A-shares, good news! Support for medium and long-term capital inflow! Unitree Robotics IPO application accepted! Market stabilized next week?

Article | Water’s Edge

This week, despite external geopolitical disturbances, the market still has many highlights, such as the leading optical communication company Yuanjie Technology reaching a new high and breaking the thousand-yuan mark, and the ChiNext Index hitting a nearly four-year high… Taking advantage of the weekend when the market is closed and there’s no need to monitor the market constantly, I want to share some insights—how can you become a long-term winner in the market?

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There are many stories of quick wealth in the stock market, as well as numerous failures. To become a winner, you need a system that maximizes stable profits, rather than frequently chasing gains and selling on dips, watching your account shrink continuously. Yuanjie Technology, XinYiSheng, Langke Technology, and others are all leading companies in their sectors that hit new highs this week, and they are all old friends—research case studies from Bian Huizong when these companies were just starting out. So, how can you identify and capture these main upward waves? How can you build and improve your investment system?

You can check out “Bian Huizong 2026 Latest Investment Strategy Collection Revealed! Use These Tips to Capture Breakout Points, Black Horses, and Main Upward Waves!” to grasp the entry and reversal signals of leading stocks through Bian Huizong’s exclusive core analysis system. Interested friends can click the link above or the image within the article → “Join the Learning” to get it for free.

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This week, the indices showed clear divergence. The Shanghai Composite Index broke down and sought a bottom, while the ChiNext Index hit a near four-year high—once rising over 3% on March 20, reaching a new high in nearly four years. There’s a saying in investing: fear often spreads at the bottom, while greed runs rampant at the top. The lower the market, the more likely it is a rare buying opportunity.

So, has the market stabilized? Overall, the current market remains in a period of cautiousness due to external uncertainties and optimistic sector rotation. Bian Huizong has an exclusive analysis of market direction, often accurately judging turning points through sentiment indicators and other tools. On March 19, he stated that market breadth hit a new low for the phase, sentiment was at a freezing point, and a confirmation of the sentiment turning point was awaited (see Chart 1).

Although overall capital outflows increased and indices diverged, recent favorable factors include macro policies, industry developments, and individual stocks. For example, the draft of the Financial Law was publicly soliciting opinions, supporting long-term funds entering the market to enhance the intrinsic stability of the capital market; the central bank stated it would firmly maintain the stable operation of stock, bond, and foreign exchange markets. On the industrial side, recent approvals include 15 new hard-tech themed funds, YuShu Technology’s IPO application accepted on the STAR Market, and the 2026 Optical Fiber Conference (OFC), which could stimulate related themes. Stocks like Changguang Huaxin released new 8-channel 100G EML chips, with the stock price once surging nearly 20% on March 20.

In this relatively divergent market, computing hardware continues to be the “center stage” in sector rotation, with strong performances in optical communication, CPO, PCB, and storage chips. Leading stocks at high levels continue to hit new highs and break price ceilings, such as Yuanjie Technology, which surged to 1,140 yuan on March 20. Additionally, XinYiSheng, featured in “Yi Zhongtian,” also hit a new high of 490.28 yuan on March 20, and storage chip stocks like Langke Technology and Baiwei Storage have recently reached new highs.

On March 17, when CPO and PCB experienced a correction, I mentioned that short-term adjustments in these sectors should not be seen as bearish signals but as new opportunities. Although CPO and PCB are diverging in the short term, long-term rotation opportunities will continue.

Besides his unique insights into market turning points, Bian Huizong has long-term in-depth tracking and research on computing hardware such as CPO, optical communication, PCB, and storage. He has also identified core industry leaders early, such as Yuanjie Technology, which continues to hit new highs and was a research case for June 18, 2025 (see Chart 2), and Langke Technology, which recently hit multiple “20cm” limit-ups, as a case from February 25, 2025 (see Chart 3).

Whether it’s Yuanjie Technology or Langke Technology, Bian Huizong has been closely tracking them when their stock prices were still at the “foot of the mountain.” So, how does he identify the core leaders in the industry chain? How does he capture breakthrough signals early? How does he judge whether a stock has established a reversal? You can follow Bian Huizong’s “Strategy Secrets”—today, I have summarized his investment system, including how to identify breakout points, track main upward trends, and observe major fund movements, all for free. Interested friends can click the link below → “Join the Learning” to get it for free.

Long-term Logic of Computing Hardware Further Strengthened

Rotation Opportunities Will Continue

From the performance of leading stocks like Yuanjie Technology, the long-term trend of computing hardware remains intact. Previously, I mentioned that the investment opportunities driven by the industry support, price increases, and technological iteration of the computing industry chain are extending over a longer period and expanding into broader and more detailed fields.

Overall, the key drivers of repeated sector rotation include industry chain pre-need logic, supply-demand rigid imbalance leading to price hikes, capacity expansion, and technological iteration (new product launches). The long-term logic of performance realization boosting valuation is strengthening:

Pre-need Industry Chain Logic. Computing hardware is the foundation of AI. As AI models continue to evolve, training, inference, data storage, and scheduling all require robust hardware support. Currently, the AI hardware infrastructure is in a volume-up cycle, providing sustained momentum for hardware capacity.

Supply-Demand Imbalance and Price Hikes. SK Hynix states that the global shortage of storage chips may persist until 2030; Alibaba Cloud reports that due to exploding global AI demand and supply chain price increases, their AI computing power and storage products have seen price hikes of up to 34%. Baidu Smart Cloud also announced price adjustments for AI computing and storage products. These events have recently stimulated the entire computing industry chain.

Capacity Expansion. For example, Pengding Holdings recently announced a plan to invest 11 billion yuan to build a high-end PCB production base. The company stated that this expansion aims to seize opportunities from AI technology development and accelerate the layout of high-end PCB production. Several other companies are also pushing forward with PCB capacity expansion.

Technological Iteration. Nvidia launched the Feynman chip, which introduces optical communication between chips, reducing AI data center communication energy consumption by over 70%. FiberHome Technologies launched the 3.2T NPO, becoming the industry’s first to complete full verification of the top CSP series; Huagong Tech released the 12.8T XPO optical module. Continuous upgrades in computing hardware are key to driving industry expansion and attracting capital.

Performance Realization and Upward Revision Expectations. Nvidia expects AI chip revenue to reach at least $1 trillion by the end of 2027, breaking market concerns about AI capital expenditure peaking. Some leading stocks in A-shares have recently reported unexpectedly strong earnings, attracting market attention. For example, Baiwei Storage, benefiting from the high prosperity cycle of storage, expects net profits of 1.5 to 1.8 billion yuan in January–February 2026, turning profitable after losses. The stock has recently surged (see Chart 4), becoming one of the core leaders in storage chips.

Market Demand Driven. The products or order statuses of related companies are positive. For instance, Micron Technology (listed in the US) has started mass production of HBM4 memory for Nvidia, with its stock price recently reaching a historical high. Tsinghua Unigroup announced that its 800G optical modules have been shipped in bulk, continuously improving the performance and cost advantages of 1.6T high-performance optical modules. Shenghong Technology disclosed that its current orders are full, with high order visibility.

In conclusion, as technology stocks accelerate their technological iteration, new opportunities are brewing, especially in core sectors like optical communication, CPO, storage chips, and PCB. Even amid market volatility and divergence, structural opportunities in A-shares have not disappeared. I believe that at such nodes, those stocks that receive focused capital attention or are mistakenly sold off may be on the verge of a new wave of opportunities.

(The stocks mentioned in the article are for illustrative analysis only and do not constitute buy or sell recommendations.)