The three major A-share indices of Shanghai and Shenzhen rose by 1.5% to 2% throughout the day, driven by gains in chip and hotel stocks, while lithium mining stocks declined in the afternoon

U.S. President Trump will deliver a nationwide address at 9 PM Washington time (Thursday morning Hong Kong time) to explain the latest developments in the Iran war. Trump previously stated that he expects the U.S. to end the Iran war in the coming weeks, as the U.S. has essentially achieved its military objectives and will leave the task of reopening the Strait of Hormuz to other countries.

The market anticipates that the Iran war may soon come to an end, leading to a rebound in the Asia-Pacific markets this morning. The People's Bank of China conducted a 500 million yuan (the same below) seven-day reverse repurchase operation today, with the operation rate remaining at 1.4%. Today, 78.5 billion yuan in reverse repos are maturing, resulting in a net withdrawal of 78 billion yuan for the day.

The manufacturing PMI for March in mainland China fell to 50.8, missing expectations. The three major A-share indices rebounded. The Shanghai Composite Index rose 56 points or 1.5% to close at 3,948 points, with a turnover of 897.3 billion yuan. The Shenzhen Component Index rose 228 points or 1.7% to 13,706 points, with a turnover of nearly 1.12 trillion yuan. The ChiNext Index rose 62 points or 2% to 3,247 points, with a turnover of 510.6 billion yuan.

Chinese bank stocks softened, with Industrial and Commercial Bank of China (601398.SH) and China Construction Bank (601939.SH) falling 0.8% and 2.1%, respectively. Vanke (000002.SZ) rose 1.3%, with its losses last year widening to 88.556 billion yuan. Additionally, CATL (300750.SZ) rose 1%, while BYD (002594.SZ) fell 2.5%.

Chip stocks performed well, with SMIC (688981.SH) A-shares rising 2.4%. Hua Hong (688347.SH) A-shares surged 7.6%. AI chip stock Cambricon (688256.SH) also rose 7%. Domestic GPU stocks MuXi Co., Ltd. (688802.SH) and Moore Threads (688795.SH) rose 1.2% and 2.5%, respectively. BOE Technology Group (000725.SZ) rose 2.6%, with a projected net profit of 5.857 billion yuan in 2025, a year-on-year increase of 10.03%, and plans to spend 500 million to 1 billion yuan to repurchase A-shares.

Innovative drug concept stocks surged, with Haixin Co., Ltd. (600851.SH), Antengene (002940.SZ), and Rundu Co., Ltd. (002923.SZ) all hitting the daily limit.

Hotel stocks rose in the afternoon, with Jinjiang Hotels (600754.SH) and ShouLve Hotels (600258.SH) each rising over 8%. Juntin Hotels (301073.SZ) and Jinling Hotel (601007.SH) rose 2.6% and 2%, respectively.

Lithium carbonate futures main contracts fell over 5%, leading lithium mining concept stocks to decline, with Rongjie Co., Ltd. (002192.SZ) dropping 7.4%. Jinyuan Co., Ltd. (000546.SZ), Chuaneng Power (000155.SZ), and Tibet Mining (000762.SZ) fell between 2.1% and 3.5%.

Sungrow Power Supply (300274.SZ) opened lower and fell 10.8%, with the company's operating revenue and net profit both declining in the fourth quarter of last year.

Storage chip stock Demingli (001309.SZ) once hit the daily limit but later saw selling pressure, closing down 2%. The company expects a net profit of 3.15 billion to 3.65 billion yuan in the first quarter of 2026, compared to a loss of 69.0877 million yuan in the same period last year