J.P. Morgan has released a research report outlining its 2026 preference ranking for basic materials as: copper/gold > aluminum > lithium > coal > steel. Driven by supply disruptions, tight supply conditions, and further merger and acquisition activities, the MSCI China Materials Index is expected to continue outperforming the MSCI China Index this year. ZIJIN MINING (02899) remains J.P. Morgan's top pick for the year, with continued positive views on CMOC (03993), CHALCO (02600), and CHINAHONGQIAO (01378). Based on the firm's positive outlook on copper, the rating for JIANGXI COPPER (00358) has been upgraded to Neutral. The report also suggests that Chinese policy remains the primary driver for commodity prices, but from the fourth quarter of 2025 onwards, the follow-through and intensity of anti-involution policies are expected to be more moderate than anticipated. Reducing excess capacity is a multi-year effort; without more substantial production cuts, steel margins are projected to remain low. Consequently, the rating for Baoshan Iron & Steel has been downgraded to "Neutral," while ANGANG STEEL (00347) has been downgraded to Underweight.