Major indices hit new highs globally. The ChiNext Index reached its highest level in nearly 11 years.

**Top News** Former US President Trump stated that Iran has agreed to nearly all demands, suggesting face-to-face US-Iran negotiations could resume this weekend. He mentioned that if a peace agreement is reached, he would consider traveling to Pakistan for the signing. Trump expressed hope that a permanent ceasefire agreement could be finalized before the current two-week temporary truce with Iran expires. He claimed the parties are "very close to a deal," which would bring "free oil and the Strait of Hormuz" to the US. Trump reiterated that Iran cannot possess nuclear weapons, stating Iran has agreed to surrender its enriched uranium.

Global markets surged to record levels. The Nasdaq Composite logged its 12th consecutive day of gains, marking its longest winning streak since 2009. The Dow Jones Industrial Average and S&P 500 also closed higher. Japan's stock market hit a new high, while the market capitalization of Taiwan's stock exchange surpassed that of the UK. Investor sentiment was buoyed by a ceasefire agreement between Israel and Lebanon, alongside mixed economic data and corporate earnings.

Kweichow Moutai reported its first annual decline in both revenue and net profit since its IPO over 20 years ago. For the full year 2025, revenue fell 1.21% to 168.838 billion yuan, while net profit dropped 4.53% to 82.32 billion yuan.

China's cyberspace administration has taken action against accounts involved in illegal stock recommendation activities. Several accounts on platforms like Weibo, WeChat, and Xiaohongshu, which promoted individual stocks and enticed users into paid groups, have been shut down.

Core A-share assets are increasingly seeking listings in Hong Kong. In the first quarter, Hong Kong's IPO fundraising totaled HK$109.926 billion, leading globally. Fifteen dual-listed companies contributed over half of this amount. The Hang Seng Stock Connect AH Premium Index has been trending downward, indicating a narrowing valuation gap between A-shares and H-shares, which analysts suggest reflects a global reassessment of Chinese asset pricing.

US investors are returning to Chinese equities. A report from BNP Paribas indicates a significant positive shift in sentiment. From December 2025 to February 2026, approximately $14 billion flowed into mainland China and Hong Kong markets, the highest three-month net inflow in over three years. This has pushed the total holdings of US investors in these markets to a record $466 billion.

OpenAI has enhanced its Codex tool, enabling it to operate a user's computer, utilize applications, generate images, learn from past actions, and handle repetitive tasks, significantly expanding its capabilities beyond just writing code.

Goldman Sachs predicts a further 15% rise in Shanghai housing prices. Data shows Shanghai's new home prices increased 0.3% month-on-month in March 2026, while secondary home prices rose 0.4%, reversing previous declines. Shanghai's prices grew 3.7% year-on-year, contrasting with declines in other major Chinese cities.

China's central government will continue fiscal support for urban renewal projects in selected cities in 2026. Up to 15 prefecture-level cities will be chosen through competitive review to receive fixed-amount subsidies for improving infrastructure and living conditions in older urban areas.

The President of Cuba warned that a US "military aggression" is possible and urged citizens to be prepared. He condemned the US embargo, describing it as a primary cause of shortages and hardship for Cuban families.

The US announced new sanctions targeting Iran's petroleum sales network, involving entities in the UAE, Marshall Islands, and India. The sanctions freeze all related property and interests in the US and prohibit transactions by US persons. Countries purchasing Iranian oil may also be affected.

**Featured Companies** Shareholders of Biwin Storage, including a cousin of the actual controller, plan to reduce their holdings by up to 2% of the company's total shares, citing personal funding needs.

Zhongji Innolight, a global leader in optical modules, reported strong Q1 2026 results. Revenue surged 192.12% year-on-year to 19.496 billion yuan, while net profit skyrocketed 262.28% to 5.735 billion yuan. The company has seen 12 consecutive quarters of quarter-on-quarter profit growth.

Driven by high AI computing demand and domestic substitution, the semiconductor sector shows robust performance. Of 153 listed semiconductor companies that have reported 2025 results, 129 saw revenue growth, with 69 posting increases exceeding 20%.

**Industry Highlights** The animal husbandry sector is entering a strategic layout phase as institutions focus on supply-side contraction. Domestic manufacturers are advancing as global memory giants shift strategies. Auto parts companies showed divergent 2025 results, with growth anchored in three main areas. AI service prices are rising collectively among domestic cloud providers due to computing power shortages. New drug pricing policies are fostering innovation, accelerating outbound licensing deals.

**Market Strategy** Active equity funds displayed significant performance divergence in Q1. Top performers focused on digital economy, IT, and high-end manufacturing sectors. Many maintained high equity allocations and shifted holdings from conceptual themes towards companies with clear earnings realization, particularly in AI infrastructure and hardware.

**New Listings** Three new stocks were issued simultaneously.

**Corporate Announcements** **Trading Halts:** ST Lianhe, *ST Songfa, *ST Guandian. **Resumptions:** Gansu Energy and Chemical. Western Gold reported uncertain production restart dates for subsidiaries, which will adversely impact profits. Fuda Co., Ltd. plans to invest 50 million yuan to establish a wholly-owned subsidiary for robot joint modules. WondaSoft revised its 2025 net profit forecast downward significantly, risking delisting warning. Accelink Technologies' controlling shareholder will change to Xinke Technology. ST Lianhe will have its special treatment status removed and resume trading as "Guo Lian Lianhe." **Performance:** Huayou Cobalt (Q1 net profit +99.45%), Hunan Gold (Q1 net profit forecast +60%-90%), Yuyuan Tourist Mart (Q1 net profit +202.87%), Honghe Technology (Q1 net profit +354%), Jin Hui Jiu (Q1 net profit -12.51%). **Buybacks:** Lierda Information plans a 25-30 million yuan share buyback for cancellation. **Contract Wins:** Gaotie Electric won a 51.115 million yuan project. **Shareholder Activities:** Yongchuan Intelligent's controlling shareholder plans to increase holdings by 10-20 million yuan. Eastern Shenghong's controlling shareholder plans to increase holdings by 980 million to 1.96 billion yuan. **Major Orders:** Fawer Automotive Parts reported new Q1 orders with an estimated lifecycle revenue of 16.75 billion yuan. TCI Alloy Material received a seat assembly project定点 from a leading domestic automaker for 100,000 vehicles over a 5-year lifecycle.