Eastmoney Financial Breakfast Wednesday, April 8

Daily Highlights

Industry Chain and Supply Chain Security:

China’s State Council Premier Li Qiang recently signed a State Council order and released the “Regulations of the State Council on Industry Chain and Supply Chain Security” (hereinafter referred to as the “Regulations”), which take effect from the date of promulgation. Among other things, the Regulations apply the overall national security concept to work on industry chain and supply chain security, coordinate development and security, coordinate domestic and international matters, advance high-level opening up to the outside world, and promote the stable and smooth flow of global industry chains and supply chains. It clearly states that the state will guide the rational and orderly layout of industry chains and supply chains, strengthen international cooperation in the field of industry chains and supply chains, support breakthroughs in core technologies in key areas, and promote high-quality development of industry chains and supply chains.

U.S.-Iran Situation:

Local time on April 7, U.S. President Trump said, “The action at 8:00 p.m. will still take place,” and that the “unprecedented attacks” against Iran may still be carried out, but if there is progress in negotiations that day, it is not ruled out that the decision could be changed. At present, diplomatic channels between Iran and the United States and indirect dialogue channels have not been shut down.

U.S. Vice President Vance said, if Iran fails to reach an agreement before the final deadline that evening, the U.S. may escalate its actions against Iran, even by using the “measures not yet used”. Vance said the U.S. has the ability to “inflict greater pain,” but stressed that neither Trump nor he personally “wants to go that far,” and that negotiations are being actively advanced. He said the U.S. expects to receive Iran’s response by 20:00 Eastern Time on the 7th (8:00 a.m. Beijing time on the 8th), regardless of whether the outcome is positive or negative. Vance warned that the U.S. still has “measures not yet used” at its disposal. If Iran does not cooperate, the U.S. does not rule out using these measures.

Iran’s First Vice President Aref posted on social media, saying that a civilization that has weathered thousands of years of winds and storms, will not be shaken by so-called “Stone Age-style” remarks. Baghae also emphasized that Iran “will use all capabilities and means” to safeguard its own rights and lawful interests.

Pakistan’s Prime Minister Shehbaz said in a social media post in the early hours of the 8th that he requested U.S. President Trump to extend the “final deadline” by two weeks, and also requested Iran to open the Strait of Hormuz for two weeks as a show of goodwill. A senior Iranian official said that Iran is actively considering Pakistan’s request for a “ceasefire for two weeks.” Trump, in an interview, said that the U.S. is currently engaged in “intense negotiations” regarding a war with Iran, but did not disclose more details. Sources said that good news is expected to be announced soon by both the U.S. and Iran, and that it is expected an ultimate agreement will be reached before the evening of the 7th local time.

Domestic Refined Oil Prices Increased Again:

On April 7, the National Development and Reform Commission released a statement. Since the adjustment of domestic refined oil prices on March 23, international crude oil prices have seen significant fluctuations. To mitigate the impact of rising international oil prices on the domestic market, the state continues to adopt regulatory measures for refined oil prices. According to the refined oil price mechanism, starting from 24:00 on April 7, the prices of domestic gasoline and diesel (standard grade) should be increased by 800 yuan and 770 yuan per ton, respectively. After the regulation, the effective increases are actually 420 yuan and 400 yuan. For 92# gasoline, this translates to a per-liter increase of 0.33 yuan, with the increase less by 0.31 yuan; for 0# diesel, the per-liter increase is 0.34 yuan, with the increase less by 0.32 yuan.

The Central Bank Continues Its Net Purchases** of Gold**:

Data released by China’s central bank shows that China’s gold reserves totaled 74.38 million ounces (about 2,313.48 tons) at the end of March, up 160,000 ounces (about 4.98 tons) quarter-on-quarter. At the end of February, the figure was 74.22 million ounces (about 2,308.5 tons), marking the 17th consecutive month of increasing gold holdings. Statistics released by the State Administration of Foreign Exchange show that as of the end of March 2026, China’s foreign exchange reserves were $33,421 billion, down $85.7 billion from the end of February, representing a decline of 2.5%.

Shannon Chips** Sees a Big Jump in Q1 Performance**:

Shannon Chips (300475.SZ) announced that it expects that in the first quarter of 2026, the net profit attributable to shareholders of the listed company will be 11.4 billion yuan–14.8 billion yuan, representing a year-on-year increase of 6,714.72%–8,747.18%. Driven strongly by robust growth in demand for generative AI (AGI) applications, industry sentiment continues to rise, enterprise storage product prices continue to increase, the company’s profitability continues to improve, and profit levels have increased significantly.

Wenling Wang Is Under Investigation:

A member of the Party Leadership Group and Vice Chairman Wenling Wang of the National Social Security Fund Council is suspected of serious violations of discipline and law, and is currently undergoing discipline review and supervision investigation by the Central Commission for Discipline Inspection and the National Supervisory Commission.

Hot Topics

Chemicals:

Local time on the early morning of the 7th, Iran cited unnamed sources saying that an explosion occurred that day in the Jubail Industrial Zone in northeastern Saudi Arabia involving U.S. capital, which was the result of a wide-ranging attack. The report said that the Jubail Industrial Zone is one of the world’s important petrochemical production bases, with annual output of about 60 million tons of petrochemical products, accounting for 6% to 8% of global total output. Multiple large petrochemical enterprises and projects are concentrated within the zone.

Storage Chips:

According to media reports, Samsung Electronics has completed second-quarter DRAM price negotiations with major customers and signed supply contracts, with prices up by about 30% compared with the first quarter. This price increase covers high-bandwidth memory (HBM) as well as general DRAM products used for servers, PCs, and mobile devices, representing the overall average increase. If the DRAM price at the beginning of 2025 is used as the baseline, after two rounds of price increases, the supply price for the second quarter is equivalent to 2.6 times the baseline price.

Fiber Optics:

According to media reports, as of April 6, 2026, the global fiber optic market’s price-increase trend driven by AI data center construction and geopolitical demand has been further confirmed. Latest data shows that in the China market, the price of G652.D fiber optics has risen by more than 400% from last year’s low, and institutions expect that the global supply-demand gap in 2026–2027 will expand to 15%.

Innovative Drugs:

On April 7, Beijing’s Medical Insurance Bureau and 10 other departments jointly released the “Several Measures by Beijing to Support High-Quality Development of Innovative Medical Products (2026),” introducing 32 new initiatives. Among them, it is proposed that this year, efforts will be made to promote the launch of at least 18 newly approved innovative drug-device combinations, and to support at least 120 international multi-center clinical trials.

Wind Power:

According to CCTV News, a reporter learned from China Huaneng Group on April 7 that China’s offshore wind power project with the deepest water depth—Huaneng Shandong Peninsula North–Offshore Wind Farm—achieved full-capacity grid-connected power generation, marking a new breakthrough for China’s commercial offshore wind power in deep-water areas.

Sports:

On the afternoon of April 6, the 2026 Zhejiang Province City Football League (“Wuyue Cup”) kicked off. In addition, city football leagues in multiple provinces are about to begin; the first-week matches of the 2026 Jiangsu Province City Football League (“Su Chao”) will start on April 11. The opening match of the 2026 Hubei Province City Football League (“Chu Chao”) will officially start on April 12.

PCB:

CCL’s leading company Kin Tat Panel recently sent a letter stating that the prices of sheet materials and pp semi-cured sheets will be uniformly increased by 10%. The main reason is that upstream core raw materials such as resins and electronic glass fiber fabric have seen “explosive price increases and tight supply.” In addition, a research report from Tianfeng Securities stated that NVIDIA’s release of a new architecture has driven a 2–3x increase in PCB usage and a 4–5x increase in value, LPU and CPU server cabinets have been comprehensively upgraded to M9-grade materials, and demand for high-layer backplanes for special electronic fabric with low dielectric constant and low thermal expansion has surged**.**

Company News

CATL: According to media reports, insiders at CATL said that it has formally hiredZijin Mining founder and former chairman Jinghe Chen to serve as an advisor to the company’s mining department, helping it expand its mining supply chain business. In recent years, to ensure the supply of upstream key resources and materials required for battery production, CATL has participated in the investment, construction, and operation of mineral resources such as lithium, nickel, cobalt, and phosphorus through various approaches including self-building, equity participation, joint ventures, and acquisitions.

Western Gold: It is expected that in the first quarter of 2026, net profit attributable to shareholders of the listed company will be 450 million yuan–560 million yuan, compared with the same period last year (statutory disclosure figures), representing a year-on-year increase of 1,161.38%–1,469.71%; compared with the same period last year (after retrospective adjustments), the year-on-year increase is 1,797.16%–2,260.91%.

Addtech Communications: Operating revenue in 2025 was 5.163 billion yuan, up 58.79% year-on-year. Net profit was 2.017 billion yuan, up 50.15% year-on-year. The profit distribution proposal approved by the company’s board of directors is: using 777 million shares as the base, distribute cash dividends of 7 yuan per 10 shares to all shareholders (including tax), issue 0 bonus shares (including tax), and convert 4 shares per 10 shares to all shareholders by capitalizing capital surplus reserves.

Zhenyu Technology: It is expected that in the first quarter of 2026, net profit attributable to shareholders of the listed company will be 275 million yuan–305 million yuan, representing a year-on-year increase of 277.43%–318.61%. Note: Zhenyu Technology’s Q4 2025 net profit was 108 million yuan; based on this, the company’s expected Q1 2026 net profit implies a quarter-on-quarter increase of 154.63%–182.41%.

China National Petroleum: From April 8, 2025 to April 7, 2026, China National Petroleum Group and its wholly owned subsidiaries cumulatively increased their holdings of the company’s shares by 309 million shares, accounting for 0.17% of the company’s total share capital; the cumulative amount of share purchases was 2.801 billion yuan (excluding tax).

Longking Environmental Protection: The company plans to jointly invest with Huidzhou EVE Energy Co., Ltd. in Shanghang County, Longyan City, Fujian Province, to establish a joint venture company, building a 60GWh large-capacity energy storage battery factory. The project’s total investment is expected to be 6 billion yuan.

Tsinghua Unisplendour: In Q1 2026, it achieved total operating revenue of 3.072 billion yuan, up 18.8% year-on-year; net profit attributable to shareholders of the parent was 225 million yuan, up 20.88**%**; basic earnings per share were 0.155 yuan. Note: Tsinghua Unisplendour’s Q4 2025 net profit was 1.147 billion yuan; based on this, the company’s expected Q1 2026 net profit is down 80.38% quarter-on-quarter.

Dongshan Precision: It is expected that in the first quarter of 2026, net profit attributable to shareholders of the listed company will be 1.0 billion yuan–1.15 billion yuan, representing a year-on-year increase of 119.36%–152.27%.

Shenhuo Co., Ltd.: It is expected that in the first quarter of 2026, net profit attributable to shareholders of the listed company will be 2.25 billion yuan, representing a year-on-year increase of 217.68%. Reasons for changes in performance: due to factors including the year-on-year increase in the selling prices of electrolytic aluminum products and the year-on-year decline in the price of key raw material alumina, among others, the company’s profitability in the electrolytic aluminum segment has increased significantly.

Hygon Information: In Q1 2026, the company achieved operating revenue of 4.034 billion yuan, up 68.06% year-on-year; net profit attributable to shareholders of the parent was 687 million yuan, up 35.82%.

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Global Markets

Spot Brent Hits an All-Time High: With the escalation of the conflict in the Middle East, European and Asian refiners are purchasing certain crude oil grades at record prices close to $150 per barrel, far higher than futures market prices, highlighting that energy supply conditions are deteriorating. According to data from S&P Global’s Platts, shortly before the time of this release, “Spot Brent” (Dated Brent) — the benchmark for most crude oil pricing globally — rose to $144.42 per barrel, breaking through the historical high of $144.22 set in 2008.

Apple’s Foldable iPhone Will Push Into the September Lineup: Well-known Apple leaker Mark Gurman said in a post that Apple’s first foldable-screen phone is still expected to be released later this year according to the usual release cycle. Earlier today, there were reports that “Apple’s plan is not enough to completely resolve the engineering challenges,” raising concerns about a delay in the release of the foldable-screen phone.

Federal Reserve Chair Williams: New York Fed President Williams said on Tuesday that the energy shock triggered by the Middle East war will raise overall inflation this year, while reaffirming that the current monetary policy stance is sufficient to respond to changes facing the U.S. economy. During an interview that day, Williams said that the impact of this war will be reflected directly in overall inflation, because energy prices are one of its important components. He said he expects overall inflation to actually rise by mid-year. He added that the full-year inflation rate will be around 2.75%.

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Bond Market Overview

Shibor**:** On April 7, overnight shibor was 1.2260%, down 1.2 basis points; 7-day shibor was 1.3240%, down 1.4 basis points; 3-month shibor was 1.4840%, down 0.9 basis points.

European Bonds: At the end of trading in Europe, the yield on the UK 10-year government bonds rose by 7.3 basis points to 4.906%. The yield on Germany’s 10-year government bonds rose by 9.2 basis points to 3.084%.

U.S. Treasuries: At the end of trading in New York, the yield on U.S. 10-year government bonds fell by 1.19 basis points to 4.3188%, and at 23:05 Beijing time it had risen to 4.3784%, setting a new intraday high. The yield on 2-year U.S. Treasuries fell by 3.11 basis points to 3.8167%; at 23:05, it set a new intraday high at 3.8746% and then continued to decline. The yield on 30-year U.S. Treasuries rose by 1.42 basis points to 4.8999%; at 23:05, it had also risen to 4.9449% and set a new intraday high. The spread between the 2-year and 10-year U.S. Treasury yields rose by 2.330 basis points to +49.999 basis points. The yield on 10-year inflation-protected government bonds (TIPS) fell by 2.39 basis points to 1.94%; at 23:05, it had risen to 2.0156%. The yield on 2-year TIPS fell by 6.84 basis points to 0.4881%. The yield on 30-year TIPS rose by 1.15 basis points to 2.6740%.

Commodity Futures

Domestic Futures: On April 7, most domestic commodity futures closed higher. Gains were led by the chemical and energy sector: ethylene glycol hit the daily limit up, up 11%; methanol and plastic rose by more than 8%; polypropylene and plastic rose by more than 7%; pure benzene and BR rubber rose by more than 3%; containerized shipping Europe line, styrene, fuel oil, and short fibers rose by more than 2%. On the downside: polysilicon fell by more than 4%; dried jujube fell nearly 4%; apples fell by more than 3%; caustic soda and live hogs fell nearly 3%.

International Gold: COMEX gold futures for the front month rose by $48.60, up 1.04%, to $4,733.3 per ounce. COMEX silver futures for the front month rose by $0.26, up 0.36%, to $73.11 per ounce. Spot gold rose by $55.29, up 1.19%, to $4,705.85 per ounce. Spot silver rose by $0.18, up 0.25%, to $72.99 per ounce.

International Crude Oil: International oil prices fell on 04 April 07. By the close that day, WTI crude oil futures at the NYMEX for the front month fell by $2.07 to $110.34 per barrel, a decline of 1.84%.

International Metals: LME copper fell by 0.20% to $12,324 per ton. LME aluminum fell by 0.06% to $3,463.50 per ton. LME zinc rose by 1.50% to $3,305.50 per ton. LME lead rose by 0.13% to $1,937 per ton. LME nickel fell by 0.76% to $16,970 per ton. LME tin fell by 0.67% to $46,140 per ton.

International Agricultural Products: At the end of trading in New York, ICE raw sugar futures fell by 2.67%, and ICE white sugar futures fell by 1.49%. ICE Arabica coffee futures fell by 3.96%, and coffee “C” futures fell by 3.96%. Robusta coffee futures fell by 3.50%. NY cocoa futures fell by 7.23% to $3,001 per ton. London cocoa futures fell by 5.16%. Chicago WCE canola futures fell by 1.02%. ICE cotton futures fell by 0.56%. Bloomberg’s grain classification index fell by 0.56% to 31.1121 points. CBOT corn futures fell by 1.16%, and CBOT wheat futures rose by 0.42%. CBOT soybean futures fell by 0.75% to $11.58 per bushel; soybean meal futures fell by 1.14%, and soybean oil futures fell by 0.49%. CBOT lean hog futures fell by 0.58%, live cattle futures fell by 0.60%, and feeder cattle futures fell by 1.06%.

Foreign Exchange Market

Renminbi: On April 7, onshore RMB closed at 6.85970 at 16:30 Beijing time, up 206 pips from the previous trading day. Offshore RMB at 18:00 Beijing time closed at 6.86279, up 146.2 pips from the previous trading day. The onshore/offshore RMB price spread at 18:00 Beijing time was -10.9.

RMB Currency Swaps: On April 7, as of 16:30 Beijing time, the 6-month swap rate for USD against RMB was -800.5 pips, and the 1-year swap rate for USD against RMB was -1552 pips.

U.S. Dollar: The U.S. Dollar Index fell on the 7th. The dollar index, which measures the U.S. dollar against six major currencies, fell 0.12% that day and closed at 99.857 at the end of trading in the foreign exchange market. At the end of trading in the New York FX market: 1 euro was exchanged for $1.1574, higher than $1.1549 in the previous trading day; 1 British pound was exchanged for $1.3251, higher than $1.3241 in the previous trading day. 1 U.S. dollar was exchanged for 159.73 Japanese yen, higher than 159.63 Japanese yen in the previous trading day; 1 U.S. dollar was exchanged for 0.7988 Swiss francs, higher than 0.7977 Swiss francs in the previous trading day; 1 U.S. dollar was exchanged for 1.3899 Canadian dollars, lower than 1.3914 Canadian dollars in the previous trading day; 1 U.S. dollar was exchanged for 9.5065 Swedish kronor, higher than 9.4355 Swedish kronor in the previous trading day.

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