Eastmoney Financial Breakfast Wednesday, February 25

Daily Highlights

Silver Economy:

Li Qiang presided over a State Council executive meeting to discuss promoting the development of the silver economy and elderly care services. The meeting emphasized that China’s silver economy has great potential. Support measures should be improved, policies implemented effectively, and the development of elderly care and related industries promoted to provide strong support for aging population challenges. Further efforts are needed to release demand for silver consumption, enhance consumption capacity, and leverage policies like consumption subsidies to create new scenarios and formats for silver consumption. The supply of inclusive elderly care services should be improved and expanded, establishing a tiered, categorized, accessible, and sustainable elderly care system to better ensure support for the elderly.

Ministry of Foreign Affairs Response:

On February 24, spokesperson Mao Ning held a routine press conference. A foreign journalist asked whether the U.S. President Trump will visit China on March 31, and if the Foreign Ministry can confirm this. Mao Ning responded, “Head-of-state diplomacy plays an irreplaceable strategic guiding role in China-U.S. relations. Both sides are maintaining communication regarding President Trump’s visit to China. However, I currently have no information to provide on the specific matter you mentioned.”

China-U.S. Tariffs:

The Ministry of Commerce spokesperson answered questions about recent U.S. tariff adjustments. The spokesperson stated that China is closely monitoring and will comprehensively assess the U.S. measures. Future responses, including adjustments to tariffs on fentanyl and reciprocal tariffs, will be decided based on the situation. China reserves the right to take all necessary measures to defend its legitimate rights and interests. China opposes unilateral tariffs in all forms and urges the U.S. to cancel and refrain from imposing such tariffs again.

Space Data Center:

According to multiple media reports on the 23rd, to facilitate the deployment of AI-specific satellite networks, Elon Musk, CEO of SpaceX, envisions launching satellites from the Moon into Earth orbit via electromagnetic catapults. French science website Future Science reports that Musk plans to build a large electromagnetic launcher and satellite assembly plant on the Moon, using the former to launch satellites into Earth orbit. SpaceX recently submitted an application to the U.S. Federal Communications Commission to deploy a system of up to one million satellites in low Earth orbit, creating an on-orbit data center network to support high-performance computing needs like AI.

AMD Major Agreement:

Reports indicate Meta has signed an AI hardware procurement deal with AMD to deploy 6 gigawatts of AMD GPUs. AMD agreed to sell AI chips worth up to $60 billion to Meta. Additionally, AMD will issue performance-based stock warrants to Meta, allowing purchase of up to 160 million AMD common shares. Following the news, AMD’s U.S. stock pre-market rose over 12%.

Central Bank MLF Operations:

On February 24, the People’s Bank of China announced a medium-term lending facility (MLF) tender for 600 billion yuan, with a one-year maturity, to maintain ample liquidity in the banking system. Since 3,000 billion yuan of MLF matures this month, the PBOC net injected 3,000 billion yuan via MLF in February. This marks the 12th consecutive month of increased MLF operations.

DeepSeek:

At the February 24 press conference, Mao Ning was asked about reports that DeepSeek’s AI model was trained using Nvidia’s advanced AI chips, which might violate U.S. export controls. Mao Ning said she was unaware of the specific situation and reiterated China’s principled stance on U.S. chip exports to China.

Shanghai Futures Exchange Contract Adjustments:

Starting from the close on February 24, 2026, the Shanghai Futures Exchange adjusted margin requirements and daily price limits for certain contracts. Margin for Au (T+D), mAu (T+D), Au (T+N1), Au (T+N2), NYAuTN06, NYAuTN12 was reduced from 21% to 18%. Price limit restrictions increased from 20% to 17%. Margin for Ag (T+D) was reduced from 27% to 24%, with the daily limit changing from 26% to 23%. The margin for CAu99.99 was adjusted from 200,000 yuan per lot to 180,000 yuan.

Domestic Oil Price Increase:

China’s domestic refined oil prices experienced a third consecutive increase. Effective from February 24, the National Development and Reform Commission announced that gasoline and diesel prices increased by 175 yuan/ton and 170 yuan/ton, respectively. This translates to an increase of about 0.14-0.15 yuan per liter for 92 and 95 octane gasoline and zero diesel. After this adjustment, most regions see gasoline prices between 7.0-7.1 yuan/liter and diesel prices around 6.7-6.9 yuan/liter.

Hot Topics

MLCC:

Industry sources report that driven by global AI infrastructure investment, Murata Manufacturing, a major Japanese electronic component manufacturer, is evaluating whether to raise prices for its multilayer ceramic capacitors (MLCC). Murata is the latest supplier to recognize the surge in demand from AI data centers and consider increasing prices. MLCCs are critical components for managing the large power loads of AI servers, and Murata is the world’s largest MLCC supplier.

Computing Power:

Media reports that ByteDance’s AI coding tool Trae has updated its billing model from “per use” to “per token,” launching five subscription plans: Free, Lite, Pro, Pro+, and Ultra. Earlier, OpenRouter’s weekly data showed that the top ten models on the platform processed approximately 8.7 trillion tokens, with Chinese models accounting for 5.3 trillion tokens, or 61%.

Phosphorus Chemicals:

On February 18, 2026, Trump signed an executive order invoking the Defense Production Act to secure domestic production of phosphorus and glyphosate herbicides, citing risks to military readiness and food security from supply disruptions. The order aims to address strategic vulnerabilities in the supply chain, as China dominates global phosphorus and glyphosate production, while the U.S. relies on a single domestic phosphorus producer, facing demand exceeding supply.

Glass Fiber:

Sources and industry insiders expect a second round of price hikes for glass fiber due to rising costs and tight supply. Planned monthly increases range from 10% to 15%, potentially doubling prices by year-end if current plans proceed. This follows a cumulative annual increase of over 50% since 2025.

Oil & Gas:

International crude oil markets rebounded strongly during the Spring Festival holiday, with Brent crude futures rising over 5% and WTI futures up more than 4%. Fluctuations in U.S.-Iran tensions and U.S. trade policies are key factors. According to foreign media reports cited by Xinhua News Agency, sources say President Trump has told advisors he favors a preliminary strike on Iran in the coming days, followed by a larger military operation in the coming months to force Iran to capitulate and reach an agreement.

Robotics:

On February 24, Yushu Technology announced its fourth quadruped robot, Unitree As2. Launched last October, As2’s power performance is about twice that of Go2, with peak torque of 90 N·m, over 4 hours of battery life unloaded, a top speed of 5 m/s, IP54 water resistance, and a 15 kg payload with over 13 km range. The robot also supports secondary development ecosystems.

Transformers:

Media reports that driven by grid upgrades in Europe and North America, investments in emerging markets, and AI data center construction, North American power transformer shortages have reached 30%, with distribution transformers short by 6%. Dependence on imports is 80% and 50%, respectively. In 2025, China’s transformer exports grew 36% year-over-year, with an average price of $20,800 per unit, reflecting both volume and price increases.

Cultural & Tourism:

The Ministry of Culture and Tourism announced on February 24 that during the 2026 Spring Festival holiday, 596 million domestic trips were made over nine days, an increase of 95 million compared to the 8-day holiday in 2025. Total domestic tourism expenditure reached 803.48 billion yuan, up 126.48 billion yuan from 2025. Both visitor numbers and spending hit record highs.

Company News

Dongyang Sunshine: The company is planning to acquire control of Yichang Dongshu No.1 Investment Co., Ltd. (“Dongshu No.1”) via share issuance and raise supporting funds. The transaction is expected to constitute a major asset reorganization and related-party transaction but will not change the company’s actual control.

Sugon: In 2025, Sugon achieved total revenue of 14.97 billion yuan, up 13.86% year-over-year; net profit attributable to shareholders was 2.113 billion yuan, up 10.54%. The growth is mainly due to product structure optimization and improved operational efficiency, providing diversified, high-quality solutions.

Lightspeed: As of February 23, 2026, the company’s subsidiary’s film “Flying Past Life 3” has grossed approximately 2.926 billion yuan (including service fees), exceeding 50% of last year’s audited consolidated revenue. Revenue from this film is estimated between 43 million and 53 million yuan, subject to final settlement adjustments.

Apple: Apple plans to purchase over 100 million advanced chips produced at TSMC’s Arizona plant in 2026. Media reports also indicate that Apple will shift some Mac Mini production from Asia to the U.S.

Wens Foodstuff Group: In 2025, net profit was 5.235 billion yuan, down 43.59% year-over-year. During the period, the company sold 40.4769 million pigs (including 35.4467 million live pigs and fresh products, and 5.0302 million piglets), with an average price of 13.71 yuan/kg, down 17.95% from last year.

Tongwei: The company is planning to acquire 100% of Qinghai Lihua Qingneng Co., Ltd. via share issuance and cash payment, with supporting funds raised. The transaction will not change the controlling shareholder or actual controller and is not a related-party transaction, nor a major asset reorganization.

Changxin Bochuang: On February 24, 2026, Changxin Bochuang signed an equity acquisition letter to purchase 93.8108% of Shanghai Honghui Guanglian Communications Technology Co., Ltd. The target company’s main business includes optical communication equipment sales.

Kaipu Cloud: The company announced a major asset reorganization plan on August 25, 2025, to acquire 70% and 30% stakes in Nanning Taike held by Shenzhen Jintai Ke through cash and share issuance, with supporting funds. Due to market changes and failure to reach agreement on key terms, the company decided to terminate the transaction.

Zhongwei Semiconductor: In 2025, Zhongwei Semiconductor achieved total revenue of 1.122 billion yuan, up 23.09%; net profit attributable to shareholders was 285 million yuan, up 108.05%. Basic earnings per share were 0.71 yuan.

Sansen Guojian: In 2025, Sansen Guojian reported total revenue of 4.199 billion yuan, up 251.81%; net profit attributable to shareholders was 2.939 billion yuan, up 317.09%. During the period, the company signed a significant cooperation agreement with Pfizer Inc., receiving an initial licensing payment of about 2.89 billion yuan.

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Global Markets

U.S.-Iran Situation: According to media reports, 12 U.S. F-22 fighter jets departed from the UK on the 24th and headed to Israel. Except for one that returned due to technical issues, the remaining 11 arrived in Israel and were deployed at an airbase in southern Israel.

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Bond Market Overview

Shibor: On February 24, the overnight Shibor was 1.3620%, up 4.64 basis points; 7-day was 1.5530%, up 22.97 basis points; 14-day was 1.5770%, up 18.70 basis points; 1-month was 1.5500%, unchanged. The 3-month was 1.5780%, down 0.20 basis points.

Euro Bonds: In European trading, the German 10-year government bond yield fell 0.4 basis points to 2.707%, trading between 2.715% and 2.696%. The 2-year yield rose 1.0 basis point to 2.046%. The 30-year yield fell 0.6 basis points to 3.378%. The 2/10-year spread narrowed by 1.427 basis points to +65.886. The UK 10-year yield declined 0.7 basis points to 4.307%. The 2-year yield rose 1.5 basis points to 3.578%. The 30-year yield fell 1.0 basis points, and the 50-year yield declined 0.8 basis points. The 2/10-year spread narrowed by 2.312 basis points to +72.710. French 10-year yield fell 0.7 basis points to 3.270%. The 2-year rose 0.5 basis points, and the 30-year fell 1.3 basis points. Italian 10-year yield declined 0.4 basis points to 3.315%. Spanish 10-year yield fell 0.5 basis points to 3.120%. Greek 10-year yield rose 0.2 basis points to 3.319%.

U.S. Bonds: U.S. 10-year Treasury yield rose 1.76 basis points to 4.0385%. The 2-year yield increased 2.09 basis points to 3.459%. The 30-year yield declined 0.58 basis points to 4.6962%. The 2/10-year spread narrowed by 1.124 basis points to +57.552. TIPS yields remained flat at 1.7694%. The 2-year TIPS yield rose 2.23 basis points to 0.7337%. The 30-year TIPS yield fell 1.06 basis points to 2.4819%.

Commodity Futures

Domestic Futures: On February 24, most commodities closed higher. Shanghai silver surged nearly 13%, lithium carbonate rose nearly 11%, container shipping increased nearly 7%, crude oil up over 6%, platinum up over 5%. Black metals declined, with coke down over 2%, and coal and iron ore down nearly 2%.

International Metals: LME copper rose $298 to $13,166/ton. Aluminum increased $4 to $3,094/ton. Zinc gained $25 to $3,380/ton. Lead up $4 to $1,955/ton. Nickel surged $626 to $17,909/ton. Tin rose $2,582 to $5,030/ton. Cobalt was flat at $56,290/ton.

International Agricultural Products: NY Bloomberg grain index fell 0.09% to 30.3390 points. Early U.S. stocks rose then fell, reaching a daily high of 30.4669 at 23:37 Beijing time. CBOT corn futures declined 0.28%, wheat futures down 0.17%. Soybeans rose 0.41% to $11.5450 per bushel. Soymeal futures up 0.61%, soybean oil up 1.05%. ICE raw sugar futures up 0.48%, white sugar down 0.24%. Arabica coffee futures up 2.53%, “C” coffee futures up 2.23%. Robusta coffee futures up 2.25%. NY cocoa futures down 0.45% to $3,089/ton, having dipped to $2,952 earlier. London cocoa futures down 1.82%.

Forex Market

Renminbi: On February 24, onshore RMB closed at 6.88490 at 16:30 Beijing time, up 26.5 points. Offshore RMB at 18:00 was 6.87507, up 103.8 points. The onshore/offshore spread was 44.3 points.

RMB FX Swaps: As of 16:30 Beijing time, USD/CNY 6-month swap was -698 points, 1-year swap was -1,288 points.

U.S. Dollar: The dollar index rose 0.14% to 97.844. At the New York close, 1 euro was 1.1779 USD (down from 1.1792), 1 GBP was 1.3502 USD (up from 1.3490), 1 USD was 155.78 JPY (up from 154.62), 0.7735 CHF (down from 0.7744), 1.3704 CAD (up from 1.3696), and 9.0449 SEK (down from 9.0647).