【Morning Brief】US Proposes Talks Plan with "15 Conditions," Trump: Iran Agrees to "Never Possess Nuclear Weapons"; Japan Plans to Downgrade Positioning of China-Japan Relations, China Responds

Macro News

1. Member of the Political Bureau of the CPC Central Committee and Foreign Minister Wang Yi spoke on the phone with Iranian Foreign Minister Alaghazi on the 24th. Alaghazi stated that the Strait of Hormuz is open to all, and ships can pass safely, but warring countries are not considered. He hopes all parties take measures conducive to de-escalating the situation rather than escalating 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 all hot-button issues should be resolved through dialogue and negotiation, not force. He hopes all parties seize every opportunity and window for peace to start negotiations as soon as possible. China will continue to uphold an objective and fair stance, oppose infringements on other countries’ sovereignty, actively mediate and stop the war, and work towards regional peace and stability.

2. Foreign Ministry spokesperson Lin Jian hosted a routine press conference yesterday. A reporter asked that media reports from Japan indicate that Japan is drafting a diplomatic blue paper and plans to downgrade China-Japan relations from one of the most important bilateral relationships. Lin Jian said that if Japan truly wants to improve and develop China-Japan relations, it should adhere to the four political documents and commitments made by Japan, promptly withdraw erroneous remarks on Taiwan, reflect seriously and correct mistakes, and take concrete actions to maintain the political foundation of China-Japan relations.

3. Iran’s new Supreme Leader’s military advisor, Mousa Hezari, emphasized in an interview broadcast on Iran’s national TV on March 23 that Iran will only cease fighting once it receives full compensation, all economic sanctions are lifted, and it obtains international legal guarantees that the U.S. will not interfere in Iran’s affairs.

4. The People’s Bank of China announced that to maintain ample liquidity in the banking system, 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.

5. Zheng Shanjie, Director of the National Development and Reform Commission, met with Lee Jae-yong, Chairman of Samsung Electronics Korea, on March 24. Zheng said that the NDRC welcomes Samsung to seize the opportunity of China’s continued opening-up, strengthen confidence and determination to develop in China, further expand investment and cooperation, actively maintain the stability of the global semiconductor supply chain, and achieve mutual benefits and win-win results.

6. Minister of Commerce Wang Wintao met with the chairman and president of the U.S.-China Business Council, Reishibo and Tan Sen, leading a delegation of member companies on March 23. Wang Wintao emphasized that China’s “14th Five-Year Plan” is not only a “new blueprint” for China’s development but also a “new opportunity” for the world. He welcomed U.S. companies to continue deepening their presence in China, develop together, and make progress. U.S. business representatives attending the meeting said they see China as an irreplaceable strategic market and long-term partner, and will actively align with China’s development plans, deepen cooperation, and achieve mutual benefits.

7. Zhou Liang, member of the Party Committee and Deputy Director of the China Financial Supervisory Authority, is under disciplinary and legal investigation for serious violations of discipline and law, currently being reviewed and investigated by the Central Commission for Discipline Inspection and the National Supervisory Commission.

8. Foreign Ministry spokesperson Lin Jian hosted a routine press conference yesterday. A reporter asked that U.S. President Trump said he delayed strikes on Iran’s power facilities by five days to leave room for negotiations. Lin Jian said that prolonging the conflict is not in anyone’s interest, and a ceasefire and dialogue are the only way out. China is deeply concerned about the ongoing escalation of the current situation and its spillover effects impacting regional and international peace and stability. It calls on all relevant parties to immediately cease fire and return to peaceful dialogue.

9. Israeli media reported that the U.S. intends to propose a one-month ceasefire plan to discuss an agreement with Iran containing 15 key points aimed at ending the war. The U.S. proposed a negotiation plan with Iran including “15 conditions,” such as Iran lifting its current nuclear capabilities, promising not to develop nuclear weapons, and banning uranium enrichment on its territory. In exchange, Iran might receive a comprehensive lifting of international sanctions and U.S. support for its civilian nuclear projects.

10. Trump stated that Iran has agreed to “never possess nuclear weapons.” The U.S. has “achieved victory” in its actions against Iran, and Iran has been “completely defeated.” The U.S. is communicating with the “right people,” and Iran “hopes to reach an agreement.”

Industry News

1. Philippine President Marcos announced yesterday that the country has declared a state of energy emergency to address energy issues caused by Middle East conflicts. Marcos launched a “whole-government coordinated” response to ensure stable energy supply, support key sectors such as transportation, agriculture, and small and micro enterprises, and protect the public from oil supply disruptions.

2. The State-owned Assets Supervision and Administration Commission of the State Council held an expanded meeting on March 24, emphasizing the need to accelerate the layout of high-tech industries, guide central enterprises to establish more R&D institutions, high-tech enterprises, and pilot bases in Xiong’an New Area, encourage independent innovation, speed up key core technology breakthroughs, and promote the transformation and application of related results in Xiong’an.

3. Goldman Sachs’ chief China stock strategist Liu Jinjing said on March 24 that amid rising geopolitical tensions in the Middle East and soaring energy prices, Goldman Sachs maintains a high allocation recommendation for Chinese stocks (A-shares and Hong Kong stocks), and believes that in the short term, the Sharpe ratio from A-shares is higher.

4. Due to a high correction in international gold prices, branded gold jewelry prices continue to decline. Market reports indicate that the fluctuating gold prices have disrupted some brands’ price increase plans, and Chow Tai Fook’s “fixed price” products have been delayed multiple times. Several Chow Tai Fook stores in Beijing confirmed that the price adjustment plans have indeed been postponed.

5. International oil prices have surged recently, putting downstream coating companies under cost pressure. Since crude oil accounts for over 40% of coating costs, coating prices are highly correlated with oil prices. Rising oil prices have driven up prices of petroleum derivatives such as solvents, resins, and additives.

6. Since March, small and medium-sized banks in Xinjiang, Yunnan, and Shanghai have been lowering fixed-term deposit rates across various types, including city commercial banks, rural commercial banks, village banks, and private banks, with reductions ranging from 5 to 80 basis points. The adjustments cover all terms, with some banks’ reductions being significant, and medium- and long-term deposit rates (2, 3, 5 years) generally falling below 2%, entering the “1” range.

7. Investment bank Wedbush Securities analyst said that the current sell-off in tech stocks presents a buying opportunity in the AI revolution, especially in cybersecurity and software sectors, which have been unfairly treated by the market. The core logic of tech stocks remains intact, and this turbulence may last only weeks rather than months.

Company News

1. Xiaomi Group announced that its adjusted net profit for 2025 was 39.17 billion yuan, up 44% year-on-year.

2. Yuanjie Technology announced that its net profit for 2025 was 191 million yuan, turning from loss to profit, and plans to distribute 7 yuan for every 10 shares and transfer 4.5 shares.

3. Li Auto announced a $1 billion share repurchase plan.

4. Buwei Storage announced signing a $1.5 billion wafer procurement contract.

5. CNOOC Petroleum Services announced a net profit of 3.842 billion yuan in 2025, up 23% year-on-year.

6. Tanfeng Communication stated on its interactive platform that its 1.6T optical engine products are being delivered normally, though some materials face phased supply shortages.

7. China Telecom disclosed its annual report, with a net profit of 33.185 billion yuan in 2025, up 0.5%.

8. Haitian Shares announced that there is uncertainty regarding its strategic cooperation with Tongwei Solar on perovskite slurry development.

9. Sifang Electronics announced a net profit of 47.74% in 2025, and plans to pay a cash dividend of 5 yuan per 10 shares.

10. Guanghe Tong announced plans to acquire Hangsheng Electronics’ controlling stake, which is expected to constitute a major asset restructuring.

Global Markets

Due to the uncertain outlook for reopening the Strait of Hormuz, international oil prices surged sharply, with WTI May crude settling at $92.35 per barrel, up 4.79%; Brent May crude settled at $104.49 per barrel, up 4.55%. However, after reports that the U.S. seeks a one-month ceasefire to facilitate negotiations with Iran, both U.S. and Brent crude prices plummeted, erasing earlier gains.

Following reports from Israeli media that the U.S. is seeking a one-month ceasefire to negotiate a 15-point peace agreement with Iran, precious metals rallied at the close, with spot gold rising 1.48% to $4,473.25 per ounce, and spot silver up 3.08% to $71.29 per ounce.

The three major U.S. stock indices all declined: Dow Jones down 0.18%, S&P 500 down 0.37%, Nasdaq Composite down 0.84%. There are signs of rotation into small-cap stocks, with the Russell 2000 up 0.5%. Reports indicate Amazon is developing a new AI agent to replace some departmental functions, reigniting fears of AI disruption. Tech stocks fell sharply: Sequoia dropped over 6%, AppLovin over 5%, Adobe over 3%, Microsoft over 2%.

Popular Chinese concept stocks closed mixed: Nasdaq Golden Dragon China Index down 0.43%, Livermore China Leading Index up 0.2%. Bilibili fell over 3%, while Baidu, NIO, and NetEase declined over 1%. Li Auto rose over 3%, Pinduoduo increased 1.9%.

Investment Opportunities

1. Huge Storage Gap! Phison CEO says 70% of demand cannot be met

According to media reports, Phison CEO Pan Jiancheng stated that Phison can currently only meet 30% of customer demand, with a 70% shortfall. He analyzed that this storage supercycle differs from past consumer electronics cycles; the current boom is mainly driven by AI data center construction and application deployment, showing structural growth.

Southwest Securities pointed out that the unexpected iteration and upgrade of AI large models have caused explosive growth in global token consumption, leading to massive data storage, processing, and retrieval needs, ushering in a super cycle for the storage industry.

2. The National Data Bureau says it will work with relevant departments to vigorously promote the computing and electricity collaboration project

According to media reports, Liu Lihong, director of the National Data Bureau, said at the China Development High-Level Forum 2026 Annual Meeting on March 23 that the next step will be to work with relevant departments to promote the computing and electricity collaboration project, ensuring that new computing power infrastructure at key nodes uses over 80% green electricity, maximizing the support role of green power.

Green energy companies will directly benefit from this collaboration. As policies require increasing the proportion of green electricity in data centers, demand from wind and photovoltaic power companies will continue to grow. Huachuang Securities research reports indicate that electricity costs account for 56.7% of data center operating costs, making it the primary expense. Under AI-driven expansion, data center scale will continue to grow, with total computing power in China expected to reach 767 EFlops by 2026, with 73% from intelligent computing, directly driving explosive growth in electricity demand.