Eastmoney Financial Breakfast March 27, Friday

Daily Highlights

Trump delays strike on Iranian power plants for another 10 days:

Early today (March 27), U.S. President Trump posted on his social media platform “Truth Social” that “at the request of the Iranian government, I hereby declare: I will postpone the strike against (Iranian) energy facilities by another 10 days, until 8 p.m. Eastern Time on April 6, 2026.” Trump also said, “Negotiations are ongoing, and despite false reports from fake news media and others, the progress is very smooth.”

Iran has officially responded to the U.S. proposed 15-point ceasefire plan:

According to CCTV News, Iran has formally responded through intermediaries to the U.S. 15-point ceasefire proposal. An informed source revealed that Iran clearly stated in its response that the enemy’s aggression and terrorist acts must cease; objective conditions must be created to prevent future wars; commitments to compensate for war damages must be made and implemented; all resistance groups involved in the conflict must end their actions. Iran emphasized that its sovereignty over the Strait of Hormuz is a natural and legitimate right that cannot be changed; the other side must acknowledge and fulfill its commitments. These conditions differ significantly from those proposed during the second Geneva negotiations.

Trump plans to visit China in mid-May:

Regarding reports that U.S. President Trump will visit China in mid-May, Foreign Ministry spokesperson Lin Jian said on March 26 during a routine press conference that presidential diplomacy plays an irreplaceable strategic leading role in China-U.S. relations, and both sides are maintaining communication regarding Trump’s visit.

Wang Yi says the U.S. and Iran both want to restart negotiations:

On March 26, 2026, Wang Yi, member of the Political Bureau of the CPC Central Committee and Foreign Minister, spoke with Canadian Foreign Minister Anand by phone. Wang Yi outlined China’s principled stance, stating that the Iran nuclear issue should be resolved through dialogue and should not be a reason for military action. Abuse of force will only cause serious repercussions and threaten regional security and stability. Both the U.S. and Iran are willing to restart negotiations, and the international community should encourage both sides to return to the negotiating table to seek effective political solutions. China and Canada can play a constructive role in this process.

U.S. reportedly planning a “final blow” military option against Iran:

According to CCTV News, on March 26, local time, several U.S. officials and insiders revealed that the U.S. Department of Defense is developing a so-called “final blow” military option against Iran, which may include deploying ground troops and large-scale airstrikes. Analysts suggest that if diplomatic progress remains stalled, especially with ongoing blockades of the Strait of Hormuz, the risk of escalation will increase. Some U.S. officials believe that ending the conflict through force could give more leverage in future negotiations.

Chinese Academy of Sciences launches next-generation open-source chip and system research:

At the Zhongguancun Forum Annual Conference—RISC-V Ecosystem Technology Forum, the Chinese Academy of Sciences announced key achievements in RISC-V technology breakthroughs, industrial collaboration, and talent development, including the release of the “Xiangshan” open-source processor and “Ruyi” native operating system. They also officially launched joint R&D on next-generation chips and operating systems. The joint development of the “Kunming Lake” architecture and “Ruyi” OS has begun. Companies like China Mobile, China Telecom, ZTE, Alibaba, Tencent, and ByteDance will collaborate across the entire chain—from chips and operating systems to terminals and applications—to accelerate the formation of an integrated innovation system.

Regulating “involution” competition:

According to the State Administration for Market Regulation, on March 26, the first corporate fair competition symposium of 2026 was held, focusing on “regulating corporate competition behaviors and building a healthy competition ecosystem for going global.” Leaders from companies including Minmetals Group, China State Construction Engineering, CATL, BYD, Chery, Didi, and Meituan exchanged views and suggestions. The meeting emphasized that the administration will strengthen compliance guidance, deeply rectify “involution” competition, deepen institutional openness in competition, and support enterprises in expanding international markets and achieving high-quality development.

First industry standard for embodied intelligence officially released:

On March 26, the China Academy of Information and Communications Technology, in collaboration with over 40 organizations, officially released the first industry standard for embodied intelligence. This standard establishes a unified benchmark testing framework for the field, marking a new stage where embodied intelligence evaluation has clear standards. It focuses on key AI foundational technologies and benchmarking methods, clarifies the system framework and capability requirements for embodied intelligence, and will be implemented on June 1, 2026.

Ministry of Foreign Affairs and Chinese embassies remind Chinese citizens to avoid recent travel to Japan:

According to the Consular Express, recent times have seen increased insecurity in Japan, with frequent crimes against Chinese citizens and a worsening safety environment. On March 24, a Japanese Self-Defense Forces officer forcibly entered the Chinese Embassy in Japan with a knife, posing a serious threat to Chinese diplomatic personnel and facilities. The Ministry of Foreign Affairs and Chinese embassies in Japan solemnly remind Chinese citizens to avoid traveling to Japan recently, stay alert to local security conditions, enhance safety awareness, and strengthen self-protection.

Hot Topics

Long-term care:

On March 26, the National Healthcare Security Administration and seven other departments issued the “Implementation Plan for Accelerating the Establishment of a Long-term Care Insurance System.” It emphasizes advancing reforms in an orderly manner to build a comprehensive, equitable, sustainable, and safe long-term care insurance system.

Lithium batteries:

According to Xinluo Information, in March, domestic battery sample companies increased production by 21.93% month-on-month. Cathode and anode production increased by 23.3% and 16.42%, respectively; separator and electrolyte increased by 8.7% and 18.78%. Industry forecasts suggest that April production will further increase significantly. Lithium carbonate prices remain resilient during the off-season, with overseas supply disruptions and domestic demand pre-empting traditional seasonal declines, boosting industry confidence.

Computing power:

The Guangzhou Municipal Government Office issued the “Implementation Plan for Promoting High-Quality Development of Artificial Intelligence Industry,” which proposes strengthening intelligent computing layout. It plans to standardize the phased development of “city data centers + park computing centers” according to national and provincial policies, optimizing computing project standards.

Chemical industry:

Chemical giant BASF announced it will raise prices for its general amines in Europe, with increases up to 30%, and some products even higher. The price hike takes effect immediately and may be implemented under existing contracts. The affected products include ethanolamines, ethyleneamines, isopropanolamines, and dimethylformamide, impacting electronics, agrochemicals, pharmaceuticals, and other industries.

Coal:

Industry media reports that on March 26, coal prices in Handan increased, with low-sulfur coking coal at 1,460 yuan/ton, up 60 yuan; low-sulfur fertilizer-grade coal at 1,570 yuan/ton, up 70 yuan, both ex-factory, including tax. Foresight Securities notes that geopolitical conflicts have heightened oil supply concerns, and energy substitution logic suggests coal demand expectations may improve. Under energy crises, coal prices are likely to rise again.

Commercial aerospace:

On March 26, 2026, at 6:51 a.m., China successfully launched the “Four-Dimensional High-Resolution No. 05 and 06” satellites from Taiyuan Satellite Launch Center using a Long March 2D rocket, which entered the planned orbit smoothly. Experts believe 2026 may become a year of accelerated growth for China’s commercial aerospace sector.

New energy vehicles:

Multiple online auto platforms report that rising gasoline prices caused by Middle East conflicts are boosting secondhand electric vehicle sales across Europe. French used car retailer Aramisauto said that in three weeks, the proportion of electric vehicle sales increased from 6.5% to 12.7%. CEO Romain Boscher noted that similar trends were observed at the outbreak of Russia-Ukraine conflict in 2022.

Company News

SMIC:
In 2025, revenue reached 67.323 billion yuan, up 16.5% year-on-year; net profit attributable to parent company was 5.041 billion yuan, up 36.3%; basic earnings per share were 0.63 yuan. The company’s performance steadily improved, maintaining its position as the second-largest pure wafer foundry globally. Note: SMIC’s Q3 2025 net profit was 1.517 billion yuan, estimated Q4 net profit at 1.223 billion yuan, down 19.41% quarter-on-quarter.

HuaGong Technology:
In overseas markets, 1.6T products are being delivered in bulk to overseas integrators and channel partners; the 800G LPO series has received 400,000 orders from top North American clients, with expectations of at least 700,000–800,000 units this year, still increasing; four major North American clients are testing 1.6T FRO and 1.6T LRO samples; product validation for N clients is underway, with small batch samples to be shipped soon; business with O clients in North America is progressing well, with small batch supplies expected in the second half of the year to prepare for mass production next year.

CITIC Securities:
In 2025, revenue is projected at 74.854 billion yuan, up 28.79%; net profit attributable to shareholders is 30.076 billion yuan, up 38.58%. The profit distribution plan for this period proposes a cash dividend of 4.10 yuan per 10 shares (tax included), subject to approval by shareholders.

Huaneng LiaoNeng:
The company has verified that all operations are normal. Its main business is thermal power generation, with thermal power capacity accounting for 82.56%. No significant changes in daily operations; not involved in the power grid coordination project.

CNOOC:
In 2025, revenue was 398.22 billion yuan, down 5.3% year-on-year; net profit attributable to shareholders was 122.082 billion yuan, down 11.5%.

Longfor Fiber:
Currently, supply and demand in the domestic and international fiber optic cable markets have improved somewhat, but the impact of phase-specific price fluctuations on future performance needs to be comprehensively assessed based on market conditions and company operations. Meanwhile, new fiber products for data center internal and interconnection use account for a small proportion of global demand.

Pop Mart:
On March 26, repurchased stock worth HKD 599.7 million.

Meituan:
In Q4, revenue was 92.10 billion yuan, up 4.1% year-on-year; estimated at 92.08 billion yuan; net loss after adjustments was 15.08 billion yuan, compared to a profit of 9.8 billion yuan last year. Full-year revenue was 364.85 billion yuan, up 8%; net loss was 23.36 billion yuan, compared to an estimated loss of 24.11 billion yuan.

MinoVue:
JH389 is currently in the European safety trial phase, and has not yet submitted trial data to relevant regulatory authorities. The process from trial to data submission and final approval will take some time.

China Pacific Insurance:
In 2025, revenue was 435.156 billion yuan, up 7.7%; net profit was 53.505 billion yuan, up 19.0%. Plans to distribute annual cash dividends of 1.15 yuan per share (tax included), totaling 11.063 billion yuan; no capital reserve transfer to increase share capital this year.

Shandong Gold:
In 2025, revenue was 104.287 billion yuan, up 26.38%; net profit was 4.739 billion yuan, up 60.57%.

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Global Markets

Trump claims Iran allows passage of 10 oil tankers through the Strait of Hormuz:
U.S. President Trump on the 26th said Iran permits 10 oil tankers to pass through the Strait of Hormuz as a “gift.”

Iran says it is ready to respond to U.S. “suicide” actions to open the Strait of Hormuz:
Iran’s Tasnim News Agency on the 26th quoted military insiders saying that if the U.S. attempts to open the Strait of Hormuz with “suicide” actions, Iran is prepared and will still block the Strait.

South Korea fully bans oil naphtha exports:
Starting at midnight on March 27, South Korea fully bans oil naphtha exports to ease domestic supply tensions. The Ministry of Industry and Trade announced that the “Regulations on restricting naphtha exports and ensuring supply-demand stability” will be published and enforced immediately, with a temporary period of five months. South Korea relies on imports for 45% of its naphtha, with 77% coming from the Middle East. Due to ongoing conflicts in the Middle East, South Korea’s naphtha imports may be impacted.

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Bond Market Overview

Shibor:
On March 26, the overnight Shibor was 1.3200%, up 0.10 basis points; 7-day was 1.4380%, up 0.30 basis points; 14-day was 1.5060%, down 0.52 basis points; 1-month was 1.5030%, down 0.15 basis points; 3-month was 1.5135%, down 0.20 basis points.

Euro bonds:
In European markets, the UK 10-year government bond yield rose 13.6 basis points. Germany’s 10-year yield increased 11.6 basis points to 3.074%. France’s 10-year yield rose 14.9 basis points. Italy’s 10-year yield increased 18.8 basis points to 4.024%. Spain’s 10-year yield rose 14.2 basis points to 3.608%. Greece’s 10-year yield increased 18.4 basis points to 3.985%.

U.S. bonds:
In New York, the 10-year benchmark Treasury yield rose 7.95 basis points to 4.4117%. The 2-year yield increased 10.05 basis points to 3.9858%, trading within 3.8914%-3.9981%, and briefly retraced after hours. The 20-year yield rose 4.85 basis points; the 30-year rose 3.17 basis points. The 3-year yield increased 10.52 basis points; the 5-year rose 11.45 basis points; the 7-year increased 9.60 basis points. The 10/20-year yield spread fell 1.696 basis points to +42.382. The 10-year TIPS yield rose 5.71 basis points to 2.0748%; 2-year TIPS fell 1.16 basis points to 0.7123%; 30-year TIPS rose 2.17 basis points to 2.7250%.

Commodity Futures

Domestic futures:
On March 26, domestic commodities closed mixed. Methanol, rubber, and asphalt rose over 4%; PTA, para-xylene, and eggs rose over 3%; short fiber and polypropylene increased over 2%. Declines included palladium (-5%), platinum (-4%), polysilicon and glass (-2%), and live pigs (-2%).

International gold:
COMEX gold futures for the current month fell $175.40, down 3.85%, to $4,376.9 per ounce. COMEX silver futures fell $4.52, down 6.22%, to $68.125 per ounce. Spot gold dropped $127.72, down 2.83%, to $4,378.81 per ounce. Spot silver fell $3.28, down 4.60%, to $67.97 per ounce.

International crude oil:
On March 26, oil prices rose. NYMEX WTI crude futures for the current month increased $3.47 to $93.79 per barrel, up 3.84%.

International metals:
LME copper fell $174, to $12,147 per ton. Aluminum rose $27, to $3,270 per ton. Zinc increased $2, to $3,082 per ton. Lead fell $20, to $1,892 per ton. Nickel dropped $91, to $17,253 per ton. Tin fell $693, to $44,125 per ton. Cobalt remained flat at $56,290 per ton.

Forex Market

Chinese yuan:
On March 26, onshore RMB closed at 6.90410 at 16:30 Beijing time, down 64 points. Offshore RMB at 18:00 was 6.91266, down 98.2 points. The onshore/offshore spread at 18:00 was -61.6.

RMB foreign exchange swaps:
As of 16:30 Beijing time on March 26, USD/CNY 6-month swap was -808 points; 1-year swap was -1,583 points.

U.S. dollar:
The dollar index rose on the 26th. It increased 0.28% to close at 99.893. At the New York close, EUR/USD was 1.1532 (below 1.1578), GBP/USD was 1.3327 (below 1.3382), USD/JPY was 159.73 (above 159.28), USD/CHF was 0.7949 (above 0.7910), USD/CAD was 1.3847 (above 1.3808), and USD/SEK was 9.4392 (above 9.3320).

Economic Calendar