A-share Market Close: ChiNext Index Down Nearly 1%, Chemical, Green Power and Carbon Fiber Concept Stocks Surge, Coal Stocks Active, Military and Aviation Concept Stocks Decline Broadly

On March 12, the three major A-share indices experienced slight gains in the early morning, then fluctuated and declined, with a rebound in the afternoon; by the close, the Shanghai Composite Index fell 4.33 points, down 0.1%, to 4,129.1; the Shenzhen Component Index dropped 90.54 points, down 0.63%, to 14,374.87; the CSI 300 declined 16.94 points, down 0.36%, to 4,687.56; the ChiNext Index fell 32.01 points, down 0.96%, to 3,317.52; the STAR 50 Index decreased 17.43 points, down 1.24%, to 1,383.65; total trading volume across Shanghai and Shenzhen markets was 2.44 trillion yuan, with nearly 3,900 stocks in the market declining.

In the market, some sectors repeatedly strengthened, with green energy concepts exploding. Green power generation, China Power Energy, hit the daily limit for three consecutive days, while GCL New Energy, Datang Power, and Jinkai New Energy also saw their stocks hit the limit. The chemical sector continued to strengthen, with more than ten constituent stocks hitting the limit, including Jinniu Chemical, which has hit the limit five times in nine days, and Luxin Technology, Sanfangxiang, and Hebang Biological also reaching the limit. The coal sector was active, with Yankuang Energy and Zhengzhou Coal & Electricity hitting the limit, and China Coal Energy reaching an 18-year high. The carbon fiber concept remained strong, with Central Composite Shen Ying and Jilin Chemical Fiber hitting the limit. On the downside, the gas turbine concept experienced continuous adjustments, with Boyingte Welding and Hailianxun plunging. The military industry sector weakened, with stocks like Hangya Technology declining.

Hot Sector Highlights

Wind Power Sector Moves, Policy Boost Sparks Limit-ups

In the afternoon, the wind power sector surged, becoming a market focus. Deli Jia soared and hit the limit, with Zhenjiang Shares, Dajin Heavy Industry, Shuangyi Technology, Haili Wind Power, Jinlei Shares, Oriental Cable, and Mingyang Smart following suit.

On the news front, the UK announced on April 1st the removal of 33 tariffs on wind power components, reducing tariffs on core parts like blades and cables from 6% and 2% to 0%. This aims to unlock a £22 billion investment and accelerate offshore wind installations in the North Sea. This policy benefit directly stimulated the wind power sector, with related companies expected to benefit from lower costs and increased market demand.

Chemical Sector Continues Strong, Futures Rally Drives Stocks Limit-up

The chemical sector maintained its strength, with Jinniu Chemical hitting the limit for the fifth time in nine days, and Luxin Technology, Sanfangxiang, Hebang Biological, Ando Mai A, and Baichuan Shares also reaching the limit.

On the evening of March 11, chemical futures continued to rise, with para-xylene futures hitting the limit, up 13%; PTA main contracts also reached the limit, up 13.01%; bottle chip main contracts hit the limit, up 12%; PVC rose nearly 9%, and ethylene glycol increased over 7%. The strong futures market performance drove a surge of limit-ups in chemical stocks, reflecting market optimism about the future development of the chemical industry.

Coal Sector Rises, Geopolitical Tensions Boost Demand Expectations

The coal sector also performed well, with Yankuang Energy and Zhengzhou Coal & Electricity hitting the limit, and China Coal Energy reaching an 18-year high.

Changjiang Securities estimated that if the Strait of Hormuz were to be blocked long-term, global coal demand for power generation could increase by 84.86 million tons annually; if China’s coal chemical plants operate at full capacity, this alone could boost domestic coal consumption by nearly 50 million tons. Uncertainty in geopolitical tensions has increased market expectations for coal demand, supporting the rise of the coal sector.

Green Power Concept Repeatedly Active, Policy Drives Industry Development

The green power concept was active again, with China Power Energy and Huaneng Power hitting the limit for three consecutive days.

The “Special Action Plan for Green and Low-Carbon Development of Data Centers” clearly states that new data centers in key national hubs should have over 80% green electricity usage, and renewable energy utilization is a key focus in energy-saving reviews. This policy promotes the development of green power concepts, with related companies expected to benefit from policy dividends.

Carbon Fiber Concept Continues Strong, Some Stocks Hit Limit

The carbon fiber sector remained strong, with Central Composite Shen Ying and Jilin Chemical Fiber hitting the limit. As a high-performance material widely used in aerospace and automotive fields, the market is optimistic about its future prospects.

Metal and Computing Hardware Correct

On the downside, gold, silver, non-ferrous metals, and minor metals continued weak; optical modules, PCBs, and liquid cooling hardware concepts also pulled back. The market’s hot spots are shifting quickly, and sectors with large gains earlier are experiencing corrections.

Institutional Outlook:

Huaxi Securities pointed out that by 2026, the main theme will shift from technology to the price-increase chain. Under geopolitical catalysts, the rally driven by price increases may continue, focusing on energy, non-ferrous metals, and agricultural products.

Dongwu Securities believes that the speed of market hot spot shifts is accelerating, and the indices may continue to fluctuate narrowly. Breakthroughs upward will depend on the realization of external news and the continued performance of new core hotspots.

Zhongyuan Securities states that the market’s bottom support is solid, and the Shanghai Composite Index is likely to remain in slight consolidation. Investors are advised to closely monitor macroeconomic data, overseas liquidity, and policy developments.

Caixin Securities forecasts that A-shares will remain resilient compared to overseas markets. Excessive worry is unwarranted; until the end of April, the market is likely to fluctuate within a wide range. It is recommended to control positions reasonably and wait for spontaneous market turning points.