A-share market review: CSRC speaks out during trading hours, A-shares enjoys an independent market trend! The Shanghai stock index opens low but closes with a gain of 0.63%.

On March 27, the market opened low and closed high, with the Shenzhen Component Index rising over 1%. By the end of the trading day, the Shanghai Composite Index rose by 0.63%, the Shenzhen Component Index rose by 1.13%, and the ChiNext Index rose by 0.71%. The total trading volume of the Shanghai and Shenzhen stock markets was less than 2 trillion for two consecutive days, with only 1.85 trillion on that day, a decrease of 90.3 billion compared to the previous trading day. So, what is the reason that allowed A-shares to withstand the pressure from the external market and turn red? From the news perspective, Cheng Hehong, the chief lawyer of the China Securities Regulatory Commission, said at a sub-forum of the Boao Forum for Asia 2026 Annual Conference, "Create a good market environment and advocate for long-term value investment," that in 2025, various medium and long-term funds significantly increased their entry into the market. Social security funds, insurance funds, pension funds, public funds, and securities firms' own capital collectively bought A-shares exceeding 800 billion yuan. In addition, with funds related to the purchase of equity funds and the repurchase of listed companies by central enterprises, the actual scale of new medium and long-term funds entering the market exceeded one trillion yuan. Jin Yao, the vice chairman of the National Social Security Fund Council, also said at the Boao Forum for Asia 2026 Annual Conference that the National Social Security Fund can maintain strategic composure in short-term fluctuations and has decisively increased its position during significant declines in A-shares. There were also new developments in the Middle East situation, with President Trump of the United States announcing on social media on the 26th that, "At the request of the Iranian government," he will delay the "destruction" action on Iranian energy facilities by 10 days, extending the deadline to 8:00 p.m. on April 6 Eastern U.S. time (8:00 a.m. on April 7 Beijing time). In addition, a large fleet of Chinese ships has started to cross the Strait of Hormuz to return home. Looking at the market, the lithium battery industry chain was collectively boosted, with over ten component stocks, such as Jinzhou Yongshan Lithium, Chengxin Lithium Group, YOUNGY Co., Ltd., Ganfeng Lithium Group, hitting the daily limit; the innovative pharmaceutical concept fluctuated upwards, with Staidson, Shenzhen Salubris Pharmaceuticals, Jiangsu Lianhuan Pharmaceutical, among others, hitting the limit; agrochemicals and chemical stocks continued to rise, with Anhui Liuguo Chemical, Guizhou Chitianhua, hitting the limit; the non-ferrous metal concept rose collectively, with Yunnan Lincang Xinyuan Germanium Industry, Guangdong Xianglu Tungsten hitting the limit; the fiber optic and optical module concept continued to rebound, with Jiangsu Fasten, Hangzhou Cable hitting the limit; the large consumer sector fluctuated and rebounded, with Ningbo Lehui International Engineering Equipment, Juneyao Grand Healthy Drinks, hitting the limit; the chip industry chain was active in the afternoon, with Hubei Dinglong, Shanghai Shengjian Technology hitting the limit or rising by more than 10%. On the decline side, banks and insurance stocks collectively fell, with The People's Insurance, Zhejiang Shaoxing RuiFeng Rural Commercial Bank falling by over 3%; multiple stocks in the power sector declined, with Hunan Energy Group Development, Zhejiang Provincial New Energy Investment Group falling by over 6%; the coal sector fluctuated downwards, with Liaoning Energy Industry hitting the limit; the port and shipping sector weakened, with Rizhao Port Co., Ltd., Liaoning Port falling by over 3%; the direction of tourism, hotels, oil, and gas showed weak trends. Looking ahead to the future, Industrial's chief economist, Wang Han, stated that strategically, A-shares should not be overly pessimistic as they have clear support. Tactically, it is necessary to face the intensified market volatility, adhere to a contrarian investment approach, and avoid blindly chasing higher prices. Popular Sectors 1. The chemical sector is active The chemical sector was active, with Suli Co., Ltd., Shan Dong Lu Bei Chemical, Kingenta Ecological Engineering Group, Inner Mongolia Jinmei Chemical Technology hitting the daily limit. Comment: Geopolitical tensions increased sharply in March, compounded by shipping disruptions in the Strait of Hormuz and rising international crude oil prices, leading to an overall uptrend in the chemical sector. Public data shows that methanol prices in the Southwest market are around 2820-3070 yuan/ton, an increase of 825 yuan/ton from the end of February, with a staggering increase of 38.9%, reaching a new high in prices in nearly three years. 2. The pharmaceutical sector is strong The pharmaceutical sector is strong, with Beijing Scitop Bio-tech hitting the daily limit, Ningbo Menovo Pharmaceutical hitting the limit for 5 consecutive days, Wanbangde Pharmaceutical Holding Group hitting the limit for 3 days, Beijing Sl Pharmaceutical hitting the limit for 3 days. Comment: Jiangsu Lianhuan Pharmaceutical announced that the company's controlling subsidiary recently received the "Drug Supplementary Application Approval Notice" issued by the National Medical Products Administration. 3. The lithium mining concept is booming The lithium battery industry chain is booming, with over ten component stocks hitting the limit, YOUNGY Co., Ltd. hitting the limit for 4 consecutive days, Shida Shinghwa Advanced Material Group hitting the limit for 2 consecutive days, Jiangxi Special Electric Motor, Jinyuan EP Co., Ltd., Chengxin Lithium Group, Ganfeng Lithium Group, Shandong Hi-Tech Spring Material Technology, Sichuan New Energy Power hitting the daily limit. Comment: On the news front, the main contract of the Guangzhou Commodity Exchange's lithium carbonate broke through 160,000 yuan/ton intraday, rising by nearly 2% during the trading session. Institutional Views Industrial: A-shares should not be overly pessimistic, have clear support With the current escalation of the Middle East geopolitical conflict and increased volatility in the global commodity markets, investors are focusing on energy supply security, evolving inflation expectations, and the direction of asset allocation for big categories. Industrial's chief economist, Wang Han, stated that strategically, A-shares should not be overly pessimistic as they have clear support. The certainty of China's medium to long-term economic development provides a solid foundation for the market; meanwhile, the strict market supervision and macro decisions in the domestic capital market attach great importance to market stability, making A-shares a "divine needle" for stability; although Western attempts to contain China's development remain a core external constraint, the United States finding itself in a passive position in the Middle East objectively creates a more favorable strategic environment for China. Tactically, it is necessary to face the intensified market volatility and adhere to a contrarian investment approach. Capital markets naturally dislike risk, with A-shares being particularly sensitive to this. In the event of increased U.S. military action against Iran, the deployment of ground troops, or disruptions in oil transportation in the Strait of Hormuz, investors with short maturities will be the first to seek refuge; if the geopolitical situation remains deadlocked for months, institutional investors will also become cautious. In the short term, Iran lacks tactical advantages and the U.S. is likely to achieve some tactical gains, so a contrarian approach should be taken to the temporary tactical victories of the U.S. to avoid blindly chasing higher prices. Huaan: Current market faces ongoing external disturbances The current U.S.-Iran conflict shows no signs of easing, and Trump's announcement of a delayed visit to China indicates that overseas disturbances will continue in the short term. Concerns about inflation stemming from rising oil prices and the overall hawkish tone of the March FOMC meeting, which suggested rate hikes as a potential policy option, have increased the likelihood. Therefore, the current market faces ongoing external disturbances. In the first benign adjustment period of the growth industry cycle, although the duration may not be long, the main industries and representative targets usually go through a three-stage rhythm of "decline rebound decline," showing a trend of wide fluctuations during this period. We believe that in the recent market downturn environment, the strong leading position of growth representation and the communication sector is the intermediate rebound process of the three stages of decline. Representative growth targets and the communication sector may still see a "final decline" in the future to solidify the foundation for a new rally. Orient: The market's declining trend on shrinking volume adjustments is a secondary bottoming Orient stated that the consideration left to the market from this geopolitical conflict lies in the reevaluation of the energy system and the reshaping of global energy allocation models. Therefore, future energy policies will shift towards "independently controllable + diversified substitution"; from the perspective of A-share investment, new energy generation, energy storage, and grid equipment benefit, and investors should continue to pay attention to this direction. From a technical perspective, the market's declining trend on shrinking volume adjustments belongs to a secondary bottoming, with a high probability that the Shanghai Composite Index will see a minor rebound around 3850 points. This article is sourced from "Tencent Self-selection Stocks," GMTEight Editor: Chen Xiaoyi.