A-share opening express | Three major indexes collectively open high, active performance in the electric power sector

On March 24th, the three major A-share indices collectively opened higher, with the Shanghai Composite Index up by 0.95% and the Growth Enterprise Board up by 0.98%. In terms of individual stocks, the power sector performed well with Dongfang Electric Corporation rising more than 3%; while the oil, gas, and coal sectors experienced a pullback, with Geo-Jade Petroleum Corporation falling nearly 6%. Institutional Market Outlook Guotai Haitong: Geopolitical risks have a short-term impact on A-shares but are not profound Guotai Haitong believes that recent geopolitical instability has caused concern for many investors. However, they believe that the impact of geopolitics on A-shares is short-term and not profound. China's market/assets have advantages and differentiation logic. From a global perspective, A-shares have consistently had smaller declines compared to other markets. The long-term trend of A-shares is always determined by its innate core logic. Firstly, on a global scale, China has a relatively stable geopolitical situation, high energy self-sufficiency rate, a comprehensive industrial system, and stable economic, social, and capital markets. This stability is rare globally, making it difficult for A-shares to be dominated by a single geopolitical risk. Secondly, the growth logic breaks through the global stagflation narrative. 2025 is the first year for Chinese listed technology companies to turn positive in capital expenditures. The technology capital expenditure is expected to continue to accelerate due to the wide market space brought by the gap in computing power between China and the United States. Additionally, the central government's deployment of 800 billion new policy financial instruments to stabilize investment and domestic demand is expected to leverage a large amount of social investment, making A-share market growth more diversified. In conclusion, as we always say, "confidence is more precious than gold." At a time when even gold temporarily loses its safe-haven function and continues to weaken, more and more assets may be quietly approaching critical levels. Let's witness when the turning point will occur together. Ping An Securities: Market volatility may continue until the situation is clarified Ping An Securities stated that in the short term, the US-Iran conflict remains the major pricing anchor for global assets. Market volatility may continue until the situation is clarified, with a preference for defensive styles (dividends/undervaluation). In the medium to long term, the security attributes of Chinese assets are still expected to benefit from policy support and direction with certainty. This includes sectors that benefit from rising commodity prices and strategic security demands (energy, chemicals, etc.), as well as sectors with low production cycles and global shortage of advanced manufacturing (power equipment, machinery, etc.). Orient Securities: Limited downside potential for A-shares Orient Securities believes that the main driver of the current adjustment is geopolitical conflicts. The duration and evolution path of these conflicts still have a lot of uncertainties, making it difficult for short-term market disturbances to dissipate. However, China has a high energy self-sufficiency rate and a comprehensive industrial system, especially leading in the global new energy industry. This stability is rare globally and gives A-shares great resilience. Therefore, Orient Securities predicts that A-shares have limited downside potential, and the market will digest external pressures through oscillating differentiation and structural rotation in the future. From a spatial perspective, the Shanghai Composite Index's extreme limit should be in the 3700-3750 zone, and it is unlikely to reach it in one step. In terms of allocation, AI infrastructure such as computing power, data centers, power support, and the new energy sector have long-term policy support and dual logic of demand growth and are expected to lead the rebound in the market. This article is a repost from "Tencent Stock Picks", edited by Xu Wenqiang for GMTEight. (Note: Some terms and names have been left in Chinese as they are specific to the Chinese stock market.)