Real-time News

According to Zhonglianjin Information Network, sulfur prices generally declined today. In Shandong, Dongming Petrochemical quoted solid sulfur at 7550 yuan/ton and liquid sulfur at 7400 yuan/ton, both down 150 yuan/ton from the previous period; Qicheng Petrochemical and Zhenghe Petrochemical quoted liquid sulfur at 7300 yuan/ton, both down 100 yuan/ton; Huaxing Petrochemical quoted liquid sulfur at 7260 yuan/ton, down 90 yuan/ton; Shangneng Petrochemical and Shenchi Chemical quoted liquid sulfur at 7290 yuan/ton and 7303 yuan/ton respectively, down 60 yuan/ton and 50 yuan/ton respectively; Wantong Petrochemical quoted solid sulfur at 7077 yuan/ton, down 30 yuan/ton. Regarding ports, Zhenjiang Port's price is 7400-7430 yuan/ton, down 30-40 yuan/ton from the previous period; Dafeng Port's price is 7380-7410 yuan/ton, down 30-40 yuan/ton from the previous period. In addition, Qingdao Refining & Chemical's solid and liquid prices remain stable, while Jincheng Petrochemical and Xintai Petrochemical have no prices quoted, and Huifeng Petrochemical's liquid sulfur price is currently unavailable due to unit shutdown.

ECB Executive Board member Schnabel: (Regarding rising bond yields) I have not seen any worrying developments.

ECB Executive Board member Schnabel: The inflationary shock is gradually spreading to other parts of the consumption basket, and signs are becoming increasingly apparent.

ECB Executive Board member Schnabel: The latest data indicates that there are upside risks to inflation and downside risks to economic growth.

ECB Executive Board member Schnabel: The negative impact of the shock on economic growth will be more severe.

ECB Executive Board member Schnabel: Even if the war with Iran ends today, policy action will still be needed based on the extent of damage to energy infrastructure.

On May 26th, Citigroup issued a research report, significantly raising its target price for Lenovo (00992.HK) from HK$12.6 to HK$20, maintaining a "Buy" rating. The bank also raised its earnings forecasts for fiscal years 2027 and 2028 by 53% and 47% respectively, and introduced an adjusted earnings per share forecast of US cents of 27.57 for fiscal year 2029. The bank stated that Lenovo has an advantage in seizing market share given the shortage of key components and limited production capacity. Given its continued execution to achieve operating leverage and expand its product portfolio following the acquisition of Infinidat, the company also benefits from rising average selling prices and GPU server prices.

The Indonesian rupiah continued to hit a new low against the US dollar, trading at 17,790.

Jefferies raised its target price for Marathon Petroleum (MRO.N) from $279 to $296.

Jefferies: Raises its price target for Phillips 66 (PSX.N) from $173 to $191.

On May 26, according to South Korea's Joint Chiefs of Staff, North Korea launched an unidentified projectile into the western waters of the Korean Peninsula. North Korean officials have not yet released any official statement on the matter.

On May 26th, Shengfa Report maintained its target price of HK$273 for Hesai-W (02525.HK) in Hong Kong and US$35 for its US-listed shares, reiterating its "Buy" rating. Goldman Sachs stated that following the Q1 2026 results, based on orders and guidance provided by current management, SGI revenue is projected to slow to RMB 1 billion by 2027-2030 due to market uncertainty. The bank raised its net profit forecast for 2026-2030 by up to 14%. Therefore, it maintained its target price and rating. The report noted that the company's Q1 revenue and gross profit met expectations, while EBIT exceeded Goldman Sachs's expectations by 47% and market expectations by 63%, primarily due to lower operating expenses. Furthermore, Hesai Technology launched the SGI segment, which is expected to generate approximately RMB 100 million in revenue in 2026 and aims to reach RMB 500 million by 2027. SGI is also expected to achieve higher recurring revenue and thus higher profit margins through the use of software and platforms. Looking ahead to the next few quarters, the bank expects sales volume, profit margins, and profitability to gradually improve. For the full year 2026, revenue is expected to grow by 50%, with a gross margin of 40%. Given the continued operating leverage, EBIT is expected to increase by 139% year-on-year in 2026, and the EBIT margin is expected to improve from 9% in 2025 to 15%.

Futures Market News, May 26th: Wheat prices remained generally stable today. Currently, we are in a transition period between old and new wheat varieties, and flour mills have rigid demand for stockpiling. Coupled with low stocks of old wheat, this provides support for wheat prices. Although old wheat prices are supported in the short term, the overall situation of ample supply and weak downstream demand remains unchanged. Flour mills are operating at low capacity, maintaining a just-in-time purchasing model. The emergence of low-priced sprouted wheat provides feed companies with new options. Short-term prices may remain stable with a slight upward bias. Attention should be paid to weather changes in producing areas.

The National Bank of Kyrgyzstan kept its policy rate unchanged at 12.0%.

According to the Financial Times, a senior EU official said that Britain could join a €4 billion EU startup equity fund by the end of this year as both sides work to remove the obstacles that have arisen since Britain left the EU six years ago.

On May 26th, the Shenzhen Municipal Government released the Outline of the 15th Five-Year Plan for National Economic and Social Development. The plan proposes to coordinate the research and development and manufacturing of intelligent computing chips, the construction of computing infrastructure, and the development of model algorithms to create an efficient and user-friendly artificial intelligence technology foundation. It aims to solidify the foundation of the computing chip industry, promote the optimization and iteration of training chips such as Ascend and edge inference chips, and foster the prosperity of the domestic artificial intelligence computing power ecosystem. The plan also emphasizes strengthening the multi-layered intelligent computing power foundation, constructing high-standard training infrastructure, and creating a sustainable computing power supply system that is highly intelligent, collaborative, heterogeneous, and ubiquitous. Furthermore, it calls for strengthening basic theoretical research in artificial intelligence and innovation in model infrastructure, cultivating internationally leading domestic general-purpose large-scale models and industry application models, and promoting the application of model algorithms through high-value application scenarios. By 2030, the city's real-time available computing power will exceed 150 EFlops, with some indicators of domestic chips and computing clusters reaching international advanced levels, forming a powerful large-scale model foundation that supports comprehensive applications.

On May 26th, the Outline of the 15th Five-Year Plan for National Economic and Social Development of Shenzhen was released. It proposes to actively develop "bold capital" and "patient capital," attract international capital, strengthen industrial capital, and invest in key areas of industrial development and technological innovation. It calls for increased efforts to attract national-level fund of funds and develop market-oriented fund of funds, encouraging financial asset management companies, insurance companies, and industrial capital to establish venture capital funds in Shenzhen. It also promotes a high-level pilot program for a comprehensive intellectual property financial ecosystem, supporting the Shenzhen Stock Exchange's Technology Achievements and Intellectual Property Exchange Center in building a national comprehensive service platform connecting the technology market and the capital market. The plan emphasizes the comprehensive use of diverse financial instruments such as credit, leasing, and insurance to strengthen financial support for new technologies, new business models, and new products. It also calls for implementing a corporate mergers and acquisitions initiative, increasing support for corporate listings, mergers and acquisitions, and bond issuance. During the 15th Five-Year Plan period, the growth rate of technology loans and medium- and long-term loans to the manufacturing sector will be higher than the overall loan growth rate.

On May 26th, Goldman Sachs issued a report raising its target price for NetEase-S (09999.HK) Hong Kong shares by 3.8%, from HK$250 to HK$260, while also raising its target price for US shares to US$166, reiterating its "Buy" rating. The bank stated that NetEase's Q1 2026 results were strong, but the company's share price is currently very weak, and the bank believes the price correction has been excessive, especially given the 6% upward revision of earnings per share following the earnings announcement. The most surprising aspect of the company's quarterly results was the record-high profit margin, with gross margin increasing by 500 basis points quarter-on-quarter. This is because the company's profits mainly stemmed from the transformation of payment channels. Although AI is still in its early stages, it continues to permeate the company's game development, and cost benefits are beginning to appear. Looking ahead, the bank believes the company has abundant catalysts in the second half of 2026: 1) New game launches. The bank expects new games to generate RMB 5.9 billion in revenue over 12 months; 2) Strong profit growth. Operating profit is expected to continue to grow by 15-20% for the remainder of the year; 3) If it becomes a major Hong Kong listing and is included in the Southbound Stock Connect, it will help diversify the flow of funds to investors in the stock.