Morning Review: Shanghai Composite Index dips then rebounds, up nearly 1%; green energy, port shipping, and other sectors rally collectively

Source: Xinhua Finance

Xinhua Finance Beijing, March 24 (Wang Yuanyuan) The A-share market rebounded after touching a low in the morning session, with the Shanghai Composite Index at one point rising over 1%. The ChiNext Index saw its decline narrow, and there was a clear divergence between the yellow and white lines. As of the midday close, the Shanghai Composite Index reported 3849.34 points, up 0.95%, with a turnover of 591.7 billion yuan; the Shenzhen Component Index reported 13380.05 points, up 0.26%, with a turnover of 724.7 billion yuan; the ChiNext Index reported 3209.76 points, down 0.79%, with a turnover of 328.0 billion yuan.

In terms of sectors, military industry, port shipping, environmental protection equipment, electricity, CRO concept, sports industry, non-ferrous metals, and childcare services led the gains; while oil and gas extraction and service, as well as photovoltaic equipment sectors lagged behind.

Market Highlights

On the market, the green energy concept continued to strengthen, with Huadian Liao Energy, Shao Neng Co., and Liaoning Energy hitting the daily limit. The military industry sector strengthened, with Great Wall Military Industry, Hunan Tianyan, and Construction Industry hitting the daily limit. The shipping sector fluctuated and rose, with China Merchants Jinling Oil hitting the daily limit. The computing power chip concept rebounded, with Muxi Co. rising over 15% and Moore Threads rising over 9%. On the downside, the storage chip concept fluctuated downwards, with Puran Co. falling over 9%.

In terms of individual stocks, over 4500 stocks in the entire market rose.

Institutional Views

Tianfeng Securities: With the supportive policies for nuclear power being implemented, and under the expectation of stable costs, the long-term profit volatility of nuclear power units is gradually converging, tending towards a stable profit center. Coupled with the high growth potential of the nuclear power industry, the nuclear power sector may usher in a revaluation. Investment suggestion: Continue to be optimistic about the operational stability and sustained growth of nuclear power operators, and focus on nuclear power operators and related industry chain companies.

CICC: The current period may represent a relatively low point for the A-shares in the medium term, and the deep adjustment has brought good opportunities for positioning. Although there is still some uncertainty in the short-term trend, after the adjustment, the risks in the A-share market have been further released. We believe valuations are at a relatively reasonable level. As measured by risk premiums, as of March 23, the equity risk premium of the CSI 300 Index’s earnings yield compared to the 10-year government bond yield was 5.5%, at the 42nd percentile since 2010. The dividend yield of the CSI 300 Index is 2.7%, and the cost-performance ratio of stocks and bonds still has advantages. From a medium-term perspective, the macro environment in which the market is situated has not fundamentally changed, and the logic supporting the “steady progress” of the A-share market remains valid. Risk release and downward adjustments are expected to bring good allocation opportunities.

UBS Securities: From a macro perspective, China’s reliance on oil and natural gas is relatively low compared to major economies. From an index perspective, the short-term surge in oil prices seems to have limited impact on the major indices of the A-share market. Recently, the implied volatility of the main A-share indices is also lower than during the escalation of global trade conflicts in April 2025, and compared to other major overseas indices, indicating that the “de-risking” process may be nearing its end.

Market News

Ministry of Industry and Information Technology: Strengthen the coordinated use of resources such as general computing, intelligent computing, and supercomputing, and accelerate the digital transformation of more industrial park enterprises.

The State Council Information Office held a press conference on March 24 to introduce the Ninth Digital China Construction Summit. Wang Yanqing, Director of the Information Technology Development Department of the Ministry of Industry and Information Technology, stated that industrial parks are important carriers for China’s industrial development. In the next step, the Ministry of Industry and Information Technology will promote the digital transformation of parks from four aspects: industrial digital transformation, park digital services, park digital management, and digital support capacity building. First, in terms of industrial digital transformation, focus on characteristic advantageous industries, guide park enterprises to upgrade digitally, and support leading enterprises to open digital scenarios and technological resources to drive collaboration across the entire industry chain; second, in terms of park digital services, develop digital production services, including collaborative research and development, shared manufacturing, shared storage, etc. Develop digital lifestyle services, including online property management, intelligent security, and unmanned delivery. Third, in terms of park digital management, digitize assets such as land, buildings, and road facilities to establish digital profiles for enterprises; fourth, in terms of digital support capabilities, strengthen the coordinated use of resources such as general computing, intelligent computing, and supercomputing, build an efficient and secure data development and utilization platform, and enhance the capability to prevent risks related to network and data security. The Ministry of Industry and Information Technology will use high-standard digital park construction as a starting point to accelerate the digital transformation of more industrial park enterprises.

Securities Association of China plans to revise the “Special Evaluation Method for Securities Companies to Do a Good Job in Financial ‘Five Major Articles’ (Trial)”

According to China Securities Network, the Securities Association of China has recently studied and revised the “Special Evaluation Method for Securities Companies to Do a Good Job in Financial ‘Five Major Articles’ (Trial),” and has begun to widely solicit opinions from the industry. Journalists learned from several industry insiders that this revision is not a simple adjustment, but is closely aligned with the new requirements for the financial industry posed by economic and social development during the 14th Five-Year Plan period. The core purpose of the revision is to better adapt to the practical needs of differentiated operation and specialized development in the industry, continuously improve the quality and efficiency of services for the financial “Five Major Articles,” and promote high-quality development of the industry. Based on previous trial evaluation experiences, the Securities Association of China has further modified and improved the “Evaluation Method.” The draft for soliciting opinions shows that the revision maintains the stability of the overall framework and does not make major adjustments to the existing evaluation index system, but emphasizes strengthening overall coordination and removes some duplicate scoring indicators. The revision direction is clearly focused on goal orientation, closely aligning with the strategic needs for high-quality economic and social development during the 14th Five-Year Plan period, aiming to promote the gathering of industry factors and resources towards major strategies, key areas, and weak links such as technological innovation, advanced manufacturing, green and low-carbon initiatives, and inclusive livelihood, thereby more effectively playing the incentive and guiding role of evaluation.

National Bureau of Statistics: Will deepen the implementation of a new round of high-quality data set construction action plan.

The State Council Information Office held a press conference on the Ninth Digital China Construction Summit. Liu Liehong, member of the Party Leadership Group and Director of the National Bureau of Statistics, stated at the meeting that in the next step, we will continue to promote data empowerment for the innovative development of artificial intelligence, and work together to implement a new round of high-quality data set construction action plan, including six special actions: strengthening the foundation and expanding capacity, tackling labeling difficulties, improving quality and efficiency, enabling applications, managing services, and releasing value, with scene demand as the traction, accelerating the promotion of pilot work, and creating AI-Ready high-quality data sets that are technically feasible, practical, and quality-assured, aiming to achieve improvements in both the quantity and quality of high-quality data set supply.

Editor: Hu Chenxi

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