Summary of Global Market and Industry Dynamics

### Market Overview

Despite the pressure from the recent sharp rise in oil prices and the Federal Reserve's hawkish policy, market expectations for the earnings reports of U.S. tech giants supported market sentiment. The S&P 500 Index and the Nasdaq Composite Index rebounded from their lows after the Fed's statement, closing nearly flat, while the Dow Jones Industrial Average fell 0.57%. Small-cap stocks also weakened, with a decline of 0.6%. Notably, the Philadelphia Semiconductor Index rose 1.8%, with a cumulative increase of 41.7% so far this year.

In terms of individual stocks, NXP Semiconductors' stock soared 25%, performing particularly prominently; Seagate's stock rose 13.8%, and the storage sector strengthened in tandem, with Micron Technology, SanDisk, and Western Digital rising 3%, 8.3%, and 10% respectively.

After the release of after-hours earnings reports on Thursday, tech giants showed divergent performances: Meta's stock fell more than 6% after hours due to an upward revision of its capital expenditure outlook;Alphabet's revenue exceeded expectations, driving its stock up 6.6% after hours; Qualcomm's stock surged 12% after hours, Amazon rose more than 3%, and Microsoft fluctuated, edging down 0.1%.

The Federal Reserve's decision saw the most dissenting votes since 1992. Coupled with re-inflation concerns triggered by the sharp rise in oil prices, the market has abandoned bets on interest rate cuts within the year and even begun pricing in the possibility of interest rate hikes in 2027. In the bond market, the 2-year U.S. Treasury yield rose 10 basis points to 3.93%, and the 10-year U.S. Treasury yield hit a one-month high, climbing to 4.42%.

In terms of exchange rates and cryptocurrencies, the U.S. Dollar Index rose 0.4%; Bitcoin showed an "inverted V" trend, rising 1.8% at one point, then falling nearly 3% from its daily high and briefly breaking below the $75,000 mark.

In the commodity market, against the backdrop of a strong U.S. dollar, spot gold recorded three consecutive declines, falling 1% intraday to a one-month low; silver also fell 2.4%. The crude oil market strengthened sharply, with Brent crude oil futures surging 6% to a new high since June 2022; WTI crude oil rose about 8.2% to close at $108 per barrel.

In the Asian session, the Shanghai Composite Index returned to the 4,100-point mark, the ChiNext Index rose more than 2%, the rare earth and lithium battery sectors surged; the Hang Seng Tech Index rose more than 1%, while the semiconductor sector fell against the trend.

### Key News

#### China

1. Driven by sustained computing power demand, Cambricon's Q1 revenue increased by 160% year-on-year, and its net profit soared by 185%. In terms of shareholders, Zhang Jianping withdrew from the list of top ten shareholders.

2. Muxi Semiconductor's Q1 revenue increased significantly by 75%, and its net loss narrowed by more than 50% to less than 100 million yuan.

3. The storage chip market is in short supply, with GigaDevice's Q1 revenue increasing by 119% year-on-year and its net profit surging by 523%.

4. Vanke's Q1 revenue decreased by nearly 24% year-on-year, and its net loss narrowed slightly to 5.95 billion yuan.

#### Overseas

1. Powell's "Farewell Meeting" saw the biggest division in 34 years. The Federal Reserve kept interest rates unchanged again, but four committee members dissented from the resolution statement; Powell clearly stated that he would remain a Federal Reserve governor and not serve as a "shadow chairman", and the four dissenting votes reflected that the committee's focus tends to be neutral. The "New Fed News Agency" pointed out that there are serious differences within the Fed on whether to imply the possibility of further interest rate cuts in the future.

2. Judy Shelton's nomination for Federal Reserve Chairman was approved by the U.S. Senate and is expected to be confirmed in May.

3. Trump rejected Iran's relevant proposals, stating that the maritime blockade will continue until a nuclear agreement is reached, and Iran warned of an "unprecedented" military response. Faced with the pressure of high oil prices, Trump urgently summoned major oil industry giants to hold a meeting to discuss countermeasures.

4. U.S. durable goods orders rebounded strongly in March, and the AI investment boom continued, with core capital goods orders hitting the largest increase in nearly five years.

5. Microsoft's revenue exceeded expectations in the last quarter, with Azure cloud revenue increasing by 40% and capital expenditure slowing unexpectedly. Its stock fell more than 3% after hours, then turned higher at one point.

6. Alphabet, Google's parent company, reported a 22% year-on-year increase in Q1 revenue, driven by AI across multiple business segments, including a 63% surge in cloud business, and its stock rose 6.63% after hours. It was revealed in the conference call that computing power is severely limited currently, and the company raised its full-year capital expenditure to $180 billion to $190 billion.

7. Meta's Q1 revenue increased by 33%, slightly exceeding expectations, and it also raised its full-year capital expenditure to a maximum of $145 billion, with its stock falling nearly 7% after hours.

8. Amazon's Q1 revenue accelerated, supported by its cloud business. AWS revenue growth hit a two-year high, and capital expenditure exceeded expectations. Its stock fell nearly 4% after hours, then turned higher, rising more than 5% at one point.

9. Qualcomm's Q2 mobile chip business revenue fell by 13%, but the CEO said "the bottom has been seen", and the data center business has become a new growth support. Its stock fell first and then rose more than 10% after hours.

10. On the first day of Musk's lawsuit against Altman, Musk, as the first witness to testify, stated that "there would be no OpenAI without me".

11. Anthropic is considering a new round of financing at a valuation exceeding $900 billion. In addition, the White House plans to bypass risk designations to promote Anthropic's reconnection with federal agency cooperation, mainly because its flagship model Mythos has shown super strong network vulnerability identification capabilities.

### Market Closing Quotes

#### U.S. and European Stock Markets

- S&P 500 Index: down 0.04% to 7,135.95 points;

- Dow Jones Industrial Average: down 0.57% to 48,861.81 points;

- Nasdaq Composite Index: up 0.04% to 24,673.241 points;

- European STOXX 600 Index: closed down 0.65% to 602.64 points.

#### A-Shares

- Shanghai Composite Index: closed at 4,107.51 points, up 0.71%;

- Shenzhen Component Index: closed at 15,120.92 points, up 1.96%;

- ChiNext Index: closed at 3,687.17 points, up 2.51%.

#### Bond Market

- U.S. 10-year benchmark Treasury yield: rose 8.62 basis points to a daily high of 4.4318%;

- U.S. 2-year Treasury yield: rose 11.08 basis points to 3.9468%.

#### Commodities

- Spot Gold: down 1.15% to $4,544.05 per ounce;

- Spot Silver: down 2.44% to $71.2949 per ounce;

- WTI Crude Oil: intraday gain reached 8% at one point, to $107.93 per barrel;

- Brent Crude Oil: $111.47 per barrel.

### Detailed Key News

#### Global Highlights

##### China

1. Shenzhen's property market eases restrictions again: One additional housing unit can be purchased in Futian, Nanshan, and Bao'an, with the maximum provident fund loan limit increased by 70%. On April 29, the Shenzhen Municipal Bureau of Housing and Urban-Rural Development issued a notice to further optimize real estate regulation policies. In terms of purchase restrictions, eligible household registration families can purchase one additional housing unit within the scope of Futian, Nanshan, and Xin'an Sub-district of Bao'an; non-household registration families holding valid residence permits can also purchase one housing unit in the above areas. In terms of provident fund, the maximum family loan limit is raised to 1.3 million yuan, and first-home buyers and multi-child families can enjoy a maximum 70% increase. The new policy came into effect on April 30.

2. Wuliangye's stock fell below the 100-yuan mark, and its earnings report was suddenly delayed, attracting market attention. On April 29, Wuliangye's stock fell to 98 yuan. Due to the vacancy of the legal representative caused by the investigation of Chairman Zeng Congqin, its earnings report was rarely delayed until after the close on the 30th. The market's expectations for its earnings report have turned cautious, and a Goldman Sachs research report shows that the ex-factory price of Pu Wu has fallen to 840 yuan. It is reported that Wuliangye is trying to "lighten the burden for development in 2027" by controlling goods supply to reduce pressure.

3. Driven by computing power demand, Cambricon's Q1 performance grew significantly: Q1 revenue was 2.885 billion yuan, an increase of 160% year-on-year; net profit attributable to parent was 1.013 billion yuan, an increase of 185% year-on-year. Non-net profit after deduction increased by 239%, operating cash flow turned from negative to positive at 834 million yuan, and the quality of collection improved significantly. The gross profit margin remained at a high level of 54.4%, the R&D ratio dropped to 11% due to the denominator effect, and both administrative and sales expenses decreased. The asset-liability ratio was 16%, and advance orders jumped to 396 million yuan, indicating strong downstream demand.

4. Muxi Semiconductor's Q1 revenue increased by 75%, and its net loss narrowed by more than 50% to less than 100 million yuan. With the continuous improvement of downstream customers' recognition of Muxi's GPU products, the company's shipment volume achieved significant growth. In the first quarter, the cash received from selling goods and providing services reached as high as 695 million yuan, far exceeding the book revenue; accounts receivable increased from 726 million yuan at the end of last year to 933 million yuan.

5. The storage chip market is in short supply, and GigaDevice's Q1 performance exploded: Q1 revenue was 4.188 billion yuan, an increase of 119% year-on-year; net profit was 1.461 billion yuan, an increase of 523% year-on-year. It is mainly driven by the rising volume and price of storage chips and the demand pull of microcontrollers in multiple fields. The company's gross profit margin increased significantly, the expense ratio was fully diluted, non-net profit after deduction increased by 530%, and the main business performance was solid. The H-share listing drove a sharp increase in monetary funds, the asset-liability ratio dropped to 8.13%, and operating cash flow increased by 431%.

6. North Huachuang's Q1 revenue increased by 26% year-on-year, and high R&D investment led to a slight 3.42% increase in net profit. North Huachuang's Q1 revenue exceeded 10 billion yuan for the first time, an increase of 25.8% year-on-year, and the market share of many key equipment steadily increased. Due to a 36.6% surge in R&D expenses to 1.402 billion yuan, the net profit growth rate was only 3.4%. Although taking the initiative to increase R&D investment has suppressed short-term profit elasticity, the operating cash flow has turned from a loss to a profit significantly, and the company is prioritizing strengthening technical barriers to seek a long-term market position.

7. The chip customization business broke out, with Xinyuan Semiconductor's Q1 revenue doubling, new orders surging to 8.2 billion yuan, and expanded net loss due to increased R&D investment. Xinyuan Semiconductor achieved operating income of 836 million yuan in the first quarter, an increase of 114.47% year-on-year; the revenue of one-stop chip customization business surged by 145.90% year-on-year, among which the revenue of mass production business recorded an astonishing increase of 219.93%. As of April 29, 2026, the company's new orders signed within the year have climbed to 8.24 billion yuan, of which AI computing power-related orders account for as high as 91.37%, achieving a leapfrog breakthrough from the 4.516 billion yuan disclosed on April 21.

8. Vanke's Q1 revenue decreased by nearly 24% year-on-year, and its net loss narrowed slightly to 5.95 billion yuan. Vanke A's Q1 performance continued to be under pressure, with revenue decreasing by 23.9% year-on-year and a net loss of 5.95 billion yuan, but it narrowed slightly year-on-year. The bright spot is that the gross profit margin rebounded to 9.1%, the net outflow of operating cash flow narrowed significantly by 62.7%, and the cost and expenditure control initially took effect; diversified businesses such as property, commerce, logistics and leasing have become important supports.

##### Overseas

1. Powell's "Farewell Meeting" saw the biggest division in 34 years: The Federal Reserve kept interest rates unchanged again, but four out of 12 committee members dissented from the resolution statement. Among them, Governor Milan insisted on a 25-basis-point interest rate cut, and three regional Fed presidents supported keeping interest rates unchanged but opposed the statement retaining a dovish bias. The resolution statement continued to reiterate its readiness to adjust the monetary policy stance as appropriate, and mentioned that the situation in the Middle East has increased the high uncertainty of the economic outlook, adding the statement that "high inflation is partly due to the recent rise in global energy prices". The "New Fed News Agency" pointed out that there are serious differences within the Fed on whether to imply the possibility of further interest rate cuts in the future.

Powell said that after his term as chairman ends on May 15, he will remain a Federal Reserve governor and will not leave the board until the investigation against him is fully completed; he also promised not to hinder the new chairman's administration, never to be a "shadow chairman", and to maintain a low profile and support the new chairman during his tenure as a governor. He believes that the current interest rate is close to neutral or slightly on the high side, and he is not in a hurry to change the interest rate and policy guidance until the inflation trend is clear.

2. Judy Shelton's nomination for Federal Reserve Chairman was approved by the U.S. Senate and is expected to be confirmed in May. This vote cleared the main obstacle for the full Senate vote. If finally confirmed, Shelton will take over the Federal Reserve before Powell's term expires on May 15. Shelton has promised to reduce the Federal Reserve's balance sheet and establish a new framework for managing inflation, but the relevant details have not yet been clarified. Fed correspondent Nick Timiraos pointed out that Shelton's Fed nomination did not receive any Democratic support, marking the first time in history that the vote was along partisan lines.

3. Escalation of tensions between Trump and Iran: Trump rejected Iran's relevant proposals, stating that the maritime blockade is "somewhat more effective than bombing" and will continue until a nuclear agreement is reached; the U.S. military has formulated a plan to launch a "short and powerful" strike against Iran to break the deadlock, which led to a more than 7% intraday rise in crude oil. Trump urged Iran to "make a wise decision as soon as possible" on social media. Iranian officials said that the restraint shown by the Iranian military so far is to leave room for diplomatic mediation and give Trump a chance. If Iran's conditions are rejected, "the enemy will soon face a completely different response".

4. Trump urgently summoned major oil industry giants to discuss countermeasures against high oil prices. Currently, oil prices have soared to a high since 2022, and the obstruction of the Strait of Hormuz has exacerbated the supply shock. Trump held an emergency meeting with major oil giants such as Chevron at the White House, with the chief of staff, the secretary of the Treasury and several envoys present, highlighting that the energy crisis has directly approached the core of the policy.

5. U.S. durable goods orders rebounded strongly in March: Core capital goods orders excluding aircraft and military equipment soared 3.3% month-on-month, significantly exceeding the market expectation of 0.5%, the largest single-month increase since the middle of 2020. This strong momentum of capital investment, which has lasted for more than a year, is partly due to the continuous increase in corporate layout in the field of artificial intelligence.

6. Microsoft's revenue exceeded expectations in the last quarter: Fiscal Q3 revenue increased by 18% year-on-year, EPS increased by 23%, more than 5% higher than analysts' expectations; AI annualized revenue exceeded $37 billion, an increase of 123% year-on-year, and commercial RPO doubled year-on-year; intelligent cloud revenue increased by 30%, of which Azure revenue growth slightly exceeded expectations, but the intelligent cloud profit margin decreased by 1.8 percentage points year-on-year; the year-on-year growth rate of capital expenditure slowed from 66% in the previous quarter to 49%, down nearly 15% from the record high month-on-month; Windows and Xbox businesses performed weakly, with personal computing business revenue decreasing by 1%, but search advertising revenue increasing by 12%. The stock fell more than 3% after hours, then turned higher.

7. Alphabet's Q1 revenue exceeded expectations by 22%: Alphabet's Q1 revenue increased by 22% year-on-year to $109.9 billion (expected $107.1 billion), and net profit increased by 81% year-on-year to $62.6 billion, including $36.9 billion in illiquid equity gains. The CEO said that "AI is lighting up every corner of the business", search volume hit a record high, Google Cloud's order backlog nearly doubled month-on-month to more than $460 billion, and Gemini's paid monthly active users increased by 40% month-on-month, with the stock rising 6.63% after hours.

8. Key information disclosed in Alphabet's conference call: Computing power is severely limited in the short term; if there is more computing power, cloud revenue will be higher; the full-year capital expenditure guidance range for 2026 is raised to $180 billion to $190 billion, higher than the previous $175 billion to $185 billion, and it is expected that the capital expenditure in 2027 will be significantly higher than that in 2026. In terms of inference chip TPU, it has been delivered to a group of customers; TPU sales are expected to confirm a small part of revenue later this year, and most of the revenue will be realized in 2027.

9. Meta's Q1 revenue increased by 33% slightly exceeding expectations: Q1 revenue was $56.3 billion (analysts expected $55.51 billion), and net profit was $26.8 billion, increasing by 33% and 61% year-on-year respectively, both exceeding expectations. Due to the rising price of hardware components, the company raised its full-year capital expenditure to $125 billion to $145 billion, with its stock falling nearly 7% after hours.

10. Amazon's Q1 revenue accelerated, with cloud business as the core support: Q1 Amazon's revenue increased by 17% year-on-year exceeding expectations, operating profit margin exceeded 13% to a new high, and net profit increased by 77%, mainly due to the $16.8 billion pre-tax gain from investing in Anthropic (accounting for more than half of the net profit); AWS revenue increased by 28% year-on-year; real estate and equipment expenditure in the past 12 months increased by 160% year-on-year, and free cash flow decreased by 95%, highlighting the pressure of AI investment; Q2 revenue guidance significantly exceeded expectations, with a median year-on-year increase of more than 17%, thanks to the advance of Prime Day to June in this quarter, and the median profit guidance was slightly lower than expected. The stock fell nearly 4% after hours, then turned higher, rising more than 5% at one point.

11. Qualcomm's Q2 performance was differentiated, with data center as a new growth point: Qualcomm released its Q2 2026 financial report, with revenue of $10.6 billion, an increase of 3% year-on-year, and earnings per share of $2.65, both exceeding expectations. Auto, IoT and other businesses performed brightly, but mobile chip revenue fell by 13% year-on-year; dragged down by memory shortage, the Q3 guidance was lower than market expectations. The CEO said that the mobile phone market will hit the bottom and rebound in Q3, and the stock fell first and then rose more than 10% after hours.

12. Focus on the first day of Musk's lawsuit against Altman: As the first witness to testify, Musk explained to the nine-member jury why he originally established OpenAI as a non-profit organization, and Altman attended the trial. Ten years ago, the two were partners who jointly imagined the future of AI. Now Musk is demanding that Altman and Brockman resign from OpenAI and return all "ill-gotten gains" to the OpenAI charitable foundation.

13. Anthropic plans to promote high-valuation financing: Anthropic is weighing a new round of financing, which is reported to value the company at more than $900 billion. The company is currently considering proposals from investors. If successfully promoted, the valuation will more than double from the current level, but the relevant discussions are still in the very early stage. Anthropic has been seeking more infrastructure to meet the growth needs of its products, and this financing coincides with the company's accelerated layout by virtue of the strong breakthrough of its AI software.

14. The White House plans to bypass risk designations to promote cooperation with Anthropic: The Pentagon once blacklisted Anthropic, but now the White House plans to draft an executive order to bypass the ban to pave the way for federal agencies to access its latest flagship model Mythos. The trigger was Anthropic's refusal to sign the "all legal purposes" agreement, and the turning point was that Mythos showed a rare ability to identify network vulnerabilities - the U.S. National Security Agency (NSA) has quietly put it into use.

### Selected Research Reports

1. Latest views from legendary investor Tudor Jones: He revealed that he gets up at 2:30 a.m. to watch the market, and called Buffett "the originator of compound interest", emphasizing that "all great wealth comes from holding trends for a long time". At the same time, he "apologized" to Buffett and warned that under the current valuation of the S&P 500, the ten-year return may be negative, and the stock market capitalization/GDP ratio of 252% can be called a sovereign debt bubble; he also bluntly said that it is "crazy" to wait for tens of millions of deaths before taking action on AI safety supervision, and emphasized that investors must learn risk management.

2. JPMorgan Chase CEO Jamie Dimon warns of credit debt crisis: At a sensitive moment, Dimon warned that global government debt is continuing to rise, and some form of bond crisis "will eventually come". He pointed out that risks such as geopolitics, oil price fluctuations and fiscal deficits are accumulating; more than 1,000 institutions are involved in the private credit sector with uneven quality, and once the cycle turns, the impact will exceed market expectations. After the news was released, the market fell in response.

3. Latest data from the World Gold Council: Central banks around the world continued to increase their gold holdings in the first quarter, with gold purchases hitting a new high in more than a year; China's gold ETF inflows hit a record. The gold market fluctuated sharply in the first quarter, but demand broke out against the trend. Global central banks net purchased 244 tons of gold, China's demand for gold bars and coins surged 67% year-on-year to 207 tons, a record high, and gold ETF net inflows reached 58.6 billion yuan, another peak.

4. Goldman Sachs' latest judgment on gold: It maintains the year-end gold target of $5,400 unchanged, and adopts a "tactically cautious and structurally bullish" attitude towards gold; but it warns that if the situation in the Strait of Hormuz continues to be turbulent, coupled with the decline in the stock and bond markets, gold will face the risk of liquidation. In the medium term, the escalation of geopolitics, the shake of Western fiscal confidence and the continuous gold purchase by central banks will become the three core engines driving the breakthrough and upward movement of gold prices.

5. Seagate's industry prospect judgment: HAMR technology opens the "profiteering model", and the golden age of hard drives has just begun? Driven by AI-driven data center demand and HAMR technology breakthroughs, Seagate's revenue and gross profit margin have increased significantly, free cash flow has hit a ten-year high, the company has raised its long-term growth guidance to more than 20%, and locked in the order visibility until 2027. Against the background of the expansion of AI infrastructure, the market has begun to re-evaluate the core position of HDD in cold storage, believing that the "golden age of the industry may have just begun".

6. The latest investment main line from Soros' disciple: Renaud Saleur, a former trader at Soros Quantum Fund, said that electrification is the main line in the next ten years, not AI chips, and he is optimistic about copper, aluminum, cables and other fields. He predicts that by 2035 to 2040, global electricity consumption will increase by about 1.8 trillion kWh from the current about 2 trillion kWh. This huge demand will drive large-scale investment in copper, aluminum, cables and nuclear energy, and he also predicts that the uranium price is expected to reach $200 by the end of 2027.

### Domestic Macroeconomics

1. Interpretation of the "Six Networks" planning and construction: Guolian Minsheng Macroeconomics pointed out that the Political Bureau meeting for the first time wrote the "Six Networks" into the top-level deployment. The six major infrastructure systems of water network, power grid, computing power network, communication network, underground pipe network and logistics network have completed a "three-level jump" within a few months - from the five-year plan to the annual deployment and then to the quarterly scheduling. The annual investment of the plan exceeds 7 trillion yuan, which is not only the most certain starting point for expanding domestic demand and stabilizing investment, but also a strategic measure to consolidate the bottom line of energy, science and technology and food security.

2. "Digital China Development Report (2025)" officially released: According to Xinhua News Agency, in 2025, the added value of the core digital economy industry will account for more than 10.5% of the gross domestic product, and the scale of the core artificial intelligence industry will exceed 1.2 trillion yuan. Currently, China has become the world's largest owner of artificial intelligence patents, accounting for 60%; the fixed asset investment in high-tech service industry increased by 3.5% year-on-year, among which the investment in information service industry increased by 28.4% over the previous year.

3. Interpretation of the ban on the Manus acquisition case: According to Yuyuan Tan Tian, Xu Shan, director of the International Development Department of the Artificial Intelligence Research Institute of the China Academy of Information and Communications Technology, said that after Meta acquires Manus and gains actual control, the core technology and team will be completely transferred overseas, which needs to be declared and evaluated at the national security risk level. China encourages AI innovation and development, and also welcomes foreign investment very much. This ban on the acquisition case is only to clarify the compliance boundary and provide a clearer regulatory reference for foreign investment, not to ban AI enterprises from going overseas.

### Domestic Companies

1. Zhipu and Minimax are about to be included in the Hang Seng Tech Index and Stock Connect: Zhipu and Minimax, the two strongest IPO stocks in Hong Kong stocks, if included in the Hang Seng Tech Index since their listing, the index would have lost 5 percentage points less this year. The two are expected to be included in the index on June 8, with a combined weight of 5%-7%, which will bring about 1.25 billion to 1.75 billion US dollars of passive capital inflow, and the Stock Connect will also open one after another. However, the real stress test will be the lock-up period expiration wave in July: 5.83% of Zhipu's shares will be unlocked, and nearly 50% of Minimax's shares will be unlocked, and the liquidity premium will face a test.

2. Analysis of the price war in the medical beauty industry: The price of a facial rejuvenation needle has dropped from 20,000 yuan to 999 yuan, and the price war in the medical beauty industry is becoming increasingly fierce. Analysis believes that the essence of the price war is to squeeze out brand premium and channel markup, making medical beauty move from luxury consumption to popularization. Manufacturers' profits are compressed, but the real "payees" for the price reduction are the past excess profits in the industrial chain.

3. Quarterly reports of multiple banks are impressive:

- Industrial and Commercial Bank of China ("ICBC") quarterly report shows that both revenue and profit grew at an accelerated pace, achieving a net profit attributable to parent of 86.941 billion yuan in the first quarter;

- Bank of Communications released its "best" quarterly report in nearly three years, with revenue increasing by nearly 5%, net profit increasing by more than 3%, and total assets exceeding 16.27 trillion yuan;

- Shanghai Pudong Development Bank's quarterly report was released, with revenue and net profit continuing to "double increase", net interest margin stabilizing and rebounding, and net interest income achieving double-digit growth;

- Industrial Bank released its quarterly report, achieving a net profit of 23.832 billion yuan, wealth intermediary business income increased by 17.5%, and the growth rate of technology loans, green loans and other loans was higher than the overall loan growth rate.

4. People's Insurance Group's quarterly report: People's Insurance, the largest property insurance group in Asia, released its results, with a net profit of more than 8.8 billion yuan in the first quarter, an investment income of 8.931 billion yuan, and the three core businesses achieved "stable growth".

5. Differentiation in brokers' quarterly reports:

- Tianfeng Securities' Q1 net profit plummeted 99% to 220,000 yuan, mainly due to the shrinkage of investment income;

- Oriental Securities released its last quarterly report before merging Shanghai Securities, with both revenue and profit growing in the first quarter, and brokerage, investment banking and asset management income generally recovering.

6. Quarterly reports of multiple physical enterprises performed prominently:

- PetroChina's Q1 net profit increased by 2% year-on-year to 48.3 billion yuan, a record quarterly profit;

- Yangtze Optical Fiber's Q1 revenue increased by 27.7%, net profit was 495 million yuan, an increase of 226.4% year-on-year;

- Luckin Coffee's Q1 revenue increased by 35% year-on-year, non-GAAP net profit increased by 5.9% year-on-year, and launched its first share repurchase plan;

- Ganfeng Lithium's Q1 revenue increased by 144% year-on-year, and net profit of 1.84 billion yuan turned profitable: Q1 revenue was 9.196 billion yuan, an increase of 143.81% year-on-year; net profit attributable to parent was 1.837 billion yuan, compared with a loss of 356 million yuan in the same period last year, turning profitable year-on-year. The main business recovered driven by rising volume and price, the gross profit margin improved, and R&D investment increased by 89%; the total contribution of investment income and financial asset appreciation was about 534 million yuan, providing additional support for profits, and operating cash flow turned from negative to positive at 787 million yuan.

### Overseas Macroeconomics

1. U.S. crude oil exports hit a record high: U.S. crude oil exports exceeded 6 million barrels per day last week, and total oil and fuel exports exceeded 14 million barrels per day, a record high. At the same time, U.S. crude oil inventories fell by 6.2 million barrels last week, far exceeding the analysts' expected decline of 231,000 barrels, and gasoline and distillate inventories also shrank significantly. Affected by this, WTI crude oil rose 6.7% and Brent crude oil rose 5.8%.

2. U.S. gasoline prices soared 40% in two months: The conflict in the Middle East led to the obstruction of the Strait of Hormuz, coupled with the United Arab Emirates' withdrawal from OPEC, U.S. gasoline prices continued to soar. On April 28, the national average gasoline price reached $4.17 per gallon, a four-year high, an increase of about 40% from $2.98 before the conflict broke out (February 26). Although Trump once optimistically expected oil prices to drop sharply, his escalation threats and long-term blockade statements further exacerbated market concerns, and the soaring oil prices are impacting U.S. consumer spending, putting pressure on the inflation outlook.

3. German inflation unexpectedly "cooled down": Germany's April inflation rate was 2.9%, lower than market expectations, while Spanish inflation unexpectedly climbed to 3.5%. The differentiation within the euro zone has made the ECB's decision more complex. The market generally expects the ECB to raise interest rates by 25 basis points in June rather than April. Germany has launched a 1.6 billion euro relief measure, but the finance minister warned that the energy shock may continue. The ECB is generally inclined to wait and see, and the interest rate hike path still depends on the evolution of the situation in the Middle East.

### Overseas Companies

1. "AI subprime crisis" is emerging: GitHub Copilot has switched to pay-per-use, tearing off the fig leaf of "subsidizing for growth" in the AI industry. Famous technology commentator Ed Zitron believes that the AI subscription model is essentially a fraud, covering up the real cost that Anthropic loses $13.5-$31.5 for every $1 paid by users. More notably, Oracle CEO Larry Ellison's fortune is betting on whether Sam Altman can create $852 billion out of thin air within four years - a "pass-the-parcel" game is approaching its end.

2. Intel's foundry business ushered in a turning point: Apple is evaluating the introduction of M-series chips into Intel's 18A-P node, and Google is exploring the use of Intel's EMIB (Embedded Multi-die Interconnect Bridge) advanced packaging technology for the TPU v8e project, with related products expected to be launched as early as 2027; Tesla has confirmed to be the first external customer of the 14A process. Analysis believes that under the trend of surging AI demand and supply chain diversification, the yield of Intel's advanced processes has continued to improve, and its strategic position in foundry is significantly rising.

3. AI helps early detection of pancreatic cancer: The AI system Redmod developed by the Mayo Clinic can identify early signs of pancreatic cancer from routine CT scans about 475 days in advance, with an early detection rate of 73%, about twice that of radiologists (39%). The study points out that if the proportion of early cases increases from 10% to 50%, the survival rate of pancreatic cancer is expected to double. The system still needs prospective clinical research verification.

### Industry/Concepts

1. Quantum Computing: According to Shanghai Securities News, recently, the "Study and Research" published a signed article by the Party Committee of the State-owned Assets Supervision and Administration Commission of the State Council, "Fighting the 'Five Major Battles' to Fully Fulfill the Strategic Mission of State-owned Assets and Central Enterprises in the '15th Five-Year Plan' Period". It mentioned that we should adhere to differentiated layout, further consolidate the advantages of new energy, aerospace and other industries, continue to focus on key areas such as new energy vehicles, artificial intelligence and new materials, and cultivate cutting-edge tracks such as quantum information, nuclear fusion and low-altitude economy in advance.

Comment: Oriental Securities believes that quantum computers have broken through the error correction threshold, getting closer to building fault-tolerant quantum computing, and the commercialization process is accelerating. The policy support for new quality productive forces such as quantum computing is expected to bring greater market space and release performance potential. Attention can be paid to upstream core equipment and components, midstream complete machine platforms and downstream application security and other fields.

2. Cloud Computing: According to the announcement on Tencent Cloud's official website on April 28, the new pricing plan for CodeBuddy and WorkBuddy products will be implemented from May 15, 2026. Among them, the price of the enterprise flagship version will be increased from 78 yuan/person/month to 198 yuan/person/month, an increase of about 154%; the enterprise exclusive version will be increased from 158 yuan/person/month to 316 yuan/person/month, an increase of 100%. This is the third time Tencent Cloud has announced a price increase this year, and this round of price increases is not an isolated case. Amazon Web Services, Google Cloud, Alibaba Cloud and Baidu Intelligent Cloud have all successively announced price increases for related products.

Comment: Soochow Securities said that the cloud service price increase cycle has just begun, and major manufacturers have successively introduced purchase restrictions or even price increases. With the increase in token usage, high-end computing power will become more and more scarce; at the same time, industry barriers are gradually increasing, and market share is concentrating on leading suppliers.

3. Lithium Batteries: According to grassroots research by securities companies, the production scheduling of the lithium battery industry chain will continue to increase year-on-year and month-on-month in May. From the data of sample enterprises, the year-on-year and month-on-month growth rates of battery enterprises' production scheduling in May are 67% and 15% respectively, among which the growth rate of LFP is faster; the production scheduling of positive electrodes, negative electrodes, diaphragms and electrolytes has a year-on-year growth rate of 50-70%, with a slight month-on-month growth.

Comment: Dongguan Securities believes that new cars were intensively released at the Beijing International Auto Show, and the terminal market is expected to gradually recover; against the background of current high oil prices, the economy of electric vehicles is prominent, and the electrification trend is more distinct. The energy storage market remains in short supply, supported by the domestic new energy storage capacity price compensation policy. The recently issued "Opinions on Doing a Better Job in Energy Conservation and Carbon Reduction at a Higher Level" proposes to vigorously develop new energy storage. The upsurge in overseas AI data center construction and the geopolitical conflict in the Middle East have further increased energy storage demand. The pre-production scheduling of the lithium battery industry chain in May continued to increase month-on-month, indicating strong downstream demand.

4. Lab-Grown Diamonds: According to China Securities News, a U.S. lab-grown diamond institution recently released a new technical report pointing out that the thermal conductivity of single-crystal diamond is 16 times that of silicon, about 6 times that of materials such as silicon carbide, copper, AlN, silver and gold. Diamond is not only a high-quality heat conduction medium, but also in high-power chip packaging, integrating diamond as a substrate not only has excellent heat dissipation effect, but also can realize two-phase cooling at the chip level by redistributing the overall thermal resistance and the temperature drop across the substrate. This design can improve heat dissipation performance by 10 to 100 times, while reducing liquid flow demand by about 55 times.

Comment: With its extreme physical properties, diamond is becoming an important option for a new generation of heat dissipation materials. In scenarios with high thermal conductivity requirements, diamond is the only optional heat sink material. It is reported that NVIDIA announced that its next-generation VeraRubin architecture GPU will adopt a "diamond-copper composite heat dissipation" scheme. Institutions believe that the future GPU thermal management will form a three-layer system of "chip-level material heat conduction + board-level/cabinet-level cooling architecture + computer room-level energy efficiency system", and liquid cooling and diamond material enhancement form a superimposed effect. The AI thermal management track is ushering in a new era driven by material innovation.

5. Cosmetics: According to China Securities News, the State Drug Administration recently released the 2026 China Cosmetics Standard Project Plan, planning to formulate and revise 27 standards, covering hair dye raw materials, cosmetic raw materials, general technical requirements and inspection methods for toothpaste, etc., to provide more accurate technical support for China's cosmetics supervision.

Comment: Driven by technological innovation, the rise of domestic brands and consumption upgrading, China's cosmetics industry is standing at a historic juncture of crossing from a "big cosmetics manufacturing country" to a "strong cosmetics manufacturing country". China has firmly established itself as the world's largest cosmetics consumer market, with the industry market scale exceeding 1.1 trillion yuan in 2025, showing strong resilience and vitality.

### Today's Key News Preview

1. China's April Manufacturing PMI, Non-Manufacturing PMI, Composite PMI;

2. U.S. Q1 Real GDP;

3. U.S. March Personal Income, Personal Consumption Expenditures, PCE Price Index;

4. U.S. Initial Jobless Claims for the past week;

5. Eurozone April CPI;

6. Eurozone Q1 GDP;

7. The European Central Bank announces the interest rate decision, and President Lagarde holds a monetary policy press conference;

8. The Bank of England announces the interest rate decision, and Governor Bailey holds a monetary policy press conference;

9. Apple and Samsung Electronics release their earnings reports.

### Risk Warning and Disclaimer

The market is risky, and investment needs to be cautious. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, views or conclusions in this article are in line with their specific situation. Investment based on this is at your own risk.