Summary of Deep Sea Mining and Offshore Oil & Gas Industry Insights Industry Overview - The report focuses on the deep sea mining and offshore oil & gas industry, highlighting the potential for significant mineral resource extraction from marine areas deeper than 200 meters, which constitute approximately 90% of the ocean's total area [12][13]. Key Findings 1. **Mineral Resource Valuation**: - Estimated mineral resources in the deep sea are valued at approximately **US$177 trillion**, with an upside scenario reaching **US$287 trillion** [12][16]. - The total value of deep sea mineral reserves includes **US$81 trillion** in metals and **US$95 trillion** in oil & gas [49][51]. 2. **Capital Expenditure Forecast**: - Offshore oil & gas exploration and production (E&P) capital expenditure (capex) is projected to be around **US$2.5 trillion** over the next decade [12][29]. - Deep sea metal mining equipment capex is expected to surge from **US$150 billion** in the next decade to **US$1.5 trillion** from 2036 to 2050 [12][68]. 3. **Market Opportunities**: - The deep sea mining market is anticipated to grow significantly, with a total addressable market (TAM) reaching **US$1.7 trillion** from 2026 to 2050 [3][68]. - Key beneficiaries identified include companies like MODEC, CIMC, Saipem, SLB, Wärtsilä, Jereh, COSL, and Vale Indonesia [2]. Challenges and Concerns 1. **Environmental and Regulatory Issues**: - Major concerns include environmental protection, biodiversity loss, and the slow regulatory progress from the International Seabed Authority (ISA) [4][15]. - The deep sea mining industry faces significant ecological risks, including potential irreversible damage to marine ecosystems and biodiversity [15][81]. 2. **Technological and Cost Barriers**: - Current deep sea mining costs are approximately **25% higher** than terrestrial mining, but advancements in technology could lead to cost parity by **2033** [64][65]. - The report emphasizes the need for technological advancements to reduce operational and environmental costs [64]. Market Dynamics 1. **Supply Constraints**: - The demand for critical metals such as copper, cobalt, and nickel is increasing due to the transition to green energy and high-tech industries, while terrestrial supplies are depleting [18][20]. - Geopolitical tensions are exacerbating supply pressures, particularly as production is concentrated in a few countries [18][20]. 2. **Geopolitical Influence**: - The report notes significant developments in 2025, including the US and China prioritizing deep sea technology and mining, which may accelerate the commercialization of deep sea mining [14][42]. Sector Implications - The report identifies various sectors that could benefit from the deep sea economy, including: - **Oil & Gas**: Increased exploration and production activities, particularly in deepwater regions [85]. - **Capital Goods**: Demand for underwater robotics and equipment is expected to rise [85]. - **Shipping and Transportation**: Increased demand for dry bulk shipping as deep sea minerals are collected and transported for refining [85]. Conclusion - The deep sea mining and offshore oil & gas sectors present substantial investment opportunities, driven by technological advancements and increasing demand for critical minerals. However, environmental concerns and regulatory challenges remain significant hurdles that need to be addressed for sustainable development in this industry [84][85].

Market Performance - A-shares experienced a day of fluctuation with the Shanghai Composite Index closing at 3369 points, while the Shenzhen Component and ChiNext Index fell by 0.43% and 0.33% respectively. The market turnover decreased to 1.29 trillion yuan, down approximately 186.9 billion yuan from the previous trading day. Over 2700 stocks declined, indicating a broad market downturn [3]. Sector Analysis Leading Sectors - The controlled nuclear fusion concept surged due to policy support and industrialization expectations, with stocks like Chenguang Medical and Jiusheng Electric hitting the daily limit. Related sectors such as electricity and new materials also saw gains. The State-owned Assets Supervision and Administration Commission (SASAC) expressed clear support for nuclear fusion technology, boosting market sentiment [4]. - Cyclical and dividend assets strengthened, with coal, electricity, and chemical sectors leading the gains. Companies like Huayang Co. and Jiangsu New Energy reached their daily limit. High dividend yields and defensive attributes attracted capital, enhancing the allocation value of AH share price ratios [4]. - The titanium dioxide and aquaculture sectors were active, with titanium dioxide companies collectively raising prices, leading to a surge in related stocks like Lubao Chemical. The aquaculture sector saw a rise due to improved supply and demand expectations, with Xiaoming Co. increasing by over 10% [4]. Underperforming Sectors - The computing power and AI industry chain faced significant declines, with stocks like Shoudu Online and Jinjiji Co. dropping over 10%. The downturn was influenced by media reports suggesting a bubble in AIDC construction and Goldman Sachs lowering AI server sales forecasts. However, the claim of a bubble was deemed a misinterpretation, as domestic CSP customer orders were gradually being released [5][6]. - The marine engineering and technology growth stocks also retreated, with shipbuilding and deep-sea technology sectors experiencing notable declines, indicating a withdrawal of funds from high-position themes [7]. Capital Trends - Foreign capital returned and core assets were favored, with A50 ETF and A500 ETF rising against the trend, reflecting a concentration of funds towards industry leaders and "new quality productivity" sectors. The inclusion of the CSI A50 index in ESG screening attracted foreign capital for allocation [8]. Market Logic Shift - As the earnings season approaches, the market is shifting focus from speculative themes to fundamental verification, with increased attention on earnings forecast adjustments. Blue-chip stocks and industries related to "new quality productivity" such as green economy and high-end manufacturing are becoming safe havens for capital [9]. - Government reports continue to support policies in technology, consumption, and infrastructure, with economic data from January to February showing steady progress. The high-tech manufacturing and new energy sectors are experiencing robust growth, providing fundamental support for the market [9]. Future Outlook - Institutions generally believe that the market may continue to fluctuate in the short term, with caution advised regarding high-position theme stock corrections. Suggested allocations include dividend and undervalued sectors such as coal, electricity, and banking, benefiting from high dividends and defensive characteristics [10]. - Policy-driven areas such as nuclear fusion, green energy, and domestic substitution are identified as medium to long-term themes [11]. - Companies with earnings certainty, particularly those in the CSI A50 and A500 index, especially stable profit leaders, are recommended for consideration [12].