1. Report Industry Investment Rating No information provided. 2. Core Viewpoints of the Report - In the short - term, tin prices are vulnerable to market sentiment, geopolitical situations, and short - term supply - demand changes, with intensified fluctuations and high risks. It's recommended that investors participate cautiously to avoid sharp volatility. In the long - term, the core support for the upward shift of tin prices remains solid, and it's advisable to wait for market sentiment to stabilize or prices to have a reasonable correction and then adopt a strategy of going long on dips. [7][8] 3. Summary by Relevant Catalogs 3.1 Market Performance - Affected by the retreat of US technology stocks and the rising expectation of Fed tightening, tin prices dropped significantly from the night session on January 29th. As of February 2nd, the main contract of Shanghai tin hit the 11% daily limit down to 392,650 yuan/ton. [1] 3.2 Driving Factors 3.2.1 Impact of US Technology Stocks and Fed Expectations - Microsoft's Q4 2025 earnings report showed that huge capital expenditures in AI infrastructure, model training, and cloud services did not lead to significant revenue growth. This concern hit the high - valuation logic of technology stocks, especially AI concept stocks. Microsoft's stock price plunged over 10% on January 30th, with a single - day market value evaporation of about $420 billion. [2] - The news that Kevin Warsh will be nominated as the next Fed Chairman on January 29th, and the official announcement by Trump on January 30th. Warsh is a "hawk" on monetary policy. The expectation of his taking office led to the anticipation of accelerated global dollar liquidity tightening, causing a sell - off in precious metals and non - ferrous metals. [3] 3.2.2 Supply Recovery in Myanmar - From November to December 2025, China's imports of tin ore and concentrates from Myanmar increased significantly year - on - year. In November, imports were 7,190.21 physical tons (about 1,636.05 metal tons), with a month - on - month increase of 89.94% and a year - on - year increase of 92.16%. In December, imports were 6,205.43 physical tons (1,342.37 metal tons), a 17.95% month - on - month decrease but a 183.32% year - on - year increase. [5] - The recovery of Myanmar's supply eased the tight domestic tin ore supply, and the processing fees of smelters increased. As of February 2nd, the processing fee of 40% tin concentrates in Yunnan rose to 14,000 yuan/ton, a monthly increase of 2,000 yuan/ton; the processing fee of 60% tin concentrates in Guangxi, Hunan, and Jiangxi also rose to 10,000 yuan/ton, a monthly increase of 2,000 yuan/ton. [6] 3.3 Future Outlook - In the long - term, the upward shift of tin prices is supported by three factors: long - term rigid constraints on the supply side (low global tin ore reserve - to - production ratio, supply disruptions in major producing areas, limited new large - scale mining projects, and rising mining costs); profound changes in the demand structure (the "AI arms race" boosting the demand for high - end semiconductor packaging and electronic soldering materials); and the re - evaluation of the strategic value of tin due to global technological competition and industrial chain security concerns. [7]

Core Insights - The report highlights a rebound in the Chinese stock market, with Hong Kong's consumer discretionary, information technology, and industrial sectors leading gains, while healthcare, finance, and materials sectors declined [3] - Alibaba announced an additional investment of 380 billion yuan in AI infrastructure and formed a physical AI collaboration with Nvidia, resulting in a significant increase in its stock price [3] - The report anticipates a slight appreciation of the RMB against the USD, projecting an exchange rate of around 7.1 in the fourth quarter [3] Market Performance - The Hang Seng Index closed at 26,519, down 0.10% for the day but up 32.20% year-to-date [1] - The Hang Seng Tech Index showed a positive performance, closing at 6,323, up 0.46% for the day and 41.52% year-to-date [1] - The Shanghai Composite Index increased by 0.88% to close at 3,854, with a year-to-date gain of 14.97% [1] Sector Analysis - The report notes that the Hang Seng Financial Index fell by 1.11% while the Hang Seng Industrial Index rose by 0.55% [2] - The Hang Seng Property Index decreased by 2.42%, indicating challenges in the real estate sector [2] - The report emphasizes the ongoing development of AI and digital consumption in China, with multiple ministries promoting advancements in AI-enabled devices and services [3] Company Focus - Alibaba's cloud division aims to position itself as a full-stack AI service provider, with plans for global infrastructure expansion, including new cloud computing nodes in Brazil, France, and the Netherlands [4] - The company is pursuing an open-source model for its AI initiatives, aiming to create a value-generating ecosystem that surpasses closed-source models [4] - The report suggests a positive outlook for Alibaba Cloud's revenue growth, driven by increasing industry demand for AI infrastructure [4] Investment Recommendations - The report lists several companies with investment ratings, including Geely Automobile (target price 25.00, upside 37%) and Luckin Coffee (target price 44.95, upside 19%) [5] - The report indicates a strong potential for companies in the semiconductor sector, such as Horizon Robotics and North Huachuang, with respective target prices and upside potentials [5] - The report encourages ongoing attention to the long-term investment value in the Chinese internet and software sectors [4]

Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The AI data center market in the US is expected to see a 34% year-on-year increase in capital expenditure, reaching $257 billion in 2025, driven by the demand for large model iterations and policy support [2][17] - The aerospace industry is experiencing a robust recovery, with significant capital investments from major players like GE Aviation, which plans to invest approximately $1 billion to expand manufacturing capacity in the US [33][37] - The defense sector is advancing towards automation and modernization, highlighted by contracts awarded for robotic combat vehicles and the introduction of unmanned combat aircraft by the US Air Force [34][36] Summary by Sections Global Market Review - The S&P 500 index has shown a downward trend, with a cumulative decline of nearly 4.6% recently, indicating a dominant short-selling sentiment in the market [9][11] Infrastructure Data Centers - Major tech companies are accelerating investments in AI infrastructure, with a combined expenditure exceeding $250 billion planned for 2025 [17][19] - The US government is prioritizing domestic data center energy security and has established a task force to coordinate resource allocation [17] Energy Construction - The average annual investment in the US power grid from 2023 to 2030 is projected to be $44 billion, with a focus on fossil fuels while also anticipating strong growth in energy storage and solar power [23][24] - In Europe, the investment in the power grid from 2020 to 2030 is expected to reach €584 billion, driven by the need to upgrade aging infrastructure [27][28] Industrial Equipment Industrial Equipment Price Index - The price index for aircraft engines and components remained stable in January 2025, with a year-on-year increase of 2.7% [3][40] - The price index for electric motors and generators saw a significant year-on-year increase of 26% [3][51] Global Energy - The average spot price of electricity in major US regions increased by 6.61% recently, while natural gas prices also saw a rise [4][24] - In Europe, the electricity market has shown a downward trend in recent trading sessions, reflecting a broader risk-off sentiment [4][16] Key Company Insights - Companies like Howmet Aerospace and Loar Holdings are recommended for investment due to their strong positions in high-performance structural components and precision mechanical parts, respectively [5][6] - The report highlights the potential of defense contractors like Raytheon Technologies to benefit from increased defense spending amid rising geopolitical tensions [5][6] Selected Reports of the Week - The report emphasizes the importance of monitoring the developments in the AI data center market and the ongoing investments in energy infrastructure as key indicators of industry health [5][6][17]