Global markets are facing significant pressure, with even the robust U.S. stock market struggling to withstand the downturn. Policy interventions can only slow the pace of decline, as broader trends remain challenging to reverse, especially in the absence of substantial stimulus measures. Both Hong Kong and mainland markets fell today, with the Hang Seng Index closing down 0.88%.
The ongoing conflict in the Middle East continues to highlight vulnerabilities in global energy supplies. Following earlier disruptions at the Strait of Hormuz, Qatar's liquefied natural gas facilities have now been attacked. Qatar's Minister of Energy and CEO of Qatar Energy, Saad Sherida Al-Kaabi, stated that the Iranian strikes have disabled 17% of the country's LNG production capacity, potentially causing annual revenue losses of $20 billion and threatening supplies to Europe and Asia. Repairs are expected to take three to five years, affecting 12.8 million tons of annual LNG output—a significant blow to the global economy. Additional attacks have targeted refineries in Saudi Arabia. Several Saudi oil officials indicated that if supply disruptions persist beyond late April, oil prices could surge above $180 per barrel. Data from the Intercontinental Exchange showed that Wednesday's options market saw heavy betting on Brent crude reaching $130, $140, or $150 next month. CNOOC (00883) rose nearly 3%.
In the past, U.S. shale oil production helped offset energy price spikes, but current conditions are exacerbating the situation. Higher energy costs are straining American households and could influence midterm elections, prompting former President Donald Trump to warn Israel against further targeting energy infrastructure. Meanwhile, U.S. officials have indicated possible leniency toward Iranian oil exports in an effort to stabilize prices. Escalating tensions continue, with reports suggesting the U.S. is accelerating the deployment of thousands of Marines and sailors to the Middle East. The expeditionary force, originally scheduled for later, may soon depart from San Diego aboard the USS Boxer, accompanied by additional vessels. This move signals potential U.S. operations to secure islands off Iran’s coast, target weapons depots, or support precision strikes. On March 20, Iran’s Islamic Revolutionary Guard Corps spokesperson was killed in an attack, prompting vows of retaliation. While further attacks on energy infrastructure may be temporarily avoided, easing upward pressure on oil and gas, spot gold briefly climbed above $4,700. Zhaojin Gold International (02259) and Lingbao Gold (03330) gained over 4%. Gold appears to be attracting bargain hunters after recent declines, though a sustained rally may require a weaker U.S. dollar. For now, the dollar remains strong due to its liquidity, as some investors sell gold to cover positions or meet urgent needs.
According to Russia’s RIA Novosti, Yemen’s Houthi political bureau member Mohammed Al-Bukhaiti stated that the group may block the Bab el-Mandeb Strait in solidarity with Iran. The Houthis would only target vessels from countries involved in attacks on Iran, Iraq, Lebanon, or Palestine. If the Suez Canal route is also disrupted, the impact on Europe—heavily reliant on this passage—would be severe. The energy crisis is affecting numerous sectors, with alternative energy sources standing to benefit. Coal offers short-term substitution, but renewable energy remains the long-term solution. Today’s rally was led by energy storage stocks. Industry leader CATL (03750) jumped over 8%, while CALB (00666) and Gotion High-tech (02655) rose more than 6%. EVE Energy (03931) advanced over 5% as it reported progress on two major bases in Jiangmen and Handan, with total investment of RMB 22 billion and annual production capacity of 86 GWh for power and storage batteries.
Media reports indicated that SpaceX, led by Elon Musk, has placed equipment orders with a leading domestic heterojunction manufacturer, with shipments expected in early May. Such exports require regulatory approval, which is still underway. Sources also noted that Tesla-related supply chain orders are under discussion with several TOPCon equipment makers. A solar company confirmed the news, revealing the contract scale is at the gigawatt level. Junda Technology (02865) surged over 16% before paring gains to just over 1%, possibly due to unconfirmed orders.
Another Musk-related concept stock, VST Holdings (00856), reported strong annual results: revenue of HKD 976.26 billion, up 9.59%; net profit attributable to shareholders of HKD 13.53 billion, up 28.66%; basic earnings per share of 97.68 HK cents; and a proposed final dividend of 41.77 HK cents per share. As SpaceX’s core distribution partner in Southeast Asia, the company’s Starlink business grew 68.9% in 2025, with focus on Malaysia and Indonesia. Starlink is expected to go public in June 2026, after which it plans to expand across Southeast Asia. Services in Indonesia launched in May 2024, with an estimated 530,000 users by 2026, making it the third-largest market globally. Malaysia has already achieved full commercial rollout. Approval for expansion into Thailand is pending, and VST aims to capture that market. With Starlink’s IPO poised to unlock further growth, the stock surged over 11% today.
In the AI sector, hardware plays gained attention as optical communication leader Lumentum raised its forecasts for 800G and 1.6T optical module shipments. It expects 800G shipments to more than double by 2026, while 1.6T volumes could reach tens of millions of ports from a small base in 2025. Foxconn Interconnect Technology (06088) led gains, rising over 7%.
At the Smart Mobility & Auto Servicing Expo in Shenzhen on March 20, China National Heavy Duty Truck Group (03808) showcased five models across heavy-duty trucks, new energy light trucks, and light vehicles. Several new energy vehicles stood out, such as pure electric models tailored for Southeast Asia, the Middle East, and Australia, as well as heavy-duty trucks suitable for European and Middle Eastern logistics. The stock climbed over 8%. Geely Auto (00175) unveiled the world’s first green methanol-powered racing car, equipped with its self-developed Haoqing Power-DHE20TDM methanol engine. Compatible with M100 methanol fuel, it achieves a thermal efficiency exceeding 48%, a compression ratio of 15:1, and peak output of 250 horsepower and 400 Nm of torque, with faster response than traditional gasoline engines. The stock rose over 6%.
Rising oil prices due to U.S.-Israel attacks on Iran are fueling an electric vehicle buying spree in the Asia-Pacific region. On March 20, U.S. media reported that Chinese EV makers are capitalizing on price and supply chain advantages. At a BYD dealership in Manila’s financial district, sales have accelerated sharply. Salesperson Matthew Dominique Poh noted that orders in the past two weeks matched typical monthly volumes, with many customers switching from fuel-powered cars amid soaring oil prices. As petroleum supplies tighten, new energy vehicles are becoming the preferred choice for many countries, with Chinese automakers offering compelling value. Chinese EVs already hold over 70% market share in Southeast Asia, with further gains expected. Leading sellers in the region include BYD Company (01211), Chery Auto (09973), Geely Auto (00175), Great Wall Motor (02333), and Leapmotor (09863). While still a relatively small segment, this trend provides a fresh catalyst for related stocks.
Foshan Haitian Flavouring and Food Company (03288) is accelerating overseas expansion amid stronger-than-expected demand for essentials. The company expects Q4 2025 revenue of RMB 70.99 billion, up 3.65% year-on-year; adjusted EPS of RMB 0.29, up 3.70%; and EBIT of RMB 18.80 billion, up 17.93%. Prices for essential consumer goods in China are trending upward. The firm has ranked first in the C-BPI seasoning category for 15 consecutive years, with steady sales growth—leading in soy sauce for 15 years, oyster sauce and condiments for 6 years, and vinegar for 2 years. It boasts the industry’s largest production capacity of over 4.5 million tons, roughly equal to the combined output of the second to fifth largest players. Its Gaoming facility is the only lighthouse factory in the global soy sauce industry, featuring AI and 5G-enabled smart manufacturing. Advanced techniques include 180-day fermentation, 135°C sterilization, and zero-additive technology, driving over 30% growth in health-focused products. Procurement, production, and distribution costs are 15–20% lower than peers, yielding significant per-ton cost advantages. With over 6,700 distributors covering more than 5 million outlets, it achieves full penetration into counties, towns, and villages. The catering channel accounts for 60% of sales, with 83% chef loyalty and high switching costs. Offline channels represent over 94% of revenue, spanning catering, supermarkets, and distribution, while online sales grew 43.2% in Q1 2025. Key highlights include product mix upgrades, with zero-additive lines exceeding 20% share, boosting both average selling price and margins. Vinegar, cooking wine, and compound seasonings are growing rapidly. Catering recovery and channel deepening are driving market share gains, with soy sauce exceeding 30%. Overseas expansion in Southeast Asia and North America aims to double international revenue in three years. Online and new retail initiatives are enhancing consumer penetration. The company demonstrates stable earnings, strong cash flow, and a high dividend commitment, with a payout ratio of at least 80% and an attractive yield. Cost improvements and catering recovery are boosting demand for essentials, directly benefiting the seasoning leader.
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