Oriental Fortune Financial Breakfast March 25, Wednesday

Daily Highlights

Wang Yi Calls Iranian Foreign Minister Alaghazhi:

Wang Yi, a member of the Political Bureau of the CPC Central Committee and Foreign Minister, had a phone call with Iranian Foreign Minister Alaghazhi on the 24th. Alaghazhi briefed on the latest developments in the regional situation and thanked China for providing emergency humanitarian aid. He stated Iran is committed to achieving a comprehensive ceasefire, not just a temporary one. The Strait of Hormuz remains open to all ships, which can pass safely, but warring countries are not under consideration. He hopes all parties’ actions will help de-escalate the situation rather than escalate conflict. He looks forward to China continuing to play a positive role in promoting peace and stopping the war. Wang Yi reaffirmed China’s principled stance, emphasizing that China will maintain an objective and fair position, oppose infringements on other countries’ sovereignty, actively mediate peace, and work toward regional stability.

Central Bank MLF Operations:

The Medium-term Lending Facility (MLF) has been extended for 13 consecutive months with increased amounts. On March 24, the People’s Bank of China announced that on March 25, 2026, it will conduct a 500 billion yuan MLF operation with a fixed amount, interest rate bidding, and multiple price points, with a one-year maturity to maintain ample liquidity in the banking system.

Goldman Sachs Maintains Overweight on Chinese Stocks:

On March 24, Goldman Sachs’ chief China equity strategist Liu Jinjin said that international investors’ interest in Chinese stocks may have risen to recent highs, with only about 10% of surveyed clients considering Chinese stocks “uninvestable,” compared to about 40% two years ago. Amid rising geopolitical tensions in the Middle East and soaring energy prices, Goldman Sachs maintains a high-overweight recommendation on Chinese stocks (A-shares and Hong Kong stocks), believing that the Sharpe ratio of A-shares will be higher in the short term.

Trump Says Iran “Wants to Reach an Agreement”:

On March 24, U.S. President Trump stated that the U.S. is communicating with the “right people,” and Iran “wants to reach an agreement.” He also claimed Iran “no longer has a leadership,” and said the U.S. has achieved “great success” on Iran. Additionally, he mentioned negotiations are ongoing with Iran, and U.S. military operations over Tehran are “free to act.” He added that Iran has “begun rational communication” and has agreed to “never possess nuclear weapons.” According to CCTV reporters, the U.S. is discussing high-level peace talks with Iran as early as this week through multiple mediators, but is still awaiting Iran’s response.

Pakistani Prime Minister Ready to Host US-Iran Talks:

According to CCTV News, on March 24, local reports indicated that Pakistani Prime Minister Shehbaz Sharif said he is ready to host talks between the U.S. and Iran to resolve ongoing conflicts. The Iranian Islamic Revolutionary Guard Corps announced on March 23 that President Raisi had spoken with Prime Minister Shehbaz, emphasizing the urgent need to de-escalate the Persian Gulf situation and conduct diplomatic mediation. On the same day, Iranian Foreign Minister Alaghazhi and Pakistani Deputy Prime Minister and Foreign Minister Dargan exchanged views on the latest regional developments by phone. Both sides agreed to stay in contact regarding regional issues.

China-Japan Relations:

According to the Ministry of Foreign Affairs, on March 24, 2026, spokesperson Lin Jian held a routine press conference. A Reuters reporter asked about a draft of the annual diplomatic report under review by the Japanese government, which reportedly aims to downgrade Japan-China relations from “one of the most important bilateral relationships” to “important neighboring country,” while retaining the phrase “strategic mutual benefit.” The Chinese Foreign Ministry responded that if Japan sincerely wants to improve and develop China-Japan relations, it should honor the four political documents and its commitments, promptly withdraw erroneous remarks on Taiwan, reflect and correct mistakes, and take concrete actions to maintain the political foundation of China-Japan relations.

Iran’s Supreme Leader’s Advisor Reiterates Conditions for Ending War:

Iran’s new Supreme Leader’s military advisor, Mohsen Rezaei, emphasized in an interview broadcast on Iran’s national TV on March 23 that Iran will cease fighting only after receiving full compensation, all economic sanctions are lifted, and Iran receives international legal guarantees of non-interference from the U.S. He stressed that the dispute with the U.S. is not only about recent conflicts or the June 2022 attacks by Israel and the U.S. on Iran, but has persisted for 47 years since the 1979 Islamic Revolution, and must be “resolved once and for all.”

Baiwei Storage Signs Major Contract:

Baiwei Storage (688525.SH) announced that it has signed a routine operational procurement contract with a storage chip manufacturer, agreeing to purchase a certain type of storage wafers at the specified quantity, price, and schedule. The total committed purchase amount is $1.5 billion over 24 months. This is a routine business contract, with a total commitment exceeding 50% of the company’s latest audited annual revenue and total assets, and over 100 million yuan, meeting disclosure standards. If successfully executed, it will help stabilize the company’s medium- and long-term storage wafer supply and reduce the impact of price fluctuations on costs.

Zhang Xuefeng Passes Away:

On the evening of March 24, Suzhou Fengxuewei Lai Education Technology Co., Ltd. announced that Zhang Xuefeng died at 15:50 on March 24, 2026, in Suzhou after unsuccessful resuscitation from sudden cardiac death.

Hot Topics

Green Power:

Media reports indicate that escalating conflicts in the Middle East are accelerating global energy independence, with wind, solar, and hydrogen networks becoming core infrastructure. Due to US-Iran tensions, European natural gas prices have surged, driving electricity prices higher worldwide. Many countries are accelerating renewable energy projects, with Europe, China, and Southeast Asia as key markets. The UK has advanced its AR8 wind power bidding, and GWEC is calling for faster deployment of wind energy, with offshore wind export chains receiving key recommendations.

Computing Power:

Liu Lihong, director of the National Data Bureau, said on March 24 that by the end of 2025, China will have built over 100,000 high-quality datasets. As of March this year, China’s daily token (word unit) call volume exceeds 140 trillion, a more than 1,000-fold increase from early 2024’s 100 billion, and a 40% increase over the end of 2025’s 100 trillion in just three months.

Optical Fiber:

Guotai Haitong Research reports that recently, Heilongjiang Telecom issued a tender notice for outdoor optical cable emergency procurement in 2026. The main specification G.652D-24 core outdoor optical cable has a pre-tax unit price of 3,737.43 yuan per km, with an approximate cost of 155.7 yuan per core per km.

Storage Chips:

Media reports indicate that JMicron CEO Pan Jiancheng, a major NAND flash controller manufacturer, said that JMicron can currently meet only 30% of customer demand, with a 70% shortfall. He analyzed that this storage super-cycle differs from previous consumer electronics cycles, driven mainly by AI data center construction and application deployment, showing structural growth.

Coatings:

CCTV Finance reports that recent oil price surges have increased costs for downstream coating companies. Since crude oil accounts for over 40% of coating costs, prices of related products like solvents, resins, and additives have risen rapidly. For example, epoxy resin, a key raw material for coatings, has increased from 14 yuan to 20 yuan per kilogram, a significant rise. Many companies are reducing raw material procurement and inventory to control costs.

Real Estate:

On March 24, Chengdu Housing Provident Fund Management Center held a press conference, announcing policies including increasing maximum loan amounts, removing limits on loan frequency, and further relaxing first-home purchase standards. On the same day, Wuhan also disclosed that it is soliciting public opinions on the “Implementation Rules for Cross-Region Personal Housing Loans with Wuhan Housing Provident Fund” (deadline March 28).

Military Industry:

Ongoing geopolitical conflicts highlight the strategic importance of the defense industry. Global military spending continues to expand, and China’s defense expenditure remains steady. The 14th Five-Year Plan has outlined high-quality development for national defense and the military, with new operational forces accelerating the update of advanced weapons and equipment, ushering in a new era of military development.

Company News

Xiaomi Group:
In 2025, revenue reached 4,572.9 billion yuan, up 25% year-over-year; net profit was 391.7 billion yuan, up 44%. Market estimates were 391.2 billion yuan. In 2025, Xiaomi’s Mobile + AIoT segment revenue was 3,512 billion yuan, up 5.4%; smart electric vehicles and AI-related businesses generated 1,061 billion yuan, up 223.8%.

China Telecom:
In 2025, revenue was 5,239.25 billion yuan, up 0.1%; net profit attributable to shareholders was 331.85 billion yuan, up 0.5%; basic earnings per share were 0.36 yuan. The company plans to pay a cash dividend of 0.908 yuan per 10 shares (tax included).

Guanhetong:
The company is planning to acquire control of Shenzhen Hangsheng Electronics Co., Ltd. via cash, with the transaction price and ratio under negotiation. This is expected to constitute a major asset restructuring. The target company specializes in R&D, design, manufacturing, and sales of automotive electronics.

ShuDian Co.:
In 2025, revenue was 18.945 billion yuan, up 42.00%; net profit attributable to shareholders was 3.822 billion yuan, up 47.74%.

CNOOC Services:
In 2025, revenue was 50.283 billion yuan, up 4.1%; net profit attributable to shareholders was 3.842 billion yuan, up 22.5%; basic earnings per share were 0.81 yuan. The company plans to pay a cash dividend of 2.825 yuan per 10 shares (tax included).

Yuanjie Technology:
In 2025, revenue was 6.01 billion yuan, up 138.5%; net profit attributable to parent company owners was 1.91 billion yuan, turning profitable after losses. It plans to pay a cash dividend of 7 yuan per 10 shares (tax included) and issue 4.5 bonus shares per 10 shares from capital reserves.

Tianfu Communications:
The company’s 1.6T optical engine products are now in normal delivery. LPO and CPO will use optical devices, and regardless of product or technical changes, the company will continue to enhance capabilities to serve customers. Due to rapid industry demand growth, some materials are temporarily in short supply; the company is actively coordinating the supply chain to ensure delivery.

Haitian Co.:
The company’s recent signing of a strategic cooperation agreement with Tongwei Solar is a framework and intention agreement, not a legally binding document, with specific cooperation details still uncertain.

Dongwei Semiconductor:
The company plans to acquire a 53.09% stake in Shenzhen Huinengtai Semiconductor Technology Co., Ltd. for 408 million yuan. After the transaction, Huinengtai Semiconductor will become a controlling subsidiary, included in the consolidated financial statements.

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Global Markets

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Bond Market Overview

Shibor:
On March 24, overnight Shibor was 1.3180%, up 0.10 basis points; 7-day was 1.4170%, down 0.50 basis points; 14-day was 1.5120%, down 1.20 basis points; 1-month was 1.5040%, down 0.55 basis points; 3-month was 1.5160%, down 0.22 basis points.

U.S. Bonds:
At New York close, the 10-year U.S. Treasury yield rose 4.37 basis points to 4.3857%, with a short-term spike after 00:50 Beijing time. The 2-year yield increased 6.88 basis points to 3.9207%; the 30-year yield rose 2.36 basis points to 4.9367%. The 2/10 yield spread decreased by 2.513 basis points to +46.072 basis points. The 10-year TIPS yield increased 5.34 basis points to 2.0560%; the 2-year TIPS yield rose 2.83 basis points to 0.6905%; the 30-year TIPS yield increased 3.69 basis points to 2.7350%.

Commodity Futures

Domestic Futures:
On March 24, domestic commodities closed mixed. Lithium carbonate surged over 6%, palladium over 4%, platinum over 3%, tin nearly 3%, silver and rubber over 2%, stainless steel and copper up over 1%. Decliners included fuel oil down nearly 9%, crude oil down over 8%, ethylene glycol down over 6%, container shipping and propylene down over 5%, PVC, xylene, PTA down over 4%.

International Gold and Silver:
COMEX gold futures for the month rose $67.60, up 1.53%, to $4,474.9/oz. COMEX silver futures rose $2.09, up 3.01%, to $71.445/oz. Spot gold increased $67.51, up 1.53%, to $4,474.38/oz. Spot silver increased $2.11, up 3.05%, to $71.26/oz.

International Crude Oil:
On March 24, international oil prices rose. NYMEX WTI crude futures for the month increased $0.26, closing at $88.39/barrel, up 0.30%.

International Metals:
LME copper fell $66 to $12,100/ton. Aluminum rose $62 to $3,260/ton. Zinc fell $36 to $3,042/ton. Lead fell $6 to $1,892/ton. Nickel fell $132 to $16,950/ton. Tin rose $294 to $44,238/ton. Cobalt remained flat at $56,290/ton.

International Agricultural Products:
NYC grain index rose 0.05%, to 31.2942 points. CBOT corn futures up 0.60%, wheat futures up 0.68%. Soybeans fell 0.82%, soybean meal down 1.29%, soybean oil up 0.09%. Lean hog futures down 0.36%, live cattle down 0.09%, feeder cattle up 0.69%.

Forex Market

Renminbi:
On March 24, onshore RMB closed at 6.88770 at 16:30 Beijing time, up 185 points. Offshore RMB at 18:00 was 6.89307, up 230 points. The onshore/offshore RMB spread at 18:00 was -32.7.

RMB Foreign Exchange Swaps:
As of 16:30 Beijing time on March 24, USD/CNY 6-month swap was -805 points; 1-year swap was -1,544 points.

US Dollar:
The dollar index rose on March 24, up 0.48%, closing at 99.431. At New York close, 1 euro was 1.1569 USD (below 1.1607), 1 GBP was 1.3366 USD (below 1.3425). USD/JPY was 159.14, above 158.45; USD/CHF was 0.7918, above 0.7865; USD/CAD was 1.3783, above 1.3719; USD/SEK was 9.3669, above 9.3095.