The stock market at this stage ultimately hinges on the overall economy. Regardless of perspective, China's economy has weathered global disruptions with minimal impact, particularly regarding energy and supply chains, which constitutes its fundamental strength. Noted Wall Street short-seller Michael Burry publicly stated on social media that the Hang Seng Tech Index is significantly undervalued. Separately, reports indicate recent inquiries from Middle Eastern clients regarding investing in the Hong Kong stock market and establishing family offices in Hong Kong. Furthermore, sources familiar with capital markets suggest that Middle Eastern investors who previously relocated to Singapore or Dubai are now considering reallocating some operations or assets back to Hong Kong. Foreign investment perspectives are constantly adjusting based on geopolitical developments; within the Asia-Pacific region, Hong Kong stocks clearly offer a safer value proposition compared to Japan and South Korea. This was reflected in today's market performance, with the Hang Seng Index rising 1.45%.

Tensions in the Middle East are escalating. Last Friday, US forces attacked military facilities on Iran's key oil export terminal, Kharg Island, previously discussed as Iran's economic lifeline. A US strike destroying the island's oil infrastructure would be catastrophic, likely provoking significant Iranian retaliation against US assets in the region, a risk the US is presumably unwilling to take. A recent development involves the US preparing to deploy up to 2,500 Marines to the region. Deploying ground forces seems unlikely to yield decisive advantage, raising questions about potential alternative actions like hostage-taking or assassinations. The most probable scenario is coordinated defense posturing with Israel. Facing potential Strait of Hormuz disruptions, the Trump administration is accelerating its "护航联盟" (escort alliance) plan, pressuring seven allies reliant on Middle Eastern oil and warning NATO of a "very bad" future if it doesn't help keep the strait open. However, key allies have responded coolly: Japan and Australia explicitly stated no immediate plans to dispatch vessels, the UK has no relevant deployments, France refused additional military contributions, and Germany declined participation in international military operations protecting merchant ships in the Strait of Hormuz. This marks an unprecedented rejection of the US by its allies, creating significant awkwardness. Conversely, European nations including France and Italy have initiated dialogue with Iran to explore potential diplomatic solutions for restoring energy transport. Additionally, Iran has granted "green light" passage for Indian vessels, with India's Foreign Minister stating dialogue has yielded results. Faced with practical survival and interests, many nations are choosing rationality and calm, underscoring the US's diminishing influence.

Furthermore, Yemen's Houthi allies may attempt to close Red Sea commercial shipping, potentially compounding economic pain atop any Strait of Hormuz blockade. The shipping sector is increasingly tense, with VLCC (Very Large Crude Carrier) rates hitting record highs: the Middle East-China TCE (Time Charter Equivalent) reached $480,000-$500,000 per day (compared to just $30,000-$50,000 at year-start), surging over 100% in a week. This is due to rerouting costs: bypassing the Red Sea via the Cape of Good Hope adds 10-14 days to voyages, increases fuel consumption by 30%, and multiplies war risk insurance premiums, drastically boosting ton-mile demand. Every $10,000 increase in rates significantly boosts oil tanker company profits. Shipping stocks rallied collectively today: COSCO SHIPPING Energy Transportation (01138) rose over 8%, while Orient Overseas (International) (00316) and COSCO SHIPPING Holdings (01919) gained over 4%.

Nvidia's upcoming GTC2026 conference, scheduled for March 16-19 in San Jose, California, will feature major participants including OpenAI, Google DeepMind, Meta, Microsoft, and Tesla on the main stage or key segments. Technology remains a crucial pillar for US stocks, attracting strong capital pursuit. Reports indicate wafer foundries like UMC, Vanguard International Semiconductor, and Powerchip Semiconductor Planning could raise prices as early as April. Related stocks Hua Hong Semiconductor (01347) and Montage Technology (06809) rose over 7%. GigaDevice (03986), showcasing multiple home appliance application solutions at AWE and whose GD32M531 MCU won two awards, saw its subsidiary Qingyun Technology gain investment from Beijing Jinqiu Private Equity Fund (part of the ByteDance investment system), leading to a surge of over 18%.

Automotive stocks were active. On March 16, Lei Jun announced the official release of the new SU7 model on March 19 at 7 PM, describing it as a DreamCar building on the first generation with two years of refinement leading to significant improvements in safety, handling, smart features, and luxury. Responding to expectations for the SU7 to become a legendary success, he stated the new model is ready. Additionally, Xiaomi (01810) conducted a HK$67.497 million share buyback on March 13, demonstrating multi-pronged preparedness, and its stock rose over 5%. On March 13, Geely (00175) debuted its Galaxy M7 technology, featuring the pioneering Shen Dun Jin Zhuan (Shield Gold Brick) battery and aiming to颠覆 (disrupt) the mainstream plug-in hybrid SUV market with "三大金标" (Three Gold Standards), rising over 3%. BYD (01211) formally signed a business cooperation agreement with JD.com at its Shenzhen headquarters and inaugurated their first collaborative fast-charging station, rising over 8%. NIO (09866) also gained over 5%, indicating the "fast-charging vs. battery swap" debate remains a long-term either-or choice for consumers. Leading power battery maker CATL (03750) is expanding, increasing its presence in Shanxi with the establishment of a wholly-owned subsidiary, Shanxi Times New Energy Technology Co., Ltd., with registered capital of RMB 2 billion, and simultaneously investing RMB 2 billion in Suzhou, Jiangsu, deepening its national production network, leading to a further rise of nearly 8%.

Consumer-related stocks were relatively active. Starplus Legend (06683), mentioned last Friday, continued its momentum ahead of Jay Chou's 2026 world tour starting in April in Hangzhou, where songs from his new album are expected to debut, boosting ticket sales expectations; the stock rose nearly 26%. Other strong performers were mainly stocks with high earnings growth, such as Foxconn Interconnect Technology (06088), which reported year-on-year growth for full-year 2025 and is fully deploying in optical interconnect, potentially unlocking growth in AI data center business, with management guiding for 70% YoY growth in cloud/data center revenue for 2026E; the stock rose over 12% today. Guoquan Shihui (02517) reported high growth for 2025 and plans to accelerate store expansion in 2026, targeting over 14,500 stores with a closure rate below 4%, rising over 10%. Recently, Gushengtang (02273) launched "AI consultation rooms" in flagship stores across 18 major cities, innovatively adopting a unique model of "Traditional Chinese Medicine AI avatars + collaborative diagnosis by offline young doctors" to promote cross-regional sharing of quality TCM resources, addressing the uneven distribution of such resources; the stock rose over 6%.

Sector Focus: The Ministry of Industry and Information Technology, the Ministry of Finance, and the National Development and Reform Commission issued a notice to launch comprehensive hydrogen energy application pilot projects to promote high-quality development of the hydrogen industry. The target is to achieve large-scale hydrogen application in various fields within city clusters by 2030, reduce the average end-user price of hydrogen below RMB 25/kg, and strive for a national fuel cell vehicle fleet of 100,000 units. Related stocks: Guofuhee (02582), JINGCHENG MAC (00187), SINOHYTEC (02402).

Individual Stock Analysis: SICC (02631) is advancing its plan to expand production of 8-inch silicon carbide substrates, with the shipment proportion rapidly increasing. Recently, SICC released an investor relations activity record announcement indicating that the Phase II expansion plan for 8-inch SiC substrates at its Shanghai Lingang plant is progressing. The 8-inch product is the company's current core growth driver and key to building long-term competitiveness. Analysis: The explosion in AI computing demand and increasing data center efficiency requirements are becoming new core drivers for SiC adoption. The company will achieve its planned 8-inch substrate capacity in phases. The "SiC Material Industry Project (Phase I)" in Jinan and the Malaysia factory construction are proceeding as planned. The company holds a leading global position in semi-insulating SiC substrates, being one of the few globally capable of mass-producing 8-inch SiC substrates. It pioneered the liquid-phase method for preparing 8-inch macro-defect-free substrates and was the first to mass-produce P-type substrates, suitable for high-voltage/ultra-high-voltage scenarios. Yield and stability continue to improve, with profitability significantly better than 6-inch substrates. Currently, the revenue and shipment proportions of the company's 8-inch products are steadily increasing, and it has secured batch purchases from leading global customers. Breakthrough in 12-inch full category: In 2025, the company launched a full series of 12-inch N/P/semi-insulating types, unique globally, with a yield of about 65%, leading domestic peers by 1-2 years. In 2024, the company's global market share for conductive SiC substrates was 22.8%, second only to Wolfspeed (23.5%), with a domestic market share exceeding 50%. It leads domestically in semi-insulating substrates and has been recognized as a national manufacturing champion. It has entered the supply chains of more than half of the world's top ten power semiconductor manufacturers (e.g., Infineon, Bosch, ON Semiconductor, Toshiba). Capacity and Delivery: Dual bases in Jinan, Shandong and Shanghai Lingang, with total designed capacity exceeding 400,000 wafers/year. Lingang Phase I (300,000 wafers) has reached production capacity, Phase II is advancing. The 8-inch segment is the core growth driver, with its shipment proportion rising rapidly, releasing scale effects. The company stated that industry trends clearly favor larger wafer sizes, with new technology investments, customer onboarding, and industrial upgrade focus increasingly shifting towards 8-inch, and the 8-inch shipment proportion is expected to continue growing this year.