Market Rally Led by Metal新材料 and AI Sectors
On the morning of August 25, 2025, A-shares opened higher and continued to climb, with technology stocks leading the gains. The STAR 50 Index surged nearly 6% at the opening, hitting a new three-and-a-half-year high, while the ChiNext Index rose over 2%. The Shanghai Composite Index also reached a new decade-high, with trading volume expanding rapidly—exceeding one trillion yuan within the first half-hour and over two trillion yuan by midday.
Key sectors driving this rally included metal new materials, communication equipment, artificial intelligence, and real estate. On the other hand, sports, banking, daily chemicals, and broadcasting saw declines.
Metal新材料 Stocks Soar
The metal new materials sector experienced a collective surge, with the sector index skyrocketing over 7% to a record high. Stocks like大地熊 (Da Di Xiong),昆工科技 (Kun Gong Technology), and中钢天源 (Zhonggang Tianyuan) hit their 20% daily limit-up or gained over 10%.
Sub-sectors such as rare earth permanent magnets, precious metals, cobalt metals, and energy metals also performed strongly.北方铜业 (Northern Copper),章源钨业 (Zhangyuan Tungsten),金力永磁 (Jinli Permanent Magnet), and湖南白银 (Hunan Silver) were among the top gainers.
Regulatory Changes and Rising Demand for稀土
Over the weekend, the Ministry of Industry and Information Technology (MIIT), the National Development and Reform Commission (NDRC), and the Ministry of Natural Resources released the ‘Interim Measures for the Management of Total Control over Rare Earth Mining and Smelting Separation.’ This policy strengthens control over rare earth mining and smelting while incorporating imported ores into total control management.
As humanoid robots approach mass production, demand for rare earth magnetic materials is expected to grow exponentially.北方稀土 (Northern Rare Earth) disclosed on its interactive platform that rare earth permanent magnets are primarily used in drive motors for humanoid robots’ joints and actuators. The performance of these materials determines key parameters such as degrees of freedom, rated load workspace, and working accuracy.
Soaring稀土 Prices
Amid surging demand, rare earth prices have climbed steadily, rising by an average of over 100,000 yuan per ton since August. According to Baichuan Yingfu data, as of last weekend, praseodymium oxide was quoted at 657,500 yuan per ton, up over 58% year-to-date. Neodymium oxide reached 657,500 yuan per ton, a 62.95% increase year-to-date. Praseodymium-neodymium metal hit 767,500 yuan per ton, up 56.15%, while praseodymium-neodymium oxide rose to 631,500 yuan per ton, a 58.66% gain.
Energy Metals and Storage Projects Show Strong Growth
The energy metals sector is also highly prosperous. According to GGII statistics, in July 2025 alone, 46 energy storage projects in China announced EPC/system bidding results, with a total scale of approximately 19.35 GWh. From January to July, the cumulative bidding capacity reached 189.48 GWh.
New energy vehicles continue to see robust production and sales. Data from the China Association of Automobile Manufacturers (CAAM) shows that in July, new energy vehicle production and sales reached 1.243 million and 1.262 million units, respectively, up 26.3% and 27.4% year-on-year. The penetration rate hit 48.7%. Cumulative production and sales from January to July exceeded 8.2 million units, a year-on-year increase of over 38%.
AI Sector Surges with Multiple Catalysts
Artificial intelligence stocks also experienced a wave of limit-up gains, with the sector index gapping up to a record high.科德教育 (Kede Education) and开普云 (Kaipuyun) hit 20% limit-up at the opening, while中文在线 (Chinese Online) and ST易联众 (ST Yilianzhong) also surged 20%.特发信息 (Tefa Information),东方电子 (Dongfang Electronics),中科曙光 (Sugon), and烽火通信 (FiberHome Technologies) were among over 20 stocks that rose by the daily limit or over 10%.
Recent AI Sector Catalysts
Several recent events have catalyzed the AI sector’s growth. The ‘Eighth National Youth Artificial Intelligence Innovation Challenge Final’ opened in Zhejiang, while the ‘2025 China Automation and Artificial Intelligence Education Conference’ was held recently. Additionally, the ‘Chain Action Chang’an · Benefit Enterprises and Win Together’ artificial intelligence (big data) industry chain matchmaking meeting and financial support for Xianyang high-quality development对接会 took place in Xianyang High-tech Zone.
News that Nvidia’s H20 chip may be discontinued, combined with DeepSeek’s open-source large model adapted for domestic AI chips, has propelled Cambricon, a leading domestic AI chip manufacturer, to new heights. Its stock hit a record high, nearly doubling in just one month and approaching 1,400 yuan per share, making it the second-highest-priced stock after Kweichow Moutai.
Investment Outlook and Strategic Considerations
The ongoing rally in metal new materials and AI stocks reflects broader trends in technology and industrial policy. Investors should monitor regulatory developments, particularly in rare earth management, as well as advancements in AI and robotics.
Key factors to watch include:
– Government policies on rare earth and critical materials
– Progress in humanoid robot commercialization
– Technological breakthroughs in AI chips and algorithms
– Global demand for new energy vehicles and energy storage
Seizing Opportunities in A-Shares’ Super Sector
The explosive performance of metal new materials and AI stocks underscores the transformative potential of these industries. With supportive policies, technological innovation, and robust demand, these sectors offer significant opportunities for growth-oriented investors.
Stay informed about market trends and regulatory changes to make well-timed investment decisions. Consider diversifying across high-potential sub-sectors such as rare earths, energy metals, and AI infrastructure to capitalize on this ongoing rally.