A-share market morning express | Three major stock indexes open collectively lower, precious metals, computing power hardware stocks and other stocks lead the decline.

On March 27, the three major A-share stock indexes collectively opened lower, with the Shanghai Composite Index falling by 0.95% and the ChiNext Index falling by 1.1%. On the market, precious metals, computing power hardware stocks, etc., led the decline, with Sichuan Gold and Shandong Gold Mining both falling by over 2%. Suzhou TFC Optical Communication and Yangtze Optical Fibre And Cable Joint Stock fell by over 4%. Institutional Outlook Industrial: A-shares should not be overly pessimistic, with clear support Industrial believes that strategically, A-shares should not be overly pessimistic, as they have clear support. The certainty of China's medium and long-term economic development provides solid support for the market; at the same time, domestic capital market supervision and macro decision-making attach great importance to market stability, making A-shares a "stabilizing force"; although the containment of China's development by the US and the West remain core external constraints, the US is in a passive situation in the Middle East, objectively creating a more favorable strategic environment for China. Tactically, it is necessary to face the intensification of market fluctuations and adhere to a contrarian strategy. The capital market naturally dislikes risks, and A-shares are particularly sensitive to this. If the US intensifies its military actions against Iran, deploys ground forces, or disrupts oil transportation in the Strait of Hormuz, investors with short-term liabilities will be the first to seek safe havens; and when the geopolitical situation remains deadlocked for several months, institutional investors will also become cautious. In the short term, Iran does not have tactical advantage, the US is likely to achieve some tactical gains, so it is necessary to adopt a contrarian strategy in response to the impact of the US's temporary tactical victory, to avoid blindly chasing highs. Huaan: When will the current benign correction end? Huaan believes that overseas tariff risks continue to accumulate, the US-Iran conflict remains unresolved, inflation concerns have pushed the Fed to significantly turn hawkish, and the probability of the introduction of incremental policies domestically is not high due to strong economic data. It is expected that the market will continue to maintain a weak and volatile trend. In terms of allocation, short-term dividend assets such as banks, utilities, and industries with catalytic price increases such as chemicals, machinery, and storage are expected to continue to outperform. The growth style remains the core theme in the medium term, but in the short term, it is still in a period of adjustment. After the adjustment, the market is expected to enter the second stage of profit-driven bull market, so we call the current correction a benign correction. The current US-Iran conflict shows no sign of easing, and Trump's announcement of postponing his visit to China also indicates the continuation of short-term overseas disturbances. The inflation concerns brought about by the rise in oil prices, the overall hawkish tone of the March FOMC meeting, and the probability of raising interest rates as a potential policy option have all increased. Therefore, the external disturbances facing the current market are still ongoing. During the first benign correction period of the growth industry cycle, although the duration is not very long, the mainstream industries and representative targets typically experience a three-stage rhythm of "decline rebound decline", with wide fluctuations in between. We believe that in the current environment of a sharp market decline, the strong leadership status demonstrated by representative growth targets and the communication industry is the rebound process in the middle of the three stages. Subsequently, representative growth targets and the communication sector may see the "final decline" to solidify the foundation for a new round of uptrend. Orient: Market's shrinking volume adjustment trend indicates a secondary bottom Orient believes that the current geopolitical conflict leaves the market thinking about how to reassess the energy system and reshape the global energy allocation model, leading to a shift in future energy policy towards "self-control + multiple alternatives". From the perspective of A-share investment, new energy generation, energy storage, and grid equipment sectors are benefiting and are worth investors' continuous attention. From a technical perspective, the market's shrinking volume adjustment trend indicates a secondary bottom, and the Shanghai Composite Index is likely to see a minor rebound near 3850 points. This article is reproduced from Tencent Self-selected Stocks, GMTEight Editor: Chen Wenfang.