【Focus Review】Tech growth track showing strong bullish momentum, Shanghai Index recovers above 60-day line, green energy concept experiences sharp pullback

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Financial Associated Press, March 16 — Today, 44 stocks hit the daily limit, 24 stocks were halted, with a board-holding rate of 65%. Sanfangxiang hit three consecutive limits, Falsun achieved 9 limits in 16 days, Chitianhua 4 limits in 7 days, Shunna股份 5 limits in 9 days, Dingxin Communications 3 limits in 5 days. The market bottomed out and rebounded, with the Shenzhen Composite Index closing in the green and the ChiNext Index rising over 1%. The combined trading volume of the Shanghai and Shenzhen markets was 2.33 trillion yuan, shrinking by 75 billion yuan compared to the previous trading day. On the sector front, hot spots rotated quickly, with over 2,800 stocks rising across the market. Leading sectors included deep-sea technology, agriculture, storage chips, and shipping; sectors like precious metals, chemicals, steel, and power declined. By the close, the Shanghai Composite fell 0.26%, the Shenzhen Component rose 0.19%, and the ChiNext gained 1.41%.

Popularity and Continuous Limit Stocks Analysis

The rate of stocks hitting three consecutive limits decreased to 25%, and the number of stocks with three consecutive limits dropped to just two. While the index rebounded, short-term sentiment remained subdued. Among previously five-limit merger green energy assets, Zhongnan Culture hit the limit down, triggering a retreat in popular sectors like green energy, energy storage, and computing power collaboration. Popular stocks like Yunnan Energy Holding experienced two consecutive limit-downs. Two state-owned new energy stocks, China Power Construction and China Nuclear Construction, hit the limit down last week. The chemical sector, which benefited from escalating Middle East tensions, showed polarization. Sanfangxiang advanced to three consecutive limits, and Chitianhua, which had a rebound limit-up last Friday, continued to extend its limits. Meanwhile, fertilizer stocks like Oriental Iron Tower experienced broad declines. From last week’s small metals and power grid equipment to today’s chemicals and green energy, the trend of popular stocks facing sudden drops continues to impact market sentiment. Additionally, the rebound in oversold sectors like agriculture and large consumer sectors remains insufficient to lead the market’s recovery.

Main Trend Hotspots

According to CFM Flash Memory Market forecasts, storage prices are expected to continue rising overall through 2026. Samsung and SK Hynix plan to significantly raise storage product prices in Q2. The storage chip concept remained strong throughout the day, with stocks like Langke Technology, Jinsan Solar, and Zhaoyi Innovation hitting the limit up. Buwei Storage and Demingli continued to reach new highs. Driven by the hot storage industry chain, semiconductor equipment stocks saw a batch of gains in the afternoon, with leading mature process companies like Huahong also rising over 10%. As industry prosperity remains high, Samsung expressed concerns about a potential supply-demand reversal in 2028, which could slow capacity expansion. The overall industry outlook may extend further, indirectly benefiting domestic storage companies with large inventories. This is a key reason why recent A-share storage chip stocks outperformed major overseas giants.

NVIDIA GTC conference is scheduled for this week, likely to feature the official debut of its enhanced Rubin Ultra version and possibly reveal preliminary technical routes for the next-generation Feynman architecture. NVIDIA has already begun testing next-generation CCL (copper-clad laminate) materials M10 with PCB manufacturers. The PCB industry chain continued its strong momentum from last Friday, with copper foil stocks shining. Jinan Guoji and Chaoying Electronics hit the daily limit, while Ruifeng Gaocai, Dongwei Technology, and Yihao New Materials rose over 10%. Analyst Guo Mingchi significantly raised the shipment estimates for LPU (Light Processing Units) to 5 million units in 2026-2027. The surge in LPU shipments, along with NVIDIA upgrading servers from Rubin Ultra to the next-gen Feynman architecture and upgrading materials from M9 to M10, suggests that upstream PCB material demand may continue to exceed expectations. However, as the GTC conference approaches and short-term positive news on computing hardware materializes, it may dampen the willingness of incremental funds to chase high prices.

According to CCTV International, after the US and Israel attacked Iran, the global fertilizer supply chain was significantly impacted. US agricultural experts noted that US farmers would also be severely affected and may need to adjust planting structures. Agricultural stocks, led by seed companies, surged against the trend, with Nongfa Seed Industry and Xiwang Food hitting the daily limit. Companies like Kangnong Seed Industry, Qiule Seed Industry, Dunhuang Seed Industry, and Shennong Seed Industry all rose over 5%. Historically, crude oil prices are strongly correlated with agricultural product prices. Rising oil prices have driven up costs for agricultural machinery, fertilizers, and pesticides, while growing demand for biofuels has directly increased prices for raw materials like corn and sugarcane. Previously hotly traded chemical stocks saw a sharp rise and fall, with methanol and talc remaining relatively resilient, while polyurethane and fertilizer sectors suffered heavy declines. If domestic fertilizer export quotas do not unexpectedly increase, the recent gains in chemical stocks may have overextended their fundamentals. Caution is advised for some high-positioned popular stocks with large gains.

On March 14, State Grid announced that from January to February, fixed asset investments totaled 75.7 billion yuan, up 80.6% year-on-year. The power grid equipment sector briefly rebounded during the day, with high-interest stocks like Shunna股份 recovering and hitting the limit up. Companies like Kelin Electric, Zeyu Intelligent, and Sifang股份 showed signs of stabilization and rebound. However, due to a sharp correction in green energy and energy storage sectors today, stocks like Nanjing Power and Chint Electric saw significant declines. The previous strength in power grid stocks was mainly driven by increased investment in supporting infrastructure for overseas data centers, aligned with the performance of gas turbines and diesel generators in the AIDC (Aircraft, Industrial, Defense, and Communications) supply chain. If global market risk appetite improves in the short term, leading to continued recovery in tech stocks, the power grid and AIDC sectors may again attract funds.

Market Outlook

Today’s market showed a bottoming and rebound pattern throughout the day, similar to last Monday. Large-scale replenishment by bulls caused the Shanghai Composite to close with a small shadowed downtrend, regaining the 60-day moving average. As a traditional boundary between bull and bear markets, maintaining strength depends on this moving average. With the daily KDJ indicator near lows and forming a bullish divergence, attention is on whether bulls can push to recover the 5-day moving average. The “three-needle bottoming” pattern around the 60-day moving average may be established. Previously weak sectors like the SSE 50 and STAR Market 50 showed signs of stabilization supported by the lower Bollinger band on the daily chart. Future potential recovery in the benefits and hard technology sectors could indirectly boost the entire market.

Today’s Limit-up Analysis Chart

(Financial Associated Press, Jin Haoming)