Broker Morning Meeting Highlights | Precious metals, commodities, and capital goods are expected to continue their upward cycle.

Yesterday, the three major indexes collectively closed higher, with the ChiNext Index rising and then falling after hitting a high of more than 2%. The yellow-white line showed clear differentiation. The trading volume in Shanghai and Shenzhen exceeded 2.51 trillion yuan. In terms of sectors, the chemical industry, green electricity, energy storage, and lithium mining concepts were active. On the downside, the small metals and gas turbine concepts weakened. By the close, the Shanghai Composite Index rose 0.25%, the Shenzhen Component Index rose 0.78%, and the ChiNext Index rose 1.31%. At today's morning meeting of securities firms, CICC believes that the upward cycle of precious metals, natural resources, and capital goods is expected to continue; Sinolink believes in embracing physical assets and not forgetting Chinese assets; Huatai believes in the demand-driven new cycle of lithium carbonate. CICC: Upward cycle of precious metals, natural resources, and capital goods expected to continue Currently, with the intensification of geopolitical risks in the Middle East, intertwined with global liquidity and AI panic, the former is structural, while the latter two are expected to gradually recover. Strengthening national security through resource self-sufficiency and productivity improvement remains the main investment theme. Looking ahead, the increase in geopolitical risks and the decline of peace dividends are high-probability events. As the global industrialization process accelerates, the upward cycle of precious metals, natural resources, and capital goods is expected to continue, and the related technology sectors that help enhance industrial strength are also favorable, making A-shares more resilient. Sinolink: Embrace physical assets, do not forget Chinese assets In the face of technological challenges and regional conflicts challenging the global order, physical assets, which have been forgotten in the era of prosperity, will have systemic importance, and Chinese assets have the strongest physical attributes globally. In terms of allocation recommendations, top recommendations include physical assets such as crude oil, oil transportation, copper, aluminum, rare earths, coal, and rubber with strategic resource value; Chinese manufacturing industries with global leading advantages or accelerating overseas, mainly concentrated in industries such as machinery, chemical industry, and power equipment; and structural opportunities in consumer consumption under pressure reversal, including tourism and scenic spots, flavoring fermentation products, beer and other alcoholic beverages, pharmaceutical businesses, and medical aesthetics. Huatai: Demand-driven new cycle of lithium carbonate Similar to the previous cycle, this round of the cycle is also a price rise cycle brought about by the uptick in demand. However, the difference lies in the fact that before the energy storage boom cycle of this round, the supply has not been completely cleared, leading to a lack of accuracy in the industry's judgment on prices and varying opinions on prices throughout the industry chain. Additionally, from a macro perspective, there is a significant difference between the two cycles, as the supply side in this cycle is facing more pronounced catalytic events of resource nationalism. Looking ahead, with a growing atmosphere of "resource nationalism" on the supply side, coupled with the ongoing demand boom cycle, lithium prices are expected to continue to trend stronger. This article is reprinted from "Cai Lianshe". GUILayoutEight Editor: Xu Wenqiang.