A-share Opening Express | A-shares continue to decline! Oil and shipping stocks have seen significant pullbacks, with institutions releasing "positive sentiment" in droves.

The intensification of the Middle East conflict has raised concerns among investors that a prolonged military conflict might erupt in the region. Global stock markets have been affected, with US stocks closing lower and Japanese and Korean stocks plummeting, leading to a trading halt in the Korean stock market. Today, the three main indexes of the A-share market opened low again, with the Shanghai Composite Index and the ChiNext Index briefly turning positive in early trading. As of the time of writing, the Shanghai Composite Index fell by 0.85%, the ChiNext Index fell by 0.1%, and the ChiNext Board fell by 0.32%. In terms of the market, the power grid equipment sector bucked the trend and surged, with Guangdong Shunna Electric and Integrated Electronic Systems Lab hitting the daily limit. The storage chip sector rebounded, with Biwin Storage Technology hitting the daily limit. The agriculture sector was active against the trend, with QIULE SEEDS rising by over 10%. On the downside, the oil and gas sector quickly plunged at the opening, with the "Big Three Oil Companies" leading the decline. Petrochina and China Petroleum & Chemical Corporation both briefly hit the limit down, followed by a quick rebound. CNOOC Limited fell by over 9%, and China Petroleum Engineering and Zhongman Petroleum And Natural Gas Group Corp., Ltd. saw sharp declines. The "Big Three Oil Companies" consecutively issued abnormal stock trading volatility announcements yesterday, reminding investors to be cautious. The shipping sector experienced a sharp decline, with nearly 10 stocks such as COSCO Shipping Energy Transportation, Cosco Shipping Specialized Carriers, China Merchants Energy Shipping, COSCO SHIPPING Development, Jiangsu Lianyungang Port, and Phoenix Shipping hitting the limit down. The precious metals sector showed weakness as Sichuan Gold hit the limit down, and most of the fiber optic concept stocks opened lower, with Tongding Interconnection Information hitting the limit down. Looking ahead, Wei Jixing, Chief Analyst at Kaiyuan Securities, advised investors not to lose confidence in the positive market outlook due to short-term fluctuations and adjustments. Structurally, from the perspective of the securitization rate index, there is still room for expansion in the current A-share market. Dai Qing, Chief Analyst at Changjiang Securities, defined the market trend in March as the "lively second half of spring." He believes that the market is likely to maintain a volatile upward trend, with a more balanced overall style. In terms of specific allocation directions, Dai Qing suggested focusing on three main themes: technology, energy revolution, and consumer sectors such as automobiles. China Securities Co., Ltd.: The situation in Iran has three layers of impact on the capital market. In recent years, the residual global pricing liquidity has been affected by the situation in Iran, driving global energy prices and determining the trend of inflation and whether the asset main line reverses. The situation in Iran has three layers of impact on the capital market: first, rising oil prices drive inflation; second, rising inflation triggers liquidity changes; third, rising energy prices reshape the global supply chain. The depth of the impact of the Iran situation on the market depends on whether the Strait of Hormuz, the throat of the Middle East, is blocked, the degree of the blockade, and its duration. The future possibilities of Middle East oil supply are forecast based on four scenarios. Once control of the Strait of Hormuz, the key transport route of the Middle East, is obtained, along with the supply of crude oil from Latin America and North America, the three major regions of North America, Latin America, and the Middle East contribute 65% of global crude oil supply, forming the majority of the global "old energy" landscape. In the context of reshaping the global supply chain, this may be where the United States regains its discourse power in the old energy system and the strategic importance of Iran to the United States. Sinolink: The market is on the eve of a new uptrend. As the world faces technological challenges to industrial order and regional conflicts that challenge globalization, physical assets that have been forgotten during the prosperity of order will be of systemic importance. Chinese assets have the strongest physical attributes in the world, and their reappraisal amidst turmoil is worth noting. The market rise in China by 2025 is more like the spillover of US financial expansion and technological bubbles; currently, the inevitable oscillation during the logic switching period, but remember it is not a bear market, but rather the eve of a new uptrend in Chinese assets. This article was reprinted from Tencent Stock Selection, edited by Jiang Yuanhua.