Weekend Buzz: 28-29 March 2026

US Optimism on Ending Iran War Isn't Shared by Investors

The US expects to end its operation in Iran in "weeks, not months," Secretary of State Marco Rubio said, following a meeting of Group of 7 foreign ministers in France. President Donald Trump's special envoy Steve Witkoff says that the US is hopeful of having meetings with Iran within a week amid unconfirmed reports of Pakistan hosting negotiation. Oil traders and stock market investors remained unconvinced that an end to the war, now entering its fifth week, is close. Benchmark Brent crude closed Friday trading at US$112 a barrel, and Wall Street indexes plunged. World Trade Organization chief Ngozi Okonjo-Iweala warned that global trading system is facing the "worst disruptions in the past 80 years."

The Wall Street Journal reported that the Pentagon is considering sending up to 10,000 additional ground troops to the Middle East. The Financial Times reported that the United Arab Emirates is pushing for the creation of an international maritime force to fully reopen the Hormuz waterway that normally carries a fifth of the world's oil supply. Two container ships operated by Chinese shipping giant Cosco turned backed after trying to exit the Gulf via the Strait of Hormuz on Friday, Reuters reported, citing ship-tracking data showed. A Thai-flagged cargo vessel struck by Iranian projectiles earlier this month has run aground after drifting for weeks in the Strait of Hormuz, with three crew members missing.

Houthi group in Yemen, allies of Iran responsible in the past for attacks on Red Sea shipping, said their "finger is on the trigger" if the war against Iran widens. The Red Sea is a conduit to the Suez Canal. Ten US soldiers were reported wounded, not seriously, by Iranian missiles fired at the Prince Sultan air base in Saudi Arabia on Friday. Israel attacked Iran's Arak heavy-water plant and a uranium processing plant in the center of the county, and continued its air and ground offensive in Lebanon, where it is seeking to create a large security buffer zone. Israeli media quoted a senior defense official warning that the military could "collapse in on itself" as it fights a war on two fronts amid a growing manpower shortage.

Putin Asks Oligarchs to Open Their Wallets

Russian President Vladimir Putin has asked the nation's oligarchs to donate to the country's dwindling budget, drained by the four-year war against Ukraine, the Financial Times reported. At least two tycoons reportedly have said they are willing to make contributions. Russia has shown no signs of wanting to end the war until it is guaranteed full control over the eastern industrial region of Donbas. Russia's defense spending last year rose 42 percent to 13.1 trillion rubles (US$160 billion). In January, the Kremlin increased the value-added tax to 22 percent to raise funds. The nation's budget deficit in January and February swelled to 90 percent of the 2026 target.

Top Business

BYD 2025 Profit Drops on Cutthroat Market Competition

China's BYD, the world's biggest maker of electric cars last year, reported 2025 profit fell 19 percent from a year earlier to 32.6 billion yuan (US$4.7 billion). It was the first profit decline since 2021, primarily driven by changes in product mix, leading to drop in net profit margin to 4.1 percent from 5.2 percent. To maintain market share in a fierce domestic price war, BYD sold a higher proportion of lower-priced vehicles, diluting its profit per car. Revenue gained 1.2 percent to near 804 billion yuan.

The company has been struggling to retain its market dominance amid stiff domestic competition, with rival Geely nipping at its heels. The company said it sold 4.6 million vehicles last year, up 8 percent, but domestic sales fell 8 percent, with competitors aggressively launching new models, especially in the plug-in hybrid segment. BYD has been rapidly expanding overseas. Car exports surged 140 percent to more than 1 million. The company is banking on more powerful, faster-charging batteries for earnings growth. "We recognize that competition in the industry has reached a fever pitch and is undergoing a brutal knockout stage," BYD Chairman Wang Chuan-fu said in the earnings statement.

Three Top Chinese Banks Post Modest Profit Gains

Three of China's five biggest banks reported modest profit gains for 2025 as lower net interest margins loomed over earnings. The squeeze came from high-yield time deposits and state-controls on how much banks pay on regular deposits. Some of the banks last year curtailed issuing five-year certificates of deposit that carry higher yields. Net interest margins are a key gauge of profitability, comparing the interest that banks earn from lending with the interest they pay out on deposits. The banks have also had to contend with a continuing slump in the property market and weaker consumer spending. They are steering more lending to technology and green energy programs as well as upgrading their operations with new technologies. Three of the five banks reported on Friday, with Agricultural Bank of China and Bank of China earnings expected soon.

Industrial & Commercial Bank of China (ICBC), the largest bank in the world by assets, reported fourth quarter profit rose 1.9 percent to 98.65 billion yuan (US$142 million) from a year earlier on a 1.8 percent gain in operating income to 190.4 billion yuan. For the full year, 2025 profit edged up 0.7 percent to 368.6 billion yuan, and operating income gained 1.9 percent to 801.4 billion yuan. The net interest margin fell to 1.28 percent from 1.42 percent. "Over the past year, we consistently conveyed the requirement that stabilizing revenue hinges on stabilizing net interest margin," the bank said. That margin compares the interest earned on loans against the interest a bank pays out on deposits. Total loans and advances to customers rose 7.5 percent to 30.5 trillion yuan, and net interest income decreased by 0.4 percent. ICBC's non-performing loan ratio was flat at 1.3 percent. Assets at the end of the year totaled 53 trillion yuan.

China Construction Bank reported fourth-quarter profit rose 2.2 percent to 81.5 billion yuan (US$11.8 billion) from a year earlier on a 2.4 percent increase in operating income to 180.6 billion yuan. For the full year, 2025 profit edged up 1.5 percent to 333.5 billion yuan, and operating income gained 1.7 percent to 740.8 billion yuan. Net interest income fell 2.9 percent to 572.8 billion yuan, with the net income margin falling to 1.34 percent from 1.51 percent. The non-performing loan ratio slipped to 1.31 percent from 1.34 percent. Assets totaled 45.63 trillion yuan.

Bank of Communications posted 2025 net profit of 95.6 billion yuan (US$13.8 billion), up 2.2 percent, with operating income rising 2 percent to 265.6 billion yuan. Net interest income rose 1.9 percent to 173.1 billion yuan. The net interest margin slipped to 1.20 percent from 1.27 percent, and the non-performing loan ratio fell to 1.28 from 1.31 percent. Revenue from the sales of wealth management products rose 19 percent. Assets totaled 15.54 trillion yuan at the end of the year.

Guangzhou Automobile Group Posts Sharp Annual Loss

Guangzhou Automobile Group (GAC), reported a consolidated net loss of 11.5 billion yuan (US$1.66 billion) in 2025, deteriorating sharply from a loss of 494 million yuan a year earlier. The loss attributed to equity shareholders 8.78 billion yuan. Revenue declined 10 percent drop in revenue to 96.5 billion yuan. The company was hurt by its joint ventures with Japanese automakers, who are grappling with financial problems and global pressures. Revenue from its joint venture with Honda fell 25 percent; revenue from its venture with Toyota edged up only 1 percent. Production capacity utilization with Honda was 59 percent, compared with 76 percent with Toyota. Japanese car makers have been slow to recognize China's swift transition to electric vehicles and deployment of advanced smart driving technologies, becoming Johnny-come-latelies in a highly competitive market. "The transformation toward electrification and intelligent cars has entered a critical moment, with its pace and intensity far exceeding expectations," GAC said. "Joint-venture brand competition has entered a knockout stage." The automaker sold 1.7 vehicles last year, a 14 percent decline from a year earlier. GAC said it is revamping its strategy to focus on electric cars, low-carbon technologies and improved batteries.

Goldwind Profit Rises 49 Percent on Turbine Sales

Goldwind Science & Technology, a leading global manufacturer of turbines for wind farms, reported 2025 profit rose 49 percent to 2.77 billion yuan (US$390.6 million) on a 29 percent revenue increase to 72.78 billion yuan. Last year the company ranked first in the world in onshore wind turbines and second in offshore turbine manufacturing. The Beijing-based company is also involved in wind farm development, which contributed 8.7 billion yuan to revenue. The Chinese mainland, which has the world's largest installed wind power capacity, accounted for about 75 percent of revenue, with the rest from overseas sales, where Argentina was the top buyer. Wind power assets in 21 Chinese provinces and abroad totaled 18.3 billion kilowatt-hours

Economy & Markets

Chinese Industrial Profits Surge

Profits at Chinese industrial firms in January-February surged 15.2 percent from the same two months a year earlier. The increase points to some success in regulatory efforts to rein in industrial overcapacity and spur consumer spending. Technology manufacturing led this year's gains, soaring 59 percent on growth in semiconductors and unmanned aerial vehicles. Producers of non-ferrous metals had a profits surge of 148 percent, and chemicals were up 36 percent. Last year, China's industrial profits rose a mere 0.6 percent. The January-February profits don't reflect the Middle East War, which began on February 28.

China Launches Probe of US Trade Practices

China's commerce ministry said on Friday it had launched two investigations into US trade-barrier practices in what it described as a response Washington's recent announced probe into unfair trading practices by China and other countries. Beijing said it is "strongly dissatisfied" with the US action. The commerce ministry said it will probe US practices that it says disrupt global industrial and supply chains, as well as measures that hinder trade in green products. The US investigations are part of a Trump administration way to find a new justification for tariffs after the Supreme Court declared last year's "reciprocal" tariffs on trading partners illegal.

Deep Dive

Japan Carmakers Misjudged China, Now They Are Scrambling to Correct the Mistake

Japanese cars used to dominate China auto sales, but a failure to grasp China's rapid shift to electric vehicles created a crisis.

Corporate

Citic Posts Gains in 2025 Revenue, Profit

Citic Ltd, one of China's largest conglomerates, is involved in financial services, resources and energy, manufacturing, engineering contracting and real estate. The company reported 2025 profit of 58.7 billion yuan (US$8.5 billion), up 3 percent from a year earlier. Revenue edged up 0.9 percent to 769.3 billion yuan. Citic is an outgrowth of predecessor China International Trust & Investment Corp, which was established in 1929 to pilot the nation's economic reforms and open ties abroad. The company reported assets of 13 billion yuan at the end of December.

Its Citic Securities subsidiary, which is credited as the biggest driver of 2025 earnings, had a 22 percent rise in 2025 revenue to 104.7 billion yuan on surges in brokerage fees and investment income. The company benefitted from the 18 percent rise in Shanghai shares and gains on the Shenzhen exchange last year, with a 39 percent gain in brokerage fees. Profit for the year rose 39 percent to 30.1 billion yuan.

In major business segments, Citic reported revenue from all financial services, including banking, rose 6.2 percent. Customer deposits rose, and net fee and commission revenue gained 18 percent. Advanced materials, which includes trading in iron ore, crude oil and specialty steel, had a 3 percent rise in revenue, while advanced intelligent manufacturing, with includes robotics and heavy machinery, had 12.5 percent gain. The consumption segment, which includes food, telecom and agricultural businesses, fell 3.4 percent.

CMOC Profit Surges, Revenue Drops

CMOC, one of the world's largest producers of molybdenum, tungsten, cobalt, niobium and copper, reported 2025 profit surged 50 percent to 20.3 billion yuan (US$2.9 billion), but operating revenue fell 3 percent to 206.7 billion yuan. Across Asia, South America and Africa, the company mines metals and minerals vital in industrial production, and also produces fertilizer. It's the world's biggest cobalt miner, holds about a third of the global tungsten market, and is the second-largest miner of niobium. Production of molybdenum, used in steel and electronics, fell 10 percent last year. Cobalt output rose 3 percent, and tungsten fell 14 percent. Production of niobium, used in jet rockets, building girders, oil rigs and gas and oil pipelines and MRI scanners, edged up 3 percent, and copper gained 14 percent. The company said, "2026 marks the beginning of a new era" in the company's aim to build a distinctive global mining company.

Chalco Profits Rise Despite Drop in Alumina Prices

Aluminum Corp of China (Chalco), one of the world's biggest producers of the metal, said 2025 profit rose 2.3 percent to 12.67 billion yuan (US$1.83 billion) on a 1.7 percent increase in revenue to 241 billion yuan. The domestic spot price of aluminum fell 21 percent. Across the Chinese industry, domestic production of bauxite, which is refined into alumina, the raw material used in aluminum making, was flat and imports rose 26 percent. Supply of alumina in the domestic market exceeded demand last year. Chalco profit in that segment dropped 41 percent. The primary aluminum segment posted a 129 surge in profit on lower raw material costs.

TCL Reports Profit on TV Sales

TCL Electronics, a Chinese home appliance and consumer electronics maker, reported 2025 profit rose 56 percent to HK$2.5 billion (US$320.6 million) on a 15 percent gain in revenue to HK$114.5 billion. The company's product line includes TVs, air conditioners, mobile phones, washing machines, refrigerators and air conditioners. In its biggest earnings segment, it said TV shipments totaled 209 million units, ranking second in the world, with larger LED models rising 5.3 percent. Revenue from overseas shipments rose 16 percent; Chinese mainland shipments fell 9.8 percent. In its solar power business segment, the company reported a 63 percent rise in revenue. The company said it is applying AI technologies across manufacturing and supply chain. Research and development spending rose 8.5 percent to HK$2.5 billion.

Separately listed TCL Zhonghuan Renewable Energy Technology, a company that makes silicon materials and is involved in solar power stations, reported a 9.2 billion loss on a 2.2 percent gain in operating revenue to 29.1 billion yuan. It cited intense competition in the photovoltaic industry. Wafers remained the company's second-biggest segment, with chip shipments rising 22 percent.

Muyuan Foods Profit Plunges on Lower Hog Prices

Muyuan Foods, one of the world's biggest pig breeders and pork producers, said 2025 profit fell 16.5 percent 15.8 billion yuan (US$2.3 billion) as live hog prices tumbled 9.2 percent from a year earlier. Revenue rose 4.5 percent to 114.1 billion yuan, largely on slaughtering gains. The company, operating in the world's largest pork production market, has been struggling as hog prices fell to a seven-year low. The company said hog sales in 2025 rose 2.9 percent, with the price per hog plunging 83 percent. Revenue from slaughtering surged 86 percent, with the company reporting it sold 3.2 million tons of fresh and frozen pork products. The Nanyang-based company earlier said its revenue in the first two months of this year has dropped despite selling more than 11.6 million hogs. The company raised HK$10.7 billion (US$1.4 billion) in initial public offering in Hong Kong in February. The outlook for 2026 will depend on prices, Muyuan said.

Toyota Recalls 560,000 China Vehicles

Toyota Motor's China joint ventures will recall more than 560,000 vehicles starting on April 1 due to a seat design defect that could pose safety risks, China's market regulator said on Friday. The recall, one of Toyota's largest in China in over a decade, involves 317,990 Highlander SUVs produced by its venture with Guangdong Automobile Company and 242,170 Crown Kluger SUVs made with FAW Group. Large-scale recalls are not unprecedented for Toyota in China, with previous cases in 2012 and 2009 also exceeding 500,000 vehicles, mainly linked to component defects.

BASF Opens China Chemical Complex Run on Renewables

German chemical giant BASF began operations at its new US$10 billion production site in the southern city of Zhanjiang, designed to run entirely on renewable energy. It's the company's largest overseas investment so far and the Chinese mainland's first wholly owned integrated chemical complex. The 18 plants and 32 production lines will produce 70 products for industrial and home use.

Segway-Ninebot Teams Up With Pop Mart on Sweet Bean Scooter

Mobile technology company Segway-Ninebot announced a partnership with Pop Mart to use its popular Sweet Bean character in a co-branded electric scooter aimed at younger consumers. In 2015, US-based Segway, a manufacturer of two-wheeled personal transporters, was acquired by Beijing-based Ninebot.