A-share midday review | Stock index shrinks and fluctuates, the ChiNext Index fell 0.58% in half a day, led by financial and real estate stocks.

On March 17th, the market opened high and then fell back in the morning, with all three major indexes turning green. Financial and real estate stocks led the gains. By noon, the Shanghai Composite Index fell by 0.04%, the Shenzhen Component Index fell by 0.4%, and the Growth Enterprise Index fell by 0.58%. The combined turnover of the Shanghai and Shenzhen markets was 1.37 trillion, a decrease of 140.4 billion from the previous trading day. In terms of the market, insurance, securities, and banking sectors collectively rose, with New China Life Insurance rising by over 4% and Shanghai Aj Group hitting the limit up. The real estate sector was active again, with Beh-Property and Metro Land Corporation hitting the limit up. Steel stocks rose, with companies like Gan Su Jiu Steel Group Hong Xing Iron & Steel Co, Ltd hitting the limit up. The photovoltaic sector saw a big increase, with Jiangsu Chint Power Technology and GCL System Integration Technology hitting the limit up. Wind power, green energy, and other sectors also strengthened, with companies like Huadian Liaoning Energy Development hitting the limit up. Copper cable high-speed connection concept stocks rose, with Xinya Electronic hitting the limit up. Automobile manufacturers, gaming companies, airport transportation, pharmaceuticals, and new stocks all saw gains during the trading day. On the downside, optical module, fiber optic cable, and PCB stocks collectively plummeted, while 6G and communication equipment sectors also saw big declines. Companies like TDG Holding and Suzhou K-Hiragawa Electronic Technology hit the limit down. Lithography machines and other semiconductor industry chains experienced pullbacks, with Focuslight Technologies Inc. dropping by over 10%. Agricultural stocks focused on grain planting and transgenic technology weakened, with Hainan Shennong Seed Industry Technology leading the declines. Chemical stocks fell, with fluorine chemical, phosphorus chemical, and pesticide sectors leading the way. The oil and gas industry chain continued to adjust, with sectors like nuclear fusion, consumer electronics, deep-sea technology, ultra-high voltage, and quantum technology all moving downwards. Looking ahead, Morgan Stanley's chief strategist believes that although there is no clear signal of the end of the war, the correction in the stock market may be coming to a close. Guotai Haitong believes that as the situation eases, there is a willingness for funds to return to technology, and the market is gradually moving back to the original investment themes. China Securities Co., Ltd. believes that the market's consolidation and volatility present good opportunities for positioning. Popular sectors: 1. Big financial sector on the rise Insurance, securities, and banking sectors collectively rose, with New China Life Insurance rising by nearly 4%, and Shanghai Aj Group hitting the limit up. 2. Real estate sector performing well The real estate sector was active again, with Beh-Property and Metro Land Corporation hitting the limit up. 3. Steel sector seeing unusual gains The steel sector was active, with Anyang Iron and Steel and Gan Su Jiu Steel Group Hong Xing Iron & Steel Co, Ltd both hitting the limit up. 4. Space photovoltaic concept showing strength The space photovoltaic concept was rising rapidly, with GCL System Integration Technology and Shandong Yabo Technology hitting the limit up. Institutional viewpoints: China Securities Co., Ltd.: Market consolidation presents opportunities for positioning Looking ahead, market consolidation presents good opportunities for positioning, as funds are gradually shifting from speculative themes to core assets with fundamental support. The market is forming a dual mainline structure of high-end manufacturing technology and strategic energy resources. The positive impact of fundamental factors such as hydrogen energy industry policies, global AI computing demand, and domestic high-end manufacturing substitution, combined with the return of overseas technology stocks, is attracting incremental funds. The optimization of the strategic energy resource supply structure and the logic of price increases, as well as the high certainty of performance disclosure during the annual report season, are expected to further promote market stabilization and upward movement. It is recommended to actively focus on investment opportunities in high-end manufacturing technology and strategic energy resources. Guotai Haitong: With easing tensions, funds are returning to technology Guotai Haitong believes that recent geopolitical conflicts have caused significant disruptions in the secondary market, with various adjustments in the Asia-Pacific market indices and some impact on the core indices of A-shares. With easing tensions, there is a willingness for funds to return to technology, and the market is gradually converging towards the original investment themes. Given the current market environment, the secondary market investment in 2026 should focus on three core directions: 1. Technology theme: Focus on computing power, optical communication (including CPO), AI computing hardware, and other core areas, which are the main direction for fund return and also one of the main themes with long-term prosperity. 2. Resource theme: Focus on energy storage, chemicals, power equipment, and copper, which have relatively high certainty. Be cautious about short-term pulse market movements in sectors like photovoltaics, wind power, and coal chemical industry. Maintain a positive view on rare earths in the long term but be cautious in the short term. 3. Value stocks theme: Restructure investment logic by allocating low-volatility dividend stocks, such as China Securities Red Chip Index, to obtain stable dividend returns. Traditional consumption is more suitable for long-term allocation, while short-term focus can be on incremental opportunities in service consumption. CICC: Emphasize "industry development" over immediate positioning The investment strategies for future industries and emerging industries differ, as most sectors in the A-share market are still in the very early stages. It is advisable to emphasize "industry development" over immediate positioning. In the medium to short term (around one year), it is important to keep an eye on the progress of future industries without seeking immediate entry into most sectors. It is crucial to consider the matching risk between asset prices and business development at the moment. In the long term (more than one year or longer), as industries develop, application routes become clearer, more excellent companies emerge, and competition patterns become clearer, it may be appropriate to further seek investment opportunities. This article is reprinted from "Tencent Self-selected Stocks", GMT8 Editor: Wang Qiujia.