Highlights of Brokerage Morning Meeting | Sufficient Policy Space for Deep Sea Resource Development

The A-share market closed the first half of the year, and from the performance in the first half of the market, the main stock indices all rose. The Shanghai Stock Exchange rose by 2.76% in the first half of the year, the BSE 50 index soared by 39.45% and hit a historical high, and the CSI 2000 index rose by over 10%. In terms of sectors, thematic concepts were sought after in the first half of the year, with AI large models, humanoid Siasun Robot & Automation, new consumption, innovative drugs, solid-state batteries, and other hotspots taking turns to be active. In addition, nearly 20 bank stocks hit record highs in the first half of the year. Overall, small and medium-cap stocks performed better, with over 3700 stocks rising in the first half of the year, including over a hundred stocks rising by over 100%. Chemical stock Longkou Union Chemical soared by 440%, claiming the title of "Stock King" in the first half of the year. At today's brokerage morning meeting, CITIC SEC stated that international copper prices may continue to show a strong fluctuating trend; GF SEC pointed out that there is ample policy catalysis space for deep sea resource development, with industry leaders actively promoting deep-sea mining; CICC believes that eSIM heat is expected to restart, leading to a new era of connectivity for everything. CITIC SEC: International copper prices may continue to show a strong fluctuating trend CITIC SEC stated that copper prices have been fluctuating upwards recently, with some divergence regarding the future trend of copper prices. Looking at the commodity attributes, the increase in refined copper ore production guidance and limited CAPEX upstream of copper ore mines, along with a continuous significant reduction in TC/RC fees, have kept the global refined copper ore market in a tight balance. In addition, the support of the Chinese economy's "stable growth" and the US economy's "soft landing" underpin the bottom of copper prices. The current market price is relatively reasonable, and for copper prices to further open up an upward channel, it is necessary to see further macroeconomic policy efforts domestically and a stabilization and recovery of overseas economies, waiting for the arrival of a new cycle. The rise in inflation expectations, the rise in rate cut expectations, and a slight decline in the US dollar index are expected to further support the copper price fluctuation trend. CITIC SEC maintains the judgment that copper prices will rise to $10,000-11,000/ton in the second half of the year, while cautioning against disturbances from the July "equivalent tariffs" issue. GF SEC: Ample policy catalysis space for deep-sea resource development Industry leaders actively promoting deep-sea mining GF SEC stated that under the guidance of the strategy to become a maritime power, China is expected to introduce corresponding policies to promote the development of the deep-sea economy, focusing on deep-sea mining, deep-sea oil and gas development, and the utilization of deep-sea biological resources. From an industrial perspective, deep-sea resource development is now economically viable. Based on the current value of deep-sea mineral resources, seabed oil and gas rank first, followed by near-shore sand minerals, including sand, stones for construction, and tin sand; and lastly, deep-sea polymetallic mud and polymetallic nodules. The high economic and strategic value of deep-sea mineral resources makes deep-sea mining an important direction for deep-sea resource development. CICC: eSIM heat is expected to restart, shaping a new era of connectivity for everything CICC stated that eSIM card (Embedded SIM) is a digital SIM card technology, where the physical hardware is pre-embedded in the electronic product's hardware before leaving the factory, and cannot be removed. eSIM cards have the advantages of small size, low cost, high security, and convenience, saving space for terminal devices and providing flexibility for product design, and are expected to heat up again under the trends of miniaturization of consumer electronics and the rise of the Internet of Things. This article is reprinted from "Cai Link Society", edited by GMTEight: Liu Xuan.