Mainland China's deep V-shaped rebound: Three major stock indices close higher; over 5,100 stocks rise, with a combined market turnover of 2 trillion yuan.

For stock trading, refer to the analysis reports from the Golden Qilin analysts, authoritative, professional, timely, comprehensive, helping you uncover potential thematic opportunities!

The three major stock indices of A-shares opened higher collectively on March 24. In early trading, both markets showed a deep “V” pattern, with the three major indices fluctuating between gains and losses. In the afternoon, both markets trended higher, and the ChiNext index, which had once dropped over 2.4% in the morning, managed to turn positive.

From the market perspective, sectors such as lithium mining, electricity, environmental protection, shipping, precious metals, pharmaceuticals, chemical fibers, consumer goods, and military industry led the gains, while themes like computing hardware, AI applications, semiconductors, smart grids, and deep-sea technology were active.

By the close, the Shanghai Composite Index rose 1.78%, closing at 3881.28 points; the Sci-Tech 50 index rose 2.33%, closing at 1290.79 points; the Shenzhen Component Index rose 1.43%, closing at 13536.56 points; and the ChiNext Index rose 0.5%, closing at 3251.55 points.

According to Wind statistics, there were 5135 stocks rising across the two markets and the Beijing Stock Exchange, 328 stocks falling, and 26 stocks remaining flat.

The total trading volume of the Shanghai and Shenzhen markets was 208.28 billion yuan, a decrease of 34.87 billion yuan from the previous trading day’s 243.15 billion yuan. Among them, the Shanghai market traded 93.14 billion yuan, down 15.48 billion yuan from the previous trading day’s 108.62 billion yuan, while the Shenzhen market traded 115.14 billion yuan.

According to Great Wisdom VIP, there were 156 stocks in the two markets and the Beijing Stock Exchange with gains of over 9%, while 3 stocks had losses of over 9%.

Environmental protection stocks surged in the afternoon, while oil and petrochemical stocks fell against the trend.

In terms of sectors, environmental protection stocks surged significantly in the afternoon, leading the two markets, with stocks like Xuelang Environmental (300385), Hengyu Environmental (688309), Zhuojin Co., Ltd. (688701), China Tianying (000035), Lvyin Ecological (002887), Huahong Technology (002645), and Haitan Co. (603759) hitting the daily limit or rising over 10%.

Textile and apparel stocks surged sharply at the close, with stocks like Furui Co. (002083), Jiangnan High Fiber (600527), Geli Si (603808), and Langsha Co. (600137) hitting the daily limit, while stocks like Bangjie Co. (002634), Chaohongji (002345), Pathfinder (300005), and Jialinjie (002486) rose over 7%.

Nonferrous metals led the gains, with stocks like Xinlaifu (301323), Zhongyuan New Materials (603527), Rongjie Co. (002192), Lidai New Materials (603937), Haixing Co. (603115), and Yunnan Germanium (002428) hitting the daily limit or rising over 10%.

Bank stocks became the key to the morning rebound, with Ping An Bank (000001), Qingdao Bank (002948) rising over 4%, and CITIC Bank (601998), Suzhou Bank (002966), Zhangjiagang Bank (002839), and Zheshang Bank (601916) rising over 3%. A large number of individual stocks such as Jiangsu Bank (600919), Shanghai Rural Commercial Bank (601825), Shanghai Bank (601229), and Nanjing Bank (601009) rose over 2%.

Oil and petrochemical stocks showed noticeable declines, with Tongyuan Petroleum (300164), Intercontinental Oil and Gas (600759), Blue Flame Holdings (000968), and Renzhi Co. (002629) falling over 4%, while Heshun Petroleum (603353) and China Petroleum (601857) fell over 2%.

Coal stocks performed poorly, with Shanxi Coking Coal (000983), Zhengzhou Coal Electricity (600121), Antai Group (600408), and Shaanxi Coal and Chemical (601225) falling over 2%.

The impact of geopolitical factors on A-shares is short-term but not profound.

How will geopolitical risks affect the A-share market in the short term? Meng Lei, an analyst in China equity strategy at UBS Securities, pointed out that from a macro perspective, China’s dependence on oil and natural gas is relatively low among the major global economies. From an index perspective, the recent surge in oil prices seems to have a limited impact on the major A-share market indices. The implied volatility of major A-share indices is also lower than during the escalation of global trade conflicts in April 2025 and other major overseas indices, suggesting that the “de-risking” process may be nearing its end in the short term.

Guotai Junan Securities stated that recent geopolitical instability has caused concerns among many investors, but they believe that the impact of geopolitical factors on A-shares is short-term but not profound. The logic of the Chinese market/assets has advantages and differentiation; looking at the global declines, A-shares have consistently been among the markets with smaller declines. The long-term direction of A-shares is always determined by its endogenous core logic. We often say, “Confidence is more precious than gold.” In this moment when even gold has temporarily lost its safe-haven function and continues to weaken, perhaps more and more assets are quietly adjusting to the critical point—when the turning point will appear, let us witness it together.

Western Securities indicated that the Kondratiev wave’s decline accelerated sharply after the US-Iran war, reflected in the recent rapid increase in market volatility. However, large fluctuations instead provide a good entry opportunity for the next phase’s main line. The greater the volatility, the more one needs to calmly contemplate the trend. It is recommended to increase the allocation of the PPI chain in oil and chemical (core stocks) in the first half of the year, while also paying attention to Chinese manufacturing (photovoltaics (core stocks), wind power (core stocks), energy storage, construction machinery, etc.) that have the capacity to overtake in the curve; in the second half of the year, shift to the CPI chain’s liquor, as well as the Hang Seng Technology and gold that will benefit from the dollar index’s reversal.

Ping An Securities pointed out that in the short term, the US-Iran conflict remains a major pricing anchor for global assets. Before the situation clarifies, volatility in the equity market may continue, with a defensive bias (dividend/low valuation). In the medium to long term, the safety attribute of Chinese assets is expected to benefit, focusing on sectors with policy support and guaranteed prosperity: one is the cyclical sectors benefiting from commodity price increases and strategic security needs (energy, chemicals, etc.), and the second is advanced manufacturing (power equipment, machinery, etc.) that has low capacity cycles and is expected to benefit from global restocking.

Sina’s statement: This message is reprinted from Sina’s cooperative media, and the publication of this article on Sina.com is intended to convey more information and does not imply endorsement of its views or confirmation of its description. The content of the article is for reference only and does not constitute investment advice. Investors operate at their own risk based on this.

Abundant information and precise interpretations are available in the Sina Finance APP.

Editor: Liu Wanli SF014