CROSS ASSET: Risk Sentiment Aided By China Remarks On Iran Conflict

A total of 30 companies listed on the A-share market in Q1, compared to 27 over the same period in 2025, raising CNY25.88 billion, an increase of about 60% year-on-year, Shanghai Securities News reported. The IPOs were mainly companies from electronics, high-end equipment, new materials, and new energy. The review process also showed signs of acceleration, with three stock exchanges arranged for 46 companies to come up for listing review, far exceeding the eight firms in the same period last year, while 11 companies were accepted for review, representing an increase of 57% y/y.

Chinese economists are optimistic that prices will continue to recover reasonably in Q2, as China’s ample supply capacity remains the foundation for price stability despite the imported impact of international energy prices, according to a survey of 60 respondents by Securities Times. Meanwhile, 52% of respondents believed that geopolitical conflicts would generally benefit China's exports in Q2, while 45% considered the overall impact manageable. 75% of respondents gave the stock market a score of 3 or above out of 5, showing confidence to Q2 A-share performance, supported by relatively high risk appetite, policy signals to stabilise the market and a relatively loose liquidity environment.  

China’s exports will likely maintain a relatively strong growth momentum in the future, as shipments of high value-added and high-tech products are less volatile and more resilient to risks, Securities Daily reported citing analysts. China’s exports of electromechanical products reached CNY4.34 trillion in Q1, a year-on-year increase of 18.3%, accounting for 63.4% of total exports, 3.5 percentage points higher than the same period last year. Among them, exports of green products such as electric vehicles, lithium batteries, and wind turbine generators and their parts increased by 77.5%, 50.4%, and 45.2%, respectively.