A-share closing review | A-share rebound, Chinext Index surged by over 3% with shrinking trading volume! Four factors catalyze the technology sector to explode.

On March 10th, the three major indexes collectively rebounded. By the close, the Shanghai Composite Index rose by 0.65%, the Shenzhen Component Index rose by 2.04%, and the ChiNext Index rose by 3.04%. The trading volume in the Shanghai and Shenzhen markets was 2.4 trillion yuan, a decrease of 249.7 billion yuan from the previous trading day. It is worth noting that the overall technology sector, led by AI, showed a rebound. According to the comprehensive views of various market participants reported by China Securities Journal, there are four factors catalyzing the technology stocks: First, the overnight rise of the AI concept in the US stock market increased market risk appetite, which is beneficial for the sentiment of technology stock investment. Second, the continued popularity of the "little lobster" trend. Furthermore, the computing power industry is about to witness two important conferences. The first is the NVIDIA GTC conference scheduled to be held from March 16th to 19th in San Jose, California, USA. The second is the 2026 Optical Fiber Communication Conference and Exhibition (OFC), a global event in the field of optical communication and networks, to be held from March 15th to 19th at the Los Angeles Convention Center in the USA. Lastly, the semiconductor industry continues to be prosperous, with price increases spreading from storage to various parts of the industry chain. On the market front, there was a surge in computing power hardware concepts such as optical modules, PCB, optical fiber cables, and liquid cooling. Stocks like Shenzhen Xunjiexing Technology Corp. and Suzhou Everbright Photonics hit the limit up. Communication equipment and 6G concepts also surged, with stocks like Shenzhen Phoenix Telecom Technology and Jiangsu Allfavor Intelligent Circuits Technology rising by over 10%. Domestic hard technology concepts such as semiconductors, advanced packaging, and lithography machines collectively strengthened, with stocks like SG Micro Corp and Suzhou Kematek, Inc. rising by over 10%. The robotics concept, including Siasun Robot & Automation, rebounded, with stocks like Shenzhen Zhaowei Machinery & Electronics and Beijing Capital Development hitting the limit up. The space photovoltaic concept showed an afternoon surge, with Jinko Solar rising by over 10%. The AI phone and consumer electronics concepts remained strong throughout the day, with stocks like Daoming Optics & Chemical and Yuhuan CNC Machine Tool hitting the limit up. The commercial aerospace concept rebounded, with stocks like Guizhou Space Appliance and ARTS Group Co., Ltd. hitting the limit up. In terms of declines, the oil and gas pipeline, oilfield services, oil and gas industry chain, and petroleum concepts collectively experienced a pullback, with stocks like Geo-Jade Petroleum Corporation, Shandong Molong Petroleum Machinery, and Xinjiang Zhundong Petroleum Technology hitting the limit down. The chemical industry concepts, such as urea, soda ash, fertilizers, phosphorous chemicals, and methanol, all trended lower. A few concepts like coal, steel, and agriculture showed weakness. Looking ahead, China Securities Co., Ltd. stated that with Trump beginning to signal a ceasefire and expectations of easing tensions in the Middle East, the market is expected to gradually start a weak recovery trend. As the policies of the two sessions are implemented and risk appetite gradually increases, the market is expected to regain its momentum. In terms of operations, it is advisable to focus on structures over indexes, adhere to policy and performance themes, and patiently wait for rotation opportunities. Top sectors: 1. Strong performance in computing power hardware stocks Concepts related to computing power hardware like optical modules, PCB, optical fiber cables, and liquid cooling surged, with stocks like Shenzhen Xunjiexing Technology Corp. and Suzhou Everbright Photonics hitting the limit up. 2. Strong performance in the commercial aerospace concept The commercial aerospace concept rebounded, with stocks like Guizhou Space Appliance, ARTS Group Co., Ltd., and Guizhou Space Appliance hitting the limit up. 3. Strength in the lithium battery and Contemporary Amperex Technology concepts The lithium battery and Contemporary Amperex Technology concepts strengthened, with Contemporary Amperex Technology rising by over 5% and stocks like Ningbo Zhenyu Technology and Tianli Lithium Energy Group showing strength. 4. Collective pullback in the oil and gas concepts Oil and gas pipeline, oilfield services, oil and gas industry chain, and petroleum concepts experienced a collective pullback, with stocks like Geo-Jade Petroleum Corporation, Shandong Molong Petroleum Machinery, and Xinjiang Zhundong Petroleum Technology hitting the limit down. Institutional Views: China Securities Co., Ltd.: Trump's ceasefire signal will lead to a weak recovery trend in the market The current adjustment is a result of profit-taking at high levels, increased risk aversion, and a shift in policy themes, rather than a trend of weakening. With the domestic economic data improving and policy support clear, combined with reasonable liquidity, the downside of the market is limited. In the short term, the market is expected to continue a period of structural volatility, and with Trump signaling a ceasefire, expectations of easing tensions in the Middle East may lead to a gradual weak recovery trend in the market. Overall, it is believed that the current correction is a healthy consolidation during an uptrend, and there is no need to be excessively pessimistic. As the policies of the two sessions are implemented and risk appetite increases, the market is expected to regain its momentum. In terms of operations, focus on structures over indexes, adhere to policy and performance themes, and patiently wait for rotation opportunities. Cai Xin Securities: External conditions are the main reason for the increased volatility in the A-share market Yuan Chuang, Chief Economist of Cai Xin Securities, stated that external conditions are the main reason for the increased volatility in the A-share market, and the impact of external conditions will continue to be felt in the near future. The uncertainties surrounding the Middle East conflict and the US tariff trends are significant, especially with the Middle East conflict leading to a sharp increase in oil prices, affecting the global economy and asset prices. Additionally, recent volatility in US stock indices, the peak and subsequent decline in the Japanese and Korean stock markets, and the continued weakness in the Hong Kong stock market are influenced by both geopolitical risks and concerns about AI business models, which to a certain extent have also dampened sentiment in the A-share market. In the medium term, driven by factors such as ongoing inflow of residents' savings into the market, improvement in listed company performance due to the "anti-falling into the internal" trend, and the new round of technological revolution, the current upward trend of A-shares is expected to continue. Shenwan Hongyuan Group: Short-term adjustment trend brewing the forces of misjudgment and overselling Feng Jingtao, Chief Analyst of A-share Strategy at Shenwan Hongyuan Group, believes that changes in the external market are one of the core factors causing recent volatility in the A-share market. The stagnation of oil shipping in the Strait of Hormuz in recent days has led to a surge in oil prices, an upward pulse in inflation expectations, and increased market uncertainty. This uncertainty resonates with "HALO trading," causing a general decline in global risk appetite. Looking at the medium to long term, various variables still exist, but the clues reflected in short-term asset prices are relatively singular. This implies that the short-term adjustment trend is brewing the forces of misjudgment and overselling. This article was reprinted from "Tencent Stock Selection", GMTEight Editor: Li Fo.