Daily Buzz for March 26

Iran Rebuffs Peace Talks, Issues Its Own Demands for Ending War

Iran said it has no intention of holding peace talks with the US but is reviewing a 15-point plan from Washington to end the war. The plan's top three points related to Iran's nuclear program. Iranian Foreign Minister Abbas Araghchi said tan exchange of messages between the two countries via third-party mediators does not constitute negotiations. Tehran has laid out its own conditions for ending the war, which include Iran retaining control over the Strait of Hormuz, probably a nonstarter for the US. President Donald Trump on Monday floated the idea of the vital oil-tanker waterway under joint control with Iran. Iran's plan also includes war-related reparations.

Benchmark Brent crude fell below US$100 a barrel but was trading at US$103 late in New York. Wall Street stocks were up modestly as investors tried to navigate all the conflicting rhetoric about peace initiatives. Pakistan, Egypt and Turkey have emerged as the top brokers in seeking an end to the war.

On Iranian state TV, Lt. Col. Ebrahim Zolfaghari mocked US talk of a ceasefire deal, insisting the Americans are only negotiating with themselves. Chinese Foreign ‌Minister Wang Yi, in a phone call with his Iranian counterpart Araghchi, said talking is always better than fighting, urging all parties involved in the conflict to seize opportunities to start peace talks as soon as possible. "Hot spot issues should be resolved through dialogue and negotiation, not by using force," the foreign ministry reported him saying.

Iran said foreign ships from "non-hostile" nations are allowed to pass through the Strait of Hormuz, but the vital oil and gas route still remains essentially void of traffic. Iran is charging transit fees up on US$2 million on some commercial vessels. Meanwhile the war continued. Iran struck Kuwait and Bahrain sites believed to be used for refueling US jets. Israel continued its bombardment of Iran and Lebanon. Saudi Arabia said it intercepted four drones.

The Philippines, which imports 98 percent of its oil from the Persian Gulf region, became the first country in the world to declare a national energy emergency linked to shortages from the ongoing and said fuel rationing may be coming. The nation also took its first shipment of Russian oil as it scrambles to find alternative supplies.

Juries Deal Setbacks to Social Media Platforms

A jury in Los Angeles delivered a landmark legal blow to social media platforms that don't warn users of risks associated with using their sites. The case was brought against Meta and Google's YouTube by a 20-year-old woman who alleged she became addicted to apps like Instagram and YouTube as a child, leading to continuing mental health problems. The court assessed combined damages of US$6 million against the companies. Meta and Google said they may appeal the decision. In a separate court case, jurors in the US state of New Mexico, found that Meta willfully violated the state's unfair practices by failing to safeguard its apps from online predators targeting children. Meta was ordered to pay US$375 million in damages. The company said it will appeal

Danish Voters Weaken Prime Minister's Chance for Third Term

Denmark Prime Minister Mette Frederiksen's grip on power was weakened in Tuesday's general election, as voters brushed aside her strong stance against the US on Greenland and focused on economic issues affecting their pocketbooks. Her Social Democrats have won the most votes – 22 percent -- but failed to secure a majority in its weakest result in more than century. The Moderate party of Foreign Minister Lars Løkke Rasmussen, a former prime minister, secured 14 seats in the 38-seat parliament, setting him up as kingmaker in deciding whether Frederiksen gets a third term. She said she wants to remain in the job. "The world is unsettled. There are strong winds around us," she said. "Denmark needs a stable government, a competent government. We are ready to take the lead."

Top Business

Pop Mart Shares Dive on Fears Labubu Doll Fad Has No Successor

Shares of Pop Mart International Group, creator of the Labubu collectible doll craze, plunged 22 percent in Hong Kong after 2025 revenue and earnings growth missed analysts' forecasts. The sharp selloff came despite the company reporting that revenue rose 185 percent to 37 billion yuan (US$5.4 billion) and net income quadrupled to 12.8 billion. But growth slowed in the fourth quarter after sales of company's wildly popular Labubu monster dolls, a prime source of income, began dropping in midyear. Pop Mart has taken the attitude that when one fad fades, you create a replacement, but the jury is still out on whether new characters such as Skullpanda and Twinkle Twinkle can duplicate the success of Labubu. Chief Executive Wang Ning told investors on an earning call that "Pop Mart has more than just Labubu," and likened expectations for the company to a "rookie racing driver suddenly thrown onto an F1 circuit." He said the company is targeting 20 percent revenue growth in 2026, with expansion into home appliances and offline dessert shops. The company has teamed up with Sony Pictures to create an animated film around Labubu, and is planning a theme park call Pop Land in Beijing.

Hengrui Pharma Profit Rises on Drug Innovation

Hengrui Pharmaceuticals, China's biggest drugmaker by market value, reported 2025 net profit rose 22 percent to 7.7 billion yuan (US$1.1 billion) on a 13 percent rise in revenue to 31.6 billion yuan. Fourth-quarter profit of 1.96 billion year, which was listed without year-earlier comparison, was below analysts' estimates. Innovative drug sales rose 26 percent, contributing to 58 percent of total revenue, but sales of generic drugs slipped. Cancer products generated 13 billion of revenue, up 19 percent.. The Jiangsu Province-listed company specializes in cancer, neurology, immunology, respiratory, metabolic and cardiovascular drugs. Licensing revenue rose 26 percent to 3.4 billion yuan. Last year, the company entered into an agreement with GlaskoSmithKline on drug development and signed an deal with Merck on exclusive licensing rights to its heart disease drug. The company raised HK$9.9 billion (US$1.3 billion) in an initial public offering in Hong Kong last May.

PDD Posts Profit Decline as Temu Suffers Loss of Duty-Free Access

PDD Holdings, a Chinese online retailing giant that owns the Temu discount e-commerce platform, reported fourth-quarter net profit dropped 12 percent from a year earlier to 24.5 billion yuan (US$3.5 billion) on a 12 percent increase in revenue to 123.9 billion yuan. For the full year, 2025 profit fell 12 percent to 99.4 billion yuan on revenue of 431.8 billion yuan, up 10 percent. Its financial statement didn't break down Temu earnings. The discount online platform last year was hurt by US and European removal of duty-free access of the small-goods parcels that formed the core of its marketing strategy, and by regulatory scrutiny in Europe over business practices.

Anta Sports Revenue, Profit in Line With Estimates

China's Anta Sports, a leading global sportwear retailer, reported a 13 percent decrease in 2025 profit to 13.6 billion yuan (US$1.97 billion). Revenue rose 13.3 percent from a year earlier to a record 80.2 billion yuan. Both figures were in line with forecasts. The profit drop largely reflects a high base in 2024 on Amer Sports IPO-related gains. Anta has a majority stake in Helsinki-based Amer Sports, which owns Salomon, Arc'teryx, Wilson and other major brands. Excluding gain arising from equity dilution related to the initial public offering, profit grew 13.9 percent last year. Anta's own brand, contributing about 43.3 percent of revenue, grew 3.7 percent, and the Fila brand, accounting for 35.5 percent of revenue, grew 6.9 percent. Anta is acquiring a 29.1 percent stake in Puma for 1.5 billion euros (US$1.8 billion), making it the largest shareholder. The Arc'teryx brand, which counts China as its second-largest market, caused a public outcry last year for its involvement in a Chinese fireworks show in the Himalayan foothills of China that degraded the environment.

Economy & Markets

China Expands Free AI Computing Tokens

China's national supercomputing network has increased its free token allocation to boost AI and research adoption, offering up to 30 million tokens per user in a new promotional round. The initiative aims to lower barriers for advanced computing applications, including intelligent agents such as SClaw, a variation of OpenClaw. A discounted usage rate of 0.1 yuan per million tokens will also be extended through April 6. The move comes amid surging demand for computing resources. Official data showed China's daily token use has jumped from 100 billion in early 2024 to 140 trillion this month.

China to Boost Domestic Chip Capacity

Investment in Chinese semiconductor fabrication plants is expected to jump in the next five years, boosting the nation's production capacity. At the opening of Semicon China 2026 on Wednesday, industry association SEMI said China's share of global chip capacity is estimated to rise to 32 percent by 2030, fueled largely by the ongoing AI boom and a rapid development in mature technology sectors. The mainland's largest semiconductor trade show also highlighted the country's push for self-reliance in technology, with multiple companies showcasing advanced equipment that will shift China from dependence on foreign technology.

China Commercial Space Hits Inflection Point

China's commercial space sector entered entering a phase of accelerated growth last year, according to a new industry report from corporate data platform Qixinbao. It said at the end of 2025, China had 393 commercial space companies, with 83 percent of them registered last year. The sector is now into "fast track" development phase, supported by strong government policies and growing market demand. Total funding in 2025 was estimated at up to 28 billion yuan (US$4.1 billion), including several capital-raising rounds.

SK Hynix Files for Listing in the US

South Korea's SK Hynix, one of the world's largest memory chip makers, said it filed for a stock market listing in the US aimed for the second half of this year. Korea Economic Daily said the company could seek to raise up to US$10 billion to fund factory operations at home and in the US. Other sources put the figure at US$14 billion. SK Hynix has been ramping up production to keep pace with soaring demand from AI data centers. The listing could be the biggest on Wall Street in five years.

Fast Food-Delivery War May Be Nearing End

China's intensifying fast-food delivery war may be nearing its end after regulatory intervention stepped in to restore market order, according to a commentary originally published in Economic Daily. It said the rivalry between major players Alibaba, JD.com and Meituan resulted in spending of up to 100 billion yuan (US$14.5 billion) in promotional subsidies at its height last year. Industry data showed that since mid-2025, heavy discounting dragged down growth, and restaurants under pressure to compete have been forced to cut costs and sacrifice quality, leading to shrinking margins and widespread losses. The commentary warned that such practices run counter to policy goals for orderly market growth. In Hong Kong trading on Wednesday, Meituan shares rose 13.9 percent, JD was up 5.57 percent and Alibaba added 4.63 percent.

Corporate

Kuaishou Post Net Profit Growth with Upgraded Kling AI

Kuaishou, a leading developer of a mobile app for sharing short videos and video generation tool Kling AI, posted a 30 percent rise in the fourth quarter profit to 5.2 billion yuan (US$743 billion) as revenue rose 11.8 percent to 39.6 billion yuan. For the whole year of 2025, the company posted profit of 18.6 billion yuan, up 21.5 percent, and a gain of 12.5 percent in revenue to 142.8 billion yuan. By 2025, the company had a 741 million monthly active users globally.

China Life Post 44 Percent Profit Surge

China Life Insurance, the nation's largest life insurer, reported 2025 profit increased 44 percent from a year earlier to 7.6 billion yuan (US$1.1 billion) on a 16.5 percent rise in revenue to 616.1 billion yuan. In its main business segments, life insurance was up 11 percent, health insurance edged up 0.9 percent and accident insurance slipped 13 percent. The company said it has been moving into aged-care services in 16 major cities. At the end of last year, the company had assets of 7.59 trillion yuan and a sales force of 638,000.

WPS Parent Kingsoft Office Reports Profit Growth

Kingsoft Office, which develops WPS Office tools, reported revenue in 2025 rose 16 percent from a year earlier to 5.93 billion yuan (US$850 million). Net profit rose 11.6 percent to 1.84 billion. The company proposed a cash dividend of 12.5 yuan for every 10 shares. Its flagship product, WPS Office, an alternative to Microsoft Office, had global monthly active devices of 678 million, representing a 7 percent increase.

Ping An Good Doctor Posts Surge in Profit

Ping An Healthcare & Technology, also known as Ping An Good Doctor, posted 2025 revenue of 5.47 billion yuan (US$790 million), up 14 percent from a year earlier, yielding a 366 percent surge in net profit to 379.5 million yuan. The company attributed growth to the booming Chinese market in AI-driven one-stop medical, health and senior care services. In the earnings conference call, the company said it expects China's aged healthcare market to hit 30 trillion yuan by 2035.

Mengniu Revenue Slides on Slower Milk Sales

Chinese dairy giant Mengniu said 2025 revenue fell 7 percent to 82.2 billion yuan (US$12 billion) as mainland consumers drank less milk. Net profit in 2025 surged 15-fold to 1.54 billion yuan but operating profit was down 9.5 percent at 6.56 billion yuan. Net profit growth reflected large year-earlier writedowns on idled plants, inventories, equipment and goodwill. Fresh milk consumption in China has been falling, affecting the company's main business line. Revenue in that segment slid 11 percent. The company also makes yoghurt, ice cream and cheese. Mengniu said it is focused on changing consumer trends with the introduction of new products such as lactose-free milk and campaigns combining sports and dairy products.

Xiaomi Bemoans Surge in Chip Prices 'Beyond Imagination'

Xiaomi President William Lu Weibing said soaring memory-chip prices "beyond imagination" are severely hurting the smartphone industry and could reshape its future. His comments came on an earnings call with analysts after the company, a major smartphone and electric car maker, reported a 27 percent drop in fourth-quarter net profit, largely due to a 12 percent decline in smartphone shipments, lower phone prices and rising production costs. "When the price-raising cycle ends," he said, "some players may suffer significant losses or even face closure." He also announced that Xiaomi investment in AI research and development this year will probably exceed 16 billion (US$2.3 billion) this year.

Flexiv Releases New Robotics Products

Shanghai-based Flexiv unveiled new robotics products in a transition from a specialized adaptive robot manufacturer to a general-purpose robotics infrastructure provider. The lineup included new adaptive robots, architecture controller and an integrated humanoid intelligent platform. Flexiv's products are used in precision manufacturing, healthcare, commercial services and cutting-edge research. The company has already established market presence across Europe, North America, Southeast Asia, Japan and South Korea.