A-share Close: ChiNext Index Opens High and Closes Low, Down 2.29%, Computing Power Hardware Stocks Like CPO and PCB Decline Across the Board

(Source: Sci-Tech Innovation 100 ETF Fund)

The three major A-share indices all declined today. By the close, the Shanghai Composite Index fell 0.85%, the Shenzhen Component Index dropped 1.87%, the ChiNext Index decreased 2.29%, and the Beijing Stock Exchange 50 Index declined 1.85%. The combined trading volume of the Shanghai, Shenzhen, and Beijing markets was 22,246 billion yuan, down 1,153 billion yuan from the previous day. Over 4,500 stocks across the three markets declined.

In terms of sectors and themes, insurance, chemical fibers, precious metals, banking, real estate, securities, automotive, and steel sectors led gains; while CPO, optical fiber, lithography machines, PET copper foil, cultivated diamonds, PCBs, high-speed copper cables, liquid-cooled servers, and batteries saw the largest declines.

Market overview: After Nvidia’s GTC conference early this morning, funds chose to cash out and exit, leading to a collective decline in hardware stocks such as CPO, optical fiber, and PCBs. Stocks like Tianfu Communication (300394), Robotech (300757), and Changguang Huaxin fell over 10%. Benefiting from the AI wave, the power grid equipment sector also retreated, with Zeyu Intelligent (301179) and Huadong Cable (605196) leading the decline. Additionally, technology themes such as batteries, commercial aerospace, and PEEK materials also fell. On the other hand, real estate stocks surged early in the session, with Shilianxing (002285) and Jingtou Development (600683) hitting the daily limit. Data shows that the month-on-month decline in housing prices in 70 large and medium-sized cities continued to narrow. The breakthrough in mass production of China T1200 carbon fiber has filled a gap, supporting continued strength in the chemical fiber sector, with Sanfangxiang (600370) hitting four consecutive limit-ups and Zhongfu Shenying reaching a 20cm intraday limit.

Limit-up ladder:

【4 consecutive limit-ups】 Farsight (000890), Sanfangxiang

【3 consecutive limit-ups】 Chitianhua (600227), Jingtou Development, Xihua Technology (603248), Yaxiang Integration (603929)

【2 consecutive limit-ups】 Shenhua Development A, Huaneng Liaoning (600396), Zhuolang Intelligent (600545)

Main capital inflow sectors:

No.1 【CSDC Holdings】 Net main fund inflow of 4.184 billion yuan, with 91 stocks in the sector rising.

No.2 【Futures Concept】 Net main fund inflow of 2.949 billion yuan, with 1 stock hitting the limit-up and 43 stocks rising.

No.3 【Internet Insurance】 Net main fund inflow of 1.415 billion yuan, with 8 stocks rising.

Hotspot overview:

What’s hot in today’s market:

【Real Estate】

Related stocks: Jingneng Real Estate (600791), Jingtou Development, China Fortune Land Development (600340)

On March 16, the National Bureau of Statistics released the latest data showing that in February, the month-on-month decline in the sales prices of commercial residential properties in 70 large and medium-sized cities continued to narrow, with year-on-year decreases. The data on national real estate development investment and sales for the first two months show that investment totaled 9,612 billion yuan, down 11.1% year-on-year, with the decline narrowing by 6.1 percentage points compared to last year. As of the end of February, the area of unsold commercial housing was 79.998 million square meters, a 0.1% year-on-year increase, the slowest growth since July 2021, indicating that supply and demand in the new housing market are beginning to balance.

【Steel】

Related stocks: Anyang Steel (600569), Shaogang Hongxing (600307), Zhongnan Shares (000717)

Cinda Securities (601059) pointed out that the steel industry is an “undervalued physical asset.” Looking ahead to the “14th Five-Year Plan,” the industry is expected to continue deepening its “anti-involution” efforts, with long-term improvements in supply and demand. On the supply side, the “14th Five-Year Plan” explicitly promotes structural adjustments in the steel industry, strict regulation, market-oriented mergers and acquisitions, and the orderly exit of outdated and inefficient capacities, while addressing “involution-style” competition. On the demand side, policies will accelerate the construction of urban infrastructure lifeline projects, promote renovation of old pipelines, dangerous and dilapidated housing, and old neighborhoods, and steadily advance urban village redevelopment. In the short term, due to factors such as Iran’s situation and upgraded iron ore procurement restrictions, iron ore prices are expected to remain relatively strong, supporting steel costs. Under the long-term supply-demand improvement, short-term cost support, and low sector valuation, the steel sector is likely to see valuation recovery.

【Chemical Fibers】

Related stocks: Zhongfu Shenying, Sanfangxiang, Jilin Chemical Fiber (000420)

Recently, China National Building Material Group’s subsidiary Zhongfu Shenying independently developed the SYT80 (T1200 grade) ultra-high-strength carbon fiber, which has reached the top global level and achieved large-scale production of hundreds of tons.