Dive! Bad news strikes, straight-line crash!

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【Introduction】Market downturn, a major news event—Super Micro Computer and ZhiChuang Data suddenly plummeted. China Fund Reporter Taylor Brothers and Sisters, are you okay? Today’s market close was truly bizarre. The three major A-share indices continued to slide steadily, and Hong Kong stocks followed suit. After the A-share market closed, they continued to decline. Let’s take a look at what exactly happened.
In the final minutes, the market plunged, with the Shanghai Composite Index falling below 4,000 points. On March 20, the three major A-share indices showed mixed performance. Despite Elon Musk’s positive news, the ChiNext Index initially rose over 3%, but started to slide continuously in the afternoon. By the close, the Shanghai Composite fell 1.24%, the Shenzhen Component dropped 0.25%, and the ChiNext rose 1.3%.

There were 662 stocks up, with 39 hitting the daily limit; 4,786 stocks down, with 23 hitting the limit down; 23 stocks broke their limits, with a break rate of 40%.

Photovoltaic and energy storage sectors strengthened, with Guosheng Technology (rights protection), Yongzhen Co., Ltd., and others hitting the daily limit.

Optical communication concept stocks surged, with Yuanjie Technology up over 17%, surpassing Cambrian to become the second-highest priced stock in A-shares.

Lithium battery sector rebounded, with Shida Shenghua hitting the limit up.

On the news front, Elon Musk brought good news: Tesla is negotiating with Chinese suppliers to purchase equipment worth $2.9 billion (about 20 billion RMB at current exchange rates) for manufacturing solar panels and batteries. Tesla CEO Elon Musk aims to increase solar capacity by 100 gigawatts in the U.S.

According to three insiders, these Chinese companies were told to deliver the equipment by this fall, with two insiders indicating the equipment will be shipped to Texas, USA. The solar power capacity Tesla plans to build is mainly for its own use, but some will supply power to SpaceX satellites.

On the decline side, computational power leasing concept stocks fell sharply, with Litong Electronics and Chaoxun Communications (rights protection) hitting the limit down.

Chemical sector adjusted, with Jinhongda and Xinghua shares hitting the limit down.

Why did the three major indices plunge at the close? Market analysts estimate it might be to avoid weekend geopolitical risks.

A piece of negative news caused a sharp crash:

On March 20, another news item drew attention—ZhiChuang Data suddenly plunged and hit the limit down.

The news involved the U.S. Department of Justice accusing a co-founder of Super Micro Computer of illegally transporting servers worth billions of dollars equipped with NVIDIA chips abroad. Super Micro is a key assembler of AI servers with NVIDIA components, competing with companies like Foxconn. The company accounts for about 9% of NVIDIA’s revenue.

Affected by this news, Super Micro’s stock price plummeted about 20% in after-hours trading.

ZhiChuang Data heavily relies on overseas high-end GPU/server procurement. Market concerns grew that future access to computing hardware would become much more difficult and costly, triggering panic selling.

In response, ZhiChuang Data stated that the company has always operated in compliance, and all intelligent computing products are purchased through legitimate commercial channels, strictly adhering to market rules and laws.

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Editor: Liu Wanli SF014