A-shares surged then pulled back, with the Shanghai Composite Index falling 0.38% at midday

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On March 31, the A-share market surged and then pulled back; the ChiNext Index fell by more than 2%. As of the morning close, the Shanghai Composite Index was down 0.38% to 3908.28 points; the Shenzhen Component Index fell 1.45%; the ChiNext Index dropped 2.36%; the CSI 300 fell 0.58%; the Beizheng 50 fell 0.1%; the STAR 50 fell 1.68%. In the first half of the day, total A-share trading volume was 1.34 trillion yuan.

On the funds front, the People’s Bank of China (PBOC) announced that on March 31 it conducted 13.4k yuan of 7-day reverse repurchase operations via a fixed-rate, quantity-tendering approach. The operation rate was 1.40%. The tender amount was 32.5B yuan, and the successful bid amount was 32.5B yuan.

On the news front, in March, the Manufacturing Purchasing Managers’ Index, the Non-Manufacturing Business Activity Index, and the Composite PMI Output Index all returned to the expansion range, at 50.4%, 50.1%, and 50.5% respectively. These were up by 1.4 percentage points, 0.6 percentage points, and 1.0 percentage point from the previous month, indicating a rebound in China’s overall economic outlook.

The Ministry of Industry and Information Technology and eight other departments jointly issued the “Action Plan to Promote Innovative Development of the Internet of Things Industry (2026–2028)”. It clearly sets out five major initiatives: promoting innovation and upgrades of IoT devices; improving the service effectiveness of IoT platforms; cultivating IoT application scenarios; strengthening the network foundation of the IoT; and fostering an IoT industry development ecosystem. Through these measures, it will promote innovative development of the IoT industry, further accelerate the comprehensive integration of IoT technology into production, consumption, and social governance, promote deep integration between the digital economy and the real economy, and help develop new quality productive forces.

In terms of sectors, the high-speed rail concept continued its strong performance; the commercial aerospace concept strengthened against the trend; and the storage chip concept fell collectively.

As the core carrier for medium- and long-distance passenger transport, high-speed rail has already accounted for 80% of the country’s rail passenger departures and 69% of passenger turnover. During the “14th Five-Year Plan” period, the total number of passengers sent by EMU trains reached 12.8 billion, up 39.2% compared with the “13th Five-Year Plan” period. The rail transit equipment industry is currently at a critical stage of transforming from scale expansion to quality and efficiency; policy guidance and market demand provide dual support, and long-term investment value is becoming more prominent.

Here, by consolidating the latest research report information from multiple brokerages, we introduce four companies—for reference only.

1、Jinxi Locomotive and Axle Co., Ltd.

The company focuses on making railway equipment more precise and more refined. On the basis of stabilizing its current share of the domestic market for existing products, it will prioritize expanding into domestic sub-segments such as high-speed EMU axles, into international emerging-market regions, and into markets in countries along the Belt and Road, so as to solidify the basic business base of its rail transit equipment segment.

2、China Railway Engineering Equipment Group Co., Ltd.

With support from policy incentives, the pace of upgrading and replacing transportation equipment is expected to accelerate, which is favorable for the company’s long-term revenue growth in transportation equipment businesses such as turnouts.

3、Northern International

The company carries out integrated operations for its coking coal in Mongolia—“mining services–logistics transportation–customs clearance warehousing–coking coal sales”—benefiting from higher coking coal prices. Power-and-energy investment and construction businesses in Central and Eastern Europe, among other regions, continue to expand; it will increase development efforts in regions including the Middle East and overseas.

4、CRRC Corporation Limited

China’s domestic rail transit industry continues to be highly optimistic. National rail fixed-asset investment remains at a high level. Demand for EMU train updates, major overhauls, and related equipment continues to be released. As a leading rail transit equipment company, CRRC is expected to fully benefit.

		Sina Statement: This news is reprinted from a cooperative media outlet of Sina. Sina.com published this article for the purpose of transmitting more information and does not mean that it agrees with its viewpoints or verifies the descriptions. The article content is for reference only and does not constitute investment advice. Investors act at their own risk.

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