Morning Review: The ChiNext Index opened lower and then rose to gain 0.83%, with lithium battery stocks performing actively.

From: Xinhua Finance

Xinhua Finance, Beijing, March 27 - (Wang Yuanyuan) The A-share market opened lower and then rose in the morning session, with all three major indices turning positive. By the midday close, the Shanghai Composite Index was up 0.26%, at 3899.12 points; the Shenzhen Component Index rose 0.93%, at 13732.34 points; and the ChiNext Index increased by 0.83%, at 3299.57 points. The total trading volume in the Shanghai and Shenzhen markets for the half-day was 1.14 trillion yuan, a decrease of 843 billion yuan compared to the previous trading day.

In terms of sectors, energy metals, lithium mining concepts, Alzheimer’s, small metals, weight loss drugs, CRO, monoclonal antibody concepts, glyphosate, recombinant proteins, and chemical pharmaceuticals led the gains, while power, coal, utilities, banking, insurance, and railroads performed poorly, leading the market decline.

Market Highlights

On the market, the lithium mining concept strengthened, with Rongjie Co., Jiangte Electric, Jinyuan Co., and Shengxin Lithium Energy hitting the daily limit. The pharmaceutical sector also gained strength, with Keta Bio, Menova, Wanbangde, Lianhuan Pharmaceutical, and Shuanglu Pharmaceutical reaching their daily limit. The chemical sector was active, with Suli Co., Lubek Chemical, and Jinzhen Da hitting the daily limit. On the downside, multiple stocks in the green electricity sector fell, with Liaoning Energy hitting the daily limit down.

In terms of individual stocks, over 3,700 stocks across the market rose.

Institutional Views

CITIC Securities: Since the third quarter of 2025, the price of optical fibers in the Chinese market has continued to rise, reflecting improving demand and overall tight supply. Strong overseas demand and robust export performance reflect the flourishing demand in the global optical fiber and cable market. CITIC Securities expects that the demand for optical fibers driven by AI will continue to grow significantly: firstly, the global demand for optical modules is expected to grow substantially in 2026, which will correspondingly increase the demand for optical fibers; secondly, it is anticipated that the demand for scaled-up optical fibers may start to materialize in 2027; thirdly, DCI will also bring significant demand. Currently, the optical fiber and cable industry has shifted from recovery to a stage of “tight supply and simultaneous rise in volume and price.” As a capital-intensive industry, CITIC Securities expects that the difficulty in adding new capacity in the short term will make prices likely to continue rising, and continues to recommend the optical fiber and cable sector.

Huatai Securities: The liquidity contraction and changes in risk appetite brought about by Middle Eastern events have led to a weak fluctuation in lithium prices. However, considering the supply disruption risks in the Yichun region of China and overseas regions like Zimbabwe still exist in the second half of the year, the demand side’s high oil prices are expected to boost expectations for electric vehicles and energy storage demand. If based on a neutral expectation (with global New Energy Vehicle sales growth of 10%-15% year-on-year and energy storage cell shipment growth of 50%-60% year-on-year), global lithium carbonate is expected to maintain a tight balance in supply and demand in 2026.

CITIC Securities: Pay attention to the marginal changes in the transit capacity of the Strait of Hormuz. Short-term adjustments in supply chain methods may lead to increased shipping distances, and the release of U.S. strategic reserves is expected to drive up TD22 (Gulf of Mexico-China) freight rates. Once the transit capacity of the strait partially recovers, replenishment demand is also expected to become a catalyst for an upward cycle. In 2026, profits for oil shipping companies are expected to reach new highs.

Market News

National Bureau of Statistics: In January and February 2026, profits of large-scale industrial enterprises in the country grew by 15.2%.

According to data from the National Bureau of Statistics, in January and February 2026, the total profit of large-scale industrial enterprises nationwide reached 10,245.6 billion yuan, a year-on-year increase of 15.2%. Among large-scale industrial enterprises in January and February 2026, state-controlled enterprises achieved a total profit of 3,665.6 billion yuan, a year-on-year increase of 5.3%; joint-stock enterprises achieved a total profit of 8,032.9 billion yuan, an increase of 22.1%; foreign and Hong Kong, Macao, and Taiwan investment enterprises achieved a total profit of 2,167.5 billion yuan, a decrease of 3.8%; and private enterprises achieved a total profit of 2,844.5 billion yuan, an increase of 37.2%.

CSRC Chief Lawyer Cheng Hehong: Strengthen investor protection and focus on punishing illegal activities in securities and futures that infringe on investor rights and disrupt market order.

According to Zhongxin Jinniu, on March 27, CSRC Chief Lawyer Cheng Hehong stated at the Boao Forum for Asia 2026 Annual Conference sub-forum “Creating a Good Market Environment, Advocating Long-term Value Investment” that the next step for the CSRC will be strict law enforcement to enhance investor protection. The focus will be on punishing fraudulent offerings, financial fraud, market manipulation, insider trading, and fraudulent client activities that infringe on investors’ rights and disrupt market order. Those constituting crimes will be transferred to public security judicial authorities in accordance with the law. The CSRC will work with judicial authorities to formulate judicial interpretations for civil damage compensation for insider trading and market manipulation, deeply promote representative litigation work in securities, increase the application of the advance compensation system, and improve the effectiveness of investor education efforts, embedding investor education better into the business processes of securities and futures institutions in developing customers and providing services.

Editor: Luo Hao

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