Open lower and rise higher, over 4,300 stocks closed higher! The lithium battery sector explodes, with more than 10 stocks including Ganfeng Lithium hitting the daily limit! Power stocks pull back, Liaoning Energy hits the limit down | A-shares closing

Reporter | Du Bo

Editor | Duan Lian Yi Qijiang Proofreading | Zhang Jinhao

On March 27, the market opened lower and rose higher, with the Shenzhen Component Index up over 1%. By the close, the Shanghai Composite Index was up 0.63%, the Shenzhen Component Index was up 1.13%, the ChiNext Index was up 0.71%, and the Sci-Tech Innovation Index was up 1.54%. The trading volume on the Shanghai and Shenzhen markets has been below 2 trillion yuan for two consecutive days, with only 1.85 trillion yuan today, a decrease of 90.3 billion compared to the previous trading day. Over 4,300 individual stocks in the market rose.

In terms of market performance, the hot spots rotated quickly. From the sector perspective, the lithium battery industry chain exploded, with more than ten constituent stocks hitting the daily limit, Rongjie Co., Ltd. with four consecutive limit-ups, Shida Shenghua with two consecutive limit-ups, and Jiangte Motor, Jinyuan Co., Ltd., Shengxin Lithium Energy, Ganfeng Lithium, Haike Xinyuan, and Chuaneng Power all hitting the limit. The pharmaceutical sector strengthened, with Keta Bio hitting the daily limit at 20%, Minophagen with five limit-ups in six days, Wanbangde with three limit-ups in four days, and Shuanglu Pharmaceutical with three limit-ups in three days. The chemical sector performed actively, with Sully Co., Ltd., Lubei Chemical, Jinzhengda, and Jink coal Technology hitting the limit.

On the downside, the power sector, which had previously risen sharply, saw a correction, with multiple stocks in the green energy direction dropping significantly. Liaoning Energy hit the limit down, while Jieneng Wind Power, Haili Wind Power, and Hunan Development fell sharply.

Dongxing Securities research report stated that as one of the world’s major oil importers, high oil prices bring direct cost pressures, while rising energy prices raise further concerns about a global economic recession, subsequently affecting the export environment for Chinese manufacturing. In addition, the rise in energy prices leads to changes in the pace of the Federal Reserve’s monetary policy, delaying market expectations for interest rate cuts, and a stronger dollar puts pressure on the global capital market.

It noted that the easing of conflicts to some extent is beneficial for the market’s risk appetite to recover, with the short-term impact of oil price fluctuations significantly reduced, and the market returning to a fundamental logic. Growth stocks, which had seen clear adjustments earlier, are expected to stop falling and rebound. The market has fallen from the previous range of 4,000-4,200 points to the 3,800-4,000 range, and is expected to form a new market bottom around 3,900. From the impact of several wars such as the Iraq War and the Russia-Ukraine conflict on the capital market, they are all considered short-term disturbance factors and do not constitute long-term core factors. “Therefore, the market is expected to build a mid-term bottom region, and from an annual perspective, the area around 3,800 points is expected to become a mid-line layout area. The core logic of the A-share market operation remains the progress of domestic economic recovery, monetary policy, and industrial upgrading, with the industrial development direction in the 14th Five-Year Plan still being a key focus for growth stock layout.”

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