Group 1 - The core viewpoint is that the macroeconomic factors influencing the market in the second half of 2025 will be the reshaping of global trade patterns and the potential further stimulus from domestic fiscal policies [1] - The A-share market is experiencing a dual recovery in fundamentals and sentiment, with a GDP growth rate of 5.3% in the first half of the year exceeding expectations, providing solid support for the market [1] - The A-share market has seen active trading, with transaction volumes exceeding 1 trillion yuan for 62 consecutive trading days, indicating improved investor sentiment and sustained momentum for market performance [1] Group 2 - The Hong Kong stock market is highlighted as a "global valuation pit," with the Hang Seng Index's price-to-earnings ratio (TTM) at 11.11 times, significantly lower than major overseas indices, indicating attractive investment value [1] - Within the Hong Kong stock market, there is structural differentiation in valuations, with some sectors experiencing valuation increases due to capital inflows, while still presenting numerous undervalued opportunities worth exploring [1] Group 3 - Investment directions to focus on include sectors that drive domestic demand, such as the internet, sportswear, food and beverage, real estate, and property services, which are characterized by strong cash flow and high dividends [2] - Emphasis is placed on technology innovation sectors, including autonomous ERP, industrial software, artificial intelligence, semiconductors, robotics, and low-altitude economy, which are expected to drive structural adjustments and boost confidence [2] - Industries with strong international comparative advantages, such as textile and apparel manufacturing, electronics components, and automotive parts, are also highlighted, as they are less affected by external demand shocks and are expected to benefit from domestic subsidies [2] Group 4 - Strategic resources such as gold, uranium, and rare earths will be monitored to balance the overall investment portfolio against geopolitical risks [3]

Investment Rating - The industry investment rating is "Outperform the Market" and is maintained [2] Core Views - Precious metals are expected to perform well in the long term despite a recent pullback, with a recommendation to overweight this sector [5] - Copper prices are expected to remain strong, with a support level around 9,350 USD per ton, influenced by macroeconomic factors and trade dynamics [6] - Aluminum prices are anticipated to trend upward, supported by easing trade tensions and a decrease in inventory levels [6] - Rare earth prices are projected to rise following a significant drop in export volumes, with expectations of increased demand due to recent diplomatic agreements [7] - Uranium prices have seen a significant increase, with expectations for a new upward trend in the second half of the year [8] Summary by Sections Industry Overview - The closing index for the industry is at 4,846.95, with a weekly high of 5,047.03 and a low of 3,700.9 [2] Price Movements - Basic metals saw price changes: Copper up 0.13%, Aluminum up 2.34%, Zinc up 0.86%, Lead up 0.13%, and Tin down 0.27% [20] - Precious metals experienced declines: Gold down 1.98%, Silver down 1.15%, while Platinum and Palladium saw increases of 4.08% and 1.69% respectively [20] Inventory Changes - Global visible inventories showed a decrease in Copper by 12,511 tons, Aluminum by 5,439 tons, and Zinc by 5,004 tons, while Lead saw an increase of 18,731 tons [34]