Group 1: ETF Performance - The Rare Metals ETF has a turnover rate of 6.87% with a transaction volume of 83.93 million yuan, and it ranks first among comparable funds in terms of average daily trading volume over the past week at 131 million yuan [3] - The latest scale of the Rare Metals ETF reached 1.22 billion yuan, marking a one-year high and ranking first among comparable funds [3] - The ETF's shares reached 1.843 billion, a three-month high, also ranking first among comparable funds [3] - Over the past six days, the Rare Metals ETF has seen continuous net inflows, with a single-day peak of 50.91 million yuan, totaling 177 million yuan in net inflows [3] - As of July 28, 2025, the ETF's net value has increased by 59.46% over the past year, ranking 267 out of 2938 in the index stock fund category, placing it in the top 9.09% [3] - The ETF has recorded a maximum monthly return of 24.02% since its inception, with the longest consecutive monthly gains being three months and the longest gain percentage being 14.06%, averaging a monthly return of 7.76% [3] - The ETF has outperformed its benchmark with an annualized return of 9.87% over the past three months [3] Group 2: Market Insights - Huatai Securities notes that the domestic "anti-involution" policies are intensifying, combined with recent overseas fiscal and monetary easing, leading to strong performance in the metals sector [4] - The price of polysilicon has successfully recovered, boosting market confidence, which has spilled over into lithium carbonate and alumina [4] - Lithium, cobalt, and rare earths have found price bottoms from a cost perspective, with independent factors driving price increases, such as stricter mining rights reviews for lithium and strategic enhancements and shortages for rare earths [4] - Zhongyou Securities highlights that the Democratic Republic of the Congo has banned cobalt exports since February, with extensions in June, leading to a depletion of in-transit cobalt mines, and anticipates that the peak season in September and October will drive inventory reductions [4] - The top ten weighted stocks in the China Rare Metals Theme Index as of June 30, 2025, include Salt Lake Co., Northern Rare Earth, Luoyang Molybdenum, Huayou Cobalt, Ganfeng Lithium, Tianqi Lithium, China Rare Earth, Western Superconducting, Zhongmin Resources, and Xiamen Tungsten, collectively accounting for 54.07% of the index [4]

Group 1 - The core viewpoint of the article highlights the active performance of rare earth permanent magnet concept stocks, with Fangbang Co., Ltd. hitting a 20% limit up [1] - Other companies such as Shenghe Resources, Longmag Technology, and others also experienced significant gains, indicating a positive trend in the sector [1] - The price of domestic praseodymium and neodymium oxide reached 520,000 yuan per ton as of July 24, reflecting a 30.5% increase since the beginning of the year [1]

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The copper market shows a stable upward trend, with domestic copper inventory accumulation ending and seasonal pressure testing completed [13] - The aluminum market is stabilizing at the bottom, facing significant declines in installation in August, with ongoing seasonal pressure [14] - The precious metals market is accelerating upward, supported by continuous expansion of US fiscal policy, maintaining high prices for gold [15] Summary by Sections 1. Overview of Bulk and Precious Metals Market - Copper prices increased slightly, with LME copper at $9,796.00 per ton and Shanghai copper at ¥79,300 per ton [13] - Aluminum prices showed a mixed trend, with LME aluminum down 0.27% to $2,631.00 per ton, while Shanghai aluminum rose 1.22% to ¥20,800 per ton [14] - Gold prices decreased by 2.11% to $3,338.50 per ounce, influenced by international tensions and US fiscal policies [15] 2. Updates on Bulk and Precious Metals Fundamentals 2.1 Copper - The processing fee for imported copper concentrate rose to -$42.63 per ton, indicating supply-side pressures [13] - The operating rate for brass rod enterprises decreased to 49.32%, primarily due to weak demand and high copper prices [13] 2.2 Aluminum - Domestic electrolytic aluminum ingot inventory increased to 510,000 tons, indicating a supply surplus [14] - The operating rate for downstream aluminum processing enterprises slightly declined to 58.7% [14] 2.3 Precious Metals - SPDR gold holdings increased by 10.03 tons to 957.09 tons, reflecting ongoing interest in gold as a safe-haven asset [15] 3. Overview of Minor Metals and Rare Earths Market - The rare earth sector is experiencing upward momentum, with prices for praseodymium-neodymium oxide rising to ¥513,200 per ton, up 7.23% [29] - Antimony prices are stabilizing, with expectations of recovery due to reduced domestic smelting capacity [33] - Molybdenum prices are increasing, supported by low inventory levels and robust demand from the steel sector [34] 4. Updates on Minor Metals and Rare Earths Fundamentals 4.1 Rare Earths - The price of praseodymium-neodymium oxide has shown a significant increase, indicating strong demand and supply tightening [29] - The implementation of new management regulations is expected to benefit leading state-owned enterprises in the sector [32] 4.2 Antimony - Antimony ingot prices have increased to ¥187,100 per ton, with expectations of a price rebound supported by improved export forecasts [33] 4.3 Molybdenum - Molybdenum prices are on the rise, with significant supply disruptions anticipated due to recent incidents at major mines [34] 4.4 Tin - Tin prices have increased to ¥271,400 per ton, supported by strong inventory levels and demand from the semiconductor sector [35]

Market Performance - The A-share market saw all three major indices rise, with the Shanghai Composite Index increasing by 1.67%, the Shenzhen Component Index by 2.33%, and the ChiNext Index by 2.76% [1] - The Sci-Tech 50 Index led the market with a weekly increase of 4.63%, driven by technology stocks such as semiconductors and AI [1] ETF Market Trends - The ETF market displayed a pattern of "debt fund hedging + Hong Kong stock technology attracting capital," with a total net inflow of 18.18 billion yuan [4] - Rare metals and rare earth-related ETFs continued to perform well, with coal and building materials ETFs rising nearly 10% as part of a "anti-involution" trend [1] - In contrast, several bank-related ETFs experienced a decline of around 3% [1] Fund Flows - Stock ETFs saw a net outflow of 54.5 billion yuan, while industry ETFs recorded a net inflow of 116.59 billion yuan [4] - Cross-border ETFs had a net inflow of 102.55 billion yuan, benefiting from the recent capital inflow into the Hong Kong market [4] - Bond ETFs experienced a net inflow of 91.82 billion yuan [4] Upcoming ETF Issuances - Six new ETFs are set to be issued next week, including Hong Kong Stock Connect Consumer ETF and Hong Kong Stock Connect Technology ETF [4]

Investment Rating - The report maintains a "Positive" investment rating for the non-ferrous and steel industry [5] Core Viewpoints - The report argues that the value reassessment of the strategic metals sector has just begun, contrary to some investors' belief that the recent rapid price increases indicate an impending peak [8][14] - It highlights three dimensions supporting this view: policy measures against strategic mineral smuggling, a tight supply-demand balance driving product prices up, and an increase in risk appetite due to political policy risk premiums [8][14][17] Summary by Sections Strategic Metals - Some investors believe the recent surge in strategic metals prices is unsustainable and may soon peak [8][13] - The report counters this by stating that the value reassessment of strategic metals is just beginning, driven by macroeconomic inflation, tight supply-demand dynamics, and political risk premiums [14][17] - Policy measures to combat strategic mineral smuggling are expected to be reinforced, particularly for rare earths and other strategic metals [15] - The supply-demand balance remains tight, with increasing demand from sectors like new energy vehicles and offshore wind power, leading to rising prices for rare earths [16] - Political policy risk premiums are expected to rise, enhancing the attractiveness of the strategic metals sector [17] Steel Industry - Steel prices are anticipated to continue rising due to production cut expectations [18] - Steel demand and production have decreased, but a dynamic balance in supply and demand is expected [18][25] - Inventory levels are showing differentiation among various steel products, with total inventory likely to decline further [25] - Cost increases in raw materials are pushing steel prices up, with profits for steel mills expected to recover [28] - The overall steel price index has seen a slight increase, with specific products like hot-rolled steel showing notable price rises [35] New Energy Metals - Lithium production in June 2025 saw a significant year-on-year increase of 20.95%, indicating strong supply growth [40] - The demand for new energy vehicles remains robust, with production and sales in June 2025 showing substantial growth [44] - Prices for lithium and cobalt have generally risen, while nickel prices have seen a decline [49][50] Industrial Metals - Global refined copper production has increased, with supply slightly better than expected [57] - The demand outlook is improving, with manufacturing activity expected to continue recovering [69]

Market Performance - The A-share market indices showed steady growth from July 21 to 25, with the Shanghai Composite Index rising by 1.67% to close at 3593.66 points, the Shenzhen Component Index increasing by 2.33%, and the ChiNext Index up by 2.76% [1] - All major industry sectors achieved positive returns, except for the banking sector, which experienced a slight decline. The steel, coal, and building materials sectors led the gains [1] Institutional Research Highlights - A total of 121 listed companies disclosed institutional research minutes during the week, with over 70% of the researched stocks achieving positive returns. Dayu Water-saving led with a 36.24% increase, followed by Tangyuan Electric, Maolai Optics, Zhejiang Fu Holdings, and Haopeng Technology, all of which saw gains exceeding 18% [1] - The concentration of institutional research decreased, with companies like Guodian Measurement, Dayu Water-saving, Haopeng Technology, and Tangyuan Electric receiving over 50 institutional visits [2] Guodian Measurement - Guodian Measurement received 54 institutional visits, the highest for the week. The company announced plans to raise 1.3 billion yuan through a private placement for investments in satellite internet, aviation equipment, AI chips, and data intelligence [2] - The management emphasized that the fundraising is a strategic move to enhance technological self-reliance and innovation, addressing critical technology bottlenecks. The projects will be implemented in phases over three years, with a focus on structural adjustments and profit growth [2] Haopeng Technology - Haopeng Technology was visited by 52 institutions and is transitioning from a consumer battery manufacturer to an "AI + solid-state" energy solutions provider, targeting trillion-level markets such as AI, robotics, and low-altitude economy [3] - The company aims to enhance the proportion of high-margin AI products and increase the penetration of solid-state batteries. It has made significant progress in AI glasses and robotics, with mass production expected in the second half of the year [3] - By 2025, Haopeng Technology anticipates that AI-related products will contribute to revenue growth, driven by high energy density battery solutions [3] Flying Dragon Co., Ltd. - Flying Dragon Co., Ltd. received attention from institutions regarding its declining revenue and profit increase projections for the first half of 2025. The management cited three main reasons for the revenue decline: project lifecycle expiration, reduced overseas orders due to tariffs, and intensified price competition in the new energy vehicle sector [4] - The company expects revenue recovery in the second half of 2025, driven by new overseas projects, increased orders for new energy vehicle modules, and growth in liquid cooling product sales [4]

Summary of Key Points Core Viewpoint - The recent block trading activity of Dadi Bear indicates significant institutional interest, with a total transaction amount of 10.0049 million yuan on July 25, 2023, at a price of 30.69 yuan, reflecting a discount of 9.81% compared to the closing price of the day [2][3]. Group 1: Trading Activity - On July 25, 2023, Dadi Bear experienced three block trades totaling 326,000 shares and a transaction value of 10.0049 million yuan [2]. - The average transaction price for these trades was 30.69 yuan, which is 9.81% lower than the closing price of the day [2][3]. - Over the past three months, Dadi Bear has recorded five block trades with a cumulative transaction value of 14.5454 million yuan [3]. Group 2: Market Performance - On the same day, Dadi Bear's closing price was 34.03 yuan, marking an increase of 2.01%, with a daily turnover rate of 10.47% and a total transaction volume of 403 million yuan [3]. - The stock has seen a net outflow of 22.6485 million yuan in main funds throughout the day, and over the past five days, it has increased by 3.43% with a total net outflow of 69.9522 million yuan [3]. - The latest margin financing balance for Dadi Bear is 203 million yuan, which has decreased by 9.9995 million yuan over the past five days, representing a decline of 4.69% [3].

Market Overview - A-share market continued to show an upward trend with major indices rising, with the Shanghai Composite Index reaching a new closing high for the year, marking four consecutive weeks of gains [1] - The total trading volume exceeded 9 trillion yuan, with an average daily trading volume of over 1.7 trillion yuan [1] - Major indices saw increases of 1.67%, 2.33%, and 2.76% for the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index respectively [1] ETF Performance - The average increase of ETFs across the market was 2.39%, driven by strong performances in sectors such as building materials and rare metals [2] - Notable top-performing ETFs included the Sci-Tech Innovation Index ETF with a 23.12% increase and several rare metal ETFs with increases exceeding 11% [2] Future Outlook - Market optimism is driven by liquidity and policy deployment, with a focus on international trade and domestic economic policies for potential positive impacts [3] - The small metals market is experiencing heightened interest, with upward price trends due to limited resource availability and increasing demand from sectors like new energy and semiconductors [3] Fund Flow Trends - The ETF market saw continued inflows, with a net inflow of 2.378 billion yuan during the period, maintaining high activity levels [6] - Bond ETFs, cross-border ETFs, and stock ETFs were the top recipients of inflows, with bond ETFs being particularly favored by large funds [8] ETF Trading Volume - The Hong Kong Securities ETF achieved a weekly trading volume exceeding 100 billion yuan, reaching 101.805 billion yuan, leading the market [9] Upcoming ETF Listings - Four new ETFs are set to launch next week, including the Huatai-PineBridge National General Aviation Industry ETF, which focuses on low-altitude economy stocks [10] - The Penghua Sci-Tech Innovation Board Chip ETF will track semiconductor-related companies, reflecting strong interest in technology sectors [11]

Summary of Key Points Market Overview - The total trading volume of the Shanghai and Shenzhen stock markets on July 25 was 17,873.37 billion yuan, a decrease of 573.69 billion yuan compared to the previous day [1] - The Shanghai Stock Exchange had a trading volume of 8,216.1 billion yuan, down from 8,522.4 billion yuan on the previous trading day [1] - The Shenzhen Stock Exchange recorded a trading volume of 9,657.27 billion yuan, compared to 9,924.66 billion yuan the day before [1] Trading Volume Details - The trading volume for the Shanghai market was 697 million shares, a decline from 773 million shares in the previous session [1] - The Shenzhen market's trading volume was 724 million shares, slightly down from 742 million shares the previous day [1] Top Performing Stocks - Northern Rare Earth had the highest trading volume at 15.606 billion yuan [1] - China Power Construction, Dongfang Wealth, Tibet Tianlu, and Baogang Group followed with trading volumes of 15.576 billion yuan, 11.391 billion yuan, 9.337 billion yuan, and 8.386 billion yuan respectively [1]

Summary of Conference Call on Rare Earth Industry Industry Overview - The rare earth industry is experiencing a tightening supply-demand situation, particularly in China, following the implementation of export controls in April 2025, which has led to a disconnection between domestic and international markets [2][4][7]. Key Points Demand Trends - High-performance neodymium-iron-boron (NdFeB) demand is projected to reach 63% in 2024 and increase to 68% by 2027, driven by sectors such as electric vehicles and robotics [1][2]. - The compound annual growth rate (CAGR) for China's high-performance NdFeB demand from 2020 to 2024 is approximately 25%, with an expected CAGR of around 13% from 2024 to 2027 [1][3]. Supply Dynamics - Domestic rare earth supply is influenced by several factors, including the cessation of exports from the U.S. MP Company and disruptions in imports from Myanmar, which saw an 81% year-on-year decline from January to March 2025 [4][5]. - By June 2025, imports from Myanmar rebounded to 5,600 tons, a 71% year-on-year increase [5]. Price Movements - Since mid-July 2025, the price of praseodymium-neodymium oxide has entered an upward trend, with prices increasing by 27% compared to the beginning of the year [6]. - As of July 22, 2025, the price per ton of praseodymium-neodymium oxide was reported at 478,000 yuan, reflecting a 20% increase since the start of the year [6]. Future Supply and Demand Outlook - The global supply-demand balance for praseodymium-neodymium oxide is expected to remain tight from 2025 to 2027, with domestic conditions improving as demand strengthens and supply tightens [7][9]. - The U.S. Department of Defense's agreement with MP Company, which sets a minimum purchase price of $110 per kilogram, is anticipated to raise the price ceiling for rare earths globally [10]. Investment Recommendations - It is advised to focus on upstream companies with strong resource attributes and growth potential, such as Northern Rare Earth and Guangsheng Nonferrous, as well as leading downstream magnetic material companies involved in humanoid robots and electric vehicles, like Jinli Permanent Magnet and Ningbo Yunsheng [11]. - Attention should also be given to overseas rare earth companies, including MP in the U.S. and Lynas in Australia [11]. Industry Outlook - The rare earth and magnetic material industries are expected to have a positive outlook in the coming years, with stable costs for upstream companies and rapid demand growth for downstream companies [12]. - The demand for high-performance NdFeB is projected to grow at over 13% from 2024 to 2027, supporting higher valuations for these companies [12][13]. Valuation Considerations - Valuation should consider both profit and volume, with upstream rare earth companies benefiting from price increases and downstream magnetic material companies experiencing rapid growth due to the electrification trend [13][14].