Elon Musk has officially launched the Terafab project, which aims to achieve an annual production capacity of 1 terawatt of computing power, with deployment primarily planned for space. SpaceX and Tesla Motors jointly announced the Terafab project on Saturday evening, Eastern Time, with a live broadcast on platform X. The objective of the Terafab initiative is to manufacture between 100 billion and 200 billion advanced 2-nanometer chips annually. Musk, founder of SpaceX and CEO of Tesla Motors, shared the live stream and stated that Terafab's target annual capacity is to produce 1 terawatt of computational power. Since the United States' annual electricity generation is only 0.5 terawatts, a significant portion of future computing capacity must be relocated to space. Musk explained that the cost of solar power in space is actually lower than terrestrial solar power because it does not require heavy glass and frames for protection against extreme weather. Therefore, once the cost of reaching orbit decreases sufficiently, deploying artificial intelligence in space will become highly justified. This development involves the Hong Kong stock market's photovoltaic sector.

In market outlook, WTI crude oil futures settled at $98.09 per barrel, marking a gain of 2.66%. Overnight, U.S. stocks closed lower: the Dow Jones Industrial Average fell by 443.96 points to 45,577.47, a decline of 0.96%; the S&P 500 dropped 100.01 points to 6,506.48, down 1.51%; and the Nasdaq Composite decreased by 443.08 points to 21,647.61, falling 2.01%. For the week, the Dow lost 2.11%, the Nasdaq declined 2.07%, and the S&P 500 retreated 1.90%, marking four consecutive weeks of losses for the major indices. Large-cap technology stocks generally declined, with Tesla Motors down over 3%, Google-C and Meta falling more than 2%, Microsoft and Amazon dropping over 1%, Apple edging down slightly, and Netflix posting a minor gain. In the chip sector, Super Micro Computer plunged over 33% following the arrest of its co-founder for smuggling AI servers. Most popular U.S.-listed Chinese stocks declined, with the Nasdaq Golden Dragon China Index down 2.92%. Kingsoft Cloud dropped over 9%, and XPeng Motors fell more than 8%. The Hang Seng Index ADR declined proportionally, closing at 24,924.37 points, down 352.95 points or 1.40% from the Hong Kong close. NYMEX WTI crude oil futures for the front month rose by $2.54 to settle at $98.09 per barrel, a 2.66% increase. COMEX gold futures for the front month fell by $113.70, or 2.47%, to $4,492.0 per ounce.

In key developments, Zhongwei New Materials stated on an interactive platform that the company adheres to its positioning as a materials science firm and is building an integrated, ecological upstream and downstream system based on industrial demand and supply chain security. The planned annual extraction volume for its phosphate rock resources is 2.8 million tons, with project construction officially commencing at the end of 2025. Sihuan Pharmaceutical announced that its non-wholly owned subsidiary, Xuanzhu Biotech, has completed enrollment of all 500 subjects in the Phase III clinical trial in China for its self-developed innovative drug, Annailazone Sodium Enteric-coated Tablets (brand name: Anjiu Wei), for treating adult reflux esophagitis. Broncus Medical-B announced that its wholly-owned subsidiary, Broncus China Holding Corporation, entered into a share transfer agreement to acquire an additional 3.85% stake in Valgen Holding Corporation for a total consideration of $55.1202 million. The target group primarily provides systemic solutions for conditions such as mitral regurgitation and tricuspid regurgitation, with products including the DragonFly™ mitral valve repair device and the DragonFly-TTM tricuspid valve repair device. Xuanzhu Biotech-B announced the completion of full subject enrollment for the Phase III clinical trial of Annailazone Sodium Enteric-coated Tablets for reflux esophagitis in China. The trial is a multicenter, randomized, double-blind, double-dummy, active-controlled study assessing the efficacy and safety of the drug in adult Chinese patients with reflux esophagitis. Grand Pharmaceutical announced that its globally innovative ophthalmic drug TP-03 (lotilaner ophthalmic solution 0.25%) for treating Demodex blepharitis has received marketing approval from China's National Medical Products Administration without any requests for supplementary data. The company secured exclusive development, production, and commercialization rights for Greater China through a strategic agreement with Tarsus Pharmaceuticals in March 2024. Clover Biopharmaceuticals-B announced that its wholly-owned subsidiary, Clover Biopharmaceuticals (Hong Kong), has entered into a settlement agreement with Gavi, the Vaccine Alliance, fully and finally resolving the arbitration concerning the return of a $224 million advance payment. Leshi Holdings reported its 2025 results, with revenue of approximately $567 million, up 24.9% year-on-year, and adjusted net profit of about $122 million, an increase of 24.4%. The growth was attributed to synergistic increases in sales volume and average selling price. Zhaojin Mining Industry reported annual results, with revenue of RMB 18.056 billion, up 56.32%, and profit attributable to owners of RMB 3.614 billion, surging 149.1%. A cash dividend of RMB 0.1 per share was proposed. Guangzhou Baiyunshan Pharmaceutical reported annual results, with revenue of RMB 77.656 billion, up 3.55%, and net profit attributable to owners of RMB 2.983 billion, increasing 5.21%. A cash dividend of RMB 0.45 per share was proposed. ZIJIN MINING announced its 2025 results, with operating revenue of approximately RMB 349.079 billion, up 14.96%, and net profit attributable to shareholders of about RMB 51.777 billion, growing 61.55%. A cash dividend of RMB 0.38 per share (before tax) was proposed. Guoxia Technology reported 2025 results, with revenue of approximately RMB 2.0574 billion, up 100.6%, and profit attributable to owners of about RMB 103 million, surging 109.4%. Dekon Food Group reported annual results, with revenue of RMB 23.159 billion, up 3.09%, but net profit fell 56.51% to RMB 1.422 billion. China Petroleum & Chemical Corporation (Sinopec) reported annual results, with revenue of RMB 2.783583 trillion, down 9.5%, and net profit attributable to owners of RMB 31.809 billion, decreasing 36.8%. A final cash dividend of RMB 0.112 per share (before tax) was proposed. Wanda Hotel Development issued a profit alert, expecting to report a net profit between HKD 1.75 billion and HKD 1.9 billion for 2025, reversing from a loss of approximately HKD 989.4 million in 2024, mainly due to a net gain of about HKD 1.75 billion from the sale of its subsidiary, Wanda Hotel Management (Hong Kong). Saturday Holdings reported its 2025 results, with revenue of RMB 5.834 billion, up 2%, and profit attributable to owners of RMB 770 million, increasing 9.1%. A final dividend of RMB 0.45 per share (before tax) was proposed.

For stock focus, CNOOC demonstrates the highest correlation between its performance and international oil prices. Since late February, restrictions on shipping through the Strait of Hormuz by Iran have created a global oil and gas supply gap. By March 17, WTI/Brent futures settled at $96.3/$107.4 per barrel, up 43.7%/48.2% from the end of February. With further escalation of Middle East conflicts, oil prices briefly exceeded $100 per barrel. Among Asian energy firms covered by J.P. Morgan, CNOOC is the most sensitive to oil price movements due to its 70% oil production structure. Considering disruptions to Strait of Hormuz capacity, full utilization of alternative pipelines in Saudi Arabia and the UAE, potential production increases in North America, and precautionary reductions by refineries in net crude-importing countries, Huatai Securities estimates a potential short-term global supply deficit of 2 million barrels per day. Additionally, sustained blockade of the strait could lead to storage tank saturation and production halts in some Middle Eastern countries. Coupled with nations potentially initiating restocking of crude oil, refined products, and other energy chemicals for energy security concerns, medium-term oil price benchmarks may further rise. Huatai Securities has raised its 2026 average Brent price forecast to $90 per barrel. The firm believes that leading energy companies with capabilities to increase production, reduce costs, and expand natural gas operations, while offering high dividends, could support domestic oil and gas resource self-sufficiency. China's energy and chemical industry chain shows strong resilience, with short-term supply impacts weaker than those on overseas firms. Once supply chain expectations stabilize, global restocking is expected to support a continued recovery in the refining and chemical sectors, with recommendations favoring leading companies with integrated industrial chains.