Just now, diving! The reason has been found!

Trading stocks, just look at the Golden Kylin Analyst Reports—authoritative, professional, timely, comprehensive, helping you discover potential thematic opportunities!

【Introduction】Find out the reason

China Fund Reporter Taylor

Brothers and sisters, finally the market closed and stopped falling. Let’s take a look at the reason behind today’s “plunge.”

A-shares Dive

On March 17, the market opened high and declined throughout the day, with the ChiNext Index dropping over 2% in the afternoon. By the close, the Shanghai Composite fell 0.85%, the Shenzhen Component Index dropped 1.87%, and the ChiNext Index declined 2.29%.

A total of 867 stocks rose, with 52 hitting the daily limit, while 4,541 stocks declined.

Steel sector defied the trend and strengthened, with Steel Hongxing and Anyang Steel hitting the daily limit.

The real estate sector rebounded, with Zhongzhou Holdings and Jingneng Real Estate hitting the limit.

Major financial stocks surged during the session, with Aijian Group hitting the daily limit.

The chemical sector was active repeatedly, with Chitianhua hitting three consecutive limits, and Sanfangxiang and Jinzengda also hitting the daily limit.

On the downside, hardware stocks like CPO and other computing hardware companies collectively adjusted, with Tianfu Communication, Deke Li, and Guangku Technology falling over 10%.

In Hong Kong stocks, the three major indices opened high but declined, basically erasing gains.

What happened behind the scenes

The ultimate reason for the market plunge is still the changing situation in the Middle East conflict.

Oil prices are rising again because Iran has increased attacks on energy infrastructure in the Persian Gulf.

Latest reports indicate that a natural gas field in the UAE was attacked by drones and has suspended operations. Iran’s drones and missiles also targeted oil fields in Iraq and ports in the UAE.

The Abu Dhabi Shuweihat oil field has halted operations, and an oil field in Iraq along with a key port in the UAE were attacked by Iranian drones and missiles.

According to a shipping agent and an insider, the UAE’s main port, Fujeirah, has suspended oil loading. This is the latest shutdown on the country’s oil export routes outside the Strait of Hormuz, following a series of war-related attacks.

As the war enters its third week, these strikes further worsen the global energy supply outlook. Shipping through the Strait of Hormuz has nearly come to a halt, beginning to impact consumers, especially in Asia. Since the outbreak of the war, oil prices have risen over 40%.

Analysts say: “The market is being pulled back and forth daily by a large amount of news, with prices fluctuating. It’s a market where hundreds of pieces of news are fermenting simultaneously, and everyone is desperately trying to judge how much supply has been cut and how long it will last.”

In the Middle East, the UAE and Kuwait have further cut oil production; Saudi Arabia and the UAE are also accelerating efforts to increase exports through alternative routes bypassing the Strait of Hormuz.

Analysts note: “The biggest risk to the market is the long-term restriction of the Strait of Hormuz, and the market believes that the US and its allies have limited ability to change this situation.”

MST Marquee Energy Research Director Sol Kavonik said: “The Trump administration has sent conflicting signals about the duration of the war, while the market is more focused on the actual developments on the ground, which are still escalating.”

Warren Patterson, Head of Commodities Strategy at ING, said: “Such large-scale supply disruptions make it difficult for the market to find effective responses.”

He added: “Although the US government has proposed ideas like insurance guarantees and naval escort, none have been implemented yet.”

Patterson also pointed out that providing escort for commercial ships through the Strait of Hormuz would expose warships to attack risks, so the US might wait until Iran’s ability to attack ships is weakened before taking action.

Editor: Jiang You

Proofreader: Jiyuan

Reviewer: Mu Yu

Disclaimer: Sina Statement: This message is reproduced from Sina’s partner media. Sina publishes this article to deliver more information and does not imply endorsement of its views or verification of its descriptions. The content is for reference only and does not constitute investment advice. Investors operate at their own risk.