1. Incoming Capital Boost! Adjustments to SSE 50 and Other Indices; Tech Weighting "Skyrockets" Importance: ★★★★★ In accordance with index compilation rules, the Shanghai Stock Exchange and China Securities Index Co., Ltd. have decided to adjust the constituents of indices including the SSE 50, SSE 180, STAR 50, and STAR 100. The changes will take effect after the market close on June 12, 2026. The SSE 50 Index will add five securities: TBEA Co., Ltd., Shengyi Technology Co., Ltd., Aluminum Corporation of China Limited, Huatai Securities Co., Ltd., and GigaDevice Semiconductor Inc. Additionally, the Shenzhen Stock Exchange issued an announcement on the same day regarding adjustments to the sample stocks of indices such as the SZSE Component Index, ChiNext Index, SZSE 100, and ChiNext 50. The SZSE Component Index will include 25 stocks such as Shiji Huatong, Yidian Tianxia, Defu Technology, and United Power, while the ChiNext Index will add 10 stocks including Shannon Semiconductor and Luobotec. Overall, the "tech weighting" of the index system has been further enhanced. For investors, as there is a significant amount of ETFs and passive funds tracking these indices, this adjustment will trigger synchronized portfolio rebalancing, meaning it will drive passive capital reallocation.

2. Enhancing National AI Literacy! Latest Directive from Four Ministries Importance: ★★★★★ The Cyberspace Administration of China, the Ministry of Education, the Ministry of Industry and Information Technology, and the Ministry of Human Resources and Social Security have jointly issued the "Key Tasks for Enhancing National Digital Literacy and Skills in 2026." The document outlines efforts to improve public artificial intelligence literacy, including strengthening AI-enabled education, accelerating AI talent cultivation, and deepening the widespread application of AI.

3. Cracking Down on "Cutthroat" Competition; SAMR Launches Campaign Against Substandard, Low-Price Products Importance: ★★★ According to the website of the State Administration for Market Regulation (SAMR), the authority has recently launched a nationwide campaign targeting substandard and low-price products. The initiative focuses on industries closely related to business operations, directly impacting consumer experience, and characterized by prominent "cutthroat" competition. It aims to address issues of poor quality and low prices by comprehensively utilizing price enforcement, quality supervision, and standard-setting measures to thoroughly rectify such competitive practices.

4. Seven Departments: Vigorously Develop "Factory Tours," Encourage Equipment Manufacturing in Aerospace, Shipbuilding, Robotics Importance: ★★★ On May 29, the General Office of the Ministry of Culture and Tourism, the General Office of the Publicity Department of the CPC Central Committee, and five other departments issued a notice on promoting industrial culture, protecting industrial heritage, and developing industrial tourism. The notice proposes vigorously developing "factory tours," encouraging enterprises in equipment manufacturing sectors such as aerospace, shipbuilding, automotive, and robotics, as well as consumer goods industries like textiles, apparel, arts and crafts, and food processing, and areas like e-commerce logistics. Under the premise of ensuring production safety and confidentiality requirements, these enterprises are encouraged to innovatively launch projects such as production process observation, simulated operations, hands-on experiences, and product customization, creating distinctively themed tourist factories. It also supports the orderly expansion of smart industrial tourism, utilizing digital technologies and equipment like BeiDou, AI, ultra-high-definition video, VR, and autonomous driving to create immersive and intelligent industrial tourism experiences.

5. Curbing Malicious Speculation on Enterprise-Related Information; CAC Initiates Special Campaign Importance: ★★★ The Cyberspace Administration of China (CAC) recently issued a notice announcing the launch of a two-month nationwide campaign titled "Clearing and Optimizing the Online Business Environment; Curbing Malicious Speculation on Enterprise-Related Information." The campaign aims to centrally address the chaos of maliciously hyped enterprise-related infringing information, swiftly and strictly clean up and handle such information and accounts, urge online platforms to earnestly fulfill their primary responsibilities, improve the management mechanism for enterprise-related information content, enhance the handling of enterprise-related infringing information, and further optimize the online business environment.

6. Short Selling Surge in Hong Kong Semiconductor Stocks; SMIC Hits Record High Importance: ★★★ Latest data from the Hong Kong Exchanges and Clearing Limited shows that short selling activity in internet stocks has cooled, showing a downward trend, while semiconductor stocks have bucked the trend, with short selling data reaching new historical highs. Short selling data for SMIC has shown a continuous upward trend, with the number of shorted shares rising sharply from 3.2025 million at the beginning of the month to 10.339 million. Notably, the single-day shorted share count surged to 40.36 million on the 26th, setting a historical record. During the same period, the short selling amount for SMIC climbed from HK$227 million to HK$896 million, with the single-day amount on the 26th reaching a historical peak of HK$3.531 billion.

7. Foreign Institutions: Chinese Market Attracts Global Capital with Resilience and Vitality Importance: ★★★ According to the latest data from the China Securities Regulatory Commission, foreign capital has continued to flow into the A-share market this year, with overseas investors currently holding over 4 trillion yuan in A-share circulating market value. Why does the Chinese market maintain enduring appeal for global investors? From May 28 to 29, at the Shenzhen Stock Exchange 2026 Global Investor Conference, multiple foreign institutions engaged in lively discussions on this topic. Participating foreign institutions generally believe that China's development vitality and industrial resilience continue to be unleashed, supported by stable macroeconomic policies, a super-large market advantage, and strong innovation momentum. Simultaneously, with the effective implementation of a series of reform measures, the ecosystem of China's capital market continues to optimize, providing opportunities for global capital allocation.

8. SGE Adjusts Margin Ratios and Price Limits for Some Deferred Contracts Importance: ★★★ In accordance with the relevant provisions of the "Shanghai Gold Exchange Risk Control Management Measures," the exchange has adjusted the trading margin ratios and price limits for contracts including Au(T+D), mAu(T+D), Au(T+N1), Au(T+N2), NYAuTN06, NYAuTN12, and Ag(T+D). The relevant matters are notified as follows: Starting from the clearing after the market close on Monday, June 1, 2026, the margin ratios for Au(T+D), mAu(T+D), Au(T+N1), Au(T+N2), NYAuTN06, and NYAuTN12 contracts will be adjusted from 18% to 15%, and the daily price fluctuation limits from the next trading day will be adjusted from 17% to 14%. The margin ratio for the Ag(T+D) contract will be adjusted from 24% to 21%, and the daily price fluctuation limit from the next trading day will be adjusted from 23% to 20%.

Market analysis highlights investment opportunities in areas such as memory chips. 1. Memory Chip Production Surges 50.8%! Guangdong Releases Economic Data for First Four Months The Guangdong Provincial Bureau of Statistics released economic performance data for January to April. In the first four months, Guangdong's economy operated steadily, with value-added industrial output above designated size growing by 3.9% year-on-year. Notably, high-tech products showed strong growth, with production of industrial robots, 3D printing equipment, integrated circuits, and memory chips increasing by 32.3%, 57.0%, 30.8%, and 50.8%, respectively. In April, the Producer Price Index (PPI) shifted from a 0.3% year-on-year decline in the previous month to a 1.4% increase. Aijian Securities stated that it remains optimistic about the development of the technology sector under the wave of the AI industry, particularly recommending investment opportunities driven by the sustained recovery in the memory chip segment. It is believed that the domestic memory chip industry chain will usher in a historic development opportunity. Specific industry chain segments include memory chip modules, memory chip packaging and testing, memory chip manufacturing, and related upstream equipment and materials. Among these, equipment and materials are also bottleneck areas for the development of the domestic semiconductor industry, suggesting a focus on investment opportunities related to import substitution.

Additionally, the following sectors are worth noting: 2. Quantum Technology | Beijing will accelerate the development of new growth points such as quantum technology, superconductivity, brain-computer interfaces, and bio-manufacturing. 3. AI | Two major AI giants, Anthropic and OpenAI, are set to launch IPOs as early as this autumn. 4. AI Toys | AI toys are seeing explosive global orders, with China's trillion-yuan AI toy sector rising.

Regarding positive announcements, attention is drawn to China State Construction Engineering Corporation recently securing major projects worth over 10 billion yuan, among others. For negative announcements, note that Founder Securities faces share reduction by a major shareholder, etc.

Positive Announcements: 1. China State Construction Engineering Corporation: Recently secured a 11.36 billion yuan highway project. 2. Jingce Electronic: Wholly-owned subsidiary signed a 516 million yuan sales contract for semiconductor measurement and inspection equipment. 3. Roborock: Controlling shareholder proposed a share repurchase of 300 to 400 million yuan. 4. Eastern Shenghong: Controlling shareholder and its concerted parties increased holdings by a total of 63.6157 million shares from April 17 to May 28. 5. Jingu Stock: Secured a project定点 for Avatar low-carbon wheels from a well-known domestic automaker.

Negative Announcements: 1. Founder Securities: Shareholder China Cinda plans to reduce holdings by no more than 1% of shares. 2. Shengyi Technology: Chairman Chen Renxi plans to reduce holdings by no more than 335,800 shares. 3. Haiguang: Concerted parties of the actual controller plan to collectively reduce holdings by no more than 1.8% of shares. 4. Greentown Water Services: Deputy General Manager placed under residential surveillance for suspected crime. 5. Dingjide: The company and its actual controller are under investigation by the CSRC for suspected information disclosure violations.