Market sentiment turned sour as the anticipated two-week ceasefire agreement between Iran and the US, which included the reopening of the Strait of Hormuz starting April 10, was abruptly undermined. Instead of continuing the previous day's broad gains, the Hong Kong market declined by 0.54%. Within 24 hours of the ceasefire announcement, Israel launched its largest airstrike on Lebanon, resulting in over a thousand casualties. Lebanon subsequently declared April 9 a national day of mourning. Iranian Parliament Speaker Mohammad Bagher Ghalibaf listed three violated items from Iran's ten-point ceasefire proposal on the 8th, stating the foundation for feasible negotiations was publicly sabotaged even before talks began, citing the Israeli attack on Lebanon. Concurrently, contradictory statements from the US administration on key issues like the negotiation framework and Lebanon's inclusion in the ceasefire, alongside the White House's claim that Iran's ten-point plan was "thrown in the trash," fueled tensions. A social media post warned that failure to adhere to terms would reignite conflict on an unprecedented scale. An Iranian military spokesperson expressed hope for an agreement but readiness for a protracted war if negotiations fail. The critical Strait of Hormuz saw no immediate increase in vessel traffic following the truce. Recent reports confirm its renewed closure, as tracked by maritime systems showing an oil tanker near the Musandam Peninsula abruptly reversing course back into the Persian Gulf. This signals a prolonged disruption to global energy supplies, with WTI crude rising 5.04% to $99.168 per barrel and Brent crude up 3.87% to $98.421 per barrel. Energy-related stocks, previously subdued, regained momentum, exemplified by Shandong Molong Petroleum Machinery (00568) jumping over 10%. The strait's closure continues to disrupt material transport, prompting major US aluminum suppliers like Rio Tinto and Century Aluminum to raise premiums for key semi-finished aluminum products by approximately 12%. Overseas aluminum prices surged, lifting domestic prices, with China Hongqiao Group (01378) and Aluminum Corporation of China (02600) both advancing over 4%. Methanol shortage beneficiary China Xuyang Group (01907) rose over 7%.
Despite a typical corrective phase for tech stocks, hardware segments remained robust. Catalysts included the US Federal Communications Commission's announcement to ease power limits on satellite spectrum usage, with a vote on rule changes scheduled for April 30 that could increase broadband capacity sevenfold. Additionally, TSMC highlighted at the SiPhIA forum that its silicon photonics integration platform COUPE is set for mass production this year, marking a key milestone for co-packaged optics (CPO) and signaling the final countdown to AI optical communication industrialization. Industry leaders Yangtze Optical Fibre and Cable (06869) and Huijiu Technology (01729) both gained over 6%. Software-focused activities continued around high-demand tokens, with "token stock" Xunce (03317) surging nearly 24% again. During market adjustments, pharmaceutical stocks often strengthen. GenFleet Therapeutics-B (02595) announced its oral KRAS G12D inhibitor GFH375 received Breakthrough Therapy Designation from China's NMPA, the first single-agent BTD regimen for pancreatic cancer targeting KRAS G12D in China. GFH375 has initiated the world's first Phase III registration study for an oral KRAS G12D inhibitor and secured FDA Fast Track designation, leading in development progress, rising over 9%. Haixi New Drug (02637) reported positive preliminary efficacy for its original innovative drug project HXP056 in oral treatment of fundus diseases, initiating Phase II expansion enrollment in Q4 2025, advancing steadily toward becoming the world's first oral treatment for related fundus conditions, up over 9%. Baoji Medicine-B (02659) gained nearly 7% after its injectable human hyaluronidase KJ017 received approval from China's NMPA for assisting large-volume subcutaneous administration, positioning it as a leading domestic product. Tool providers for the pharmaceutical sector also followed suit. GenAI technology is shifting drug discovery from "experience-driven trial and error" to "data-driven generative design." Insilico Medicine (03696), leveraging its proprietary end-to-end generative AI platform Pharma.AI to support the entire drug R&D process, enhancing early-stage efficiency and success rates, reported 31 candidate pipelines developed via the platform by end-March 2026, with 28 PCC nominations; 12 projects have IND approval, 4 pipeline assets out-licensed, and 8 projects involved in collaborations, totaling over $7.1 billion in signed agreements, rising over 5%. Zitong's April top pick WuXi AppTec (02359) also climbed over 3%.
Certain consumer segments showed resilience. Li Ning (02331), often compared to Nike, demonstrated superior market agility, precise product positioning, and diversified marketing, continuously gaining market share, up over 3%. Guoquan (02517) exceeded expectations with its 2026 store expansion and same-store sales guidance, following a 2025 dividend payout of CNY 290 million (approximately 67% payout ratio) and share repurchases of CNY 180 million, advancing over 3%. Automotive stocks including Geely (00175), NIO (09866), Leapmotor (09863), and Chery (09973) outperformed peers. China's Ministry of Commerce addressed rare earth export controls, stating that measures announced on October 9, 2025, would be suspended until November 10, 2026, based on consensus from Sino-US economic and trade consultations in Kuala Lumpur. JL MAG Rare-Earth (06680), after a survey on April 7, noted its proposal in January 2025 to invest in the Baotou Phase III project for an annual 20,000-ton high-performance rare earth permanent magnet materials green intelligent manufacturing project, which commenced construction within the year. Part of the project has passed acceptance, with capacity to be released in phases, expecting total magnetic material capacity to reach 60,000 tons annually by end-2027, up over 4%. Robotic and lidar leader Robosense (02498) reported Q1 2026 sales data, with robotics business maintaining explosive growth, selling 185,500 units, a 1458.8% year-on-year surge, accounting for 56.2% of sales and surpassing automotive lidar as the primary growth driver, rising over 3%.
Regarding sector focus, China's State Administration for Market Regulation, National Development and Reform Commission, and Cyberspace Administration of China jointly held an online platform price compliance guidance meeting on April 8. The meeting emphasized implementing the "Online Platform Price Behavior Rules," set to take effect April 10, urging platform enterprises to strengthen responsibility, standardize price competition, and avoid false advertising of subsidies or interference in pricing. Regulatory authorities will intensify oversight to curb "involution-style" competition and maintain fair market秩序. This regulation is expected to steer the industry from "burning cash for market share" towards "profitability and efficiency," enhancing earnings potential. Relevant Hong Kong stocks include Meituan-W (03690), Alibaba-SW (09988), JD.com-SW (09618), and Tencent (00700).
For individual stock analysis, CALB Group (03931) showed steady market share growth in power batteries and improving profitability. The company reported 2025 revenue of CNY 44.40 billion, up 60% year-on-year, net profit (including minority interests) of CNY 2.095 billion, up 148%, and attributable net profit of CNY 1.476 billion, up 150%. Gross margin reached 16.69%, up 0.80 percentage points, and net margin was 4.72%, up 1.68 percentage points. The significant profit increase reflects leading technology products sustaining high growth in passenger vehicles, commercial vehicles, and energy storage, alongside optimized product structure and strong market demand. Amid high shipment growth, the company's industry配套 share rose steadily. Domestic power battery installations reached 53.6GWh in 2025, capturing 7.0% market share, up 0.3 percentage points, ranking third. Global energy storage shipments totaled 612GWh in 2025, with the company ranking fifth. Breakthroughs in commercial vehicle配套 continued, earning annual awards from over ten industry leaders including China National Heavy Duty Truck, Chery Commercial Vehicle, and Lingong Group in 2025. Commercial battery deliveries surged 630% year-on-year in January 2026, indicating full harvest period for market strategy and capacity layout. Advancements in solid-state battery technology and global competitiveness are poised to further boost market share. On the supply side, new domestic and international bases are gradually being established. The company is expanding new customers and models in the power sector while accelerating overseas market penetration for energy storage cells and systems. Scale effects are expected to materialize with future volume growth. Downstream, new energy passenger vehicles are gaining traction, and energy storage is entering a construction boom phase with grid parity. As a leading lithium battery firm, CALB is well-positioned to benefit from value creation through lean manufacturing while increasing industry share.
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