Global financial markets experienced significant turbulence as a sudden "black天鹅" event triggered sharp declines at the opening bell. Important index adjustments are imminent, while China's central bank has taken action to lower the foreign exchange risk reserve ratio. Wu Qing, Chairman of the China Securities Regulatory Commission, has delivered his latest address.
The National People's Congress and Chinese People's Political Consultative Conference sessions are scheduled for early March 2026. On March 1, the Standing Committee of the CPPCC National Committee decided that the Fourth Session of the 14th CPPCC National Committee will convene in Beijing on March 4, 2026. The National People's Congress session will follow on March 5, 2026.
In a major geopolitical development, the United States and Israel launched a joint military strike against Iran on February 28. Qatar's Al Jazeera, citing U.S. officials, reported that the operation aimed to dismantle Iran's security infrastructure. According to Xinhua News Agency, Iran's Supreme Leader Ayatollah Ali Khamenei was killed in the attack on the morning of February 28. Iranian media reported that the government has declared 40 days of national mourning. The Islamic Revolutionary Guard Corps subsequently closed the Strait of Hormuz.
Tensions in the Middle East continue to escalate. The Islamic Revolutionary Guard Corps announced that Iran's armed forces are preparing their "most intense offensive operation in history," targeting Israeli and American bases. In a statement following Khamenei's death, Iran's Armed Forces General Staff vowed to make the U.S. and Israel "regret their actions."
China's Foreign Ministry spokesperson commented on the military strikes during a press briefing on February 28, expressing grave concern and urging respect for Iran's sovereignty, security, and territorial integrity. China called for an immediate cessation of military actions to prevent further escalation and advocated for dialogue to maintain peace and stability in the Middle East.
Global markets reacted sharply to the developments. On March 1, Saudi Arabia's Tadawul All Share Index (TASI) fell 4.6% in early trading before paring losses, while Egypt's main stock index dropped 5.44%. Bitcoin experienced volatile swings, retreating to $66,791 after briefly surpassing $68,000. Cryptocurrency markets initially sold off on news of the strikes but reversed sharply higher following confirmation of Khamenei's death, before settling lower as markets digested the event.
Barclays analysts warned that oil markets could face their worst-case scenario by next Monday, with Brent crude potentially reaching $100 per barrel. Economists cautioned that sustained oil price increases could worsen U.S. inflation, potentially eliminating any possibility of Federal Reserve rate cuts this year. Safe-haven assets like gold are expected to continue rising, with analysts suggesting gold could become the "ultimate safe harbor" if Middle East tensions escalate further.
On February 27, CSRC Chairman Wu Qing chaired a symposium with representatives from eight foreign-funded securities, fund, and futures institutions in China. Wu emphasized that the CSRC will implement directives from the Party's Fourth Plenum and upcoming National People's Congress sessions, focusing on the 15th Five-Year Plan for capital markets. He stressed the importance of risk prevention, strengthened supervision, and promoting high-quality development through market-oriented, legal, and international approaches. Wu highlighted reforms in the STAR Market and ChiNext, comprehensive investment and financing reforms, and enhancing market systems to better serve technological innovation and new productive forces.
FTSE Russell announced preliminary results for its March 2026 semi-annual index review, with changes taking effect after March 20's close. The review will see 77 stocks added to the large-cap category and 38 removed. Resource and technology stocks were major beneficiaries, with companies like Baiyin Nonferrous, Shengtun Mining, Yunnan Copper, and CITIC Tungsten advancing to large-cap status. Technology firms including Chuanzhong Technology, Biwin Storage, Yandong Micro, and Zhongke Star Map also joined the large-cap list. Some traditional industry stocks like Chongqing Brewery, Huarun Pharmaceutical, Heilan Home, and Hualan Biological were downgraded to mid-cap.
Goldman Sachs analysis indicates the FTSE adjustments could trigger over $27 billion in total fund flows, with China and Korea seeing the largest net inflows while Japan faces significant outflow pressure. The firm expects over $15 billion in two-way flows across Asia-Pacific markets, with China leading with $1.3 billion in passive inflows.
In corporate news, Zeng Congqin, Chairman of Wuliangye Group and Wuliangye Yibin Co., is under investigation for suspected severe disciplinary and legal violations, according to a February 28 announcement. Wuliangye issued an emergency statement confirming the chairman's detention but assuring normal operations under its management team, with no significant impact expected on production or operations.
U.S. markets declined on February 27, with the Dow Jones falling 1.05%, S&P 500 dropping 0.43%, and Nasdaq decreasing 0.92%. Major tech stocks mostly fell, with Nvidia down over 4%, Apple declining more than 3%, and Microsoft dropping over 2%. The Nasdaq Golden Dragon China Index fell 1.81%. International oil prices rose, with WTI crude gaining 3.19%. Spot gold increased 1.81% to $5,279.22 per ounce, while silver surged 6.18% to $93.76.
The People's Bank of China announced it will lower the foreign exchange risk reserve ratio for forward foreign exchange sales from 20% to 0, effective March 2. This marks the first adjustment since September 2022 when the ratio was raised to 20%. The National Bureau of Statistics will release February PMI data on March 4.
This week sees significant share lock-up expiries totaling over 35 billion yuan in market value across 37 companies. MicroPort EP Medicine leads with 8.094 billion yuan in unlocked shares, followed by Sichuan Gold at 6.665 billion yuan and Jinhaitong at 4.976 billion yuan.