Despite former U.S. President Trump's emergency intervention, the Middle East situation shows no substantive progress. However, the resilience of Chinese stock markets continues to strengthen, with A-shares closing in positive territory. Hong Kong's market remained relatively stable today, initially holding gains before turning weaker, ultimately closing down 0.24%. Trump's claim that military action would end "soon" lacks follow-up details, appearing more as a delaying tactic. This is evidenced by the relocation of the THAAD missile system from South Korea to the Middle East. Historical patterns in Middle East conflicts suggest that operations pause under pressure only to resume after replenishing personnel and supplies. Regarding escort operations, a mistaken tweet from the U.S. Energy Secretary claiming the U.S. Navy successfully escorted a tanker through the Strait of Hormuz caused a temporary 20% plunge in oil prices. The reality, however, is that on the tenth day of tracking Hormuz traffic, only three tankers passed through, with zero LNG carriers transiting for ten consecutive days. According to CCTV reports, the commander of the Iranian Islamic Revolutionary Guard Corps Navy stated that claims of U.S. military escorting tankers through the Strait of Hormuz are completely false, adding that any actions by the U.S. and its allies will be stopped within range of Iranian missiles and drones. Consequently, oil and gas prices rose again today. Shandong Molong (00568) surged over 17%, while CNOOC (00883) gained nearly 4%. The subsequent response may involve releasing strategic petroleum reserves; the IEA plans to propose a record release, a measure Japan has already begun implementing. The question remains regarding natural gas. With natural gas, a primary fuel for power generation, in short supply, increased coal usage for electricity generation is likely to alleviate the deficit. This has already driven thermal coal prices to their highest level in over a year. Coal stocks have shown considerable strength recently. Power Glory (01277) issued a voluntary announcement stating that the mining construction for the Makhado coking coal project in South Africa is in its final stages, with trial operations expected to commence in April 2026. The stock rose over 8% today. Yancoal Australia (03668) and China Coal Energy (01898) both gained over 6%.
The 2026 government work report for the first time listed "computing-power coordination" as a mega-scale new infrastructure project, explicitly promoting green power, new energy storage, hydrogen, and green fuels. Related stocks, including China Energy Engineering (03996), CGN New Energy (01811), and CGN Power (01816), all rose over 7%. Wind turbine manufacturer Goldwind Technology (02208) increased over 4%.
The automotive sector finally produced a strong performer. NIO (09866) announced results last night, revealing an operating profit of RMB 1.25 billion for the fourth quarter of 2025, marking the company's first quarterly profit. The Ledao L80 SUV has become a "killer" volume model, forming the core sales pillar for 2026 alongside the Ledao L90 and NIO ES9 SUVs. NIO's management targets 40% to 50% sales growth for 2026, with CEO William Li aiming for "full-year profitability." The stock surged over 14%. WeRide (00800) and Geely's (00175) Yuan Cheng New Energy Commercial Vehicle Group signed a strategic cooperation agreement to deepen collaboration, unveiling a newly upgraded pre-installed mass-produced Robotaxi GXR. Both companies' stocks rose over 7%.
NIO's strength directly stimulated activity in the autonomous driving sector. On March 10, Guangdong province issued the "Guangdong Province Action Plan for Accelerating the Cultivation and Development of New Tracks to Lead the Construction of a Modern Industrial System (2026-2035)." The plan calls for accelerating breakthroughs in core autonomous driving technologies like algorithms, computing chips, and sensors, continuously enhancing L2-level assisted driving capabilities, and rapidly developing higher-level L3 and L4 autonomous driving. It also involves deploying several full-scenario, domain-wide unmanned traffic test "safety sandboxes" for comprehensive system application verification. 51Sim (06651) announced on March 9 that, according to a report by Frost & Sullivan, its 51Sim business holds a 53.5% market share, ranking first in China's end-to-end high-level autonomous driving simulation and data platform market. The number of partnerships with China's top 10 automotive enterprises grew from 4 in 2024 to 8, achieving an 80% coverage rate. The company has also established cooperation with six national authoritative testing institutions, achieving 100% coverage. Its stock surged over 28%. Upstream lidar concept stocks Innovusion (02665) and Hesai (02525) both gained over 6%. On March 10, Black Sesame Technologies (02533), known as the "first autonomous driving chip stock," successfully secured strategic investment from Infinite Capital, rising over 4%.
The concept related to inclusion in stock connect programs remains highly popular, though the focus has narrowed, with the most vigorous activity in recently listed stocks. Health 160 (02656) continues to ride the "lobster farming" trend. The group promotes the application of AI agents like OpenClaw in medical scenarios through an integrated "platform + AI agent + operations" model. The stock surged over 28%. Tencent Cloud's official announcement of AI model price adjustments, coupled with the "lobster" trend intensifying token inflation (reportedly up to 400%), provided a boost to cloud service providers like Kingsoft Cloud (03896), data center operators such as GDS Holdings (09698) and SUNeVision (01686). The hardware sector also benefited. Cambridge Industries (06166), with its 1.6T optical modules nearing shipment and active layout in packaged laser and silicon photonics optical module engines, rose over 6%. Greater Bay Area Quantum and Guofu Quantum (00290) increased over 8%.
Since the beginning of 2026, order volumes in the energy storage sector have continued to climb, with many companies reporting fully utilized production lines and orders gradually covering first-half capacity. Numerous companies have密集 signed orders. According to foreign media, Swiss BESS developer Delta Capacity recently signed a framework agreement with A-share company Sungrow Power Supply (300274.SZ) at an energy storage summit in London, UK. Sungrow will provide 1GWh of its PowerTitan 2.0 energy storage system for projects Delta Capacity plans to deploy this year. In Hong Kong, CALB (03931) recently signed a cooperation agreement with Guangdong Xinjuneng Energy Technology Co., Ltd. The agreement stipulates that from January 1, 2026, to December 31, 2027, Xinjuneng will purchase no less than 10GWh of 392Ah battery cells and DC-side equipment from CALB. The stock rose over 8% today. REPT BATTERO (00666) also made news; at the recent Italian International Renewable Energy Exhibition in Rimini, it showcased its latest energy storage solutions and signed supply agreements with seven European partners, committing to deliver a total of 8.3GWh of energy storage systems over the next two years. Previously mentioned industry leader CATL (03750) reported sales of 121GWh of energy storage batteries, a year-on-year increase of 29.13%. According to SNE Research, CATL's energy storage battery shipment volume ranked first globally for the fifth consecutive year in 2025. The stock rose over 7% again today.
A report highlights that the Strait of Hormuz handles approximately one-quarter of global seaborne oil trade. Due to escalating regional tensions, vessel traffic through the strait has declined significantly recently. Single-day traffic plummeted by about 97% after the conflict escalated. Shipping disruptions have quickly impacted energy markets. Between February 27 and March 9, the Dutch TTF natural gas futures price, Europe's benchmark, rose about 74%, while London Brent crude oil futures increased about 27%. The report also notes that about one-third of global seaborne fertilizer trade relies on this route. If transport disruptions persist, fertilizer supplies to some least developed countries will be affected. Consequently, fertilizer shortages and price increases are likely a major trend. Key related stocks include China XLX Fertiliser (01866), China BlueChemical (03983), and Sinofert (00297).
Fufeng Group (00546) is actively advancing its internationalization strategy, with full-industry-chain expansion contributing to greater profit flexibility. Tianju Group and Fufeng Group's Shengtai Biotechnology reached a significant cooperation agreement, deeply involving Tianju in the bioengineering industrial complex project invested in and constructed by Fufeng in the Jambyl Region of Kazakhstan. The company is proactively promoting its international strategy; its first overseas production base in Kazakhstan has commenced construction, with the first phase planning the manufacture and sale of animal nutrition and high-grade amino acid products. Commentary: This indicates smooth progress in the company's overseas expansion. Fufeng is the world's largest producer of monosodium glutamate and xanthan gum, and a global leader in lysine and threonine production. It boasts a global layout and marketing network, with the Kazakhstan plant operational, North American site selection advancing, multiple regional marketing centers worldwide, and coverage in over 100 countries, creating high channel barriers. Capacity continues to expand; 2024 sales volume reached approximately 1.64 million tons, a 26.8% year-on-year increase. Monosodium glutamate capacity under construction is about 400,000 tons, gradually commencing production in 2025, consolidating its leading position. For 2025, projected capacity and market share are: monosodium glutamate 1.73 million tons/year, global market share 42%, with the top three (Fufeng + Meihua + Eppen) holding 85%, forming a duopoly; xanthan gum: 80,000 tons/year, ranking first globally; lysine: 380,000 tons/year (fourth globally); threonine: 263,000 tons/year (second globally). Ongoing capacity expansion includes 400,000 tons of new monosodium glutamate capacity and the release of threonine/lysine capacity in 2025, further strengthening economies of scale. Overseas expansion includes the groundbreaking of the Kazakhstan base (phase one: $350 million) and North American site selection, hedging trade risks. Fufeng Group, a leading corn deep-processing company, won the Kazakhstan 2025 Best Investment Project Award for its corn deep-processing plant project in the Jambyl Region. Establishing factories in main corn-producing areas enables direct raw material procurement for cost reduction; self-built power plants result in electricity costs 15%-20% lower than the industry average. The full industry chain—from corn to starch, fermentation, finished products, and by-product recycling—results in comprehensive costs 15%-20% lower than peers. Demand in the animal nutrition track continues to grow, overseas business is accelerating, and these factors are expected to contribute more profit flexibility. The company's dividend payout ratio in recent years has been over 35%, supplemented by special dividends, resulting in a dividend yield of approximately 5.7%, providing stable shareholder returns.
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