Morning News

# Source: Wall Street见闻 (Wall Street CN)

## Market Overview

Both the U.S. and Iran signaled willingness to end the Middle East conflict, triggering a sharp rally in U.S. stocks—the largest single-day gain since May last year. The S&P 500 rose 2.9%, and the Nasdaq surged 3.8%. Communication services led the advance with a 4.42% jump, followed by information technology at 4.24%. The energy index fell 1.2% but still gained 10% in March.

U.S. Treasury yields continued to decline: the 10-year yield fell 3 basis points, and the 2-year yield dropped 3.29 basis points.

The U.S. dollar snapped a five-day winning streak, plummeting 0.7% intraday and breaking below the 100 level. Cryptocurrencies traded higher in volatile fashion: Bitcoin rose 2.4%, and Ethereum jumped more than 4%.

Metals rallied sharply: spot gold climbed 3.5%, rising for three consecutive sessions, though it still fell 11% in March. Spot silver soared over 7%, reclaiming levels above $75, but dropped nearly 20% for the month. New York copper rose 3% on Tuesday, falling almost 7% in March.

U.S. spot crude fell 3.6%, while Brent crude plunged more than 5.2%, widening their spread to the widest level since December 2013.

In Asian trading hours, on the final trading day of March, the Shanghai Composite Index once again fell below the 3,900-point mark. The ChiNext Index dropped over 2%, while motorcycle stocks bucked the trend. The Hang Seng Index turned positive in late trading, and semiconductor stocks tumbled.

## Key News

### China

- The People’s Bank of China: Leverage the combined effects of incremental and existing policies to strengthen monetary policy regulation.

- China’s March manufacturing PMI rose to 50.4, and the non-manufacturing PMI rose for a second consecutive month.

- Huawei reported moderate growth in revenue and net profit in 2025. Smart auto revenue surged 72%, while cloud computing declined slightly.

- Zhipu AI saw its 2025 revenue skyrocket 132%, with explosive growth in both cloud services and AI agent businesses. Heavy R&D investment led to an expanded loss.

- Domestic storage giant Demingli returned to profit, forecasting Q1 net profit of up to 3.65 billion yuan—five times the full-year figure for 2025.

- Sungrow Power Supply posted 15% revenue growth and 22% net profit growth in 2025, with expanding global market share in energy storage and inverter businesses.

- Shandong Molong reported 30% revenue growth in 2025, turning a net profit of 5.16 million yuan (year-on-year), with overseas revenue surging 50%.

### Overseas

- Warren Buffett: Made $100 billion from his Apple bet but sold too early. U.S. stocks are not cheap now; he is not buying the dip and warned of fragility in the banking system.

- Trump said he would end the Iran war within “two to three weeks.” His “exit roadmap” emerged: willing to end the war first, leaving the reopening of the Strait of Hormuz to Europe and Gulf allies. Trump: Countries should “fight for oil” in the Strait of Hormuz on their own.

- Iran’s president expressed willingness to end the war on the premise of ensuring no further aggression. Iran’s foreign minister said there had been information exchanges with the U.S. but no negotiations. Iran warned of strikes against 18 U.S. companies, six of which are in the Magnificent Seven.

- The USS *George H.W. Bush* set sail; the U.S. may deploy a third aircraft carrier in the Middle East. U.S. and Israeli forces attacked Iran’s largest island. Iran said its core domestic steel plants were hit in strikes on Tuesday.

- Reports: Some Gulf states want the U.S. to continue the war against Iran.

- U.S. February JOLTS job openings fell to 6.882 million, with the hiring rate hitting a six-year low and the layoff rate rising slightly.

- Eurozone March inflation surged to 2.5%, the largest increase since 2022, sharply boosting rate-hike expectations.

- Epic leak: 512,000 lines of Claude Code source code have been open-sourced!

## Market Closing

### U.S. & European Equities

- S&P 500: +2.91% to 6,528.52; March: -5.09%; Q1: -4.63%.

- Dow Jones Industrial Average: +2.49% to 46,341.51; March: -5.38%; Q1: -3.58%.

- Nasdaq Composite: +3.83% to 21,590.63; March: -4.75%; Q1: -7.10%.

- Europe STOXX 600: +0.41% to 583.14; March: -8.00%; Q1: -1.53%.

### A-Shares

- Shanghai Composite: 3,891.86, -0.80%.

- Shenzhen Component: 13,478.06, -1.81%.

- ChiNext Index: 3,184.95, -2.70%.

### Bond Market

- U.S. 10-year Treasury yield: -3.16 bps to 4.3166%; March: +37.91 bps; Q1: +14.96 bps.

- U.S. 2-year Treasury yield: -3.49 bps to 3.7930%; March: +41.81 bps; Q1: +31.99 bps.

### Commodities

- U.S. spot crude: -3.6%; March: +~50%; Q1: +~75%.

- Brent crude: -5.2%+; March: +40%+; Q1: +~70%.

- Spot gold: +3.49% to $4,668.20/oz; March: -11.58%; Q1: +4.90%.

# Detailed News

## Global Highlights

### China

**People’s Bank of China (PBOC):** Leverage the combined effects of incremental and existing policies to strengthen monetary policy regulation. The meeting emphasized guiding large banks to act as the main force in serving the real economy, urging small and medium-sized banks to focus on their core responsibilities, and enhancing banks’ capital strength. It called for making good use of various structural monetary policy tools, optimizing tool management, solidly advancing the **Five Major Financial Initiatives** (tech finance, green finance, inclusive finance, pension finance, and digital finance), and strengthening financial support for key areas such as expanding domestic demand, technological innovation, and micro, small, and medium-sized enterprises (MSMEs). The PBOC will continue to improve financial services to support the development and growth of the private economy, maintain the stable operation of financial markets, and effectively promote high-level two-way financial opening-up while enhancing economic and financial management capabilities and risk prevention and control under open conditions.

**China’s March Manufacturing PMI Rises to 50.4; Non-Manufacturing PMI Rises for Second Consecutive Month**. China’s manufacturing PMI returned to expansion territory in March, with both production and demand strengthening, and business sentiment improving across large, medium, and small enterprises, consolidating the economic recovery trend. The non-manufacturing PMI rose to 50.1%, entering expansion territory, with improved sentiment in both the services and construction sectors. Huo Lihui, Chief Statistician at the Service Industry Survey Center of the National Bureau of Statistics, stated that market activity picked up in March as enterprises accelerated resumption of work and production after the Spring Festival.

**Zhong Yumei of Guolian MinSheng Securities:** March manufacturing PMI rebounded as expected, with both price indices hitting their highest levels since Q2 2022, and the new export orders index reaching its highest point since May 2024. On the domestic demand side, the new orders index stood at 51.6%, a one-year high. On the external demand side, the new export orders index reached 49.1%, the highest since May 2024. The services PMI rose 0.5 percentage points month-on-month to 50.2%, returning to expansion.

**Zhao Wei Team at Shenwan Hongyuan Macro:** March PMI rebounded significantly, with the manufacturing PMI rising to 50.4% and returning to expansion. The core drivers were the natural recovery after the Spring Festival disturbance and accelerated repair of domestic and external demand, especially a rapid rebound in consumer goods demand. Slow post-holiday resumption of work dragged down the production index. Within non-manufacturing, consumer services provided weaker support, while producer services maintained high sentiment. Looking ahead, expectations for domestic demand recovery are strong, but the potential negative impact of surging oil prices on manufacturing requires vigilance.

**Huawei Reports Moderate Revenue and Net Profit Growth in 2025; Smart Auto Revenue Surges 72%, Cloud Computing Slips Slightly.** The company achieved total revenue of RMB 880.9 billion, up 2.2% year-on-year, and net profit of RMB 68 billion, up 8.7% year-on-year. Growth momentum clearly shifted toward AI and automotive: smart automotive solutions revenue reached RMB 45 billion, surging 72.1% year-on-year; digital energy revenue hit RMB 77.3 billion, up 12.7% year-on-year. In contrast, the two core businesses of ICT infrastructure and consumer devices maintained modest growth, while cloud computing revenue fell slightly to RMB 32.1 billion.

**Zhipu AI Sees 2025 Revenue Skyrocket 132%; Cloud Services and AI Agent Businesses Explode, Heavy R&D Spending Widens Losses.** Zhipu AI’s 2025 revenue reached RMB 724 million, up 131.9% year-on-year. Revenue from open platform and API (cloud services) surged 292.6% year-on-year to RMB 190 million; enterprise-level AI agent business revenue jumped 248.8% year-on-year to RMB 166 million. The company’s R&D investment amounted to RMB 3.18 billion, up 44.9% year-on-year, leading to a 59.5% year-on-year expansion in net loss to RMB 4.718 billion.

**Domestic Storage Giant Techwinsemi Returns to Profit; Q1 Net Profit Forecast Up to RMB 3.65 Billion, Five Times Full-Year 2025 Figure.** Benefiting from the memory chip upcycle and strategic inventory stocking dividends, Techwinsemi forecasts Q1 revenue of RMB 7.3–7.8 billion, a year-on-year increase of 483%–523% from RMB 1.252 billion in the same period last year. Net profit attributable to shareholders is projected at RMB 3.15–3.65 billion, compared with a loss of RMB 69.0877 million in the year-ago period. The midpoint of this quarterly profit range is approximately RMB 3.4 billion, nearly five times the company’s full-year 2025 net profit of RMB 688 million.

**Sungrow Power Supply Posts 15% Revenue Growth and 22% Net Profit Growth in 2025; Global Shares in Energy Storage and Inverter Businesses Continue to Expand**. Sungrow’s 2025 revenue reached RMB 89.184 billion, up 14.55% year-on-year; net profit hit RMB 13.461 billion, up 21.97% year-on-year. The company shipped 43 GWh of energy storage systems and 143 GW of inverters, completing the world’s largest grid-forming energy storage project. It ranks first globally in installed wind power converters and first in China in hydrogen energy bidding share. Sungrow has simultaneously initiated an H-share listing in Hong Kong to accelerate its global layout.

**Shandong Molong Reports 30% Revenue Growth in 2025; Net Profit of RMB 5.16 Million Marks Return to Profitability; Overseas Revenue Surges 50%**. Shandong Molong’s 2025 revenue reached RMB 1.762 billion. This clash with Sentury is not the first friction with U.S. officials this year. In January, Lagarde walked out mid-speech at the World Economic Forum after deeming U.S. Commerce Secretary Raimondo’s anti-European remarks overly aggressive.

**Epic Leak! 512,000 Lines of Claude Code Source Code Open-Sourced!** Over 510,000 lines of TypeScript code, more than 40 tool modules, and several unreleased features of Claude Code were made public due to a packaging error. The leak did not affect Claude’s core model weights. Industry insiders believe this event will drastically lower the engineering threshold for AI Agents and accelerate the evolution of competition in the developer ecosystem. It has also raised questions about Anthropic’s security maturity.

## Selected Research Reports

**The Most Important Shift? U.S. Treasuries “Decouple”; Market Smells “Global Fiscal Stimulus.”** As the Iran conflict enters its second month and oil prices top $100, U.S. Treasury yields have moved lower, with the “decoupling” of bonds and oil serving as a key signal. Market logic has shifted from inflation panic to recession fears and fiscal stimulus expectations. Goldman Sachs judges that bond yields will eventually decline, while Morgan Stanley notes the market is pricing in fiscal stimulus following the energy shock.

**U.S. Stocks Fall More Steeply Than in Previous Geopolitical Conflicts; Deutsche Bank: Far From Bottom.** Since the close on February 27, the S&P 500 has fallen 7.4% cumulatively, surpassing the median maximum drawdown in similar historical events and breaking the pattern of short-term bottoming. Deutsche Bank’s analysis indicates that active and systematic funds still have room to reduce positions, and with the VIX fear index above 30, market selling pressure has not been fully released—U.S. stocks are far from a bottom.

**DRAM Collapse? “Consumers Can’t Afford It,” But “AI Demand Remains Explosive.”** Driven by demand concerns stemming from Google’s compression algorithms and excessive inventory buildup earlier, spot prices for DDR5 memory have plunged nearly 30% recently. However, the collapse is limited to the consumer retail market, which accounts for only a low single-digit percentage of total market transactions. Core AI demand driven by servers remains explosive. Despite weak spot sentiment, server OEM revenue and DRAM export data continue to grow strongly, with solid industry fundamentals. Rather than spot price volatility, surging energy costs from the Middle East conflict and debt accumulation in the AI industry pose the real systemic risks for the memory sector.

**Memory Prices Plunge; Citi Slashes Micron Target Price Sharply!** Google’s new TurboQuant technology triggered a memory price drop, with mainstream DDR5 16GB spot prices falling 6%. Accordingly, Citi slashed Micron’s target price by 17% from $510 to $425. The bank noted that while the memory spot market is under pressure, downside risks to Micron’s long-term contract prices are manageable. TurboQuant’s cost-saving and efficiency-enhancing effects will further unlock applications, ultimately boosting overall demand for computing power and memory.

**Morgan Stanley: Valuation Downgrades for Legacy Memory Inevitable; “Affordability” Becomes Core Constraint in AI Era.** Morgan Stanley stated that while AI computing power demand continues to grow, customers’ tolerance for high DRAM prices has become a substantive constraint, putting DRAM-related firms under valuation pressure. Technologies such as KV Cache compression and server system optimization reduce reliance on DRAM capacity, shifting the investment logic from cycle-driven to cost-constrained, with pure NAND manufacturers relatively benefiting.

**NVIDIA Valuation Hits Seven-Year Low: Is the Market Systematically Undervaluing AI’s Biggest Winner?** As of Monday’s close, NVIDIA’s forward P/E ratio stood at 19.9x, the lowest in seven years. Apple’s forward P/E of 28.7x far exceeds NVIDIA’s, yet Apple’s projected revenue growth of 12% for the current fiscal year is just one-sixth of NVIDIA’s expected 71% growth. Analysts point out that broad market declines due to geopolitical conflicts cannot fully explain the valuation compression in the AI sector.

**Buffer to Be Exhausted! Morgan Stanley: Oil Supply Disruption Scale Multiples of 2022; Refined Products the Most Pressing Issue.** The “effective blockade” of the Strait of Hormuz enters its fourth week. Morgan Stanley warns that oil market buffers are being rapidly depleted, with refined products facing shortages earlier than crude oil. Atlantic Basin crude is being repriced as the “last marginal resort,” with Asian buyers scrambling for supplies. The longer the shock persists, the harder it becomes to sustain the narrative of a “simple, quick return to normal.” Even if the Strait reopens, normalization will take time; if Iran retains control of the channel, the oil market will struggle to fully return to its previous equilibrium.

**Goldman Sachs: Gold to Hit $6,100 If Middle East Conflict Escalates and Erodes Western Fiscal Credibility!** Goldman Sachs believes gold’s recent decline has been “significantly overdone.” As prices stabilize, central bank gold purchases are expected to accelerate to around 60 tons per month. Combined with two potential rate cuts this year, the bank maintains its year-end 2026 gold price target of $5,400/oz. If geopolitical conflicts accelerate private-sector asset diversification and erode Western fiscal credibility, gold could rise to $6,100/oz.

# Chinese Companies

Investors are rushing to get in touch with Zhang Xue. From an auto repair apprentice to a world champion, Zhang Xue has led the eponymous motorcycle brand to two consecutive championships in the WSBK series, breaking the long-standing monopoly of European and American manufacturers. Capital has quickly responded, with investors scrambling to find his contact information. This real-life version of *Pegasus* is igniting the venture capital circle’s enthusiasm for China’s smart manufacturing.

Farewell to the 1,499-yuan era — Kweichow Moutai raises price to 1,539 yuan per bottle. Why is it raising prices against market trends? The moderate price hike aims to cope with peaking production capacity and pressure on wholesale prices. The core move is breaking the 1,499-yuan “guided price” that had been in place for eight years, with no restrictions on dealers’ terminal pricing. This marks Moutai’s official entry into a market-oriented reform stage of pricing in line with market conditions. The countercyclical price adjustment also underscores its scarcity value.

Is Pop Mart severely oversold? Morgan Stanley: Overseas business “sentenced to death prematurely” by the market; shares still undervalued by about 20% even in the worst-case scenario. Pop Mart’s stock price has halved from its peak, with the market already pricing in the worst outcomes. Morgan Stanley argues the severity of three issues — rising inventories, pressure on overseas profit margins, and controversies over new businesses — may be overstated. 40–45% of overseas SG&A is variable cost linked to sales, so losses will not expand indefinitely, and products face no pressure from expiration or seasonal clearance. Among new businesses, theme parks and animated shorts set to premiere this year are the ones worth tracking.

# Global Macro

Global central banks are dumping U.S. Treasuries at a frantic pace, withdrawing $82 billion in one month, as Middle East oil exporters sell bonds for cash. The Iran conflict has triggered an energy crisis, prompting global central banks to sell U.S. debt at the fastest pace in more than a decade. Holdings plummeted by $82 billion in just a few weeks to the lowest level since 2012. Middle East oil exporters, who own roughly $300 billion in U.S. Treasuries, likely contributed to this drop. Soaring oil prices have hit oil-importing countries such as Turkey and India the hardest, forcing them to use foreign reserves to defend their currencies. Behind the biggest jump in yields in more than a year, U.S. Treasuries’ throne as the world’s top reserve asset is rapidly weakening.

U.S. average gasoline price tops $4 per gallon for the first time since August 2022. The nationwide average gasoline price has broken above $4 per gallon, rising nearly $1 since the U.S. and Israeli attack on Iran on February 28. JPMorgan estimates that if gasoline prices rise to $5 per gallon and persist, the roughly $200 billion in tax-cut benefits from the Inflation Reduction Act will be completely wiped out by higher fuel bills. In addition, polls show 55% of Americans say their household finances have been hit by rising oil prices, and 87% expect further increases.

Iranian turmoil triggers German energy crisis; May power prices surge to four times those in France, hitting a record spread. Affected by natural gas supply disruptions due to the Iran war, Germany’s May power contract price is roughly four times that of France, with the power price spread widening to an all-time high. France relies heavily on nuclear power, ensuring stable supply and low costs. After phasing out nuclear energy, Germany depends heavily on gas-fired power generation, and surging gas prices have pushed up electricity costs. Germany is considering restarting coal-fired units to ease supply pressures.

Tokyo’s March CPI cools again to a four-year low, but BoJ rate hike expectations remain for April. Tokyo’s headline CPI rose 1.4% year-on-year in March, the slowest pace since March 2022. Core CPI, excluding fresh food, increased 1.7%, below the 1.8% forecast and falling further below the BoJ’s 2% annual target. Despite soft current figures, analysts see significant upside risks to future inflation, leaving the possibility of a 25-basis-point rate hike in April intact.

Japan labels yen decline “speculative”; Finance Minister: “all-round” response ready. The yen has come under renewed pressure, prompting a rare “all-round” response from the Japanese government. The Finance Minister explicitly characterized the recent decline as driven by speculation and disconnected from fundamentals, using unusually tough rhetoric in recent years. The Iran war has sparked global sell-offs, with speculative forces amplifying the pressure, dealing a “double blow” to the yen. The authorities’ intervention threshold has quietly lowered, sharply increasing policy risks for short sellers.

South Korean stock market enters technical bear market, down 20% from February high. The Kospi index has fallen 20% from its February high, officially entering a technical bear market. Escalating Middle East tensions have pushed up oil prices and raised inflation expectations, alongside market doubts over the sustainability of AI chip demand. SK Hynix and Samsung Electronics together account for nearly 40% of the Kospi weighting, and heavy foreign selling in both stocks has been central to the decline.

Iran war disrupts supply chains; aluminum jumps nearly 10% in March for biggest monthly gain in two years. The closure of the Strait of Hormuz has cut off export routes for about 10% of global aluminum production from the Persian Gulf. Aluminum Bahrain cut output by more than 20%, and a 1.6-million-ton smelting facility in the UAE was damaged. Natixis warned the global market could swing from a 200,000-ton surplus to a 1.3-million-ton shortage. LME aluminum rose nearly 10% in March, logging its strongest monthly gain in two years and standing out as a rare outperformer amid broad metal declines in March.

# Overseas Companies

OpenAI completes $122 billion financing, valuing the firm at $852 billion. The total round includes the $110 billion financing disclosed by OpenAI in February this year. Expectations for an OpenAI IPO have heated up following the completion of the round. OpenAI CFO Sarah Friar stated the company needs to build “public company capabilities” and views an IPO as an important milestone to build trust, but did not reveal specific details regarding the IPO timeline.

Tim Cook, inside the “fortress”, rolls out Apple Tax 2.0. Apple is leveraging its ecosystem to capture dividends in the AI era. Facing weaknesses in its self-developed models, iOS 27 will open Siri as a third-party AI platform, allowing users to freely access large models such as Gemini and Claude. This “Siri Extensions” feature essentially replicates the successful App Store model — taking a 30% cut from third-party AI subscription services to build a new form of Apple Tax.

Jensen Huang makes another strategic move! Nvidia invests $2 billion in Marvell to boost AI convergence in 5G/6G networks. Marvell will provide custom XPUs (accelerated processors) and extended networking solutions compatible with NVLink Fusion for the Nvidia ecosystem. The two firms will also conduct joint research in silicon photonics and 5G/6G networks.

Time to bottom-fish Meta? Morgan Stanley: Bad news fully priced in; Meta AI poised to evolve into MetaClaw, unlocking a new growth engine. Morgan Stanley believes Meta’s current valuation of around 15x forward P/E is at a decade-low, trading at a discount of more than 50% to peers. Beyond cost-cutting layoffs, its core growth driver lies in the potential AI agent product MetaClaw. Built on the Llama large model and 3.5 billion active users, the tool integrates merchant inventory and payment capabilities to form a closed loop of “agent-driven shopping”, potentially shifting Meta from ad display to transaction monetization.

Samsung advances advanced process tech: 2nm yield breaks 60%, targeting 1nm by 2030. Samsung’s 2nm chip yield has exceeded 60%, helping its foundry business return to profit. The company plans to mass-produce AI chips for Tesla in 2027 and has set a goal to introduce 1nm process technology by 2030, using a “forksheet” architecture. Facing fierce competition from TSMC and Rapidus, Samsung is catching up by optimizing process variants.

Google issues warning: Quantum hacking threshold may be much lower than expected; crypto industry must transition to post-quantum cryptography by 2029. Google researchers warned future quantum computers could break some encryption technologies protecting Bitcoin and other digital assets with far fewer resources than previously expected, making industry discussions on mitigation more urgent. Google framed the paper as a wake-up call to buy the industry time to adapt, not a prediction of imminent collapse, meaning Bitcoin and Ethereum do not face immediate risks.

# Industries & Themes

1. **Internet of Things (IoT)**

On March 31, nine ministries including the Ministry of Industry and Information Technology jointly issued the *Action Plan for Promoting the Innovative Development of the IoT Industry (2026–2028)*. The plan outlines five major measures to drive innovative development of the IoT sector: promoting innovation and upgrading of IoT devices, improving service efficiency of IoT platforms, fostering IoT application scenarios, strengthening network infrastructure, and building a favorable industrial ecosystem. It sets targets: by 2028, develop 10 application fields with 100 million+ connections and 15 with 10 million+ connections; expand the number of IoT terminal connections to 10 billion level; and push the scale of the core IoT industry past 3.5 trillion yuan.

**Comment**: Research institutions believe that driven by the continuous penetration of 5G applications and empowerment from AI technologies, the total number of connections and market size of the IoT module industry are growing year by year, with rapid penetration of AI smart modules. Chinese enterprises are among the world’s leaders in independent production capacity for cellular IoT modules and capable of providing vertical application solutions, positioning them to fully benefit from rising demand for smart modules.

2. **Artificial Intelligence (AI)**

Zhipu AI’s 2025 financial report released on the evening of March 31 showed total revenue of 724 million yuan, up 131.9% year-on-year, with a comprehensive gross margin of 41%, well above the industry average. Among them, the MaaS API platform achieved ARR of approximately 1.7 billion yuan, a 60-fold year-on-year increase. Profitability improved markedly, with the platform’s gross margin surging nearly five times to 18.9%. Zhipu’s MaaS business is currently seeing both volume and price growth. After an 83% API price hike in Q1 2026, usage rose rather than fell, with persistent supply shortages.

**Comment**: AJ Securities believes that as the first listed domestic large model company, Zhipu AI’s successful listing signals a new round of growth momentum for China’s AI industry chain. Opportunities lie in the localization of the AI industrial chain, including upstream computing power chips, PCBs, optical modules, and downstream terminal components such as servers.

3. **Textiles**

Three ministries including the MIIT recently jointly issued the *Action Plan for Standard Leadership in the Optimization and Upgrading of the Textile Industry (2026–2028)*. The plan targets formulating and revising more than 300 standards covering diversified adaptation, digital transformation, green and low-carbon development, health and safety by 2028, comprehensively improving the supply capacity of textile standards. Key tasks include enhancing the matching of standard supply and demand, developing standards for new textile fiber materials, high-value utilization of natural fibers such as cotton, wool, hemp and silk, and high-tech textile products.

**Comment**: Galaxy Securities believes the upstream raw material price upcycle offers clear profit recovery opportunities for leading textile yarn enterprises. Tight wool supply coupled with recovering demand, rising cotton prices supported by favorable stock-to-use ratios, and crude oil-led cost increases across the chemical fiber chain will benefit firms with cost-plus pricing and prudent procurement. Such companies are expected to improve gross margins through inventory dividends and product price hikes, unlocking earnings elasticity.

4. **Commercial Aerospace**

According to IT Home, on March 31, China Aerospace Science and Technology Corporation’s Commercial Rocket Co., Ltd. unveiled its 2026–2027 launch manifest for rideshare and piggyback launch opportunities. The manifest is open to global commercial satellite users, covering launches over the next two years, focusing on “shared rocket” rideshare missions alongside limited piggyback services.

**Comment**: The launch plan includes 9 missions for 2026–2027, dominated by 7 shared rocket rideshare launches and 2 piggyback missions, providing diversified space access for domestic and international commercial satellite users. Shared rockets combine multiple satellites on one launch to split costs, a rapidly growing model in commercial aerospace. Analysts expect Long March series rideshare/piggyback launches to be the most effective incremental solution to the “more satellites than rockets” bottleneck in 2026–2027, driving down per-kilogram launch costs for small satellites and accelerating the deployment of mega-constellations. High-value segments such as engines, airframe structures, and testing integration will see accelerated growth.

5. **Helium**

Industry sources revealed on March 31 that amid growing fears of a prolonged Iran war, Samsung Electronics and SK Hynix have begun managing their semiconductor-grade helium supply chains. Data from the Korea International Trade Association shows Qatar is South Korea’s largest helium supplier, accounting for 64.7% by volume, followed by the U.S. (21%), Russia (6.2%), and China (1.7%).

**Comment**: Securities Times noted helium is used for low-temperature cooling and purity cleaning in semiconductor manufacturing, essential for wafer cooling, impurity removal, and yield improvement. According to Zhuochuang Information, as of March 27, the average monthly price of high-purity tube bundle helium in China stood at 89.3 yuan per cubic meter, up 6.27 yuan or 8.15% month-on-month. Qatar is a major global helium producer, with around 70+ million cubic meters of annual capacity out of a global total of 186 million cubic meters, accounting for 34.4% of global output in 2024. Helium prices surged over 300% during the previous Russia-Ukraine conflict. Middle East tensions are expected to keep global supply concerns elevated in the near term.

6. **Hydrogen Energy**

According to People’s Caixin, on March 31, the “National Hydrogen Energy Industry Chain Security Capacity Building — Core Materials and Equipment Pilot Verification and Industrialization Platform” led by the Guangzhou Hydrogen Fuel Cell Industry Innovation Consortium broke ground in Guangzhou. The platform will focus on core materials and key equipment in the hydrogen energy chain, building a comprehensive center integrating pilot verification, testing and certification, technical research, and industrial incubation. It aims to bridge the “last mile” from lab R&D to industrial application and accelerate the formation of a hydrogen equipment manufacturing system with independent intellectual property rights.

**Comment**: China Securities Journal noted hydrogen has triple attributes as an energy source, resource, and energy storage medium, featuring high technological content, strong low-carbon properties, and large development potential. High-quality development of the hydrogen industry will support the green economic transition. The *Medium- and Long-Term Plan for the Development of the Hydrogen Energy Industry (2021–2035)* sets a target of a well-established clean hydrogen production and supply system by 2030. The Energy Law of the People’s Republic of China includes hydrogen in the national energy management system for the first time, legally mandating “active and orderly development and utilization of hydrogen”. China’s hydrogen industry has achieved breakthroughs from 0 to 1, entering a critical stage of scaling up rapidly past techno-economic inflection points, with a relatively complete industrial and supply chain initially formed.

# Key News Events to Watch Today

- March Manufacturing PMI for China, U.S., Eurozone, UK, Japan

- U.S. March ADP Employment

- U.S. February Retail Sales

- South Korea March Imports & Exports

- Speeches by Fed Governor Barr and St. Louis Fed President Musalem

- U.S. Weekly EIA Crude Oil Inventories

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# Risk Warning & Disclaimer

The market is volatile and investments involve risks. This article does not constitute personalized investment advice, nor does it take into account the specific investment objectives, financial situations, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article suit their particular circumstances. Any investment decisions made based on this article are at your own risk.