**Macro Developments** The Ministry of Commerce has announced plans to gradually expand the list of countries eligible for unilateral visa-free entry and continuously optimize transit visa exemption policies. On March 20, the Ministry issued policy measures aimed at promoting travel service exports and boosting inbound consumption. These include ongoing improvements to visa policies, such as expanding unilateral visa-free access in an orderly manner, refining transit visa exemptions, and exploring the introduction of e-visas with pilot online applications to shorten processing times. The measures also facilitate online submission of entry cards for foreigners and simplify approval procedures for those attending exhibitions, sports events, and other activities in China, eliminating the requirement for invitation letters.

According to the Ministry of Commerce, China attracted 161.45 billion yuan in utilized foreign investment during January–February 2026. The number of newly established foreign-invested enterprises reached 8,631, a year-on-year increase of 14%. However, actual utilized foreign capital decreased by 5.7% compared to the same period last year. By sector, manufacturing utilized 47.52 billion yuan, while the service sector utilized 111.22 billion yuan. High-tech industries attracted 63.21 billion yuan, up 20.4% year-on-year, accounting for 39.2% of total foreign investment—an increase of 8.5 percentage points from the previous year. Notably, R&D and design services, computer and office equipment manufacturing, and electronic and communication equipment manufacturing saw foreign investment growth of 171.8%, 84.1%, and 35.5%, respectively. By source, investment from Canada, Switzerland, and France increased by 210%, 41.3%, and 3%, respectively (including data from free ports).

The National Healthcare Security Administration has indicated that Version 3.0 of the disease-based payment grouping scheme is expected to be released in July this year, with implementation planned for January 2027. Disease-based payment refers to a bundled payment system where medical services are grouped or scored, with the grouping scheme serving as the technical core. The upcoming adjustments will focus on clinically significant factors such as age and complications, refining rules for age subgroups, unilateral/bilateral/multi-site surgeries, obstetric groups, cancer radiotherapy/chemotherapy, and combined surgeries. For DRG, core and subgroup adjustments will be made, while DIP will see updates to the core disease library. The changes also aim to facilitate future integration of DRG and DIP systems.

The China Financial Futures Exchange has announced that new stock index futures and options contracts will be listed on March 23. The IF2605 contract on the CSI 300 Index will have a base price of 4,558.4 points; the IC2605 contract on the CSI 500 Index will be listed at 7,744.2 points; the IM2605 contract on the CSI 1000 Index will debut at 7,774.8 points; and the IH2605 contract on the SSE 50 Index will start trading at 2,888.8 points. Additionally, options contracts for March 2027 on the CSI 300 (IO2703), CSI 1000 (MO2703), and SSE 50 (HO2703) will also be listed on March 23.

**Financial Institutions** Postal Savings Bank of China has received approval from the National Financial Regulatory Administration for the opening of China Post Financial Asset Investment Co., Ltd. (China Post Investment). With a registered capital of 10 billion yuan and headquartered in Beijing, the company has been granted operational clearance.

**Market Data** A-share markets closed mixed on March 20. The Shanghai Composite Index fell 1.24%, while the Shenzhen Component Index declined 0.25%. The ChiNext Index gained 1.3%, and the Beijing Stock Exchange 50 Index dropped 1.01%. Total turnover across Shanghai and Shenzhen exchanges was approximately 2.286859 trillion yuan, an increase of about 175.89 billion yuan from the previous session. Overall, 662 stocks advanced, while 4,786 declined, with 39 hitting the upside limit and 23 falling to the downside limit. Leading gainers included photovoltaic equipment, batteries, power, and energy metals. Sectors such as computing power leasing, cloud computing, chemical fibers, chemical raw materials, internet finance, military equipment, and online games were among the decliners.

In Hong Kong, the Hang Seng Index closed down 0.88%, and the Hang Seng Tech Index fell 2.48%. Technology stocks broadly declined, with Xiaomi Group dropping over 8%, Alibaba down more than 6%, and Meituan falling over 2%. Lithium battery shares strengthened, with Contemporary Amperex Technology rising over 8%, and China Innovation Airlines and Ganfeng Lithium Group each gaining more than 5%.

Southbound capital recorded a net outflow of approximately HK$21.005 billion on March 20, the highest single-day outflow since March 6. Among specific funds, the Tracker Fund and the Hang Seng China Enterprises Index ETF saw net outflows of HK$13.382 billion and HK$4.175 billion, respectively, while Xiaomi Corporation-W experienced a net inflow of about HK$2.459 billion.

U.S. oil prices have risen for 20 consecutive days, accumulating a 30% increase. As of March 19, the national average price for regular gasoline has climbed steadily since the outbreak of conflict in the Middle East, reaching a 30% gain. Data from the American Automobile Association show the average price jumped from $2.98 per gallon pre-conflict to $3.88 per gallon, the highest level since September 2023. California reported the highest average price, exceeding $5.56 per gallon (approximately ¥10 per liter). According to the U.S. Energy Information Administration, with daily gasoline consumption around 375 million gallons, a one-cent increase per gallon adds approximately $3.75 million to daily fuel expenses for American consumers.

**Corporate News** China Tourism Group Duty Free Corporation reported a 15.97% year-on-year decline in net profit attributable to shareholders for 2025, totaling 3.586 billion yuan. Operating revenue for the period was 53.694 billion yuan, down 4.92% year-on-year. Basic earnings per share stood at 1.7332 yuan.

ByteDance has agreed to sell Moonton Technology to Savvy Games Group, a subsidiary of Saudi Arabia’s Public Investment Fund, for over $6 billion. Moonton, known for developing and publishing the popular Southeast Asian MOBA game *Mobile Legends: Bang Bang*, was acquired by ByteDance in 2021. The sale is seen as a strategic move by ByteDance to further focus on artificial intelligence, following significant AI investments and a decline in overall profit in the fourth quarter of 2025.

Liton Electronics has denied market rumors suggesting it purchased smuggled NVIDIA AI servers from an individual named Liao. The company stated that after verification, the claims are untrue, and its procurement and project deliveries are proceeding normally, with no major abnormal conditions requiring disclosure.