Bosera Fund Market Fluctuations on March 19: The Shanghai and Shenzhen major indices declined, with the Shanghai Composite Index dropping over 1.3% and the Shenzhen Component Index falling more than 2%.

Bosera Fund Market Fluctuation Companion

Market Performance:

On March 19, the Shanghai and Shenzhen three major indices adjusted, with the Shanghai Composite down over 1.3% and the Shenzhen Component down over 2%.

Analysis:

‼ Today’s A-share market experienced a correction, mainly influenced by multiple external risks resonating together. The escalation of Middle East geopolitical conflicts—Israel attacking key Iranian natural gas facilities, followed by Iran warning and launching missile strikes—caused turmoil in the global energy markets. Oil prices fluctuated sharply, the US dollar’s safe-haven demand increased, and global risk premiums rose significantly. Meanwhile, the Federal Reserve’s March monetary policy meeting kept interest rates unchanged as expected. The dot plot showed no change in the rate cut expectation for the year, but hawkish signals strengthened, with inflation expectations revised up to 2.7%. Market concerns about the Fed turning hawkish intensified, risk appetite continued to decline, and global capital markets came under pressure, affecting the A-shares as well.

‼ On March 18, local time, the Federal Reserve FOMC released its latest interest rate decision, in line with market expectations, maintaining the federal funds rate target range at 3.5% to 3.75%, for the second consecutive meeting. The dot plot maintained one rate cut expectation for the year, but more members showed hawkish stances, with only one voting against. This reflects renewed attention to inflation pressures. The policy statement revised the economic outlook, adding that “the impact of the evolving Middle East situation on the US economy remains uncertain.” Economic forecasts raised the 2026 PCE inflation to 2.7%, indicating deep concerns about inflation central tendency. The policy may shift toward caution, and liquidity expectations are tightening.

‼ Looking ahead, the short-term A-share market may still be affected by external risks, with geopolitical conflicts and changes in Fed policy expectations being the main restraining factors. However, in the medium term, the domestic economic recovery trend remains unchanged. As macro policies become more proactive and effective, and economic transformation continues, market sentiment is expected to gradually recover. Currently, attention should be paid to policy developments and external risk evolution, maintaining cautious optimism. From a market structure perspective, funds may shift from overvalued, high-valuation, theme-based sectors to sectors with solid performance support and reasonable valuations. It is recommended to focus on the defensive attributes of short-duration value sectors and appropriately avoid risks associated with high-valuation sectors.

Data Source: Wind, as of March 19, 2026. Funds carry risks; investment should be cautious. Fund managers commit to managing and using fund assets with honesty, integrity, diligence, and responsibility, but do not guarantee profits or returns. Past performance does not indicate future results.

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