A-share midday report | Continued concerns over energy supply! The Shanghai Composite Index fell slightly by 0.22% at midday, with strong performance in the chemical and other resource sectors.

Global markets are under pressure after oil prices broke through the $100 mark, with concerns about energy supply triggered by the Iran conflict continuing to ferment, and inflation fears spreading to the stock, bond, and currency markets. On March 13, the market opened higher but then fell back, with the three major indices collectively turning green again. By the noon close, the Shanghai Composite Index fell by 0.22%, the Shenzhen Component Index fell by 0.17%, and the Growth Enterprise Market fell by 0.03%. The total turnover of the Shanghai and Shenzhen markets in the morning was 1.51 trillion yuan, down by 88.4 billion yuan from the previous trading day. It is worth noting that although the external markets are experiencing a sharp decline, the A-share three major indices briefly turned higher intraday. The resilience of A-shares is evident, but what are the advantages? According to Wang Zonghao, director of stock strategy research at UBS China, A-share markets have shown some downside protection in the face of recent geopolitical events, mainly due to China's relatively low dependency on oil. He prefers A-shares over H-shares and American Depositary Receipts (ADRs), and believes that factors such as high trading volume will support the A-share market. He points out that holding Chinese stocks (especially A-shares) can bring certain diversification benefits, which have not been fully reflected in valuations yet. He expects some unique factors to support the A-share market, including high trading volume, supportive policies released during the Two Sessions, and a continued slowdown in household deposit growth. In terms of market performance, the chemical, coal, steel, and cement sectors continued to perform strongly, with multiple stocks in these sectors hitting the daily limit up. Wind power and offshore wind power concepts continued to rise, with Tongyu Heavy Industry and Titan Wind Energy hitting the limit up. The lithium battery materials concept showed strength, with multiple stocks hitting the limit up. Real estate and infrastructure concepts were strong, with Metro Land Corporation hitting the limit up. Banks and mid-cap industries continued to rise, with Power Construction Corporation of China, Ltd. hitting the limit up. The consumer, pharmaceutical, and automobile industries rebounded collectively. In terms of declines, concepts such as lobster, cloud services, and computing power leasing all experienced significant declines. In particular, many stocks in these concepts dropped by over 8%. The stablecoin concept had a one-day rally. Satellite internet, commercial aerospace, and space computing concepts continued to decline. Gas turbines, transformers, and power grid equipment concepts continued to retreat. Fiber optic cables, optical modules, and PCB hardware concepts continued to decline, with stocks like Accelink Technologies hitting the limit down. Concepts such as Sora, multimodal, AI intelligent bodies, and AI applications continued to weaken. Defense informatics, defense electronics, and aerospace engines concepts continued to be weak. Concepts like AI power, humanoid Siasun Robot & Automation, consumer electronics, photovoltaics, and semiconductors all trended lower. Hot Sectors: 1. The lithium battery materials concept was active against the trend, with multiple stocks hitting the limit up. 2. The chemical sector continued to perform strongly, with multiple stocks hitting the limit up. 3. The wind power sector was active again, with Tongyu Heavy Industry hitting the limit up. 4. The computing power leasing concept saw a collective decline, with Mcc Meili Cloud Computing Industry Investment hitting the limit down. Institutional Views: CICC: Prolonged Middle East conflict may cause global financial market turbulence. Galaxy Securities: Asset valuation logic might change if the Middle East conflict is prolonged. CITIC Securities: Wind energy's valuation is expected to be reshaped as a green oil drilling. Huaxi Securities: Continue to track the price increase chain, three major directions worth paying attention to.