A-shares make a big comeback! Just now, a sharp surge!

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【Introduction】The Shanghai Composite Index fluctuated and turned positive, with the pharmaceutical and biotechnology sector experiencing a major surge; agriculture and power stocks remained active.

China Fund Reporter Chenxi

Hello everyone! It’s Friday again, let’s pay attention to the latest market trends and news~

On March 27, the A-share market opened lower, with the Shanghai Composite Index down 0.95%, and the Shenzhen Component Index, ChiNext Index, and Sci-Tech Innovation Board Index all down over 1%. Subsequently, the market fluctuated upward. As of the time of publication, the Shanghai Composite Index, Shenzhen Component Index, and Sci-Tech Innovation Board Index all turned positive, with over 4,100 stocks in the market rising.

On the market, the pharmaceutical and biotechnology, agriculture, forestry, animal husbandry, fishery, basic chemicals, and food and beverage sectors strengthened in the morning, with CRO, innovative drugs, and biological breeding concept stocks being active; meanwhile, sectors like telecommunications, home appliances, and electronics weakened.

Let’s look at the details—

Pharmaceutical stocks surged

On the morning of March 27, the A-share pharmaceutical and biotechnology sector soared, with Hotgen Biotech rising nearly 16%, and stocks like Lianhua Medicine, Wanbangde, and Meinuohua hitting the daily limit.

Recently, Lianhua Medicine announced that its holding subsidiary recently received approval from the National Medical Products Administration for the supplementary application of Nicardipine tablets, a modified new drug for treating coronary heart disease. Analysts believe that this approval has boosted investors’ confidence in the domestic innovative drug development. The sector’s rise reflects the dual drivers of policy support and clinical value orientation leading to a return of funds.

Hengrui Medicine surged sharply, rising nearly 7%.

BeiGene strengthened during the session, rising over 4%.

Basic chemical sector strengthened in the morning

Agricultural stocks rose

On March 27, the A-share basic chemical sector strengthened in the morning, with Shandong Haihua, Suli Co., Lubek Chemical, Baichuan Co., and Kingenta all hitting the daily limit.

Recently, global chemical giant BASF announced that due to rising costs caused by the Israel-Palestine conflict, the company would increase prices for more products. BASF stated that it would raise prices for its basic amine product portfolio in Europe, with increases of up to 30%, and some products may have even higher price hikes.

Shanghai Securities research report pointed out that the chemical industry is experiencing a recovery in prosperity, and the cycle is expected to warm up. The expected growth rate of industry supply is slowing, and the inventory replenishment cycle has already begun. The 14th Five-Year Plan leads high-quality development from both supply and demand sides: the supply side deepens “anti-involution” actions and the “dual carbon” goals, while the demand side accelerates technological self-reliance, with key material fields expected to welcome rapid development.

On March 26, local time, the Food and Agriculture Organization of the United Nations stated that the current Israel-Palestine conflict has triggered one of the fastest and most severe shocks in global commodity flows in recent years. Shipping through the Strait of Hormuz is obstructed, and costs for energy, fertilizers, and shipping insurance are rising, continuously impacting global food security and the stability of agricultural supply chains.

Meanwhile, agricultural stocks strengthened simultaneously in the morning, with Guangdong Hai Feed hitting the daily limit, and Dunhuang Seeds and Beidahuang among the top gainers.

Power stocks remained active

On the morning of March 27, the energy and power sectors continued to be active. Guangxi Energy (rights protection) and Jinkong Electric Power hit the daily limit in early trading, with Huadian Liaoning, Shenzhen Nanshan Electric A, and Qianyuan Electric Power all following suit.

Recently, the power sector has remained active, with the market generally agreeing that “the end of AI is electricity.” The International Energy Agency predicts that by 2026, the electricity consumed by data centers, artificial intelligence, and others will reach twice that of 2022, exceeding 1,000 terawatt-hours (TWh); it is expected that by 2030, the global electricity demand of data centers will exceed 945 terawatt-hours (TWh).

CITIC Securities research report believes that the escalating military conflict between Israel and Palestine has led to Iran blocking the Strait of Hormuz, with EIA data showing that about 20% of global oil and gas supply is affected, causing international oil and gas prices to rise significantly and expected to remain relatively high. Both China and Europe face the dilemma of excessive reliance on fossil fuels, highlighting energy security risks. The energy transition has upgraded from an optional path to a necessary strategy for ensuring energy security, and the industry is expected to welcome accelerated demand growth and valuation improvement through a “Davis Double Impact.”

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Editor: Gao Jia