Market conditions are intensifying despite former President Trump's attempts to de-escalate tensions. On Thursday, he claimed that, at Iran's request, he would delay the "destruction" of Iranian energy facilities by 10 days, extending the deadline to 8:00 AM Beijing time on April 7. However, several U.S. media outlets, citing sources, reported that Iran did not make such a request and is still reviewing a 15-point U.S. ceasefire proposal. Verbal assurances are losing their effect, as many issues ultimately cannot be resolved by words alone. Overnight, U.S. stocks turned lower, with the Nasdaq falling over 2% and other major indices dropping more than 1%. Markets are facing reality: according to Xinhua, U.S. media reported that the U.S. is developing a "decisive strike" military plan against Iran, potentially involving ground troops and large-scale bombing. Iranian sources stated that the Revolutionary Guard has closed the Strait of Hormuz, warning that any vessels passing through will face "severe measures." It is evident that both sides are preparing for a major confrontation. Geopolitical strategist Amjad Taha boldly predicted that this Saturday could be the decisive day for U.S. action. In contrast, markets in both China and Hong Kong showed resilience today, closing in positive territory. The Hang Seng Index opened lower but rose 0.38%. Policy signals also contributed to stability, with the central bank convening a financial stability meeting to promote multi-channel capital replenishment. Banking stocks performed steadily. Further boosting confidence, the Ministry of Commerce announced that, to safeguard China's industrial interests, it has initiated two trade barrier investigations in response to U.S. Section 301 investigations. These countermeasures, timed just before the U.S. market open, target U.S. practices disrupting global supply chains and hindering green product trade. Today, pharmaceutical stocks became the focus of heavy capital inflows. First, stronger-than-expected earnings from domestic leaders confirmed a profit inflection point. For instance, Hengrui Pharma (01276) reported a 26% year-on-year increase in innovative drug revenue, now accounting for nearly 60% of total revenue, with BD licensing contributing over RMB 3 billion in incremental performance. The company also provided accelerated guidance, targeting over 30% growth in innovative drug revenue by 2026. Biocytogen-B (02315) saw annual net profit surge more than fourfold, driven by rapid overseas business growth. Both stocks rose over 7% today. Second, innovative drug BD activity remains robust. Insilico (03696) announced its fourth domestic partnership, expanding an AI-driven collaboration with Yuanqi Biology to develop a novel candidate molecule for challenging neurological diseases, advancing it to the preclinical candidate stage. The extended collaboration could be worth up to $94.75 million, propelling the stock nearly 13% higher. Further catalysts are expected from the AACR annual meeting in San Diego from April 17-22, where 104 Chinese pharma companies will showcase over 250 innovative drugs, including 92 ADCs targeting popular targets like Claudin18.2 and HER2, and 66 small molecules focusing on前沿 targets such as KRAS. Chinese innovators now hold a leading global position: as of December 31, 2025, they originated 4,751 active pipeline drugs, accounting for 33.7% of the global total, surpassing the U.S. (4,019, 28.5%). Capital is flooding in, with the Hang Seng Biotech ETF rising over 5%. Constituents like Sino Biopharmaceutical (01093), Duality Biologics-B (09606), Everest Medicines (01952), and 3SBio (01530) surged over 10%, while Ascentage Pharma-B (06855), Simcere (02096), Innovent (01801), BeiGene (06160), MicroPort (00853), and InnoCare (09969) all gained over 6%. Yesterday's highlight on lithium batteries continues to show positive industry trends. March data indicated a 21.93% month-on-month increase in battery production samples, with cathode and anode materials up 23.3% and 16.42%, respectively, and separators and electrolytes rising 8.7% and 18.78%. Industry surveys project April lithium battery production to reach 204GWh, up 4% month-on-month. Ganfeng Lithium (01772), mentioned yesterday, rose nearly 8% again, while Tianqi Lithium (09696) and CALB (03931) both gained over 5%. In energy storage, sodium-ion batteries are gaining attention for their cost and compatibility advantages, showing significant potential in commercial and large-scale storage. In March, Longpan Technology's (02465) subsidiary Shandong Nayuan commenced mass production of 5,000 tons/year of NFPP polyanionic material, driving the stock up over 8% today. Leapmotor (09863), highlighted yesterday, continued its momentum after launching the A10, its first global model on the new A platform, on March 26. Priced competitively between RMB 65,800 and 86,800, the A10 features 27 high-precision sensors, including lidar, and Qualcomm's 8650 chip, enabling unique "parking-to-parking" autonomous driving. Leapmotor aims for 100,000-150,000 export units by 2026, with February registration data from Germany's KBA showing 1,091 units, ranking first among Chinese EV brands. The stock rose over 5% today, with market focus now on order momentum. The National Supercomputing Internet announced a new token giveaway, offering users up to 30 million tokens for free to lower barriers for AI agent experiences like SClaw. A preferential renewal rate of RMB 0.1 per million tokens is extended to April 6. China's AI inference token consumption is projected to grow from about 10 quadrillion in 2025 to 3,900 quadrillion by 2030, a 370-fold increase over five years. Xunce (03317), the "token stock," leverages its high-purity data platform to deliver precise business outcomes via token consumption. The company forecasts 2025 revenue of RMB 1.283 billion, up 102.95% year-on-year, with second-half adjusted net profit of RMB 160 million, confirming an earnings inflection. The stock soared over 24% today. Consumer staples shifted to the most resilient segment, with Fosfood (03288) reporting record 2025 revenue of RMB 28.873 billion and net profit of RMB 7.038 billion. Core categories like soy sauce, oyster sauce, and seasoning paste maintained stable growth, while health-focused products such as organic and low-salt series surged 48.3%. New categories like vinegar and cooking wine are gaining traction. AI cost reduction is another highlight, with technologies like AI bean selection and smart fermentation reducing manufacturing costs by 9.98% in 2025. The company also implemented mid-term and special dividends, committing to a payout ratio of at least 80% of net profit from 2025-2027. The stock rose over 8% today. Dairy giant Mengniu Dairy (02319) reported a nearly 14-fold increase in annual net profit, supported by solid core operations and rising new product contributions. With strong milk price expectations for 2026, the group outlined a 2025-2027 shareholder return plan targeting stable dividend growth and continued share buybacks, lifting the stock over 5% today.
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