Group 1 - The Chief Executive John Stankey has agreed to new terms for the FirstNet program after discussions with Commerce Secretary Howard Lutnick [1]

Findings of Investigation by the Special Investigation Committee March 31, 2026 Toshiya Natori, Attorney-at-law, SHIN MARUNOUCHI LAW FIRM Tomohiro Hen, Attorney-at-law, Nagashima Ohno & Tsunematsu Yasunori Sato, Certified Public Accountant, Deloitte Tohmatsu LLC Outline of Investigation (1) The Special Investigation Committee (the "Committee") was retained by KDDI on January 14, 2026 to investigate the circular transactions lacking substance at BIGLOBE and G-PLAN (the "Fictitious Circular Transactions"). ◼ ...

Market Overview - The domestic market enters the earnings season in April, with ongoing overseas disturbances potentially balancing market styles[3] - Key focus areas include Middle Eastern geopolitical disturbances affecting oil prices and fluctuating inflation expectations[3] Investment Strategy - The strategy emphasizes three main lines: 1. Energy security, focusing on traditional energy price increases and new energy directions due to potential replenishment demand[3] 2. Technology, particularly AI infrastructure, including power, storage, and computing sectors[3] 3. Rebound of previously oversold sectors such as precious metals and commercial aerospace[3] Recommended Stocks - Key recommended sectors and stocks include: - Metals: Zijin Mining - Chemicals: Yara International - Petrochemicals: Shouhua Gas - Power: Longyuan Power H - Coal: Yancoal Energy - New Energy: Jiayuan Technology - Banking: Hangzhou Bank - Agriculture: Dekang Agriculture - Electronics: Zhaoyi Innovation - Communication: Zhongji Xuchuang[6] Risk Factors - Economic recovery may fall short of expectations, with potential slow job growth and reduced market demand[34] - Significant changes in individual stock fundamentals could impact performance[34] Earnings Forecasts - Forecasted earnings per share (EPS) and price-to-earnings (PE) ratios for key stocks: - Zijin Mining: EPS of 3.10 in 2026, PE of 10.5[28] - Yara International: EPS of 4.24 in 2026, PE of 15.2[28] - Shouhua Gas: EPS of 1.42 in 2026, PE of 16.7[28] - Longyuan Power H: EPS of 0.72 in 2026, PE of 9.5[28] - Yancoal Energy: EPS of 1.23 in 2026, PE of 16.5[28] - Jiayuan Technology: EPS of 1.90 in 2026, PE of 21.9[28] - Hangzhou Bank: EPS of 2.84 in 2026, PE of 5.8[28] - Dekang Agriculture: EPS of 2.89 in 2026, PE of 20.3[28] - Zhaoyi Innovation: EPS of 8.62 in 2026, PE of 30.0[28] - Zhongji Xuchuang: EPS of 17.40 in 2026, PE of 34.4[28]

Group 1: Hong Kong Market Focus - The report highlights the potential impact of escalating Middle Eastern tensions on the Hong Kong market, particularly in relation to the upcoming political bureau meeting and its policy responses [9][11]. - The high oil prices above $80 per barrel are expected to exert pressure on the MSCI China index, affecting companies like COSCO Shipping Energy and Lao Poo Gold [16][24]. - The Global X Hang Seng High Dividend ETF is noted for its diversified approach, tracking a high dividend yield index composed of large and mid-cap stocks from the Hang Seng Index [25]. Group 2: Thailand Market Focus - Thailand is experiencing deepening deflationary pressures, with the Consumer Price Index (CPI) showing a year-on-year decline of 0.22 percentage points to -0.88% in February 2026, which is lower than market expectations [32][30]. - The Board of Investment (BOI) aims to further enhance foreign direct investment (FDI) in 2026, with a focus on becoming a digital platform hub and a high-end technology center [39][28]. - Companies like Advanced Info Service (ADVANC) and CP ALL are highlighted for their resilience in the current economic climate, with ADVANC benefiting from digital trends and CP ALL expected to gain from consumer "downgrade" behavior [42][41]. Group 3: Indonesia Market Focus - The report indicates ongoing uncertainties surrounding the Indonesian economy, particularly in light of recent downgrades and the need for attention on the iShares MSCI Indonesia ETF [48][50]. - Indonesia's fiscal deficit is projected to exceed the 3% GDP limit this year, raising concerns about economic stability [51].

Performance Overview - Southeast Asia ETF rose by 0.90% over the two-week period from March 14 to March 27, 2026, outperforming Japan, Latin America, Africa, the UK, China, India, and the US[3] - The Southeast Asia Technology ETF declined by 3.19%, underperforming the broader Southeast Asia ETF by 4.09 percentage points[3] Country-Specific Performance - iShares MSCI Indonesia ETF fell by 0.84%, underperforming by 1.74 percentage points, influenced by external energy cost shocks and domestic fiscal consolidation efforts[4] - iShares MSCI Singapore ETF increased by 1.66%, outperforming by 0.76 percentage points, supported by government energy subsidy measures despite external inflation pressures[4] - iShares MSCI Thailand ETF gained 1.27%, outperforming by 0.37 percentage points, with stable market conditions bolstered by clear government policies[4] - iShares MSCI Malaysia ETF decreased by 0.73%, underperforming by 1.63 percentage points, primarily due to surging diesel prices impacting costs[4] - Global X MSCI Vietnam ETF dropped by 0.70%, underperforming by 1.60 percentage points, as the market reacted negatively to the global energy crisis despite government relief measures[4] Market Liquidity - Trading volumes for Southeast Asia ETFs decreased significantly, with Global X FTSE Southeast Asia ETF trading volume down by 48.2% to 315,000 shares[15] - iShares MSCI Singapore ETF saw a trading volume decline of 40.2% to 9.381 million shares, while iShares MSCI Thailand ETF experienced a 65.9% drop to 896,000 shares[15] Risk Factors - Macroeconomic volatility risks in Southeast Asia due to external demand weakness and policy easing uncertainties[5] - Geopolitical risks affecting regional supply chains and increasing instability[5]

1. Report Industry Investment Rating No relevant content provided in the report. 2. Core Viewpoints - The report expects the liability growth rate of the real - sector to decline to around 8.3% in March 2026, and to around 8.0% by the end of 2026. The liability growth rate of the government sector is expected to drop to around 11.5% in March and around 11.6% by the end of 2026. It is recommended that investors control stock and bond positions, focus on short - term and money - market assets, and the equity style is expected to shift towards value - dominance [2][17][18]. - Amid the China - US competition and potential re - valuation of the US technology sector, global funds may flow to China. Attention should be paid to whether the RMB exchange rate enters an appreciation channel. The risk preference may enter a range - bound state, and new funds in the financial market may be limited [6][20]. - In the short term, due to the Iran - US conflict, the A - share market is negatively correlated with international oil prices. Long - term bond prices have stabilized, and ultra - long - term bond prices have risen. The report continues to recommend the Shanghai Composite 50 Index (80% position) and the CSI 1000 Index (20% position) [7][21][22]. - In the de - leveraging cycle, the cost - performance ratio between stocks and bonds favors equities to a limited extent, and the value style is more likely to be dominant. The report recommends an A + H dividend portfolio and an A - share portfolio, mainly concentrated in industries such as banking, telecommunications, petroleum and petrochemicals, and transportation [9][58]. 3. Summary of Each Section 3.1 National Asset - Liability Sheet Analysis Liability Side - In February 2026, the real - sector liability growth rate was 8.4%, up from 8.3% previously. It is expected to decline to around 8.3% in March and remain stable in April. The government debt increased by 223.6 billion yuan last week, higher than the planned 185.4 billion yuan. The government liability growth rate at the end of February was 12.1%, down from 12.6% previously, and is expected to further decline to around 11.5% in March [2][17][18]. - The money market tightened last week. It is still expected that the peak of the money market in March will occur on the 5th. It is estimated that the one - year Treasury bond yield will have a lower limit of about 1.3% and a central value of around 1.4%, with a 10 - basis - point interest rate cut expected in 2026 [3][18]. Asset Side - The physical data from January to February showed a significant improvement compared to December. The two sessions set the annual real economic growth target for 2026 at 4.5 - 5%, and the nominal economic growth target is around 5.0% [19]. 3.2 Stock - Bond Cost - Performance and Stock - Bond Style - Since 2011, China has entered a period of declining potential economic growth, which may have ended in Q4 2024. The government put forward three major policy goals in 2016. Currently, the de - leveraging on the liability side has not ended, but the room for further de - leveraging is limited [6][20]. - Last week, the money market tightened, and the Iran - US conflict dominated the market. The A - share market was bearish, and the bond market was bullish, with the growth style prevailing. The ten - year Treasury bond yield dropped by 1 basis point to 1.82%, and the 30 - year Treasury bond yield dropped by 4 basis points to 2.35%. The stock - bond cost - performance ratio favored bonds [7][21]. 3.3 Industry Recommendation Industry Performance Review - This week, the A - share market declined with shrinking volume. The Shanghai Composite Index fell 1.1%, the Shenzhen Component Index fell 0.8%, and the ChiNext Index fell 1.7%. Among the Shenwan primary industries, non - ferrous metals, public utilities, basic chemicals, pharmaceutical biology, and textile and apparel had the highest gains, while non - bank finance, computer, agriculture, forestry, animal husbandry and fishery, beauty care, and national defense and military industry had the largest declines [29]. Industry Crowding and Trading Volume - As of March 29, the top five crowded industries were electronics, power equipment, non - ferrous metals, communications, and basic chemicals, while the bottom five were beauty care, comprehensive, social services, textile and apparel, and steel. The industries with the largest increase in crowding this week were pharmaceutical biology, non - ferrous metals, public utilities, basic chemicals, and automobiles, while those with the largest decline were computer, communications, power equipment, electronics, and building decoration [30]. - The average daily trading volume of the entire A - share market this week was 2.11 trillion yuan, down from 2.21 trillion yuan last week. Public utilities, coal, social services, pharmaceutical biology, and textile and apparel had the highest year - on - year growth rates in trading volume, while steel, basic chemicals, agriculture, forestry, animal husbandry and fishery, building decoration, and petroleum and petrochemicals had the largest declines [33]. Industry Valuation and Earnings - This week, among the Shenwan primary industries, building materials, basic chemicals, public utilities, petroleum and petrochemicals, and textile and apparel had the largest increases in PE(TTM), while beauty care, computer, agriculture, forestry, animal husbandry and fishery, non - bank finance, and electronics had the largest declines. Industries with high 2024 full - year earnings forecasts and relatively low current valuations compared to history include banking, securities, insurance, pharmaceutical biology, beauty care, new energy, gaming, and consumer electronics [35][36]. Industry Prosperity - In terms of external demand, there were both increases and decreases. The global manufacturing PMI rose from 50.9 in February to 51.9, and most major economies' PMIs increased. The CCFI index rose 1.6% week - on - week, and port cargo throughput rebounded. South Korea's export growth rate decreased slightly in February and increased to 50.4% in the first 20 days of March. Vietnam's export growth rate decreased from 34.3% in January to 6.3% in February [40]. - In terms of domestic demand, second - hand housing prices declined last week, and quantity indicators showed mixed trends. Highway truck traffic volume rebounded, and the capacity utilization rate of ten industries rebounded to around the historical median level in March. Automobile trading volume was relatively weak seasonally, new - home sales were at a historical low, and second - hand home sales were at a historical high [40]. Public Fund Market Review - In the fourth week of March (March 23 - 27), most active public equity funds outperformed the CSI 300. As of March 27, the net asset value of active public equity funds was 3.81 trillion yuan, up from 3.66 trillion yuan in Q4 2024 [55]. Industry Recommendation - In the de - leveraging cycle, the cost - performance ratio between stocks and bonds favors equities to a limited extent, and the value style is more likely to be dominant. The recommended A + H dividend portfolio includes 13 A + H stocks, and the A - share portfolio includes 20 A - share stocks, mainly concentrated in industries such as banking, telecommunications, petroleum and petrochemicals, and transportation [9][58].

Core Viewpoint - Bell Labs has been a pivotal institution in modern technology, producing foundational innovations that have significantly influenced various aspects of contemporary life and the global economy since its establishment in 1925 [1][2]. Group 1: Achievements and Innovations - Bell Labs has created numerous groundbreaking technologies, including the transistor, mobile networks, communication satellites, early lasers, solar energy, digital imaging, digital transmission, transatlantic telephone cables, the UNIX operating system, and the C++ programming language [2]. - The lab has approximately 30,000 patents and has been awarded 11 Nobel Prizes, although these metrics may not fully capture its innovative capacity [3]. Group 2: Innovation Environment - The lab's success can be attributed to its "environmental advantages," where researchers were tasked with solving complex problems related to communication networks [4][5]. - Funding played a crucial role, with Bell Labs benefiting from a substantial budget and the ability to invest heavily in R&D, allowing for the acquisition of advanced equipment and hiring top talent [7]. Group 3: Management and Strategy - The management approach at Bell Labs emphasized long-term thinking and the ability to tackle complex technical challenges without the pressure of competition, which allowed for sustained innovation over decades [7][8]. - The lab's structure facilitated collaboration among diverse experts, fostering an environment where innovative ideas could emerge from interdisciplinary interactions [12]. Group 4: Historical Context and Opportunities - Bell Labs was established during a time when modern communication technology was just beginning, and its collaboration with the military during WWII provided additional impetus for innovation [10][11]. - The foresight of leaders like Mervin Kelly allowed the lab to attract top scientists during the Great Depression, which laid the groundwork for future technological advancements [11]. Group 5: Legacy and Lessons - The decline of AT&T's monopoly led to a reduction in Bell Labs' resources, highlighting the unpredictability of technological progress and the challenges faced by even the most innovative organizations [15]. - The lab's success underscores the importance of aligning research with practical applications and commercial viability, as its innovations were aimed at improving communication systems [16].

Core Viewpoint - The Ministry of Finance has announced the 2026 central fiscal budget, highlighting an increase in the profit remittance ratio from state-owned enterprises (SOEs) and adjustments in various tax revenues, indicating a strategic shift in fiscal policy aimed at enhancing government revenue [1][2][3]. Group 1: Central State-Owned Capital Operating Budget - The 2026 budget for central state-owned capital operating income is set at 371.632 billion yuan, with profit income at 352.233 billion yuan [2]. - The profit remittance ratio for wholly state-owned enterprises (non-financial) has been categorized into four types, with the highest remittance ratio at 35%, up from 25% in 2025 [1][2]. - The first category includes resource-based enterprises like tobacco, oil, electricity, and telecommunications, with a remittance of 270.06 billion yuan, down 5.4% [2]. - The second category consists of general competitive enterprises, with a remittance of 63.317 billion yuan, down 7.8% [2]. - The third category includes military and certain state-owned enterprises, with a remittance of 17.856 billion yuan, down 9.8% [2]. - Policy-based enterprises are exempt from remittance, and financial enterprises are expected to contribute 1 billion yuan [2]. Group 2: General Public Budget Revenue - The 2026 general public budget revenue is projected to grow by 1.8% compared to 2025 [5]. - Major tax categories show growth: domestic VAT by 3.7%, domestic consumption tax by 0.9%, corporate income tax by 1.1%, and personal income tax by 2.4% [5]. - The securities transaction stamp duty is expected to increase by 0.7%, based on anticipated stock market trading volumes [5]. - The vehicle purchase tax is projected to rise by 22.2%, influenced by expected growth in automobile sales and the resumption of reduced tax rates for new energy vehicles [5]. - Non-tax revenue from confiscated income is expected to decline by 16.8%, reflecting anticipated enforcement outcomes [5]. Group 3: Transfer Payments to Local Governments - The central transfer payment budget to local governments for 2026 is set at 1.0415 trillion yuan, a 2.2% increase from 2025 [6]. - General transfer payments are budgeted at 947.792 billion yuan, increasing by 2.5% [6]. - The budget for equitable transfer payments is 283.4 billion yuan, up 3.7%, aimed at enhancing local fiscal capacity [6]. - Funding for preschool education is expected to rise by 37.8% due to new policies implemented from the 2025 autumn semester [6]. - Childcare subsidy funding is projected to increase by 10.6% based on estimated applications [6].

Core Viewpoint - The Ministry of Finance has announced the 2026 central fiscal budget, highlighting an increase in the profit remittance ratio from state-owned enterprises and adjustments in various tax revenues [1][2][5]. Group 1: Central State-Owned Capital Operating Budget - The 2026 budget for central state-owned capital operating income is set at 371.632 billion yuan, with profit income at 352.233 billion yuan [4]. - The profit remittance ratio for non-financial state-owned enterprises is categorized into four types, with the highest rate at 35%, up from 25% in 2025 [2][5]. - The first category includes tobacco and resource-based enterprises, with a remittance of 270.06 billion yuan, down 5.4% [4]. - The second category consists of general competitive enterprises, with a remittance of 63.317 billion yuan, down 7.8% [4]. - The third category includes military and certain state-owned enterprises, with a remittance of 17.856 billion yuan, down 9.8% [4]. - Policy-based enterprises are exempt from remittance, and financial enterprises are expected to contribute 1 billion yuan [4]. Group 2: General Public Budget Revenue - The 2026 general public budget revenue is projected to grow by 1.8% compared to 2025 [7]. - Major tax categories show growth: domestic VAT by 3.7%, domestic consumption tax by 0.9%, corporate income tax by 1.1%, and personal income tax by 2.4% [7]. - The securities transaction stamp duty is expected to increase by 0.7%, while the vehicle purchase tax is projected to rise by 22.2% due to anticipated growth in car sales [7]. - Non-tax revenue from confiscated income is expected to decline by 16.8%, and income from the paid use of state resources is projected to drop by 46.3% [7]. Group 3: Transfer Payments to Local Governments - The central transfer payment budget to local governments for 2026 is set at 10.415 trillion yuan, a 2.2% increase from 2025 [9]. - General transfer payments are budgeted at 9.478 trillion yuan, reflecting a 2.5% increase [9]. - The equitable transfer payment budget is projected to grow by 3.7% to 2.834 trillion yuan, aimed at enhancing local fiscal capacity [10]. - Funding for early childhood education is expected to increase by 37.8% due to new policies, while subsidies for energy-saving and emission-reduction will decrease by 63.8% as previous funds are settled [10].

Core Viewpoint - The article discusses the increase in the profit remittance ratio of central state-owned enterprises (SOEs) in China, aimed at improving public welfare and addressing fiscal imbalances, with the latest ratio being publicly disclosed for the first time [3][5]. Summary by Sections Profit Remittance Ratio - The profit remittance ratio for central wholly-owned enterprises (non-financial) has been significantly adjusted, with the remittance expected to reach 375.077 billion yuan in 2025, representing a year-on-year increase of approximately 78.5% [3][5]. - The remittance ratio is categorized into four types: 1. Tobacco and resource-based enterprises (oil, electricity, telecommunications, coal) at 35% [4]. 2. General competitive enterprises (non-ferrous and ferrous metallurgy, transportation, electronics, trade, construction) at 30% [4]. 3. Military enterprises and certain state-owned groups at 20% [4]. 4. Policy-based enterprises are exempt from remittance [5]. Historical Context and Changes - Since 2008, China has implemented a state-owned capital operation budget, with the latest adjustments reflecting a shift from five tiers of profit remittance to four, with increased rates across categories [5][6]. - The first category now includes not only tobacco but also major resource enterprises, indicating a substantial increase in the remittance from these sectors [6]. Fiscal Impact - The increase in profit remittance has led to a significant rise in fiscal contributions from related enterprises, with tobacco profits around 99.7 billion yuan (up 73%), oil and petrochemical profits at 91.9 billion yuan (up 81%), and telecommunications profits at 37.8 billion yuan (up 78%) for 2025 [7]. - The government aims to enhance the remittance ratio to address fiscal challenges, with a focus on sustainable social security and strategic investments [8]. Budget Projections - The central state-owned capital operating budget for 2026 is projected at approximately 371.6 billion yuan, a decrease of 4.8% from the previous year, with profit income expected to decline by 6.1% [8][9]. - The budget for capital operating expenditures is set at around 147.6 billion yuan, reflecting a growth of 13.8%, prioritizing national development strategies [9].