A-share market closing: Shanghai Composite Index fell by 1.39%, closing dangerously close to 4000 points. Financial sector experienced unusual fluctuations during trading! Oil and gas stocks were active against the trend.

Today, the market fluctuated and adjusted, with the Shanghai Composite Index briefly falling below the 4000 point mark at the end of the day. The total market turnover was 2.1 trillion, slightly higher than the previous trading day, with 4900 stocks in both markets falling. According to the Shanghai Securities News, the current volatility in the A-share market is the result of the combined effects of external risk transmission, internal sector adjustments, and risk aversion sentiment. Externally, the escalation of the Middle East conflict has pushed up oil prices to a new stage, combined with hawkish statements from the Federal Reserve, leading to a rise in global risk aversion sentiment and suppressing A-shares due to overall market declines. Under the dominance of risk aversion sentiment, incremental funds have been withdrawn from high-priced stocks, exacerbating the general downward trend in the market. In terms of market performance, resource stocks such as coal, natural gas, and oil were active against the trend, with stocks like Shanxi Guoxin Energy Corporation hitting the limit up. The computing power sector surged again, with stocks like Beijing Topnew Info&Tech reaching all-time highs. Green energy and collaborative computing concepts showed strength against the trend, with multiple stocks hitting the limit up. On the downside, spot gold and silver fell again, with the non-ferrous metals sector leading the decline, with stocks such as Willing New Energy, Shanjin International Gold, Zhongjin Gold Corp., and Baowu Magnesium Technology all falling. Huatai stated that from the perspective of market trading structure and fund behavior, overall risk appetite is cooling down, and geopolitical situations and risks of rising oil prices are still the main contradictions in market pricing. Looking at individual stocks, there were 505 gainers and 4955 decliners in the two markets, with 30 stocks remaining flat. There were a total of 36 stocks with limit up and 17 with limit down. At the close, the Shanghai Composite Index fell by 1.39% to 4006.55 points, with a turnover of 935.3 billion yuan; the Shenzhen Component Index fell by 2.02% to 13901.57 points, with a turnover of 117.57 billion yuan. The ChiNext Index fell by 1.11% to 3309.10 points. Capital flows Today, main funds focused on snapping up stocks in the power, photovoltaic equipment, and communication equipment sectors. Stocks with the highest net inflows by main funds included Eoptolink Technology Inc., Hgtech, and NYOCOR. Highlights Review 1. State Administration for Market Regulation: Strengthen efforts to eliminate local protectionism and market division, deepen efforts to rectify "internal competition" On March 19, the 2026 Anti-Monopoly Work Conference was held in Xiamen, Fujian. The meeting emphasized that 2026 is the beginning of the "15th Five-Year Plan," and to do a good job in anti-monopoly work, efforts should focus on deepening the construction of a unified national market, continuing to deepen fair competition governance, strengthening efforts to eliminate local protectionism and market division, regulating market competition order, deeply rectifying "internal competition," deepening international exchanges, improving institutional mechanisms, and constantly enhancing regulatory efficiency. 2. Ministry of Industry and Information Technology and other three departments held talks with the new energy vehicle industry The meeting called for the consolidation and deepening of the effectiveness of work to standardize industrial competition order, strengthen price monitoring and cost investigations, research and standardize automobile finance policies, normalize and deepen efforts to rectify industry network chaos, and urge companies to strictly implement 60-day payment terms. Implement a new round of key industrial chain high-quality development actions, accelerate the narrowing of gaps in automobile chips, basic software and other areas, promote the expansion of application scale, iterate and enhance quality performance; accelerate the breakthrough in autonomous driving technology, optimize access pilot processes, and accelerate the formulation of relevant standards. 3. Domestic airlines collectively raise fuel surcharges, with the maximum increase doubling Reporters learned that China Southern Airlines issued a notice to ticket agents, due to the adjustment of international fuel prices, it will gradually adjust international flight fuel surcharges, with increases of 100 yuan for China to Southeast Asia, 270 yuan for China to Australia, 150 yuan for China to the UAE, and 250 yuan for economy class flights from China to the United States, 500 yuan for business class flights. In addition, Spring Airlines, Juneyao Airlines, China Eastern Airlines, and Longhao Airlines have successively raised international flight fuel surcharges, with the highest increase doubling, such as from 180 yuan to 360 yuan for Spring Airlines' Shanghai to Kuala Lumpur and Penang flights. Future Forecast 1. Huatai: Geopolitical situations and risk of rising oil prices remain the main contradictions in market pricing Huatai Research Institute's chief strategy analyst He Kang stated that from the perspective of market trading structure and fund behavior, overall risk appetite is cooling down, and geopolitics and the risk of rising oil prices remain the main contradictions in market pricing. Looking ahead, macroeconomically, short-term risks have not been completely released, global stagflation concerns are rising, domestic broad liquidity is ample, but the sustainability of the improvement in import and export and inflation data needs to be verified. Microeconomically, global investors still have concerns about the disruptive impact of AI, and the most important financial reporting season for A-shares is coming up, with high sentiments in the power grid equipment, optical fiber cable, and chemical industries where consensus on the turnaround point of the production cycle is high. 2. CICC: Expects the Fed to delay restarting rate cuts until the second half of the year CICC pointed out that the Fed maintained interest rates at the March meeting, in line with market expectations. The dot plot and economic forecasts show an upward revision of inflation expectations and a narrowing of the space for rate cuts, with an overall cautious policy direction. Although Powell believes there is great uncertainty about oil price shocks and the economy still has resilience, CICC believes the actual situation is more complex. Tariffs and immigration policies have already constrained supply, compounded by oil price shocks, the U.S. economy is entering a "stagflation-like" phase. In addition, private credit risks are showing, and financial conditions may tighten spontaneously. Against this background, the Fed, in the short term, may remain constrained by stickiness in inflation, or continue to stand pat; in the medium term, with weakening demand or rising financial risks, there may be passive pressures for a shift towards rate cuts. It is expected that the Fed will maintain interest rates in the first half of the year and delay restarting rate cuts until the second half of the year. However, if rate cuts are a passive response to a deteriorating economy or financial environment, they will also find it difficult to boost market risk appetite. 3. China Securities Co.,Ltd.: North America's power shortage will be difficult to resolve, energy storage and grid construction will soon replicate the prosperity of gas turbines Currently, the North American power system faces problems such as a long grid connection period, aging and retirement of power/grid equipment, and insufficient reserve capacity. The explosive demand for AI/DC will lead to a North American power supply gap of 39.9, 51.8, and 67.8GW by 2026-2028. Gas turbines, energy storage, and grid equipment will become the core beneficiaries, gradually moving into reality. At present, the market only recognizes the prosperity of gas turbines, but it is expected that in half a year to a year, grid investment and energy storage construction will begin to increase continuously, with North American profit volumes far exceeding those of other regions globally. It is optimistic about the resilience of the related industrial chain.