**Market Data** At the close on March 18th, the Shanghai Composite Index rose by 0.32% to 4,062.98 points. The STAR 50 Index increased by 1.36% to 1,372.58 points. The Shenzhen Component Index gained 1.05%, closing at 14,187.8 points, while the ChiNext Index advanced by 2.02% to 3,346.37 points. The three major U.S. stock indices saw significant declines on the 18th. By the end of trading, the Dow Jones Industrial Average had dropped by 768.11 points, or 1.63%, to close at 46,225.15. The S&P 500 index fell by 91.39 points, or 1.36%, settling at 6,624.7 points. The Nasdaq Composite Index decreased by 327.11 points, or 1.46%, finishing at 22,152.42 points. International crude oil prices edged higher on the 18th. The April delivery light crude oil futures contract on the New York Mercantile Exchange rose by 11 cents, or 0.11%, to settle at $96.32 per barrel. The May delivery Brent crude futures contract on the London ICE Futures Europe exchange increased by $3.96, or 3.83%, to close at $107.38 per barrel.
**Financial Highlights** 1. On March 18th, a joint opinion from the General Office of the Communist Party of China Central Committee and the General Office of the State Council was publicly released, outlining specific arrangements for the pilot program to extend second-round land contracts by an additional 30 years upon expiration. The document comprises five main sections with 15 detailed measures, covering overall requirements, the orderly implementation of the pilot program, the protection of farmers' land contract rights, the management of rural land contracts, and organizational leadership. The overall requirements emphasize upholding collective ownership, maintaining household contract management, respecting the central role of farmers, and ensuring rural social stability. 2. The China Securities Regulatory Commission (CSRC) convened a conference on March 17th focusing on comprehensive Party discipline and disciplinary inspection work for the year 2026. The meeting outlined plans to implement the spirit of the Fifth Plenary Session of the 20th Central Commission for Discipline Inspection and to enhance disciplinary inspection within the CSRC system. It was emphasized that efforts will be intensified to address corruption in key areas, with a focus on key individuals and issues. There will be a heightened crackdown on activities that disrupt capital market order or harm the interests of small and medium investors, aiming to resolutely remove obstacles that hinder the reform and development of the capital market. 3. It has been learned that relevant documents concerning the establishment of a negative list management mechanism for fiscal subsidies are expected to be introduced soon. A State Council executive meeting held on March 13th proposed implementing a negative list management system for local fiscal subsidies, based on previous work, to create a unified national negative list that clearly defines situations where local governments are prohibited from providing fiscal subsidies. 4. In the early hours of March 19th, Beijing time, the U.S. Federal Reserve maintained the target range for the federal funds rate at 3.5%-3.75%, aligning with market expectations. This marks the second consecutive policy meeting where rates have been held steady since January, and it is the penultimate meeting chaired by Fed Chair Powell before his term concludes in May. One additional policy meeting is scheduled for late April. Throughout 2025, the Fed implemented three consecutive rate cuts of 25 basis points each during its September, October, and December policy meetings. 5. On March 18th, Baidu Cloud and Alibaba Cloud announced price increases. Baidu AI Cloud's official website released an adjustment notice for AI computing power, storage, and other products, citing continuously rising demand for computing power driven by the rapid global development of AI applications. The adjustments affect the following: AI computing power-related products and services will see increases of approximately 5% to 30%; parallel file storage and similar services will increase by about 30%. Specific specifications and final prices will be based on the console and subsequent billing instructions. The new prices will take effect from 00:00 on April 18th, 2026, Beijing time. Alibaba Cloud's official announcement stated that, effective from April 18th, 2026, Beijing time, due to exploding global AI demand and supply chain cost increases, prices for its AI computing power, storage, and other products will rise by up to 34%. This round of increases includes computing card products like the T-Head Zhenwu 810E, rising by 5% to 34%, and the CPFS (AI Computing Edition) file storage product, increasing by 30%. 6. On March 18th, Tencent Holdings officially released its financial results for the fourth quarter and full year of 2025. The data showed that in Q4 2025, Tencent's revenue reached 194.37 billion yuan, a year-on-year increase of 13%. Adjusted operating profit was 69.52 billion yuan, up 17% compared to the same period last year. For the full year 2025, Tencent's total revenue amounted to 751.77 billion yuan, representing a 14% increase year-on-year. Adjusted net profit was 259.626 billion yuan, growing by 17%. 7. On the afternoon of March 18th, Apple CEO Tim Cook appeared on stage at the Apple Taikoo Li retail store in Chengdu, greeting attendees. Apple had previously announced a series of celebratory events worldwide to mark its 50th anniversary, with the inaugural grand celebration held at its New York Grand Central Terminal store. During his remarks, Cook expressed that this year marks Apple's 50th anniversary, and the company is hosting grand celebrations globally. He stated he was delighted to hold the event in Chengdu, China, and particularly pleased to have "Chunchun" participate. He described Chengdu as a vibrant city rich in history and culture, full of innovation and energy, and expressed his happiness at visiting Sichuan, noting the very comfortable and pleasant lifestyle there. 8. On the 18th, local time, a U.S. official stated that following an Israeli attack on Iran's South Pars gas field, U.S. President Trump conveyed that he "does not wish to see further attacks targeting Iranian energy facilities."
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