March 5th, Eastmoney Financial Evening News (with News Broadcast)

Hotspot Focus

Government Work Report:

On the morning of March 5, the Fourth Session of the 14th National People’s Congress opened at the Great Hall of the People. Premier Li Qiang delivered the government work report, with several details updated. The economic growth target is more pragmatic, adjusted from “about 5%” down to “4.5%-5.0%”. Regarding incremental funds, the deficit rate in 2026 is set at 4%, with a deficit scale of 5.89 trillion yuan, an increase of 230 billion yuan from last year. In monetary policy, efforts are made to keep the overall social financing costs low. On consumption policies, from direct subsidies to broadly activating demand and reducing costs. For green development, from energy consumption targets to carbon emission goals, phasing out outdated capacity and controlling energy consumption and emissions. In real estate, policies focus on risk mitigation and stock management.

Strait of Hormuz:

According to the latest news from CCTV, on the morning of March 5 local time, the Iranian Islamic Revolutionary Guard Corps stated that early that morning, a U.S. oil tanker in the northern Persian Gulf was hit by a missile launched by the Iranian navy. The tanker is still on fire. The statement said that Iran had previously stated that, according to relevant international laws and resolutions, during wartime, the rules of the Strait of Hormuz would be controlled by Iran. The statement also said that U.S., Israel, European countries, and their supporting military and commercial vessels are strictly prohibited from passing through this area; any violations will be met with force.

Economic Theme Press Conference Preview:

The Fourth Session of the 14th National People’s Congress will hold a press conference at 3 p.m. on March 6 at the Media Center News Hall. Participants include Zheng Shanjie, Director of the National Development and Reform Commission; Lan Foan, Minister of Finance; Wang Wentao, Minister of Commerce; Pan Gongsheng, Governor of the People’s Bank of China; and Wu Qing, Chair of the China Securities Regulatory Commission, to answer questions from domestic and foreign journalists on development reform, fiscal budgets, commerce, finance, securities, and related issues. CSRC Chair Wu Qing previously stated that on the 6th, he will respond to questions regarding capital market reform and development.

China to Send Special Envoy to the Middle East:

On March 5, at the regular press conference, Foreign Ministry spokesperson Mao Ning said that China is deeply concerned about the current tense situation in the Middle East. Recently, China has been actively mediating. “China believes that war and force cannot fundamentally resolve issues; dialogue and negotiation are the right paths. We should insist on resolving contradictions and differences through political and diplomatic means.” Mao Ning said China will continue to communicate with all relevant parties, including the conflicting sides, strengthen mediation, and build consensus. China will send a special envoy to the Middle East in the near future to make positive efforts to de-escalate tensions.

BYD Launches Second-Generation Blade Battery:

On March 5, BYD Chairman Wang Chuanfu stated at the technical release that the second-generation blade battery can be charged from 10% to 70% in just 5 minutes, and from 10% to 97% in only 9 minutes. Live testing videos show that the BYD Seal 07 EV charged from 10% to 97% in just 8 minutes and 44 seconds. To address low-temperature charging issues, this battery can go from 20% to 97% in only 12 minutes at -20°C in Harbin.

Central Bank Reverse Repurchase:

The People’s Bank of China announced that to maintain ample liquidity in the banking system, on March 6, 2026, it will conduct 800 billion yuan of fixed-term reverse repurchase operations with multiple bid prices, with a 3-month (91-day) maturity.

Israel Plans to Reopen Airspace:

Israeli Transport Minister Miri Regev announced that Israel is ready to reopen its airspace on the 8th, allowing outbound flights. Regev said, “After assessment, we have decided to open outbound flights starting Sunday (the 8th), but specific arrangements will depend on security developments. We will update the latest situation throughout the day.”

Artificial Intelligence+:

The first “Minister Channel” interview event of the Fourth Session of the 14th National People’s Congress was held on March 5. Minister of Industry and Information Technology Li Lecheng said that “Artificial Intelligence + Manufacturing” is a must-answer question, not a choice. “This year, we will vigorously promote ‘Artificial Intelligence + Manufacturing’. All sectors of manufacturing must embrace AI, deeply explore high-value application scenarios, cultivate a batch of high-level typical applications, and create a number of characteristic intelligent entities. By ‘finding scenarios,’ we further tap into the development potential of traditional industries; by ‘creating scenarios,’ we stimulate innovation vitality in emerging and future industries.”

AI Infrastructure Development:

Chen Changsheng, member of the drafting team of the government work report and Deputy Director of the State Council Research Office, said at a briefing at the State Council Information Office on March 5 that efforts should be made to solidify the foundation for AI development. First, strengthen infrastructure, as there is a saying online that “the end of AI is energy.” We should leverage the advantages of our national power grid system and further implement the construction of ultra-large-scale intelligent computing clusters and energy-computation collaborative infrastructure, focusing on hardware. Technologically, support should be increased to enhance large model capabilities and computing power, exploring multiple pathways and routes, including embodied intelligence, world models, etc., with a more open approach.

Mass Outflow of Southbound Funds:

Today, southbound funds net sold 27.735 billion HKD, with the ETF fund, Hang Seng China Enterprises, experiencing net sales of 13.661 billion HKD, and HSBC Holdings net sales of 6.073 billion HKD; Tencent Holdings was net bought about 1.541 billion HKD. Data shows that today’s southbound net sales broke the record of 20.441 billion HKD on August 28, 2025.

AI Large Models:

According to media reports on the 5th, after full open-source yesterday, the new generation of the Zhaoyue Xingchen base model Step 3.5 Flash has seen a surge in global popularity. Model calls on OpenClaw (a well-known open-source project nicknamed “Little Lobster”) have quickly risen to the top worldwide. Among the top five, following are MiniMax M2.5, Trinity Large Preview (free), Kimi K2.5, and ClaudeSonnet 4.6—more than half of the base models are from Chinese AI startups.

Thematic Opportunities

Micro LED:

According to the latest survey by TrendForce, with the rise of generative AI, data centers’ demand for high-speed transmission continues to grow. Traditional copper cables used for short-distance transmission inside cabinets face severe challenges in transmission density and energy efficiency. In comparison, Micro LED CPO solutions have lower unit transmission energy consumption, potentially reducing overall energy use to 5% of copper cable solutions, making them promising as optical interconnect alternatives.

Cathay Pacific Securities believes that if the MicroLED industry continues to make breakthroughs in large-scale cost reduction and technical feasibility in optical interconnect scenarios, we may see Micro LED gradually expand from smartwatches/AR glasses to ultra-large high-end TVs (over 100 inches), commercial displays, high-end vehicle HUDs, and other fields starting around 2026. Additionally, ongoing technological progress in short-distance communication for AI computing servers is expected to further expand application scenarios and market size in the coming years.

Currently, over 20 stocks in the A-share market are related to Micro LED concepts, with a total market value close to 600 billion yuan. BOE Technology, TCL Technology, and Sanan Optoelectronics are the top three. Data shows that since the holiday, 12 Micro LED concept stocks have received net financing inflows, with Tian Tong shares seeing leveraged funds increase by 319 million yuan, and Leyard and Jufei Optoelectronics each receiving over 200 million yuan in financing, while Sanan Optoelectronics was also heavily favored with 161 million yuan.

Controlled Nuclear Fusion:

On March 5, the “Future Energy” was mentioned for the first time in the government work report. Controlled nuclear fusion has long been regarded as humanity’s “ultimate energy,” with advantages such as abundant raw materials, low radioactive waste, and high safety. During the first “Minister Channel” of the Fourth Session of the 14th NPC, Minister of Science and Technology Yin Hejun said that high-quality high-tech supply should be strengthened, and a batch of major national science and technology projects should be quickly deployed, especially in areas like integrated circuits, AI, biological manufacturing, quantum technology, brain-computer interfaces, and nuclear fusion energy, to provide stronger technological support for industrial development.

Guoxin Securities pointed out that the current market space for nuclear fusion mainly comes from the demand for engineering construction and equipment from research institutions and commercial companies’ experimental devices. It is estimated that during the “14th Five-Year Plan” periods, annual investment in nuclear fusion devices will be around 20 billion yuan, potentially driving a market of 50 billion yuan upstream and downstream of the industry chain. The industry is accelerating, and future capital expenditure is expected to further speed up.

Data shows that among the top nuclear fusion concept stocks by net financing, 8 stocks have net purchases exceeding 100 million yuan. Yuguang Gold & Lead, Western Superconducting, and China Nuclear Power rank the top with net purchases of 464 million, 332 million, and 268 million yuan, respectively. As of March 5, 19 nuclear fusion stocks have released 2025 performance forecasts or reports. Based on quick reports or median estimates, Shanghai Electric, Western Superconducting, China National Machinery Industry Corporation, and Yongding Co. each have net profits exceeding 1 billion yuan, at 12.1 billion, 8.4 billion, 4.79 billion, and 2.5 billion yuan respectively.

Company News

JD.com: In Q4 2025, JD.com’s revenue was 352.3 billion yuan; for the full year, revenue reached 1.3091 trillion yuan, accelerating to double-digit growth compared to 2024. Service revenue for the year grew 23.6% year-over-year, accounting for 21.8% of total revenue, a new annual high.

*ST Songfa: The company’s subsidiary, Hengli Shipbuilding (Dalian) Co., Ltd., signed contracts to build four 306,000-ton ultra-large crude oil tankers, with a total contract value of about $400-600 million, accounting for over 50% of the company’s audited main business revenue in the latest fiscal year.

Jufei Optoelectronics: The company’s main business is LED packaging. MicroLED is the ultimate form of LED development, with advantages like miniaturization and low power consumption. Its MicroLED products are mainly used in display terminals, with a relatively low revenue share. Currently, the company’s MicroLED technology has not been applied in the CPO field and has not generated income from CPO.

Haichang New Materials: Its wholly owned subsidiary, Jiangsu Yangzhou Hairong Powder Metallurgy Co., Ltd., recently received the “High-tech Enterprise Certificate”, valid for three years. This is the first time Hairong has been recognized as a high-tech enterprise. According to relevant tax policies, after obtaining the certificate and filing, the company will pay corporate income tax at a 15% rate within three years from the current year.

COSCO Shipping: On that day, the company’s new energy-efficient Aframax oil tanker “Kepu” was delivered in Qinhuangdao, Hebei.

Zhenghong Technology: In February 2026, sold 3,200 pigs, with sales revenue of 4.97 million yuan, down 77.59% and 65.34% respectively from the previous month, but up 38.06% and 277.3% year-over-year. From January to February 2026, the company sold a total of 17,300 pigs, with total sales revenue of 19.3195 million yuan, up 75.91% and 32.02% respectively.

Nanjing Julong: Jiangsu Suhao Fashion Group Co., Ltd. (Suhao Fashion, 600287) holds 14.12% of the company’s shares and plans to reduce its holdings by 3.25 million shares (about 2.94% of total shares) through centralized bidding and block trading.

Kain Technology: The company’s controlling shareholder, Song An Investment, plans to reduce its holdings by no more than 3.42 million shares (about 2% of total shares) via centralized bidding and block trading. The company’s actual controller, Beijing Bai’an Investment Management Co., Ltd., will not participate in this reduction.

Samsung Medical: The company’s wholly owned subsidiary, Samsung Sweden, signed a framework contract with the Dutch Enexis Power Company for transformers, with a total contract amount of 117 million euros, about 949 million yuan, accounting for 6.5% of the company’s 2024 revenue.

Yinlun Shares: Its wholly owned subsidiary, YINLUN TDI, LLC, recently received a fixed-point notice from a well-known international machinery equipment company. The company has secured a project for exhaust gas emission treatment systems for gas turbines, expected to start supplying in Q4 2026. Based on customer forecasts, annual sales are expected to reach about $131 million.