Tongzhong Hong Kong Stocks Morning Brief | Traders and shippers are avoiding the Strait of Hormuz as international shipping faces an "acute operational crisis"

【Today’s Headlines】

Traders and shipowners Avoid the Strait of Hormuz as International Shipping Faces “Acute Operational Crisis”

After the US and Israel attacked Iran, Iran announced the closure of the Strait of Hormuz. Several oil tanker owners and traders have suspended shipments of crude oil, fuels, and liquefied natural gas through this strait. According to the German Shipowners’ Association, the shipping industry is facing an “acute operational crisis.”

Ship tracking data shows that liquefied natural gas trade through this narrow waterway has nearly come to a halt. Traders reveal that Asian buyers are contacting suppliers to inquire about alternative sources. Meanwhile, after Israel shut down some gas fields, Egypt is attempting to receive natural gas shipments early. Analysts believe Iran’s crude oil production accounts for about 3% of global supply, so its impact on international oil prices is relatively limited. However, crude oil transported through the Strait of Hormuz accounts for approximately 20% of global shipments, making the safety of transit through the strait the biggest variable influencing international oil prices.

Reports indicate that at least 150 oil tankers (including crude oil and petroleum product carriers) are anchored in the broad waters of the Middle East Gulf region, crossing the Strait of Hormuz. This involves the Hong Kong-listed oil shipping sector.

【Market Outlook】

US Stocks Fall Last Friday; Nvidia (NVDA.US) Continues Decline, Closing Down 4.16%

Last Friday, US stocks closed lower. The Dow Jones Industrial Average fell 521.28 points, or 1.05%, to 48,977.92; the S&P 500 declined 29.98 points, or 0.43%, to 6,878.88; the Nasdaq Composite dropped 210.17 points, or 0.92%, to 22,668.21. Nvidia (NVDA.US) continued its decline from the previous day, closing down 4.16%. CoreWeave (CRWV.US) fell 18.51%, while Dell Technologies (DELL.US) rose 21.93%. The KBW Bank Index dropped nearly 5%, its largest single-day decline since April last year. Goldman Sachs fell over 7%, Morgan Stanley declined more than 6%.

The Nasdaq China Golden Dragon Index fell 1.81%. Kingsoft Cloud rose over 6%. The Hang Seng Index ADR declined, closing at 26,438.20 points, down 192.34 points or 0.72% from Hong Kong’s close.

【Hot Topics Preview】

Cheng Maobo: Hong Kong Has Sufficient Plans to Handle Market Risks from Middle East Conflicts

Hong Kong SAR Financial Secretary Paul Chan on March 1 stated that Hong Kong’s direct trade and investment with Iran are limited, but the conflict creates significant global uncertainty. He estimates that the impact of Middle East conflicts causes considerable volatility in financial markets, with capital flows possibly shifting more rapidly and unpredictably. Local funds may seek “safe havens” by moving to Hong Kong, and the SAR government is prepared with sufficient contingency plans. He pointed out that this conflict may temporarily affect gold prices, oil prices, and international trade transportation costs, and the government has been assessing related risks.

Disruption in Middle East Flights: Multiple Countries Close Airspace, Many Flights Detoured

Due to regional tensions, several Middle Eastern countries announced closures of their airspace on February 28, suspending airport operations and canceling numerous flights, affecting travelers. As of late February 28, airlines such as Lufthansa, Air France, and Air India announced suspensions of routes to multiple Middle Eastern countries. According to aviation data firm Cirium, over 800 flights to Middle Eastern countries were canceled that day, causing many passengers to be stranded at airports or transfer hubs, disrupting travel plans. Industry insiders note that since the Russia-Ukraine conflict forced airlines to avoid those countries’ airspace, the importance of the Middle East region to global aviation has increased. The escalation of tensions has increased operational risks for airlines, and the closure of multiple countries’ airspace has forced detours, raising fuel costs. Affected domestic airlines including Air China, China Eastern, and China Southern have issued special handling plans for flights to the Middle East.

OpenAI Announces $110 Billion Investment at a $730 Billion Valuation

OpenAI announced a new investment of $110 billion at a valuation of $730 billion, including $30 billion from SoftBank, $30 billion from Nvidia, and $50 billion from Amazon. OpenAI stated it will expand its AWS partnership to $100 billion over 8 years. The company also signed a strategic cooperation agreement with Amazon and partnered with NVIDIA to develop next-generation inference computing. As funding rounds progress, more financial investors are expected to join. This involves the Hong Kong-listed AI large model sector.

FTSE Russell to Adjust Indices After Market Close on March 20

FTSE Russell announced the preliminary results of its semi-annual review of global stock indices for March 2026, with adjustments to be officially implemented after market close on March 20. As the second-largest index provider globally, FTSE Russell’s indices cover markets in over 70 countries and regions, serving as important tools for investors to monitor markets and formulate strategies. The adjustment will include 77 stocks added to the large-cap list and 38 stocks removed.

Goldman Sachs analysts expect this FTSE index adjustment to trigger over $27 billion in total fund flows, with China and South Korea as the largest net inflow regions, and Japan facing significant outflows.

Huawei Debuts Overseas Supernode Products, Breaking Through Computing Power Bottlenecks with System-Level Innovation

On February 28 in Barcelona during MWC 2026, Huawei showcased its first overseas display of new supernode products based on the unified interconnection protocol “Linqyu” (UnifiedBus), including the AI supernode Atlas950SuperPoD and the industry’s first compute supernode TaiShan950SuperPoD.

Yum China (09987) Releases Annual Results, Total Revenue Up 4% to $11.8 Billion

Yum China (09987) announced its annual results for the year ending December 31, 2025, with system-wide sales up 4% year-over-year, excluding currency effects. Same-store sales increased 1%. Total revenue rose 4% to $11.8 billion, also up 4% excluding currency effects. The company added 1,706 new stores, with 31% being franchise stores. As of December 31, 2025, total stores reached 18,101. Operating profit increased 11% to $1.3 billion, with core operating profit also up 11%. Operating profit margin was 10.9%, up 60 basis points year-over-year.

Cao Cao Mobility (02643) Acquires Mercedes-Benz’s EV Tech Unit Weixing Technology

Tianyancha business registration shows that recently, Weixing Technology Co., Ltd. underwent changes. The original shareholders Zhejiang Jidi Technology Co., Ltd. and Mercedes-Benz Mobility Services GmbH exited, and Zhejiang Youxing Technology Co., Ltd., a Cao Cao Mobility affiliate, became the sole shareholder. Yang Guang resigned as legal representative, replaced by Zang Ke. Weixing Technology was established in May 2019 with a registered capital of 700 million RMB, engaged in small vehicle leasing, wholesale of computer hardware/software, and related services. Media reports indicate that Cao Cao Mobility previously announced on HKEX that Hangzhou Youxing agreed to acquire 50% stakes in Weixing Technology from Zhejiang Jidi and Mercedes-Benz Mobility, with a total cash consideration of 225 million RMB.

Rongchang Biotech (09995) Reports Annual Results, Shareholders’ Profit Reaches 709 Million RMB, Turning Loss into Profit

Zhitong Finance APP reports that Rongchang Biotech (09995) released its 2025 annual results brief, with total operating revenue of 3.251 billion RMB, up 89.36% year-over-year. Net profit attributable to shareholders was 709 million RMB, turning from loss to profit. Basic earnings per share were 1.29 RMB.

Cinda Biologics (01801): Jepalry® (Pirtobrutinib) Approved in China for Refractory or Relapsed Chronic Lymphocytic Leukemia and Small Lymphocytic Lymphoma

Zhitong Finance APP reports that Cinda Biologics (01801) announced that the non-covalent (reversible) BTK inhibitor Jepalry® (Pirtobrutinib) has received approval from the China National Medical Products Administration (NMPA) for an additional indication: treating adult patients with previously treated chronic lymphocytic leukemia (CLL) or small lymphocytic lymphoma (SLL) who have undergone at least one systemic therapy including BTK inhibitors.

Chunli Medical (01858) Reports About 272 Million RMB Net Profit for 2025, Up 117.72%

Zhitong Finance APP reports that Chunli Medical (01858) announced its 2025 annual results brief, with total operating revenue approximately 1.044 billion RMB, up 29.52%. Net profit attributable to owners was about 272 million RMB, up 117.72%. Basic earnings per share were 0.71 RMB.

Junshi Biosciences (01877) Reports About 87.4 Million RMB Net Loss for 2025, Narrowing 31.74% Year-over-Year

Zhitong Finance APP reports that Junshi Biosciences (01877) announced its 2025 results brief, with total operating revenue around 2.498 billion RMB, up 28.23%. Net loss attributable to owners was about 87.4 million RMB, narrowing 31.74%. Basic loss per share was 0.87 RMB.

Tongyuan Kang Pharmaceuticals -B (02410): Tongyuan Kang Biotech to Receive Additional Capital of 83.5 Million RMB

Zhitong Finance APP reports that Tongyuan Kang Pharmaceuticals -B (02410) announced that on February 27, 2026 (after trading hours), existing shareholders (including the company), Tongyuan Kang Biotech, and subscribers (Shenzhen Innovation Capital, Ningbo Red Soil, Quzhou Qizhen, Quzhou High-Quality Development, Changxing Tongyuan, and Shenzhen Guohai Zhongheng) entered into a capital increase agreement. The parties agreed to increase Tongyuan Kang Biotech’s registered capital by approximately 6.49 million RMB for a total consideration of about 83.5 million RMB. After the increase, Tongyuan Kang Biotech’s total registered capital will rise from 14 million RMB to about 20.49 million RMB, and the company’s equity stake in Tongyuan Kang Biotech will decrease from approximately 57.14% to 39.03%. Tongyuan Kang Biotech will no longer be a subsidiary of the group.

【Stock Highlights】

Tongguan Gold (00340): Performance Benefiting from Gold Price Surge

The company issued a positive profit forecast. Based on preliminary estimates, it expects to record attributable profit to owners of approximately HKD 820–840 million for 2025, a substantial increase of about 289%–298% year-over-year. This figure includes about HKD 55 million of non-operating expenses related to fair value changes of convertible bonds and derivative liabilities. Excluding this, adjusted attributable profit is estimated at HKD 875–895 million, up 315%–324%. The company states that the increase in attributable profit is mainly due to higher gold production, sales volume, and average selling prices compared to 2024.

Gold is currently in a “hedging” duel between its “safe-haven” attribute and “real interest rates.” Major international banks have raised their gold price forecasts for 2026. Deutsche Bank reaffirmed a target of USD 6,000 per ounce; JPMorgan Chase raised its forecast to USD 6,300 per ounce by the end of 2026; Canadian Imperial Bank of Commerce expects the average gold price in 2026 to rise to USD 6,000 per ounce.