry [1] - The index exhibits significant cyclical characteristics, providing investors with an effective tool to measure the development status of the nonferrous metals industry [1] - Investors without stock accounts can consider the Guotai CSI Nonferrous Metals ETF Initiated Link C (013219) and Guotai CSI Nonferrous Metals ETF Initiated Link A (013218) [1]

Core Viewpoint - The rare earth sector has experienced a significant surge, with stocks related to Kimi and DeepSeek also rising sharply, indicating strong market interest and potential investment opportunities in these areas [2][14]. Market Overview - On July 18, the A-share market showed slight fluctuations, with the Shanghai Composite Index rising by 0.34%, the Shenzhen Component Index by 0.3%, and the ChiNext Index by 0.26% [2]. - The total market turnover reached 1.03 trillion CNY, showing a notable increase compared to the previous day, with 2,075 stocks rising and 3,088 stocks falling [3]. Sector Performance - The non-ferrous metal sector saw a substantial increase, particularly in rare earth, rare metals, and rare earth permanent magnet stocks, with several stocks hitting the daily limit [6][12]. - Notable stocks included: - Hai Xing Co., Ltd. with a 10.03% increase - Dongfang Zirconium with a 10.02% increase - Shengxin Lithium Energy with a 10% increase [7]. Rare Earth Sector Insights - The rare earth sector is bolstered by significant profit growth forecasts, with companies like Huahong Technology expecting a net profit increase of 3,047% to 3,722% year-on-year, and Northern Rare Earth forecasting a 1,883% to 2,015% increase [14]. - The market is also influenced by external factors, such as the U.S. Department of Defense's investment in MP Materials to expand production capacity, which is expected to sustain the upward trend in the rare earth sector [14]. Kimi and DeepSeek Concept Stocks - Kimi concept stocks saw a notable rise, with Century Tianhong hitting a 20% limit up, and other stocks like Tuorisi and Deepin Technology also performing well [16][18]. - The release of the Kimi K2 AI model has generated significant attention, indicating a strong potential for growth in AI-related stocks [18].

Core Viewpoint - The global macro environment remains volatile, with industrial metal prices, particularly copper and aluminum, continuing to fluctuate. However, the introduction of a series of policies in the second half of 2024 is expected to improve domestic macro sentiment and potentially boost upstream industrial metal demand due to recovering terminal demand and supply constraints [1]. Summary by Relevant Sections Industrial Metals - Copper prices are under pressure from fluctuating macro policies, but tightening copper concentrate supply and declining smelting processing fees provide strong medium to long-term price support [1]. - The aluminum supply chain's vulnerability has been highlighted by recent disruptions in Guinea's bauxite supply, indicating that integrated layouts will become a development direction for the industry [1]. Market Indicators - The manufacturing PMI rose by 0.5 percentage points to 49.5% in May, indicating improved market expectations and a potential recovery in terminal demand for industrial metals [1]. - The strategic metal tungsten has reached a historical price high, suggesting a potential revaluation of strategic metals in the context of countries pursuing supply chain autonomy [1]. Investment Products - The Nonferrous 60 ETF (159881) tracks the CSI Nonferrous Index (930708), which includes representative listed companies in the nonferrous metal industry from the Shanghai and Shenzhen markets, covering various sub-industries such as copper, aluminum, lead, zinc, and rare metals [1]. - The CSI Nonferrous Index reflects the overall performance of the nonferrous metal industry in the A-share market, with its constituent stocks exhibiting significant cyclicality and sensitivity to commodity prices [1].