Daily Review: Three Major Indices Consolidate and Move Lower with Across-the-Board Declines, Controlled Nuclear Fusion Rises in Afternoon Session, High-Popularity Stocks Fall in Batches

Reprinted from: Cailian Press

Cailian Press, March 13 — The market experienced a day of oscillation and adjustment, with a rapid decline at the close. The Shanghai Composite Index fell over 1% intraday. The combined trading volume of the Shanghai and Shenzhen markets was 2.4 trillion yuan, shrinking by 416 million yuan compared to the previous trading day. On the sector front, some hotspots repeatedly gained strength, while individual stocks mostly declined, with over 3,800 stocks falling across the market.

In terms of sectors, the chemical industry continued its strength, with Sanfangxiang and Luxin Technology hitting two consecutive limit-ups, and stocks like Jinzengda, Hongbaoli, and Chitianhua also reaching the daily limit. The wind power sector was active again, with Dajin Heavy Industry hitting two consecutive limit-ups, Tongyu Heavy Industry up 20%, and Tianshun Wind Energy also hitting the limit. The controlled nuclear fusion concept surged rapidly, with Lanshi Heavy Equipment, China Nuclear Construction, and Jiangsu Shentong hitting the limit.

On the downside, the computing power leasing concept retreated collectively, with Meiliyun and Huasheng Tiancheng both hitting the limit-down. The non-ferrous metals and tungsten concepts continued to decline, with China Tungsten High-Tech and Zhangyuan Tungsten falling to the limit. By the close, the Shanghai Composite Index was down 0.81%, the Shenzhen Component Index fell 0.65%, and the ChiNext Index declined 0.22%.

Sector Highlights

The wind power equipment sector continued its rally from yesterday, with Tongyu Heavy Industry, Dajin Heavy Industry, Tianshun Wind Energy, and Jixin Technology hitting the limit-up. Sun Moon Co., Taineng Heavy Industry, and Taisun Wind Power also saw significant gains. News-wise, the UK announced on April 1st the removal of 33 import tariffs on wind turbine components, including blades and cables, reducing tariffs from 6% and 2% to 0%, aiming to unlock £22 billion in investment and accelerate offshore wind installations in the North Sea.

Guojin Securities recently forecasted that, according to ICIS, by 2035, Europe’s data center capacity could increase from 10.6 GW to 26.6 GW. If 50% of the additional data center power demand is met by offshore wind, an extra approximately 24 GW of offshore wind capacity could be added beyond current government auction projects. Several data center projects have recently signed offshore wind PPA agreements, indicating demand may be nearing explosive growth.

From a market perspective, the recent active rebound of the wind power sector, besides the above news catalysts, can also be seen as an extension of green energy concept speculation. However, after two consecutive days of volume-driven gains, the sector is accelerating upward. If sufficient funds do not follow in the coming week, some divergence within the sector may increase, so short-term momentum should be monitored carefully.

The fertilizer sector also showed countertrend activity, with Chitianhua, Luxin Technology, and Jinzengda hitting the limit-up, while Chuanjinnuo, Nongda Technology, and Lutianhua led gains among others.

On the news front, the ongoing Strait of Hormuz blockade, combined with Iran— the world’s second-largest urea exporter— facing supply chain risks, has rapidly transmitted market concerns. Coupled with strong domestic spring planting demand and low fertilizer inventories at ports, the prices of potash and phosphate fertilizers have systematically risen. However, it’s important to note that the chemical sector showed increased divergence today, with some mid-to-late sector stocks retreating more noticeably. The overall trend is still likely to be a volatile upward movement.

The controlled nuclear fusion concept strengthened in the afternoon, with China Nuclear Construction, Lanshi Heavy Equipment, and Jiangsu Shentong hitting the limit. China National Nuclear Corporation, Changfu Co., and Hedong Intelligent also rose. According to reports, China has joined the “Tripling Nuclear Energy Declaration,” initiated by France and 22 other countries, aiming to triple global nuclear capacity by 2050 compared to 2020.

Southwest Securities stated that the global nuclear power industry is entering a new development cycle. Driven by energy security, low-carbon transformation, and AI computing power demands, nuclear power— as a stable, efficient, and clean base-load power source— is being reevaluated strategically. Future focus should include uranium mining, small modular reactors (SMRs), nuclear fuel companies, and full industry chain equipment providers.

Individual Stocks

On the individual stock front, today’s market saw an increased “loss-making” effect, with previously popular high-traffic stocks in hot sectors experiencing sharp declines. Power grid equipment stocks plunged, with China Electric Xinlong and Shun Na shares hitting the limit-down, and Ze Yu Intelligent and Hanlan Co. falling over 9%. Computing leasing and cloud services also declined sharply, with Meiliyun and Huasheng Tiancheng hitting the limit-down, and UCloud dropping over 10%. Non-ferrous metals, especially tungsten stocks like Zhangyuan Tungsten and Zhongwu High-Tech, also hit the limit. Xiamen Tungsten and Xianglu Tungsten saw large-volume declines. High-tech stocks like Guangxun Technology and Yunnan Energy Control also adjusted, with Guangxun Technology falling over 7% on nearly 20 billion yuan in turnover, and Huagong Tech also declined significantly.

Most of these high-traffic stocks had previously maintained a volatile upward trend, accumulating profit-taking pressure. Under the current short-term risk-off environment, they faced concentrated profit realization. Whether a quick recovery can occur next week remains to be seen; if weakness persists, there is a risk of a broader retreat among high-flying stocks.

Market Outlook

Today, the market experienced a full-day downward oscillation, with the Shanghai Index breaking below the 4100-point mark at the close, indicating a loosening of short-term technical support. If next week cannot see a rapid recovery, the index may revisit the 60-day moving average support. Trading volume further shrank today, and amid ongoing geopolitical tensions overseas, market sentiment remains cautious. Therefore, consolidation and sideways movement remain the main theme.

From the sector perspective, the chemical sector remains hot due to geopolitical catalysts, but after a strong rally, caution is advised against increased sector divergence. The power industry chain continues to attract attention, with wind power accelerating today, and future opportunities may include nuclear power and energy storage. The previously hot sectors like small metals and computing leasing have weakened collectively, which may suppress bullish confidence. Whether they can recover promptly remains to be seen. Overall, in a market with rapid sector rotation, caution against chasing high is necessary, and low-priced, high-visibility stocks with solid fundamentals remain relatively safer choices.

Market Highlights

1. The first invasive brain-machine interface medical device approved for listing

Recently, the National Medical Products Administration approved the registration of Borreliang Medical Technology (Shanghai) Co., Ltd.'s implantable brain-machine interface hand motor function compensation system, marking the world’s first invasive brain-machine interface medical device to enter clinical application. The product includes a brain-machine interface implant, implantable EEG electrode set, EEG signal transmitter/receiver, pneumatic glove device, disposable surgical kit, EEG decoding software, medical testing software, and clinical management software. It is suitable for patients with quadriplegia caused by cervical spinal cord injury, helping to restore hand grasp function via pneumatic gloves. Patients must be aged 18-60, with C2-C6 cervical spinal cord injury rated A-C, diagnosed over 1 year ago, stable for at least 6 months after standard treatment, unable to grasp with their hands, but with some upper limb function remaining. The device uses minimally invasive dural implantation and wireless energy communication technology. Clinical trials show significant improvement in hand grasp ability, thereby enhancing quality of life.

2. China to upgrade BeiDou satellite navigation system in orbit

According to the China Satellite Navigation Office, to provide better services, China will implement an in-orbit upgrade of the BeiDou satellite navigation system.

(Cailian Press, Fenglin)