Market Overview - The Hang Seng Index fell by 0.29%, down 75 points, closing at 26,124 points, while the Hang Seng Tech Index decreased by 0.09%. The early trading volume in Hong Kong stocks reached HKD 176.3 billion [1]. Pharmaceutical Sector - The pharmaceutical sector experienced a significant decline, with multiple stocks opening down over 10%. Reports indicate that the Trump administration is considering restrictions on Chinese pharmaceuticals. Notable declines include Hansoh Pharmaceutical down 9%, CSPC Pharmaceutical down 7.5%, and Innovent Biologics down 3.3% [1]. Metals Sector - The non-ferrous metals sector saw gains, driven by a quarter-on-quarter increase in basic metal performance. Companies such as China Hongqiao rose by 3.97%, Jiangxi Copper by 3.2%, and China Aluminum by 3.64% [1]. Semiconductor Industry - The semiconductor industry is expected to continue its "AI-driven + self-controlled" dual development trend in the second half of the year. Semiconductor stocks collectively rose, with Hua Hong Semiconductor and SMIC both increasing by over 5% [1]. Telecommunications - ZTE Corporation saw a rise of 7.62%, as the company accelerates its expansion from connectivity to computing power, with institutions optimistic about its stable performance [1]. Virtual Asset Trading - Yunfeng Financial surged over 18%, following a nearly 28% increase the previous day, after receiving approval to provide virtual asset trading services [2]. Fiber Optics - Longi Fiber Optics experienced a rise of over 14%, driven by increased demand for AI-driven data center interconnectivity, with institutions viewing the company as a core beneficiary [2]. Biotechnology - Rongchang Biopharmaceuticals increased by over 5%, as its drug Taitasip became the first biopharmaceutical to apply for listing in the field of Sjögren's syndrome globally [3]. Clinical Trials - Yaojie Ankang-B saw an increase of over 11%, with its market capitalization surpassing HKD 40 billion after receiving approval to conduct Phase II clinical trials for its drug Tienogitini [4]. Technology Sector - Huiju Technology rose over 10% after entering the Hong Kong Stock Connect list, with expectations of rapid growth in its MPO business over the coming years [5]. Strategic Partnerships - Charoen Pokphand International rose by 3% following a strategic partnership with Muyuan Group, as the company is a producer of the antibiotic goldmine under Charoen's umbrella [5]. Market Trends - Shenzhou Holdings increased by over 8%, driven by hot concepts and performance growth propelling its stock price [5].

Group 1 - Non-ferrous stocks are rising against the market trend, with China Hongqiao up 4.96% to HKD 25.4, Jiangxi Copper up 4.43% to HKD 25.46, China Aluminum up 3.49% to HKD 7.11, and Luoyang Molybdenum up 3.14% to HKD 12.49 [1] - Changjiang Securities reports that the net profit of the base metals sector is expected to grow by 27% year-on-year in the first half of 2025, with a net profit of CNY 37.644 billion in Q2 2025, reflecting a 14% year-on-year and 15% quarter-on-quarter increase [1] - The growth in the first half of 2025 is attributed to a phase of upward resonance in the manufacturing sectors of China and the US, along with expectations of interest rate cuts by the Federal Reserve, leading to an increase in base metal prices [1] Group 2 - CITIC Securities indicates that the significant underperformance of the US non-farm payroll data ahead of the Federal Reserve's meeting makes a rate cut announcement almost certain, with an 80% probability of three rate cuts within the year [2] - The prices of industrial metals are influenced by both financial and commodity attributes, with the Federal Reserve entering a rate-cutting cycle and global copper and aluminum inventories at relatively low levels [2] - The recovery of the Chinese economy, combined with the demand boost from the renewable energy sector, is expected to improve the demand for copper and aluminum [2]

Group 1 - Non-ferrous stocks are rising against the market trend, with China Hongqiao up 4.96% to HKD 25.4, Jiangxi Copper up 4.43% to HKD 25.46, China Aluminum up 3.49% to HKD 7.11, and Luoyang Molybdenum up 3.14% to HKD 12.49 [1] - Changjiang Securities reports that the net profit of the base metals sector is expected to grow by 27% year-on-year in the first half of 2025, with a net profit of CNY 37.644 billion in Q2 2025, reflecting a 14% year-on-year increase and a 15% quarter-on-quarter increase [1] - The growth in the first half of 2025 is attributed to a phase of upward resonance in the manufacturing sectors of China and the US, along with expectations of interest rate cuts by the Federal Reserve, which will elevate the price center of base metal commodities [1] Group 2 - CITIC Securities indicates that the significant underperformance of the US non-farm payroll data ahead of the Federal Reserve's meeting makes a rate cut announcement almost certain, with an 80% probability of three rate cuts within the year [2] - The prices of industrial metals are influenced by both financial and commodity attributes, with the Federal Reserve entering a rate-cutting cycle and global copper and aluminum inventories being relatively low [2] - The recovery of the Chinese economy, coupled with the demand growth driven by the renewable energy sector, is expected to improve the demand for copper and aluminum [2]

Investment Rating - The report maintains a "Positive" investment rating for the industry [10] Core Insights - The non-ferrous metal sector continues to show strong performance, with basic metals experiencing a net profit growth of 27% year-on-year in the first half of 2025, driven by a rebound in manufacturing and expectations of interest rate cuts [4][19] - Gold maintains a bullish market trend, with significant profit elasticity due to rising production capacity and price increases [5][19] - Energy metals show mixed performance, with lithium prices under pressure while cobalt prices improve, leading to better profitability for cobalt-related companies [6][19] - Rare earth materials are recovering as export controls enhance their strategic value, with prices stabilizing after previous declines [7][19] - Titanium materials are gradually improving in profitability, awaiting a recovery in high-end demand [8][19] Summary by Sections Basic Metals - In the first half of 2025, the basic metals sector achieved a net profit of 703.79 billion yuan, a 26.67% increase year-on-year, with a revenue growth of 4.24% [21][30] - The second quarter of 2025 saw a net profit of 376.44 billion yuan, up 14% year-on-year and 15% quarter-on-quarter, attributed to easing tariff pressures and strong industrial performance [4][37] Gold - The gold sector experienced a revenue increase of 25.94% year-on-year in the first half of 2025, with net profit soaring by 58.95% [14][19] - In Q2 2025, gold prices reached new highs, driven by trade conflicts and recession expectations, leading to significant profit elasticity for gold mining companies [5][19] Energy Metals - The energy metals sector faced a decline in lithium prices, with a year-on-year revenue decrease of 4.76% in the first half of 2025, while cobalt prices improved significantly [6][19] - Cobalt prices are recovering due to supply constraints from the Democratic Republic of Congo, which has implemented export bans [6][19] Rare Earth Materials - The rare earth sector saw a revenue increase of 12.74% year-on-year in the first half of 2025, with net profit growth of 260.72% [19][21] - Export controls and new regulations are expected to enhance the strategic value of rare earth materials, supporting price recovery [7][19] Titanium Materials - The titanium sector reported a slight revenue decrease of 0.90% year-on-year in the first half of 2025, with net profit down by 4.04% [19][21] - There is an expectation of improved profitability as high-end demand begins to recover [8][19]

Group 1: Oil Market - Oil prices have risen for three consecutive days, driven by market speculation regarding Trump's potential actions on Russian energy [3] - Concerns over Russian energy sanctions have led traders to cover short positions, increasing supply worries [3] - The U.S. PPI decline in August has intensified expectations for Fed rate cuts, supporting energy demand [3] - As of the latest report, WTI crude oil rose by 1.7% to $63.67 per barrel, while Brent crude oil also increased by 1.7% to $67.49 per barrel [3] Group 2: Precious Metals - Gold prices have increased, benefiting from the recent U.S. inflation data, with August PPI showing its first decline in four months [4] - Market expectations now lean towards three rate cuts by the Fed for the remainder of the year [4] - ANZ analysts have raised their year-end gold price forecast by $200 to $3,800 per ounce, citing increased gold holdings in China and India [4] - Palladium prices surged by 4.7% due to supply concerns linked to potential tariffs on Indian imports, as Russia is the largest supplier of palladium [4] - As of the latest report, spot gold rose by 0.5% to $3,644.74 per ounce [4] Group 3: Base Metals - Copper prices have surpassed $10,000 per ton, primarily due to supply risks from Indonesia's Freeport McMoRan Grasberg mine, which has halted operations following an accident [5] - Other base metals also experienced slight increases, with LME aluminum up by 0.1%, nickel by 0.27%, and zinc by 1.07% [5] - The movements in commodity prices are closely linked to geopolitical events and supply chain changes, as well as Fed policy expectations [5]

Core Viewpoint - The commodity market is experiencing a significant divergence, with oil prices plummeting to a new low since May, while gold prices have surged to a historic high above $3600, reflecting contrasting market dynamics and economic signals [1][3]. Oil Market Analysis - WTI crude oil has fallen below $62, dropping 2.5% in a single day and 3.3% for the week, while Brent crude has also dipped below $65.50 [3]. - The decline in oil prices is attributed to three main pressures: OPEC+ production increase expectations, unexpected rise in U.S. oil inventories by 2.4 million barrels, and ongoing weak demand forecasts due to disappointing U.S. employment data [4]. Gold Market Analysis - Gold prices have surpassed $3600, marking a historic high with a daily increase of 1.5%, driven by heightened expectations of a Federal Reserve interest rate cut following poor U.S. employment data and a rise in the unemployment rate to its highest level since 2021 [3][4]. - The surge in gold prices indicates a growing market sentiment of economic uncertainty and increased risk aversion [4]. Broader Economic Implications - The divergence in commodity prices reflects a significant economic transition, with traditional energy sources declining and the value of safe-haven assets like gold becoming more pronounced [5]. - The current market conditions highlight a stark contrast between OPEC+ efforts to maintain production levels and the Federal Reserve's potential rate cuts aimed at stabilizing the economy, leading to a fragmented market environment [4][5]. Investment Recommendations - Caution is advised for energy sector investments ahead of the upcoming OPEC+ meeting, as a decision to increase production could push oil prices further down towards the $60 mark [6]. - For gold, it is suggested to consider buying on dips during the Fed's rate-cutting cycle, while being wary of short-term overbought conditions [6]. - For base metals, it is recommended to wait for clearer signals from potential Chinese economic stimulus before making investment decisions [6].

Market Performance - The three major U.S. stock indices closed mixed, with the Dow Jones down 0.05%, the S&P 500 up 0.51%, and the Nasdaq up 1.02% [1] - Major tech stocks saw gains, with Google rising over 9% and Apple increasing more than 3% [1] - Popular Chinese concept stocks had mixed results, with Fangdd down nearly 15%, NIO down nearly 4%, Xpeng down over 2%, and Alibaba down over 1%. Conversely, Pinduoduo rose over 2% and iQIYI increased over 1% [1] European Market - All three major European stock indices closed higher, with Germany's DAX up 0.46%, France's CAC40 up 0.86%, and the UK's FTSE 100 up 0.67% [1] Commodity Prices - International precious metal futures generally rose, with COMEX gold futures up 0.77% at $3,619.70 per ounce and COMEX silver futures up 0.52% at $41.81 per ounce [1] - U.S. oil main contract fell 2.77% to $63.77 per barrel, while Brent crude main contract dropped 2.53% to $67.39 per barrel [1] Currency and Debt Markets - The U.S. dollar index fell 0.17% to 98.15, and the offshore RMB against the U.S. dollar decreased by 12 basis points to 7.1397 [1] - U.S. Treasury yields collectively declined, with the 2-year yield down 2.68 basis points to 3.610%, the 3-year yield down 2.83 basis points to 3.579%, the 5-year yield down 3.12 basis points to 3.691%, the 10-year yield down 4.27 basis points to 4.217%, and the 30-year yield down 6.15 basis points to 4.897% [1] - European bond yields also fell, with the UK 10-year yield down 5.2 basis points to 4.746%, France's 10-year yield down 4.2 basis points to 3.538%, Germany's 10-year yield down 4.6 basis points to 2.737%, Italy's 10-year yield down 6.2 basis points to 3.611%, and Spain's 10-year yield down 5.2 basis points to 3.344% [1]

Group 1 - The core viewpoint of the article highlights the mixed performance of base metals in London on September 2, with some metals experiencing gains while others faced declines [1] Group 2 - LME copper increased by 1.31% to $10,013.5 per ton [1] - LME zinc rose by 1.17% to $2,865.5 per ton [1] - LME nickel decreased by 1.29% to $15,240 per ton [1] - LME aluminum saw a rise of 0.4% to $2,621.5 per ton [1] - LME tin fell by 0.62% to $34,735 per ton [1] - LME lead dropped by 0.25% to $1,998.5 per ton [1]

Core Insights - The majority of base metals in London experienced price increases on September 1, with LME lead rising by 0.80% to $2007.00 per ton, LME zinc increasing by 0.50% to $2833.00 per ton, and LME nickel up by 0.35% to $15475.00 per ton [1] - LME aluminum saw a slight increase of 0.15%, reaching $2619.50 per ton, while LME tin rose by 0.12% to $35060.00 per ton [1] - In contrast, LME copper experienced a decline of 0.27%, settling at $9875.00 per ton [1]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - Gold is expected to break through new highs, and silver is expected to reach its previous peak [2][4]. - Copper prices are expected to rise due to the weakening US dollar [2][10]. - Zinc is expected to trade in a range [2][13]. - Lead prices are supported by inventory reduction [2][16]. - Tin is expected to trade in a range [2][18]. - The center of gravity of aluminum prices is expected to move up, while there may still be room for alumina prices to decline. Cast aluminum alloy is expected to outperform electrolytic aluminum [2][23]. - Nickel prices are expected to trade in a narrow range based on fundamentals, and investors should be wary of potential risks from news. Stainless steel prices are expected to trade in a narrow range [2][26]. 3. Summary by Relevant Catalogs Gold and Silver - **Fundamental Data**: The prices of gold and silver in various markets showed different degrees of increase. For example, the closing price of Shanghai Gold 2510 was 785.12, with a daily increase of 0.24%, and the night - session closing price was 791.28, with a night - session increase of 0.90%. The closing price of Shanghai Silver 2510 was 9386, with a daily increase of 0.10%, and the night - session closing price was 9566.00, with a night - session increase of 1.93% [5]. - **Macro and Industry News**: There were multiple macro - level events, such as the US 7 - month core PCE price index rising to 2.9% year - on - year, in line with expectations, and the tariff impact being controllable [9]. - **Trend Intensity**: The trend intensity of gold and silver is 1, indicating a relatively positive outlook [8]. Copper - **Fundamental Data**: The closing price of the Shanghai Copper main contract was 79,410, with a daily increase of 0.61%, and the night - session closing price was 79680, with a night - session increase of 0.34%. The London Copper 3M electronic disk closing price was 9,906, with a daily increase of 0.68% [10]. - **Macro and Industry News**: Macro - wise, the US 7 - month core PCE price index rose to 2.9% year - on - year. Micro - wise, the US government proposed to include copper in the list of critical minerals, and some companies had production - related news [10][12]. - **Trend Intensity**: The trend intensity of copper is 1 [12]. Zinc - **Fundamental Data**: The closing price of the Shanghai Zinc main contract was 22140, with a decrease of 0.14%, and the London Zinc 3M electronic disk closing price was 2814, with an increase of 0.97%. There were also changes in trading volume, positions, and other data [13]. - **News**: China's August official manufacturing PMI slightly rebounded, and the US 7 - month core PCE price index rose to 2.9% year - on - year [14]. - **Trend Intensity**: The trend intensity of zinc is 0 [15]. Lead - **Fundamental Data**: The closing price of the Shanghai Lead main contract was 16880, with a decrease of 0.18%, and the London Lead 3M electronic disk closing price was 1997, with an increase of 0.45%. There were also changes in inventory and other data [16]. - **News**: The US 7 - month core PCE price index rose to 2.9% year - on - year, and the China Securities Regulatory Commission planned to promote capital market reform [16]. - **Trend Intensity**: The trend intensity of lead is 0 [16]. Tin - **Fundamental Data**: The closing price of the Shanghai Tin main contract was 278,650, with a daily increase of 2.19%, and the night - session closing price was 272,590, with a decrease of 1.17%. The London Tin 3M electronic disk closing price was 34,825, with an increase of 0.91% [19]. - **Macro and Industry News**: There were multiple macro - level events, such as the US government's tariff - related rulings and China's regulatory policies [20]. - **Trend Intensity**: The trend intensity of tin is 1 [22]. Aluminum, Alumina, and Cast Aluminum Alloy - **Fundamental Data**: The closing price of the Shanghai Aluminum main contract was 20740, with a decrease of 10. There were also changes in trading volume, positions, and inventory data for aluminum, alumina, and cast aluminum alloy [23]. - **Comprehensive News**: India's second - quarter GDP grew by 7.8% year - on - year, but faced tariff challenges [25]. - **Trend Intensity**: The trend intensity of aluminum is 0, alumina is - 1, and cast aluminum alloy is 0 [25]. Nickel and Stainless Steel - **Fundamental Data**: The closing price of the Shanghai Nickel main contract was 121,700, and the closing price of the stainless - steel main contract was 12,815. There were also changes in trading volume, positions, and other data in the industrial chain [26]. - **Macro and Industry News**: There were news about Canada's potential nickel export restrictions, Indonesia's nickel - related production and policy news, and a Chinese steel mill's production adjustment [26][27][29]. - **Trend Intensity**: The trend intensity of nickel and stainless steel is 0 [31].