Morning News

# Source: Wallstreetcn

## Market Overview

U.S. stocks staged a massive rebound after Trump said U.S.-Iran talks were productive and he decided to pause strikes on Iran’s energy facilities. All three major indices rose more than 2% during the session and closed up over 1%, marking their biggest gains in more than six weeks. Tesla jumped 3.5%, leading the Magnificent Seven; NVIDIA rose nearly 2%, snapping a four-day losing streak. The chip index rebounded over 1%, but Broadcom and Micron fell more than 4%. Palantir surged nearly 7% following reports that the Pentagon will use its systems as the core military AI platform. Airlines, travel, and cruise stocks rallied sharply: Royal Caribbean gained nearly 6%, United Airlines rose over 4%, Airbnb climbed 3%, and Hilton advanced nearly 3%.

As Trump delayed strikes on Iran, U.S. Treasury prices rose during the session. The 10-year Treasury yield, which hit an eight-month high intraday, plunged more than 10 basis points. The 2-year yield fell over 20 basis points from its session high. The U.S. dollar index turned lower to a more than one-week low. Offshore yuan briefly broke below 6.91 to a two-week low before rebounding over 400 points. Cryptocurrencies spiked: Bitcoin reclaimed $70,000, briefly surging toward $72,000, up more than 6% from its session low. Crude oil crashed, closing down over 10%, with Brent crude ending below $100 for the first time in more than a week.

Gold futures fell more than 10% intraday. Spot gold posted its ninth consecutive daily decline. Spot silver dropped 10% before turning higher, rising more than 4% at one point. London copper rebounded 2%, with copper and tin snapping four-day losing streaks. Aluminum fell for a third straight session to a three-week low.

During Asian trading hours, the Shanghai Composite Index tumbled 3.6%, barely holding above 3,800 points. Over 5,100 stocks fell across the A-share market, with gold-related stocks plunging across the board. The Hang Seng Index dropped more than 3%, with tech and internet stocks broadly lower.

## Key News

### China

- The National Development and Reform Commission (NDRC) implemented temporary price controls on domestic refined oil products. Before the controls, gasoline and diesel prices were set to rise by 2,205 yuan and 2,120 yuan per ton, respectively; after the controls, they will increase by 1,160 yuan and 1,115 yuan per ton.

- WuXi AppTec reported a 105.2% surge in net profit for 2025. It forecasts 18%-22% revenue growth for 2026, driven by strong performance in the U.S. market.

- Sanhua Intelligent Controls posted an 11% year-on-year increase in revenue and a 31% rise in net profit for 2025, with its new energy vehicle business driving robust profit growth.

- WeRide doubled its Robotaxi fleet, reporting an 89.6% year-on-year surge in revenue and a 34.2% narrowing of net loss for 2025.

- Laopu Gold saw both revenue and net profit jump over 200% in 2025, with a dividend of 11.95 yuan per share.

### Overseas

- Trump: Talks with Iran over the past two days were “productive,” and key points of an agreement have been reached. He is delaying strikes on Iran’s power plants and energy infrastructure for five days and negotiating with Iran for a broader deal. The White House declined to confirm whether talks with Iran would take place this week. Reports say the U.S. government is considering Iran’s parliament speaker as a potential negotiation partner.

- U.S. media: Multiple countries are coordinating U.S.-Iran talks in Islamabad this week. Iran denied its speaker held talks with the U.S., calling the false news a pretext for assassination. It stated the U.S. previously tried to negotiate through intermediaries, but Iran did not respond.

- Iran’s military said it has effective control over the Strait of Hormuz and does not need to mine the Persian Gulf, but will immediately lay mines if its islands are attacked. Iranian media listed 11 targets, including desalination plants and nuclear power stations. Two Indian LPG vessels are transiting the Strait of Hormuz. Israeli media: The U.S. is considering a ground operation to seize Iran’s Kharg Island.

- U.S. Energy Secretary: A second release of strategic petroleum reserves is possible but unlikely. Reports: Japan considers intervening in crude oil futures as the Middle East crisis continues to drive up costs. Japan Petroleum Association: A second oil reserve release is needed, matching the first 80 million-barrel scale.

- Australia’s largest ammonia plant halts production for two months, dealing another blow to the global fertilizer market. Iran disrupts Qatar’s helium exports, threatening global chip production.

- Fed Governor Michelle Bowman: Geopolitical shocks are insufficient to alter the forecast for four rate cuts this year. Chicago Fed President: A rate hike may become necessary.

## Market Closing Levels

### U.S. & European Equities

- S&P 500: +1.15% to 6,581.00

- Dow Jones: +1.38% to 46,208.47

- Nasdaq: +1.38% to 21,946.76

- Europe STOXX 600: +0.61% to 576.78

### A-Shares

- Shanghai Composite: -3.63% to 3,813.28

- Shenzhen Component: -3.76% to 13,345.51

- ChiNext Index: -3.49% to 3,235.22

### Bond Market

- U.S. 10-year Treasury yield: ~4.34%, -4 bps intraday

- U.S. 2-year Treasury yield: ~3.85%, -5 bps intraday

### Commodities

- WTI May crude: -10.28% to $88.13/bbl

- Brent May crude: -10.92% to $99.94/bbl

- COMEX April gold: -3.66% to $4,407.3/oz

- COMEX May silver: -0.44% to $69.355/oz

- LME copper: +~2% to $12,167/ton

- LME tin: +~1.5% to $43,944/ton

- LME aluminum: -~0.5% to $3,199/ton

# Detailed News

## Global Highlights

### China

- **NDRC Imposes Temporary Controls on Domestic Refined Oil Prices**: The National Development and Reform Commission (NDRC) announced temporary price controls on domestic refined oil products to mitigate the impact of surging international crude prices and ease the burden on downstream users. Under the current pricing mechanism, gasoline and diesel (standard) were set to increase by **2,205 yuan** and **2,120 yuan** per ton respectively, effective midnight March 23. Following the controls, the actual increases are **1,160 yuan** and **1,115 yuan** per ton.

- **WuXi AppTec Posts 105.2% Surge in 2025 Net Profit, Eyes 18%-22% Revenue Growth in 2026**: WuXi AppTec reported a **15.8% YoY** rise in 2025 revenue to **45.46 billion yuan**, with net profit attributable to shareholders soaring **105.2%** to **19.19 billion yuan**. The U.S. market was the main growth driver, with revenue jumping **34.3% YoY** to **31.25 billion yuan**. The company proposed a final dividend of **15.7927 yuan** per 10 shares (tax-inclusive), totaling approximately **4.712 billion yuan**.

- **Sanhua Intelligent Controls Logs 11% Revenue Growth, 31%+ Profit Surge in 2025**: Sanhua Intelligent Controls reported **10.97% YoY** revenue growth to **31.011 billion yuan** and a **31.10% YoY** increase in net profit to **4.063 billion yuan**, lifting its net profit margin to **13.1%**. Its new energy vehicle thermal management business emerged as the core growth engine. The company listed on the Hong Kong Stock Exchange in June 2025, significantly strengthening its capital position. It is also expanding its precision manufacturing technology into the field of bionic robot electromechanical actuators, laying out its third growth curve.

- **WeRide Doubles Robotaxi Fleet, Posts 89.6% Revenue Surge in 2025**: WeRide reported **89.6% YoY** revenue growth to **685 million yuan** in 2025. Under IFRS, operating loss narrowed **15.5% YoY** to **1.8 billion yuan**, and net loss shrank **34.2% YoY** to **1.655 billion yuan**. The company's global autonomous driving fleet expanded from **1,089** vehicles at the end of 2024 to **2,113** as of the announcement date, with the Robotaxi fleet reaching **1,125** vehicles. WeRide targets a Robotaxi fleet of **2,600** vehicles by the end of 2026.

- **Laopu Gold Sees Revenue and Profit Surge Over 200% in 2025**: Laopu Gold reported a **221% YoY** jump in revenue to **27.3 billion yuan** and a **231% YoY** surge in net profit to **4.9 billion yuan**, with its per-store sales efficiency ranking first among global luxury brands. However, aggressive inventory stocking pushed inventory to **16 billion yuan**, pressuring cash flow. The company raised **5.4 billion Hong Kong dollars** via private placements during the year to shore up liquidity. The ancient gold leader is pursuing rapid expansion and large-scale dividends.

### Overseas

- **Trump: U.S.-Iran Talks "Perfect," Key Points Agreed Upon**: U.S. President Donald Trump stated that U.S.-Iran talks over the past two days were "very good and productive," and will continue through the weekend. He ordered a **five-day pause** on all military strikes against Iran's power plants and energy infrastructure, conditional on the success of ongoing negotiations. Trump said U.S. Envoy Witkoff and his son-in-law Jared Kushner held talks with Iranian leadership, but not the Supreme Leader. He added that Iran is serious about reaching a deal and has one last chance to end threats against the U.S.. Multiple countries are reportedly coordinating U.S.-Iran talks in Islamabad this week. The White House declined to confirm whether talks would take place this week. Iran denied its parliament speaker held talks with the U.S., calling the reports "false news" designed to create conditions for assassination.

- **Iran Claims Control of Strait of Hormuz, Threatens Mine-Laying**: Iran's military said it has effective control over the Strait of Hormuz and does not need to mine the Persian Gulf, but will immediately lay mines if its islands are attacked. Iranian media listed **11 targets**, including desalination plants and nuclear power stations. Two Indian LPG vessels are transiting the Strait. Israeli media reported the U.S. is considering a ground operation to seize Iran's Kharg Island, its largest crude export hub. The U.S. is accelerating the deployment of **4,500 troops** and multiple warships to the Middle East. Iran warned of an "unprecedented response" to any aggression. The USS *Gerald R. Ford* arrived in Crete, Greece, on March 23 and is expected to stay for over a week.

- **U.S. Energy Secretary: SPR Release Possible but Unlikely**: U.S. Energy Secretary Jennifer Granholm said a second release of Strategic Petroleum Reserve (SPR) is possible but unlikely. The U.S. has already initiated a release of **1-1.5 million barrels per day (bpd)**, which could be expanded to **3 million bpd** if needed. She noted oil prices have not yet triggered "demand destruction," and the impact of Strait of Hormuz disruptions is "temporary," but U.S. consumers may face high prices for "several more weeks".

- **Japan Considers Intervening in Crude Oil Futures**: Japan is reportedly considering intervening in the crude oil futures market as the Middle East crisis continues to drive up costs. Such a move would mark a rare step in Japan's energy market management. The Japan Petroleum Association called for a second SPR release matching the first **80 million barrels**, while diversifying supplies to North America, Alaska, and Latin America to reduce reliance on Middle East oil.

- **Australia's Largest Ammonia Plant Halts Production for Two Months**: Australia's largest ammonia plant, Yara Pilbara, has suspended production for two months due to a power outage, dealing another blow to the global fertilizer market. The plant's annual capacity of **850,000 tons** is offline, exacerbating supply shortages during the agricultural planting season and disrupting iron ore blasting materials.

- **Iran Disrupts Qatar's Helium Exports, Threatening Global Chip Production**: Iranian attacks have severely damaged Qatari facilities, cutting global helium supplies by a third. As an irreplaceable coolant for chip manufacturing, spot helium prices have doubled. South Korean chipmakers, highly dependent on Qatari helium, have seen their market value evaporate by over **$200 billion**. Experts warn a full-blown shortage will hit in weeks, threatening the global semiconductor supply chain.

- **Fed's Bowman: Geopolitical Shocks Insufficient to Alter Four Rate Cuts**: Federal Reserve Governor Michelle Bowman said short-term oil price volatility from the Middle East conflict is insufficient to change her baseline forecast of **four rate cuts** in 2026. She believes the Fed should wait for more data before adjusting its policy outlook. Bowman cast the sole dissenting vote at last week's Fed meeting, supporting a **25-bp rate cut**.

- **Chicago Fed's Goolsbee: Rate Hikes May Be Necessary**: Chicago Fed President Austan Goolsbee, a 2027 FOMC voter, said the new inflationary shock from the Middle East has made the situation "severe" and disrupted the Fed's plans. With inflation already high and the labor market near full employment, inflation must take priority in policy trade-offs, he noted.

## Selected Research Reports

- **Goldman Sachs: Not Time to "Capitulate"; AI May Be Last Source of Selling**: Goldman Sachs warned that while U.S. stocks are de-risking, they have not yet seen "capitulation" selling, and downside pressure remains. The S&P 500 has entered negative gamma territory, increasing volatility. Oversold conditions are far from historical lows, and systematic funds still have potential selling pressure. Cyclical stocks have been liquidated, while the AI sector and "Magnificent Seven"—with high positioning—are the last bastions. If markets need to raise cash for safety, the AI complex could face a sharp correction.

- **Morgan Stanley: "World Models" Are Next Frontier in AI**: Morgan Stanley's latest report argues that the linguistic dividend of large models is peaking, and the next AI arms race will be in "world models"—enabling machines to truly understand 3D space, physical laws, and temporal evolution. Applications extend beyond robotics to reshape gaming, film, and design, from Waymo's billions of miles of virtual testing to Microsoft's AI-rendered playable *Quake II*.

# Domestic Companies

## Huawei Enjoy 90 Pro Max Officially Launched

Huawei has officially unveiled the Enjoy 90 Pro Max, equipped with an **8,500mAh battery**—the largest capacity ever used in a Huawei smartphone. Paired with the Super Energy Pump technology, the battery achieves a discharge efficiency of over 98%. Optimized via the Global Smart Node technology for energy efficiency, the device delivers exceptional battery life, including **48 hours of continuous talk time**. It is also powered by the **Kirin 8000 processor**, boosting overall performance by 38%.

## Zijin Mining to Acquire Control of Chifeng Gold for Over RMB 18.2 Billion

Zijin Mining will gain control of Chifeng Jilong Gold Mining Co., Ltd. (Chifeng Gold) with a total transaction value exceeding **RMB 18.2 billion**. Li Jinyang, the actual controller of Chifeng Gold, will exit completely with no remaining shares. Zijin Mining plans to acquire Chifeng Gold’s A-shares and subscribe to its H-share private placement through a subsidiary, totaling over RMB 18.2 billion. Upon completion, Zijin Mining will hold a **25.85% stake**, securing control and consolidating Chifeng Gold’s financials into its own. The actual controller will be changed from Li Jinyang to the Finance Bureau of Shanghang County.

# Global Macroeconomics

## "New Fed Wire": Fed Faces Most Awkward Power Transition in History

Kevin Warsh is caught in a triple dilemma: rebounding inflation, oil price shocks, and a stalled Senate confirmation process. Despite his pledges to cut rates and reform the Fed’s operations, the FOMC voted **11–1** to hold rates steady, signaling strong resistance to easing. Adding to the friction, Jerome Powell has refused to step down early amid a judicial investigation. This transition is rife with political maneuvering and has stoked market concerns over the future independence and direction of monetary policy.

## Japan’s Largest Wage Hike in 35 Years May Trigger Early BOJ Rate Hikes

Japanese companies are set to deliver the largest wage increases in 35 years. Data from Rengo, Japan’s largest labor union federation, shows average wage growth in this spring’s shunto negotiations reached **5.26%**—the highest since 1991. Major firms including Toyota and Honda fully met union demands. Market expectations for a Bank of Japan (BOJ) rate hike have surged, with overnight index swaps pricing in a roughly **60% chance** of a hike in April. However, energy price shocks from the Middle East conflict threaten corporate profit margins and consumer demand, testing the virtuous cycle between wages and inflation.

## South Korean Stocks Plunge 6.5%; Retail Investors Buy Record KRW 7 Trillion on Dip

Escalating Middle East tensions crushed risk appetite, sending the KOSPI down **6.49%** on Monday—its biggest one-day drop since March 4—and triggering a circuit breaker. Foreign investors net sold about **KRW 3.7 trillion**, while retail investors bought a record **KRW 7 trillion** in a contrarian move. The South Korean government plans a supplementary budget to stabilize markets. Analysts noted, “There is no need for excessive pessimism, but market patience has become fragile.”

# Overseas Companies

## U.S. Private Capital Shifts to “HALO” Hard Assets; Software Stocks Left on the Sidelines

Threatened by AI disruption, the software sector—which attracted trillions in investment over the past five years—is mired in a valuation and exit slump. Private equity giants led by Blackstone, Bain Capital, and Brookfield are pivoting from software to **“HALO” (Hard Assets with Low Obsolescence)**. Industrial manufacturing, energy, infrastructure, and defense have become the new frontiers of competition.

## SK Hynix Plans U.S. ADR Listing to Raise KRW 10–15 Trillion for HBM Expansion

SK Hynix is reportedly planning a U.S. ADR offering to raise between **KRW 10 trillion and 15 trillion**, representing approximately 2.4% of its total share capital. All proceeds will be invested in AI infrastructure, including the Yongin Semiconductor Cluster. The move aims to leverage U.S. capital markets to revalue its P/E ratio—currently half that of Micron. Successful inclusion in major indices such as the Philadelphia Semiconductor Index would attract massive passive investment, strengthening its global leadership in HBM.

## AMD Secures Major Asia-Pacific Order: Korean AI Startup to Buy 10,000 Latest Chips

South Korean AI startup Upstage plans to purchase **10,000 of AMD’s latest MI355 chips** to reduce its sole reliance on NVIDIA and diversify its computing power. The order comes amid pressure from South Korea’s national AI competition, as the firm prepares to develop trillion-parameter large models. Analysts say the landmark deal opens a new breakthrough for AMD in expanding its AI computing market share in the Asia-Pacific region.

# Industries & Concepts

## 1. Computing-Electricity Collaboration

According to IT Home, Liu Liehong, Director of the National Data Bureau, stated at the China Development Forum 2026 Annual Meeting on March 23 that **computing-electricity collaboration** is a new infrastructure initiative that deeply integrates computing infrastructure with the power system through digital technologies, intelligent algorithms, and information networks. It promotes dynamic matching and optimal allocation of resources, creating a virtuous cycle of “power strengthening computing and computing promoting power.” Next steps will involve joint efforts with relevant departments to advance the initiative, ensuring that newly built computing facilities at hub nodes achieve **over 80% green power usage** to maximize the supporting role of renewable energy.

**Commentary**: The 2026 Government Work Report included “computing-electricity collaboration” as a new infrastructure project, and the Two Sessions formally elevated it to a national strategy—marking its transition from ministerial planning to top-level design. Local project implementation is expected to accelerate this year. At its core, computing-electricity collaboration uses digital means to dynamically match power and computing resources, forming an integrated source-grid-load-storage closed loop covering direct green power access, virtual power plants, power trading, energy storage, and data centers. Looking ahead, the cost-effective computing advantage built on this collaboration could enable **Token “going global”**, forming a value chain of “green power → computing power → Token → overseas monetization.” New intelligent computing centers in the East Data, West Computing hubs are expected to drive rapid growth in demand for direct green power supply, intelligent dispatch, user-side energy storage, and power trading,赋予相关 sectors both offensive and defensive investment value.

## 2. Computing Power

Data from OpenRouter, the world’s largest AI model API aggregation platform, shows that as of March 15, weekly token calls by Chinese large models reached **4.69 trillion**, surpassing the U.S. for the second consecutive week. Chinese models also claimed the top three spots globally. JPMorgan forecasts that China’s AI inference token consumption will surge from about **10 quadrillion** in 2025 to roughly **3,900 quadrillion** by 2030—a **370-fold increase** in five years.

**Commentary**: The core driver of China’s surging token usage is the low inference cost and high cost-performance of its large models. A new generation of Chinese models, represented by MiniMax M2.5 and Kimi K2.5, have reached or exceeded the level of leading Western models in mainstream productivity scenarios such as coding, AI agents, and long-context understanding. The explosion of applications like AI agents and tool calling has sharply lifted token consumption curves, with apps such as OpenClaw driving high-slope growth in token demand. Analysts believe **“token demand inflation”** will be a core investment theme in AI this year. Rapidly rising token calls are feeding a boom in China’s computing power, infrastructure, AI chips, and cloud services, significantly benefiting the performance of related sectors and firms while strengthening Chinese vendors’ global pricing power and influence in AI services.

## 3. Lithium-Ion Batteries

According to XL Information, domestic battery sample manufacturers’ production plans rose **21.93% month-on-month (MoM)** in March. Cathode and anode materials increased by **23.3%** and **16.42% MoM**, respectively; separators and electrolytes rose by **8.7%** and **18.78% MoM**. Institutions expect production plans to rise further in April. Industry data shows that from January to February, China’s power and energy storage battery sales totaled **262 GWh**, up **53.8% year-on-year (YoY)**. Power batteries reached **177.2 GWh (+36.5% YoY)**, with average battery capacity per new energy vehicle at **64.9 kWh (+32.3% YoY)**. Energy storage batteries hit **84.8 GWh (+108.9% YoY)**.

**Commentary**: For lithium battery materials, limited new LiPF₆ capacity and expected production halts for maintenance should bring inventory levels back to reasonable levels in mid-to-late March. Separators and copper foils have long payback periods and weak expansion willingness; rising downstream production is gradually lifting processing fees and prices, supporting long-term price elasticity. Additionally, many lithium battery companies are expected to report strong Q1 earnings due to profit recovery and inventory gains.

## 4. Transformers

According to CCTV Finance, transformer manufacturers across China are operating at full capacity, with overseas orders backlogged—some extending into 2027. For example, a transformer producer in Nanchang, Jiangxi, is rushing to fulfill overseas orders. In 2026, the firm’s order backlog neared **RMB 700 million**, with exports accounting for over **RMB 600 million (90%+)** of the total.

**Commentary**: Research institutions attribute strong demand to economic recovery, rapid AI development, new energy grid integration, and power grid upgrades. Wood Mackenzie estimates supply gaps of **30% for power transformers and 6% for distribution transformers** in North America. Imported products are expected to account for **80% of U.S. power transformer supply and 50% of distribution transformer supply**.

# Today’s News Preview

- Preliminary March manufacturing, services, and composite PMIs for the U.S., Eurozone, UK, Japan, and India.

- Japan’s February CPI data.

- Opening of the Boao Forum for Asia Annual Conference 2026.

- Early general election in Denmark, with Greenland’s future as a key focus.

- Xiaomi’s financial results release.

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# Risk Warning & Disclaimer

The market involves risks, and investments require caution. This document does not constitute personal investment advice and does not take into account the specific investment objectives, financial situations, or needs of individual users. Users should assess whether any opinions, views, or conclusions in this document align with their specific circumstances. Investment decisions based on this document are made at the user’s own risk.