A-share market opens quickly | Middle East situation continues to disrupt financial markets, A-shares fall again! Oil and gas stocks continue to decline.

The Middle East situation continues to roil the financial markets. On March 6, the three major indexes of A-shares opened lower collectively, with the ChiNext Index falling more than 1% at one point. As of the time of writing, the Shanghai Composite Index fell by 0.38%, the Shenzhen Component Index fell by 0.56%, and the ChiNext Index fell by 0.73%. In terms of the market, the power grid equipment concept repeatedly strengthened, with Guangdong Shunna Electric rising limit up for three consecutive days, and Ningbo Sanxing Medical Electric also hitting the limit up. The battery industry chain was active, with Shandong Fengyuan Chemical hitting the limit up. The concept of algorithmic synergy quickly strengthened, with NYOCOR hitting limit up for 6 days, and Jiangsu Tongli Risheng Machinery Co., Ltd. also touching the limit up. Oil and gas stocks continued to decline, with Geo-Jade Petroleum Corporation nearing the limit down. Looking ahead, Meng Lei, a stock strategy analyst at UBS Securities, said that due to global geopolitical risks and the tech sector's correction, global stock market volatility has intensified recently. However, in the medium term, the resonance of incremental macro policies, accelerated A-share earnings growth, and net inflows of long-term funds into the stock market are expected to help A-shares stabilize and move forward. Popular sectors: 1. Power grid equipment concept repeatedly strengthens The power grid equipment concept repeatedly strengthened, with Guangdong Shunna Electric rising limit up for three consecutive days, Ningbo Sanxing Medical Electric hitting limit up, and Xinling Electrical, Newonder Special Electric, China XD Electric, and Hexing Electrical following the trend. Point of view: In terms of news, the three major regional power grid operators in the United States have successively obtained approval for a total of $75 billion in transmission capacity expansion projects, constructing a number of 765 kV ultra-high voltage lines with a transmission capacity six times that of traditional lines and extending the total mileage to 10,000 miles, equivalent to four times the existing mileage. In addition, Ningbo Sanxing Medical Electric announced that its subsidiary, Sanxing Sweden, signed a framework contract with the Dutch Enexis Power Company for a total of 117 million euros. 2. Oil and gas stocks continue to decline Oil and gas stocks continued to decline, with Geo-Jade Petroleum Corporation nearing the limit down, and Xinjiang Zhundong Petroleum Technology, Sinopec Oilfield Service Corporation, KLGF, China Oilfield Services, and Zhongman Petroleum And Natural Gas Group Corp., Ltd. all opening lower. Point of view: In terms of news, the main contract of crude oil on the Shanghai Futures Exchange fell more than 6% in the early session, while Brent crude oil futures and NYMEX crude oil futures both fell more than 3% in intraday trading. In addition, on March 5th, President Trump of the United States made a speech. Trump stated that gasoline prices have not risen significantly; the Strait of Hormuz will remain open. Institutional opinions: UBS: Multiple factors resonate, expected to help A-shares stabilize and move forward Meng Lei, a stock strategy analyst at UBS Securities, said that due to global geopolitical risks and the correction in the tech sector, global stock market volatility has intensified recently. However, in the medium term, the resonance of incremental macro policies, accelerated A-share earnings growth, and net inflows of long-term funds into the stock market are expected to help A-shares stabilize and move forward. In terms of style allocation, investors are advised to balance their short-term investments in both value and growth styles, and to overweight growth styles again after market sentiment stabilizes. Guotai Fund: The government work report released positive policy signals, opening up broad development space for the capital market On the morning of March 5th, the fourth session of the Fourteenth National People's Congress opened in Beijing. Guotai Fund believes that the government work report released positive policy signals, opening up broad development space for the capital market. The report explicitly proposes deepening comprehensive reform of capital market investment and financing, improving the mechanism for long-term capital entering the market, and increasing the proportion of direct financing and equity financing, further highlighting the strategic importance attached to the capital market. With the continuous optimization and upgrading of the macroeconomic structure, the foundation for the development of the capital market will continue to be strengthened, with vast potential development space in the long run. CICC: Overseas power supply-demand contradictions are prominent, Chinese companies are ushering in an accelerated window for going global According to a research report from CICC, overseas data centers are facing the dilemma of "difficulty in finding electricity", with queues in congested areas of Europe and the United States lasting over 7 years. We observe that power grid capacity is determining the flow of funds, with large developers focusing on Northern Europe, Southern Europe, and emerging markets, while some regions of the US and European FLAP-D markets are shifting from optional to mandatory self-generated power, exploring a variety of new power supply solutions simultaneously. With prominent supply-demand contradictions overseas, Chinese companies are ushering in an accelerated window for going global and seizing high-elasticity market opportunities. This article is reprinted from "Tencent Stock", edited by GMTEight: Li Fo.