1. Chinese Foreign Minister Wang Yi held a phone conversation with his Iranian counterpart, Hossein Amir-Abdollahian, on the 2nd. Amir-Abdollahian briefed Wang on the latest regional developments, stating that the U.S. had launched a military strike against Iran during the second round of Iran-U.S. negotiations. While the talks had made positive progress, the U.S. action violated international law and crossed Iran's red lines, leaving Iran with no choice but to exercise its right to self-defense. China expressed a just stance and hopes to continue playing a constructive role in de-escalating regional tensions.
2. Driven by geopolitical tensions, domestic commodity futures markets experienced a surge, with multiple contracts hitting limit-up. By the daytime close on March 2, the Containerized Freight Index (European route) futures led gains with a 15% limit-up. Energy and chemical products also saw widespread limit-ups, including fuel oil, low-sulfur fuel oil, crude oil, methanol, pure benzene, propylene, polypropylene, ethylene glycol, and liquefied petroleum gas. Additionally, silver and gold futures strengthened. Post-market, the Shanghai Futures Exchange, Shanghai International Energy Exchange, Zhengzhou Commodity Exchange, and Dalian Commodity Exchange issued risk warnings. The market is focused on how long the impact of Middle East tensions on futures will last. Some institutional views suggest limited short-term impact on container freight index futures, while others warn of prolonged effects if conflicts intensify. For crude oil and gold, analysis indicates they are prone to short-term gains, with some institutions noting potential for gold to break through historical highs medium-to-long term.
3. Four Chinese government departments jointly issued guidelines to accelerate the development of technology insurance, aiming to support major technological breakthroughs and tech-based small and medium enterprises. The guidelines focus on building an insurance mechanism suited for technological innovation, establishing comprehensive insurance products and services covering the entire innovation chain, and increasing support for national key technology tasks and tech SMEs. According to data, technology insurance is projected to provide approximately 8 trillion yuan in coverage for technological innovation by 2025, with premiums growing 44% year-on-year, significantly above the industry average.
4. AI firm MiniMax released its first annual report since going public on March 2. The financial results showed a dual picture: rapid revenue growth, overseas market expansion, and increasing user scale, alongside widening losses. Notably, changes in the fair value of financial liabilities put significant pressure on net profit. In 2025, MiniMax's revenue reached approximately $79.04 million, up 159% year-on-year, while net loss widened by 302% to $1.87 billion. After adjusting for fair value losses of nearly $1.6 billion from financial liabilities, the adjusted net loss was $250 million. Geographically, about 73% of MiniMax's revenue came from international markets, totaling $57.66 million, with the remainder from mainland China. The company's overseas market share continued to expand compared to 2024.
5. The military conflict between the U.S., Israel, and Iran has disrupted global supply chains, leading to the closure of the Strait of Hormuz, a critical trade route. This is expected to trigger increases in sea and air freight costs. French shipping giant CMA CGM announced an emergency "conflict surcharge" on cargo to and from Gulf and Red Sea countries, citing heightened security risks, adding $2,000 to $4,000 per container. German carrier Hapag-Lloyd imposed a $1,500 war risk surcharge per standard container and suspended voyages through the Strait of Hormuz. According to industry estimates, rerouting vessels around Africa instead of using the Suez Canal could tie up capacity equivalent to about 2.5 million twenty-foot equivalent units (TEUs).
6. China's oil and petrochemical sector saw a historic surge on March 2, with 28 out of 48 related stocks hitting limit-up. Notably, China's "Big Three" oil companies—PetroChina, Sinopec, and CNOOC—all closed at limit-up prices for the first time ever. Looking ahead, analysts suggest that if the Strait of Hormuz remains closed long-term, oil prices could continue rising. Investment strategies highlight companies with high dividends and growth potential, such as CNOOC, China Oilfield Services, and PetroChina, as well as beneficiaries like Xinjiang Natural Gas.
7. Hua An Fund Management announced that its Hua An S&P Global Oil Index LOF will be suspended from market open until 10:30 on March 3. The suspension follows significant premium in the fund's secondary market trading price compared to its net asset value. The fund warned investors of the risks associated with chasing premiums and stated that if the premium does not decrease effectively, it may seek further trading halts to mitigate risks.
8. Major titanium dioxide producers have initiated a new round of price increases. Shandong Xianghai Titanium Resources Technology, a subsidiary of Lubei Chemical, raised prices for domestic chloride-process titanium dioxide by 500 yuan per ton and international prices by $100 per ton effective February 26. Similarly, CITIC Titanium Industry increased prices for certain grades of its CR series chloride-process titanium dioxide by 500 yuan domestically and $100 internationally starting March 1.
9. The People's Bank of China emphasized the orderly advancement of high-level financial opening-up. In its report on handling proposals from the 2025 legislative sessions, the central bank highlighted policies to expand financial openness, promote the internationalization of the yuan, and deepen international financial cooperation. Key measures include improving connectivity between domestic and international markets, facilitating foreign investment in China's financial markets, supporting Shanghai's role as an international financial center, and strengthening Hong Kong's status as a global financial hub.
Investment opportunities drawing market attention include natural gas, among others. 1. European natural gas prices surged over 20% following the U.S.-Israel strikes on Iran, potentially marking the most significant shock to gas markets since the Russia-Ukraine conflict disrupted global energy trade four years ago. While Asia is the primary buyer of Middle East LNG, any supply disruption would intensify competition for alternative supplies, driving up global prices. Europe is particularly vulnerable due to low gas inventories and the need to replenish stocks before next winter. Goldman Sachs warned that a one-month closure of the Strait of Hormuz could more than double European gas prices.
Other sectors to watch: 2. Copper: A key export route from the Democratic Republic of Congo was disrupted by a bridge collapse. 3. AI Wearables: Tech giants are competing for new AI entry points with upcoming smart glasses, headphones, and rings. 4. Robotics: Xiaomi's latest robot has begun trial operations in car factories, achieving preliminary autonomous functionality in certain scenarios. 5. Consumer Electronics: The 2026 Mobile World Congress has commenced.
Positive corporate announcements include Changan Automobile's plan to repurchase 700 million to 1.4 billion yuan of its A-shares. Negative announcements include Seres Group's February new energy vehicle sales falling over 28% year-on-year.
