[Morning Briefing] Xi Jinping had a phone call with US President Trump; the People's Bank of China will conduct 1,000 billion yuan of outright reverse repo operations

Macro News

1. On the evening of June 5, Chinese President Xi Jinping had a scheduled phone call with US President Donald Trump. Xi Jinping pointed out that to steer the course of China-US relations in the right direction, it is crucial for both sides to navigate the ship well and set the right course, particularly by eliminating various distractions and even disruptions. Both sides should enhance exchanges in various fields such as diplomacy, economy and trade, military affairs, and law enforcement, to increase consensus, reduce misunderstandings, and strengthen cooperation. Xi Jinping emphasized that the US should handle the Taiwan issue with caution to prevent a small number of "Taiwan independence" separatists from dragging China and the US into a dangerous situation of conflict and confrontation.

2. On the afternoon of June 5, the Ministry of Commerce held a regular press conference. A reporter asked about the new restrictive measures taken by the US against China. He Yongqian, the spokesperson for the Ministry of Commerce, stated that after the Geneva talks, the US had taken a series of restrictive measures against China, seriously undermining the existing consensus and severely damaging China's legitimate rights and interests. China expressed strong dissatisfaction and firm opposition to this, demanding that the US immediately cease such actions. If the US persists in its course and continues to harm China's interests, China will resolutely take strong measures to safeguard its legitimate rights and interests.

3. On June 5, Foreign Ministry spokesperson Lin Jian hosted a regular press conference. A reporter asked about the US's plan to tighten regulations on foreign companies listing in the US. Lin Jian stated that the US should adhere to the market principle of fair competition, stop politicizing economic and trade issues, and provide a fair, just, and non-discriminatory business environment for companies from all countries, including Chinese enterprises.

4. At yesterday's regular press conference, a reporter asked about reports that due to delays in parts procurement caused by China's rare earth export controls, Japanese automaker Suzuki had suspended production of its main compact car in Japan. Lin Jian stated that China's export control measures are in line with international common practices, are non-discriminatory, and are not targeted at specific countries.

5. The People's Bank of China announced that to maintain ample liquidity in the banking system, on June 6, 2025, it will conduct a 1,000 billion yuan outright reverse repo operation through fixed-quantity, interest-rate tendering, and multiple-price bidding, with a term of 3 months (91 days).

Industry News

1. The State Council recently issued the "Notice on Conducting the Fourth National Agricultural Census." The Notice states that the main contents of the Fourth National Agricultural Census include agricultural production conditions, grain and food production, new quality productive forces in agriculture, basic conditions of rural development, and the living conditions of rural residents. The standard time point for the census is 24:00 on December 31, 2026, and the period data will be for the year 2026.

2. Following the adjustment of deposit interest rates by the six major state-owned banks on May 20, the "wave of interest rate cuts" has gradually spread to small and medium-sized banks. Small and medium-sized banks, including joint-stock banks, city commercial banks, rural commercial banks, village and township banks, and private banks, have successively followed suit in reducing deposit interest rates, with significant differentiation observed in interest rate adjustments among these banks. During this wave of deposit interest rate cuts, some local rural commercial banks and village and township banks with relatively small scales have experienced "interest rate inversion," where their listed interest rates are even lower than those of large state-owned banks.

3. The national standard "Residential Project Specifications" has garnered widespread attention since its release and implementation. Yao Tianwei, Director of the Standard Quota Department of the Ministry of Housing and Urban-Rural Development, stated on the 5th that building "good houses" does not equate to building "big houses" or "expensive houses." Instead, it involves addressing pain points in housing through good design, construction, materials, services, and more, to comprehensively enhance housing quality.

4. At a regular press conference held by the Ministry of Commerce on the 5th, a reporter posed questions related to the automotive industry. He Yongqian, spokesperson for the Ministry of Commerce, stated that in response to the "cut-throat competition" phenomenon currently present in the automotive industry, the Ministry of Commerce will actively cooperate with relevant departments to strengthen comprehensive rectification and compliance guidance, maintain a fair and competitive market order, and promote the healthy development of the industry.

5. It has been learned from the National Data Bureau that China will deploy and establish 10 national data element comprehensive pilot zones in Beijing, Zhejiang, Anhui, and other regions, supporting localities in conducting pilot initiatives in cultivating market entities, thriving the data market, and fully unleashing the efficiency of the integration between the real economy and the digital economy.

6. According to local time news from the Indonesian military on June 5th, the Indonesian government is conducting a feasibility assessment on the procurement of China-made J-10 fighter jets. Dofanto, Deputy Minister of Defense of Indonesia, stated that this move aims to enhance the modern combat capabilities of the Indonesian Air Force while also considering the cost-effectiveness of the national defense budget. Dofanto pointed out that the performance of China's J-10 fighter jets in the India-Pakistan conflict is one of the important factors considered by Indonesia for this aircraft model.

Corporate News

1. Asia Potash International announced that Peng Zhiyun, a supervisor, is under investigation for suspected insider trading.

2. Beijing North Star Technology Group stated on an interactive platform that the company has deep reserves in the underlying blockchain and smart contract technologies for stablecoins.

3. Staidson Biopharma announced that STSP-0601 for injection has been included in the priority review process.

4. ChipMOS TECHNOLOGIES announced that China-Singapore Venture Capital intends to reduce its stake in the company by no more than 2%.

5. Chow Tai Fook announced that Dongguan Group intends to reduce its stake in the company by no more than 3%.

6. Lianhe Chemical Technology released an announcement on the record of investor relations activities, stating that the company's K-amine product has stable gross profit margins and has not yet received any notice of increased customer demand.

7. Wingtech Technology announced that its shareholder, Wuxi Guolian Integrated Circuit Investment Center, plans to reduce its stake in the company by no more than 3%.

8. 3S Bio announced that the New Drug Application for its recombinant anti-IL-1β humanized monoclonal antibody injection has been accepted.

9. Chengdi Xiangjiang announced that its consortium has won the bid for the 440 million yuan data center power system construction project for China Mobile's Zhejiang branch.

10. D&O Home Furnishings announced that its actual controller has signed strategic cooperation and concerted action agreements, and its shares will resume trading today.

11. Fulin Precision Machining announced that its subsidiary has signed a supplementary agreement with CATL to expand capacity cooperation.

12. Zai Lab announced that it has signed an exclusive market promotion service agreement for recombinant human thyroid-stimulating hormone for injection.

13. Paion Biotech announced that it is planning changes to its control rights, and its shares will be suspended from trading starting June 6.

14. Medprism Medical announced that it intends to acquire 100% equity in EasyJet Medical, and its shares will resume trading.

15. Haitai Development announced that it is planning to acquire controlling equity in Zhixueyun, which is expected to constitute a major asset restructuring.

16. Wanchen Group announced that its General Manager Wang Liqing, Deputy General Manager Li Bo, and Deputy General Manager Wang Song plan to reduce their stakes in the company.

Global Markets

1. US President Trump expressed that he is "very disappointed" with Musk, who is unhappy with the government's decision to revoke the "mandate" for electric vehicles. Trump claimed that he could win Pennsylvania even without Musk. Musk responded that without him, Trump would lose the election, calling Trump "so ungrateful."

2. The three major US stock indices closed lower collectively, with the Dow Jones falling 0.25%, the Nasdaq dropping 0.83%, and the S&P 500 declining 0.53%. Amid the "feud" between Trump and Musk, Tesla's shares fell more than 14%. The Nasdaq Golden Dragon China Index closed up 0.54%, with popular Chinese ADRs showing mixed performance.

3. WTI crude oil futures closed up 0.83% at $63.37 per barrel. Brent crude oil futures closed up 0.74% at $65.34 per barrel.

4. COMEX gold futures closed down 0.68% at $3,376.1 per ounce. COMEX silver futures closed up 3.31% at $35.7955 per ounce.

Investment Opportunities Reference

1. The global exoskeleton robot market is entering a period of rapid growth

According to "CAS Voices," the Shenyang Institute of Automation of the Chinese Academy of Sciences has recently developed a "rigid-flexible coupling" multi-joint rehabilitation exoskeleton robot for the lower limbs, which is expected to provide motor function reconstruction and behavioral assistance services for patients with lower limb hemiplegia.

Exoskeleton robots are wearable intelligent mechanical devices that, through the collaboration of motors, sensors, control systems, and other technologies, provide power support similar to animal exoskeletons for humans, enhancing or restoring human mobility. They are mainly applied in military, industrial, medical, and civilian fields. According to a research report by Everbright Securities, the global exoskeleton robot market is entering a period of rapid growth. Data from GrandViewResearch shows that the market size reached $1.8 billion in 2024 and is expected to exceed $12 billion by 2030, with a compound annual growth rate of 28%.

2, The National Energy Administration organized the first batch of pilot work for new-type power system construction

According to media reports, the National Energy Administration organized the first batch of pilot work for new-type power system construction. Focusing on cutting-edge directions related to the new-type power system, it conducts single-direction pilots based on typical projects and multi-directional comprehensive pilots based on typical cities, exploring new technologies and models for the construction of the new-type power system, and promoting breakthroughs in its development.

CICC released a research report stating that State Grid Corporation of China's Q1 power grid investment was up 27.7% YoY, setting a record high for the first quarter. UHV project construction proceeded in an orderly manner, and the tender volume for EHV equipment continued to grow significantly. It remains optimistic about the accelerated construction of the new-type power system, with domestic power grid investment momentum trending upward.

3, Safety requirements for intelligent connected vehicle integrated driving assistance systems were proposed for formulation

The National Standard Information Public Service Platform announced a notice soliciting opinions on the proposed mandatory national standard project "Safety Requirements for Intelligent Connected Vehicle Integrated Driving Assistance Systems." The national standard plan "Safety Requirements for Intelligent Connected Vehicle Integrated Driving Assistance Systems" was proposed by MIIT and entrusted to the Intelligent Connected Vehicle Branch of the National Automotive Standardization Technical Committee for execution.

With the rapid development of artificial intelligence technology, autonomous driving is undergoing unprecedented transformation. From intelligent perception to precise decision-making, from efficient control to data-driven approaches, AI has injected powerful momentum into autonomous driving. Haitong Securities believes that the main barriers to the development of large-scale autonomous driving models previously included computing power and data loops, with leading enterprises mostly being top tech companies; after Deepseek released a faster inference model, latecomers (including whole vehicle manufacturers and solution providers) may have new opportunities. According to the "Internet of Vehicles White Paper," it is estimated that by 2025, the market size of smart cars in China will approach 1 trillion yuan.