A-share midday review | What happened? AI computing power and new energy "double drive", index rebounds with the ChiNext Index rising 3.3%

On March 20, the index hit bottom and rebounded, exploding in the morning. The Shanghai Composite regained 4000 points, with the ChiNext Index soaring by 3%, breaking through previous highs. By the midday close, the Shanghai Composite rose by 0.16%, the Shenzhen Component Index rose by 1.57%, and the ChiNext Index rose by 3.3%, surpassing the high point left on January 13. The total turnover of Shanghai and Shenzhen stock markets in the morning was 1.44 trillion yuan, an increase of 139.2 billion yuan compared to the previous trading day. So what happened with the A-share explosion in the morning? Looking at the sectors, AI computing power and new energy were the driving force behind the index's strength. AI computing power hardware (CPO/optical chip): Leading US optical communication stocks like Lumentum surged overnight, coupled with expectations of increased computing power prices for domestic cloud companies (Alibaba Cloud, Tencent Cloud), Yuanjie Semiconductor Technology rose by the daily limit becoming the second most expensive stock in A-shares, and heavyweight stocks such as Zhongji Innolight and Eoptolink Technology Inc. surged, directly leading to the ChiNext Index breaking through previous highs. New Energy (Energy Storage/Photovoltaics): Stimulated by rumors of Tesla's plan to purchase Chinese photovoltaic equipment and expectations of non-linear growth in energy storage demand, heavyweight stocks in the ChiNext Index such as Contemporary Amperex Technology and Sungrow Power Supply rebounded significantly, forming a combined force with the computing power sector. In other sectors, green electricity and computing power concepts continued to strengthen, with companies like Guangdong Shaoneng Group and Huadian Liaoning Energy Development hitting the daily limit; lithography machine concepts oscillated upwards, with Jiaxing ZMAX Optech taking the lead; the battery industry chain, including solid-state batteries, lithium extraction from salt lakes, and graphite electrodes, were collectively active, with companies like Shanghai Putailai New Energy Technology Group hitting the daily limit, and Contemporary Amperex Technology rising by nearly 5%. The oil and gas industry chain collectively pulled back, with combustible ice, oilfield services, and shale gas sectors leading the decline, with companies like NEW JCM GROUP and Xinjiang Zhundong Petroleum Technology falling by over 8%; the computing power leasing concept declined, with Super Telecom hitting the limit down; concepts like Huawei Euler, Pangu, Ascend, Kunpeng, etc. all weakened, with Business-intelligence Of Oriental Nations Corporation leading the decline; chemical stocks continued to decline, with Jiangsu Sanfame Polyester Material experiencing a significant drop; concepts like AI data and AI applications did not perform well, with most stocks in the diversified finance concept adjusting, and sectors like agriculture, defense, consumer goods, pharmaceuticals, etc. trending downwards. It is worth noting that the popular stock in the CPO concept, Yuanjie Semiconductor Technology, hit the daily limit during the trading day, now trading at 1138.42 yuan per share, making it the second most expensive stock on the A-share market. Looking ahead, a research report from Huaxing Securities stated that amidst geopolitical disruptions, there are still several favorable factors supporting the stable operation of the market. First is the strong economic resilience; second is the stable policy expectations; and third is the gradual market pricing of uncertainties. In terms of opportunities, a research report from Tianfeng stated that the pricing logic at the molecular end in the medium to long term is rising, which may further drive industry rotation towards "profit growth." Popular Sectors: 1. Energy Storage Concept Rapidly Strengthening 2. Computing Power Hardware Concept Has a Strong Opening 3. Battery Industry Chain Activated 4. Oil and Gas Stocks in Correction Institutional Views: - Huaxing Securities: In the background of geopolitical disruptions, there are still several favorable factors supporting the stable operation of the market. - Industrial Research Report: The demand for computing power is growing rapidly, and the energy system of data centers is undergoing reconstruction.