A shares midday review | The index experienced a huge "deep V" shock! The Shanghai Composite Index fell slightly by 0.07% in the morning, while the three major oil companies all rose by the daily limit again.

On March 3rd, the early market experienced a significant "deep V" shock, with the Shanghai Composite Index breaking through the previous high point from January 14th, reaching a new high not seen since July 2, 2015. Prior to this, the Shenzhen Component Index had dropped by over 2%, while the Shanghai Composite Index and the ChiNext Index had both dropped by over 1% at one point. By midday closing, the Shanghai Composite Index had fallen by 0.07%, the Shenzhen Component Index by 1.05%, and the ChiNext Index by 0.44%. The total trading volume in the Shanghai and Shenzhen markets exceeded 2 trillion RMB in half a day, a decrease of 55.6 billion RMB from the previous trading day. On the market, sectors like oilfield services, combustible ice, oil and gas industry chains, and petroleum concepts continued to surge, with the "big three oil companies" hitting the daily limit up. As tensions escalate between the US and Iran, global capital markets are facing upheaval. As A-share investors, how should we hedge against the risk of the Iran conflict? Guolian Minsheng's chief economist Tao Chuan stated that the sudden escalation in the Middle East directly impacts global risk appetite, leading to a typical risk-averse situation in the short term with "gold and oil rising together, pressure on risk assets". Compared to that, stocks, emerging market currencies, and other risk assets may experience a temporary pullback due to the increase in risk aversion. However, Zhongtai emphasized that focusing on the trend of A-shares themselves is more important than playing the geopolitical conflict. Currently in the third phase of a "spring fever" market, indicating a new upward trend. In terms of opportunities, a CITIC SEC report stated that amidst geopolitical tensions, the Iran conflict is strengthening the momentum of the oil shipping cycle, with the profits of oil shipping giants expected to reach new highs in 2026. In terms of the market, sectors like oilfield services, combustible ice, oil and gas industry chains, and petroleum concepts continued to surge. Companies like Petrochina, CNOOC Limited, China Petroleum & Chemical Corporation, and Tong Petrotech Corp. all hit the daily limit up. The port shipping concept continued to rise, with companies like Nanjing Tanker Corporation and Ningbo Marine hitting the daily limit. Agriculture concepts like seed companies and grain planting also showed strength. Popular sectors in the market include the oil and gas sector, port shipping concept, and the collective support of banking, insurance, securities, and high-yield stocks. In terms of declines, the military industry chain, commercial aerospace, satellite internet, and other sectors faced setbacks. The semiconductor, storage chip, lithography machine, and advanced packaging sectors also experienced declines, while environmental protection and new energy sectors faced weakness. Opinions from institutions: Industrial: Market risk appetite will recover after the short-term impact Zhongtai: Limited impact of US-Iran conflict on A-shares Galaxy Securities: Geopolitical tensions may lead to a medium-term rise in gold prices CITIC SEC: The Iran conflict strengthens the oil shipping cycle momentum, with oil shipping giants' profits expected to reach new highs in 2026. This article is sourced from "Tencent Stock Selection". Editor: Wang Qiujia.