Group 1 - The U.S. non-farm payrolls added 73,000 jobs in July, significantly below the market expectation of 110,000, with May and June's job additions revised down by a total of 258,000 [1] - Following the disappointing employment data, expectations for interest rate cuts increased, leading to a surge in gold prices, with COMEX gold futures surpassing $3,400 [1] - The gold sector saw significant gains, with Chifeng Jilong Gold Mining rising over 6% and other leading companies in the non-ferrous metals sector also experiencing substantial increases [1] Group 2 - The non-ferrous metal sector has shown strong performance, with the sector index up over 22% year-to-date, significantly outperforming major market indices [3][5] - A fund split for the non-ferrous metal ETF (159876) was implemented on August 1, with a 1:2 split ratio, aimed at lowering the trading threshold while maintaining total asset value [3] - The non-ferrous metal index has seen a cumulative increase of 22.68% from January 1, 2025, to July 31, 2025, outperforming other major indices [5] Group 3 - Key drivers for the strong performance of the non-ferrous metal sector include supportive government policies, positive earnings forecasts from listed companies, and a low valuation environment [6][8] - The sector is expected to benefit from a weaker U.S. dollar and increased demand for metals, particularly copper and rare earth elements, as supply constraints persist [8][9] - The non-ferrous metal ETF (159876) and its associated funds are well-positioned for investment, providing exposure to a diversified range of metals, including copper, aluminum, gold, and rare earths [8]

Group 1: Industry Performance - The non-ferrous metal sector has seen a year-to-date increase of 20.08%, outperforming other industries such as telecommunications (18.19%), pharmaceuticals (15.65%), and banking (14.72%), making it the top-performing sector among 31 Shenwan primary industries [1] - As of July 21, the non-ferrous metal sector ETF (159876) reached a new year-to-date high of 1.256 yuan, with an intraday price increase of 1.45% [1] Group 2: Key Developments - The Ministry of Industry and Information Technology announced that a growth stabilization plan for key industries, including steel, non-ferrous metals, petrochemicals, and building materials, will soon be released to promote structural adjustments and eliminate outdated production capacity [3] - The first batch of rare earth mining quotas for 2025 has been issued, with companies receiving notifications that details cannot be disclosed due to safety concerns [3] - Gold prices have risen due to a weaker dollar and ongoing geopolitical and economic uncertainties, increasing demand for gold as a safe-haven asset [3] Group 3: Investment Outlook - Guotai Junan Securities is optimistic about investment opportunities in the non-ferrous metal sector, predicting that gold will benefit from a weakening dollar and expectations of U.S. interest rate cuts [3] - The supply of copper smelting raw materials is constrained, while demand remains resilient, leading to an anticipated upward shift in copper prices [3] - Rare earth prices are expected to rise due to gradually increasing demand and rigid supply, alongside the anticipated lifting of export restrictions [3] - As of the end of June, the market-to-book ratio of the CSI Non-Ferrous Metals Index was 2.24, indicating a historically low valuation compared to its median of 2.52 [3] Group 4: Sector Composition - In the CSI Non-Ferrous Metals Index, the weightings of copper, gold, aluminum, rare earths, and lithium are 26.1%, 16.3%, 15.8%, 8.5%, and 7.7% respectively, providing a diversified investment opportunity [5]