[Morning Post] Ministry of Commerce: Urges the US to jointly safeguard the consensus reached at the Geneva economic and trade talks; multiple parties speak out!

Macro News

1. Recently, there have been repeated claims from the US side that China has violated the consensus reached during the China-US Geneva Economic and Trade Talks. The Ministry of Commerce stated that the US has unilaterally and continuously provoked new economic and trade frictions, exacerbating the uncertainty and instability of bilateral economic and trade relations. Instead of reflecting on its own actions, the US has shifted the blame and unjustly accused China of violating the consensus, which is a serious departure from the facts. China firmly rejects these unfounded accusations. If the US continues to act unilaterally and harm China's interests, China will continue to take resolute and forceful measures to safeguard its legitimate rights and interests.

3. The Office of the United States Trade Representative announced an extension of the exemption period in the Section 301 investigation into China's acts, policies, and practices related to technology transfer, intellectual property, and innovation. The exemption period, originally set to expire on May 31, 2025, has now been extended to August 31, 2025.

4. On June 1 local time, the Investigative Committee of Russia classified the bridge sabotage incidents in Bryansk Oblast and Kursk Oblast as terrorist attacks.

5. On May 30 local time, US President Trump stated that he would raise tariffs on imported steel from 25% to 50%. On February 10, Trump signed an executive order announcing a 25% tariff on all steel and aluminum imported into the US. On March 12 local time, the measure imposing a 25% tariff on all steel and aluminum imported into the US officially took effect.

6. In a statement, the European Commission expressed regret over the US announcement to raise tariffs on imported steel and aluminum, and stated that the EU is prepared to take countermeasures. The statement claimed that the US government's decision further adds uncertainty to the global economy and undermines ongoing efforts to resolve issues through negotiations. It emphasized that the European Commission is currently conducting final consultations on expanding countermeasures. If a mutually acceptable solution cannot be reached, existing and additional EU measures will automatically take effect on July 14 or earlier if necessary.

7. On May 31, the China Federation of Logistics and Purchasing and the Service Industry Survey Center of the National Bureau of Statistics (NBS) released China's Purchasing Managers' Index (PMI) for May. The manufacturing PMI for China in May was 49.5%, an increase of 0.5 percentage points MoM.

8. Starting from June 1, China will implement a visa-free policy for holders of ordinary passports from five countries: Brazil, Argentina, Chile, Peru, and Uruguay. From June 1, 2025, to May 31, 2026, nationals of these five countries holding ordinary passports may enter China without a visa for business, tourism, visiting relatives and friends, exchange visits, or transit for no more than 30 days.

Industry News

1. In order to implement the decisions and plans of the CPC Central Committee and the State Council, further reduce business operating costs, optimize the business environment, promote the development of the real economy, and advance the construction of the social credit system, the National Development and Reform Commission (NDRC) recently issued the "Notice on Further Reducing Credit Reporting Service Fees," significantly lowering the fees for credit reporting services.

2. Multiple regions across the country have taken various measures to strengthen control and prevent the illegal outflow of strategic minerals. Among them, the Office of the National Export Control Coordination Mechanism issued and implemented the "Overall Plan for Strengthening the Full-Chain Control of Strategic Mineral Exports" after approval through the established procedures. Guizhou will strictly adhere to the division of responsibilities outlined in the "Overall Plan" and carry out relevant work accordingly. Relevant authorities in Hunan Province have stated that they will earnestly fulfill their local regulatory responsibilities, systematically investigate and establish a ledger for strategic mineral export enterprises in Hunan, guide enterprises in strengthening the construction of compliance systems, enhance their awareness and capabilities in compliance, and ensure the effective implementation of control measures. Guangxi will continue to effectively supervise and manage the exploration and exploitation of national strategic minerals, intensify efforts to investigate and punish illegal mining activities such as unlicensed mining, cross-border mining, and mining under the guise of exploration, and resolutely prevent the illegal outflow of strategically important minerals. Additionally, relevant departments in Jiangxi and Yunnan have also indicated that they will unwaveringly implement all tasks in accordance with their respective responsibilities.

3. China Securities Index Co., Ltd. announced that it will adjust the sample stocks for indices such as the CSI 300, CSI 500, CSI 1000, CSI A50, CSI A100, and CSI A500. This adjustment is a regular, periodic revision of the index samples, and the revised scheme will officially take effect after the market closes on June 13.

4. In response to the "Initiative on Maintaining Fair Competition Order and Promoting Healthy Industry Development" issued by the China Association of Automobile Manufacturers (CAAM) on May 31, relevant officials from the Ministry of Industry and Information Technology stated that they will intensify efforts to rectify "cut-throat competition" in the automotive industry and resolutely maintain a fair and orderly market environment.

5. CAAM issued the "Initiative on Maintaining Fair Competition Order and Promoting Healthy Industry Development." For some time, the industry's profitability has declined, with "cut-throat competition" characterized by disorderly "price wars" being a significant factor contributing to the decline in industry benefits. Continuous investment is needed to ensure product after-sales service guarantees and support enterprises' innovative development. However, "price wars" seriously affect the normal operations of enterprises, impact the security of the industry chain and supply chain, and drive the industry into a vicious cycle.

6. A reporter from Cailian Press learned that recently, Ping An Asset Management Co., Ltd. received formal approval from the National Financial Regulatory Administration to establish Hengyi Chiying (Shenzhen) Private Equity Fund Management Co., Ltd. The company has a registered capital of 300 million yuan and will be based in Qianhai, Shenzhen. It is reported that Hengyi Chiyin will act as the fund manager to issue a contractual private securities investment fund exclusively to Ping An Life Insurance, with the initial fund size reaching 30 billion yuan. The fund will focus on investing in high-quality publicly listed firms that align with policy directives and meet the allocation needs of insurance capital.

7. The Hong Kong Special Administrative Region Government gazetted the Stablecoin Ordinance on May 30, signifying its formal enactment as law.

8. Sources revealed that a major state-owned bank branch received notice from its headquarters to halt the "high-interest, high-rebate" model for car purchase installments starting June 1, with the bank no longer accepting applications under this scheme. The "high-interest, high-rebate" model typically refers to businesses where bank commission payment standards exceed 3%. The source also indicated that most financial institutions nationwide are expected to phase out this model within approximately two months, pending unified regulatory guidance.

9. OPEC+ agreed to increase daily oil production by 411,000 barrels, marking the third consecutive month of output growth. Representatives disclosed that major countries led by Saudi Arabia approved this production hike for July during a video conference last Saturday, matching the increases implemented in May and June.

Corporate News

1. China Communications Construction announced plans to repurchase its A-share shares with 500 million to 1 billion yuan.

2. *ST Tianyu disclosed that one of its actual controllers, Chunyu Yan, and others are under investigation for suspected embezzlement.

3. BYD reported NEV sales of 382,500 units in May.

4. Nationz Technologies proposed issuing H-shares for listing on the Hong Kong Stock Exchange.

5. Maxwell Technologies plans to issue convertible bonds to raise up to 1.967 billion yuan.

6. Aerosun Corporation suspended participation in military material engineering service procurement due to regulatory violations.

7. Fillinger is expected to undergo a change in control, with its shares suspended from trading starting June 3.

8. Emicron announced a private placement to raise no more than 310 million yuan for projects including temperature control products for computing infrastructure.

9. *ST Longyu received a delisting decision and will enter the delisting consolidation period on June 10.

10. *ST Pengbo received a delisting decision and will enter the delisting consolidation period on June 10.

11. Bohai Automobile is expected to acquire equity in BAIC Moulding and other companies, with its shares suspended.

12. ST Dongshi was investigated by the China Securities Regulatory Commission for suspected information disclosure violations.

13. Zhejiang Longsheng plans to purchase a 37.57% stake in DyStar for $697 million.

14. *ST Hengli announced that it was under investigation by the China Securities Regulatory Commission (CSRC) for suspected false disclosure of financial data.

15. *ST Jinglan announced that it was under investigation by the CSRC for suspected violations of information disclosure laws and regulations.

16. Baili Tianheng announced plans to raise no more than 3.764 billion yuan, all of which will be used for the R&D of innovative drugs.

Global Markets

1. The three major U.S. stock indices closed higher collectively, with the Dow Jones Industrial Average rising 0.08%, the Nasdaq Composite Index rising 0.67%, and the S&P 500 Index rising 0.41%. The Nasdaq Golden Dragon China Index rose 0.53%, with most popular Chinese ADRs closing higher.

2. COMEX gold futures closed 2.74% higher at $3,406.4 per ounce, and COMEX silver futures closed 5.76% higher at $34.93 per ounce.

3. WTI crude oil futures closed 2.85% higher at $62.52 per barrel. Brent crude oil futures closed 2.95% higher at $64.63 per barrel.

Investment Opportunities

1. The world's first! Zhiyuan Yuanzheng A2 becomes a humanoid robot with certifications from China, the US, and Europe

According to media reports, the Yuanzheng A2 humanoid robot under Zhiyuan Robotics has passed four product certifications: China's CR, the EU's CE-MD, the EU's CE-RED, and the US's FCC, becoming the world's first humanoid robot with certifications from China, the US, and Europe, as well as the first humanoid robot in China to obtain CR and CE-MD certifications.

As one of the representatives of embodied intelligence, the development of humanoid robots is accelerating towards the critical point of industrialisation. The year 2025 is widely regarded by the industry as the "first year of mass production" for humanoid robots. It is expected that the industry penetration rate will enter an exponential growth trajectory after 2030, with global shipments potentially reaching 4 million to 10 million units by 2035. Cinda Securities pointed out that the industrialisation progress of humanoid robots is accelerating, with domestic and overseas enterprises accelerating the deployment of robots, and it is optimistic about the domestic humanoid robot industry chain.

2. Yushi Space completes nearly 100 million yuan in Angel+ round financing, with 2025 expected to be the first year of accelerated development for satellite internet

According to media reports, Yushi Space recently completed nearly 100 million yuan in Angel+ round financing, with Qiansheng Capital as the lead investor and Huacang Capital and Linge Venture Capital as co-investors. Yushi Space focuses on the R&D and manufacturing of large-capacity, low-cost, and rapidly reusable liquid rockets. The company is currently "the only team in China adopting a stainless steel rocket + 'chopstick' capture arm recovery solution," with a technological approach fully comparable to Musk's SpaceX. According to data from Cailian Press Venture Capital Tong - Zhizhong, with May 2025 as the forecast baseline, the financing forecast probability for the next two years is 66.08%.

Western Securities believes that the current satellite internet industry is still dominated by thematic investment styles, with a focus on event catalysts brought about by breakthroughs at the industrial level. From a temporal perspective, 2025 is expected to be the first year of accelerated development for the satellite internet industry. As of May, Xingwang has completed the batch networking and orbit insertion of 29 satellites, while Qianfan Constellation has completed the orbit insertion and networking of 90 satellites. Meanwhile, public testing of direct-to-satellite mobile phone terminals will also commence in the second half of the year. It is recommended to continuously monitor investment opportunities in China's domestic low-Earth orbit satellite industry chain, including: 1) communication payloads; 2) phased array and RF components; 3) laser communication; 4) detection; 5) satellite ground stations; 6) satellite terminals; and 7) satellite operations.

3. Large aircraft may enter a stage of rapid development, with a significant boost in market supply capability

According to media reports, the domestically produced large aircraft C919 has officially commenced regular commercial operations on the Shanghai-Xiamen route. With Xiamen joining the C919 route network, the C919's service coverage has expanded to 15 cities across the Chinese mainland over the past two years, and it has taken its first international step through the cross-border route from Shanghai to Hong Kong.

On March 20, COMAC's 2025 Supplier Conference was grandly held. At the conference, COMAC provided forward-looking production planning guidelines for 2025-2029, explicitly mentioning for the first time that the C919's capacity will reach 200 aircraft per year by 2029. This fully indicates that the C919 will enter a stage of rapid development in the coming years, with a significant boost in market supply capability. Zheshang Securities pointed out that, according to disclosures from the "Aerospace Power Future" official account, COMAC's procurement volume in 2024 approached 20 billion yuan, and the procurement volume in 2025 is expected to increase by 70% compared to 2024. This substantial growth in procurement volume signifies that the C919 is expected to achieve comprehensive mass production acceleration and, at the same time, is expected to vigorously boost the development of the large aircraft industry chain.

4. Institutions claim that this specific industry chain segment will be a core beneficiary of the low-altitude economy's development

Recently, reporters learned from a conference that Hubei has initiated the construction of a low-altitude flight service platform. After its launch at the end of the year, it will aggregate information from multiple sources, including low-altitude communications, navigation, surveillance, meteorology, and geographical environments, and provide various services such as flight plan submissions, supporting safe and efficient low-altitude flights.

Zhiyan Consulting stated that UAVs are the pillar industry of the low-altitude economy, serving as the primary carriers for low-altitude flights. Currently, China's UAV policies are increasingly being refined, and the industry chain is becoming increasingly complete, providing foundational conditions for the development of the low-altitude economy. With the further implementation of airspace and route planning, existing major application demands in agriculture, forestry, animal husbandry, fisheries, surveying and mapping, and emergency response will be further released, while new application scenarios such as urban logistics, cargo transportation, and passenger transportation will also expand. The UAV industry chain will be the core beneficiary in the development of the low-altitude economy. In recent years, the Chinese government has encouraged the integration of logistics with the low-altitude economy. With a vast market for the low-altitude economy, it will drive the development of the logistics UAV industry. It is expected that by 2030, the market size of China's low-altitude economy will exceed 2 trillion yuan.