CMSC: Recommended sectors with high or improving economic conditions include non-ferrous metals, chemicals, coal, lithium raw materials, semiconductors, and memory.

The CMSC released a research report stating that this week, the direction of improving economic conditions is mainly in the areas of information technology, natural resources, and midstream manufacturing. In the upstream natural resource sector, the prices of metals, steel, coal, and most chemical products have risen; in the midstream manufacturing sector, prices in the new energy industry chain have mostly increased, and the year-on-year growth rate of heavy truck sales in April has expanded. In the information technology sector, DDR5 prices continue to rise, and global semiconductor sales in March have increased year-on-year. In the consumer services sector, pork prices have risen, as have futures prices for corn, cotton, and other commodities. During the May Day holiday in 2026, consumer spending on travel has seen steady growth, while performance in goods, culture, and tourism has been flat. It is recommended to invest in the relatively high or improving sectors such as non-ferrous metals, chemical industry, coal, lithium raw materials, semiconductors, and memory. Key points from the CMSC: During the May Day holiday in 2026, consumer spending on travel has seen steady growth, while performance in goods, culture, and tourism has been flat. In terms of transportation, the long holiday has boosted travel demand, with steady growth in population movement. Civil aviation is under pressure from high oil prices, with passenger flows lower than the same period last year. Second-tier and lower-tier cities have seen a net inflow of migrants. The utilization rate of civil aviation aircraft has improved year-on-year, ticket prices have rebounded, and the number of domestic flights has decreased while the number of international flights has increased. The expansion of visa-free countries and the upgrade in entry-exit convenience have led to stable growth in inbound and outbound tourism. In terms of commodity consumption, foot traffic and consumption in offline shopping districts have seen steady growth, and duty-free sales in Hainan's outlying islands have achieved double-digit growth. In culture and tourism consumption, national growth may continue to be in the single digits. Several regions have reported a slight increase in visitor numbers and business revenue at tourist attractions, with events such as competitions and concerts playing a strong role. In terms of box office revenue, the May Day box office has seen a slight year-on-year increase, but is still substantially lower compared to 2023 and 2024, with ticket prices decreasing year-on-year. [Information Technology] This week, the Philadelphia Semiconductor Index, the Taiwan Semiconductor Industry Index, and the DXI Index have all risen. DDR5 memory prices have increased this week, while DDR4 memory prices have decreased. The DRAM index and NAND index have seen a month-on-month decrease; the year-on-year growth rate of global semiconductor sales in March has expanded; and the cumulative year-on-year growth rate of software industry profits in January-March has narrowed. [Midstream Manufacturing] This week, prices in the new energy industry chain have mostly increased, with lithium raw materials leading the way; prices of silicon materials in the solar industry chain have risen this week, while prices of silicon wafers and components have remained stable. The year-on-year growth rate of heavy truck sales in April has expanded; the year-on-year decrease in the four-week rolling average of port cargo throughput has narrowed, while the four-week rolling average year-on-year increase in container throughput has expanded; CCFI, CCBFI, BDI, and BDTI have all increased. [Consumer Demand] The price of fresh milk has decreased, while the comprehensive price of sugar has increased. The wholesale price index for liquor has decreased, while the average prices of pork, piglets, and live pigs have increased. In terms of profitability in pig farming, profits from self-rearing and purchased pig farming have increased; the price of broiler chicks has remained stable. The price index of vegetables has increased, as have settlement prices for corn and cotton futures; the ten-day moving average of box office revenue has increased, while the ten-day moving average of movie ticket prices has decreased month-on-month; the four-week rolling retail sales volume of air washing and color printing has decreased year-on-year; the price index of Chinese medicinal materials has decreased. [Natural Resources] The ten-day moving average trading volume of construction steel has increased; the prices of steel billets and rebar have increased. In terms of coal prices, the price of Qinhuangdao mixed power coal has increased, as have the prices of Shanxi main coking coal at Jingtang Port; settlement prices for coke and coking coal futures have increased. In terms of inventory, coal inventories at Qinhuangdao Port have increased, as have coking coal inventories at Jingtang Port and coke inventories at Tianjin Port Holdings. The national cement price index has decreased. Brent international crude oil prices have decreased; the price index of chemical products in China has increased, with most organic chemical prices rising, with xylene, fuel oil, and toluene seeing the highest increases. Industrial metal prices have generally increased this week, with copper, aluminum, zinc, tin, cobalt, nickel, and lead prices climbing, while inventory levels have decreased; gold futures prices have decreased, while spot prices have increased, and silver futures and spot prices have increased. [Finance and Real Estate] There has been a net injection in the money market, and overnight/2-week SHIBOR rates have risen. Stock turnover rates and daily turnover have increased. Land transaction premium rates have decreased, while the transaction area of commercial housing has decreased. The number of second-hand housing listings nationwide has decreased, and the listing price index has also decreased. [Utilities] The ex-factory price of natural gas in China has increased, as have the futures prices of natural gas in the UK. The manufacturing PMI index in China for April has decreased month-on-month. Risk warning: Industry support levels are lower than expected, and there may be macroeconomic fluctuations.