A-share midday report| The Growth Enterprise Board Index fell more than 1% in the morning! Chemicals and coal surged, while the metal sector remained weak.

On March 12, the three major indexes of A-shares collectively fell. By the midday close, the Shanghai Composite Index fell by 0.64%, the Shenzhen Component Index fell by 1.35%, and the ChiNext Index fell by 1.67%. The two markets had a turnover of 1.59 trillion yuan in half a day, down by 73.3 billion yuan from the previous day. On the market, the chemical industry sector continued to strengthen, with HeBei Jinniu Chemical Industry seeing 5 straight days of limit up, and stocks like Shanxi Lu'an Chemical Technology, Jiangsu Sanfame Polyester Material, Sichuan Hebang Biotechnology, ADAMA Ltd., Jiangsu Baichuan High-Tech New Materials also hitting the limit up. The coal sector rose, with Yankuang Energy Group, Zhengzhou Coal Industry & Electric Power hitting the limit up, and China Coal Energy reaching an 18-year high. The green electricity concept was active, with Green Development Electricity Group of Tianjin and Huadian Energy hitting three straight limit ups. The carbon fiber concept continued to be strong, with Zhongfu Shenying Carbon Fiber and Jilin Chemical Fibre Stock hitting the limit up. In terms of declines, gold, silver, nonferrous metals, and minor metal concepts continued to be weak; the light module, PCB, and liquid cooling hardware concepts saw corrections. Looking ahead, Huaxi pointed out that in 2026, the main theme will shift from technology to the rising price chain. With the catalysis of geopolitical situations, the rising price chain market may continue to evolve. Hot sectors: 1. The chemical industry sector continues to strengthen The chemical industry sector continued to be strong, with HeBei Jinniu Chemical Industry seeing 5 days of limit up, and Shanxi Lu'an Chemical Technology, Jiangsu Sanfame Polyester Material, Sichuan Hebang Biotechnology, ADAMA Ltd., Jiangsu Baichuan High-Tech New Materials all hitting the limit up. Review: In terms of news, on the night of March 11, chemical futures continued to rise, with the Xylene futures hitting the limit up with a 13% increase; the PTA main contract reached the limit up with a 13.01% increase; the bottle piece main contract reached the limit up with a 12% increase; pvc rose by nearly 9%, and ethylene glycol rose by over 7%. 2. The coal sector rose Yankuang Energy Group, Zhengzhou Coal Industry & Electric Power hit the limit up, and China Coal Energy reached an 18-year high. Review: According to Changjiang calculations, if the Hormuz Strait remains blocked for a long time, global coal demand for electricity may increase by 84.86 million tons annually; if our country's coal chemical plant operates at full capacity, this alone will boost domestic coal consumption by nearly 50 million tons. 3. The green electricity concept was active The green electricity concept was active, with Green Development Electricity Group of Tianjin and Huadian Energy hitting three straight limit ups. Review: According to news, the "Special Action Plan for Green and Low-carbon Development of Data Centers" clearly requires that the proportion of green electricity in newly-built data centers at national hub nodes must exceed 80%, and renewable energy utilization goals will be an important part of energy efficiency audits. Institutional views: Huaxi: Three major rising price themes support the A-share market Huaxi pointed out that in 2026, the main theme will shift from technology to the rising price chain. With the catalysis of geopolitical situations, the rising price chain market may continue to evolve. In terms of input inflation, focus on the energy chain, non-ferrous metals, and Shenzhen Agricultural Power Group. Among them, the energy chain has a high certainty of rising prices under the influence of geopolitical situations, and related sectors include oil and gas, coal chemical industry, upper-stream raw materials in the chemical industry, and shipping. In terms of non-ferrous metals, minor metals and aluminum have relatively higher certainty of rising prices, while gold and copper are showing a mixed pattern of long and short positions. In terms of Shenzhen Agricultural Power Group, pay attention to feed materials, fertilizers, and pesticides. Among them, the chemical industry sector is driven by the rise in crude oil prices and has already entered the rising price range; coal, steel, building materials, and live pigs have been running at low levels for a long time, with a possibility of rebound. Soochow: Market hotspots are switching faster, indices may continue to narrow and oscillate The Shanghai Composite Index continued to oscillate above 4000 points, with the ChiNext and STAR Market showing differentiation. In the short term, the market is in a relatively indecisive stage, with the speed of switching market hotspots increasing, reflecting that large funds have not yet found a direction. It is expected that the indices will continue to narrow and oscillate, and a breakthrough upwards will require the landing of external news events and continuous performance of new core hotspots. Investors are advised to be patient and wait. Central China: Market base support is solid, the Shanghai Composite Index is likely to maintain a slight consolidation Central China stated that the recent escalation of the Middle East situation has caused turbulence in global capital markets, with concerns about "stagflation" brought about by soaring oil prices suppressing risk appetite. Considering the further clarification of China's macro policies, it provides solid base support for the market. The central bank has made it clear that it will flexibly use reserve requirements and interest rate tools to maintain liquidity; at the same time, support for the Central Agency for National Agricultural Security to play a role similar to a "sovereign wealth fund" has boosted market confidence in the future market. It is expected that the Shanghai Composite Index is likely to maintain a slight consolidation, and investors are advised to pay close attention to changes in macroeconomic data, overseas liquidity changes, and policy directions. Caixin Securities: A-shares are expected to have stronger resilience compared to overseas markets, excessive concerns are not warranted In recent days, sector rotation has been rapid, with the previous day's leader in technology and innovation experiencing differentiation, and new energy and resource stocks showing rotational performance. This indicates that a sustained leadership direction that can drive the market has not yet emerged in the current market environment, with funds mainly switching between hotspots to a certain extent, which may limit the height of this round of rebound. Therefore, in the short term, as overseas macro disturbances stabilize, the market may maintain stability, with oscillation being the main trend at the index level. Looking at the medium term, the impact of overseas macro events persists, and it is expected that structural trends in A-shares will still need to wait, with the market likely to mainly oscillate widely until the end of April, with increased volatility. It is recommended to control positions reasonably and wait for market signals for a turn to appear. However, it should be emphasized that in recent years, regulatory authorities have strengthened strategic reserves and market stability mechanisms, and have made efforts to maintain market stability. The volatility of the A-share market has significantly decreased, and it is expected that A-shares will have stronger resilience compared to overseas markets, so there is no need for excessive concerns. This article is reproduced from "Tencent Zhixuangu", GMTEight editor: Wang Qiujia.