The US-Iran negotiations in Islamabad concluded on April 12 without an agreement, as both parties maintained high demands with minimal common ground. Iran, having gained confidence and control of the Strait after recent conflicts, entered negotiations from a position of strength. The US, lacking strong bargaining chips, found it difficult to meet Iran's demands without facing domestic opposition. While the failed talks typically warrant market adjustments, A-shares remained resilient, and Hong Kong's market declined only 0.90%.
In response, the US Central Command announced a blockade on all maritime traffic to and from Iranian ports effective April 13, aiming to cut off Iran's crucial funding sources. Iran's Revolutionary Guards warned that any military vessels approaching the Strait of Hormuz would be treated as violations of the ceasefire. Experts suggest the US blockade would be challenging to enforce, potentially driving oil prices higher, depressing equities, fueling inflation, and imposing heavy costs on the global economy. International oil prices surged past $100, with Brent crude exceeding $103 per barrel. Shandong Molong (00568) gained nearly 8%, though marginal effects appear diminishing.
Despite the stalemate, tensions haven't significantly escalated, with reports indicating low probability of full-scale US airstrikes against Iran. New talks may occur within days as Middle Eastern countries mediate to extend the temporary ceasefire. Market calm persists as technology stocks advance. Xunce (03317) surged over 15% after signing a strategic cooperation agreement with Shenzhen Data Exchange to establish vertical token standards. This momentum lifted sector peers: DeepTech (01384) jumped 59% with its enterprise AI platforms; 51VR (06651) gained 28% with its simulation and digital twin platforms. Cloud services provider Kingsoft Cloud (03896) rose over 5%.
Hardware segments strengthened alongside software applications. NVIDIA's new architecture drives increased PCB usage and value in AI servers, benefiting materials from electronic glass fabric to high-end PCBs. Guanghe Technology (01989) advanced nearly 14% as a pure play in AI server PCB upgrades. Fiberglass prices rose again, pushing China National Building Material (03323) up nearly 10%. Traditional leaders Kingboard Laminates (01888) and Kingboard Holdings (00148) gained over 10% and 5% respectively.
DeepSeekV4's compatibility with domestic chips like Huawei's Ascend marks a milestone in reducing reliance on foreign technology. Memory interface chip maker Montage Technology (06809) rose 7.45%. China's March auto production/sales reached 2.917/2.899 million units, with NEV sales rebounding. NIO (09866) launched its ES9 flagship SUV, rising over 7%. BYD (01211) gained nearly 5% with strong overseas sales. China National Heavy Duty Truck (03808) advanced over 7% with record exports.
Zimbabwe reportedly eased lithium export restrictions, benefiting Tianqi Lithium (09696), up nearly 7%. Pakistan and China may sign a $12 billion defense deal including J-35A fighters and KJ-500 early warning aircraft, potentially boosting defense stocks like COMEC (00317), AVICHINA (02357), and CALC (01848).
CNGR (02579) expects Q1 net profit growth of 72.32%-91.82% with strong battery material sales. The company's nickel, cobalt, phosphorus, and sodium product shipments exceeded 420,000 tons. Indonesia nickel capacity expansion enhances cost efficiency, while solid-state materials show rapid growth potential. CNGR maintains deep partnerships with Tesla, CATL, and other global leaders, with overseas revenue exceeding 50%. New mining licenses and lithium resources support long-term cost advantages.
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