A-share three major indices decline; Shanghai Index retreats below 3800 points; coal stocks rise against the market

The three major A-shares indices all declined today, with the Shanghai Composite Index retreating below the 3,800-point mark. By the close, the Shanghai Index fell 3.63%, the Shenzhen Component Index dropped 3.76%, and the ChiNext Index declined 3.49%. The combined trading volume of the Shanghai, Shenzhen, and Beijing markets exceeded 2.4 trillion yuan, an increase of over 150 billion yuan compared to the previous trading day.

Almost all industry sectors declined, with the exception of the coal sector, which rose against the trend. Leading decliners included precious metals, hotels and catering, components, tourist attractions, optical and optoelectronic, medical beauty, home goods, and social services.

In individual stocks, only about 300 stocks advanced, with more than 30 hitting the daily limit-up, while over 100 stocks hit the limit-down.

Industry Capital Flows: Net Inflow of 1.519 Billion Yuan into Passenger Vehicles

As of the close, the top net inflows were seen in passenger vehicles, coal mining, and electric motors, with passenger vehicles leading at 1.519 billion yuan.

On the outflow side, semiconductors, communication equipment, and components experienced the largest net outflows, with semiconductors losing 14.1 billion yuan.

Today’s Highlights

Iran Clarifies Passage Principles for the Strait of Hormuz

On the 22nd, Iran’s Ministry of Foreign Affairs issued a statement saying the Strait of Hormuz has not been blocked. Ships can continue to navigate through the waterway under the necessary measures taken due to the war situation. The statement also outlined Iran’s principles regarding shipping and navigation safety in the Strait of Hormuz.

Market Shock! Major News from the U.S.! When Will the “Bottoming Window” Arrive?

Amid increased volatility, some positive news has emerged! Major developments from the U.S. have been reported. According to Axios, an American official and an informed source revealed that after three weeks of conflict, the Trump administration has begun preliminary discussions on the next phase and potential peace negotiations with Iran.

Yushu Technology IPO Accepted; Nearly 20 Listed Companies Respond on Shareholding and Investment

Recently, the Shanghai Stock Exchange accepted Yushu Technology Co., Ltd.’s application for a Sci-Tech Innovation Board IPO, aiming to raise 4.202 billion yuan. According to incomplete statistics, 19 A-share listed companies including Shiyida, Zhongke Chuangda, Jingxing Paper, Jinfang Technology, Huayuan Holdings, Langke Intelligence, Xing Shuai Er, Shoukai Shares, Jinggong Technology, Zhejiang Media, Shenxinfu, Seven Wolves, Yayu Shares, Volkswagen Public Utilities, Wolong Electric Drive, Zhongji Xuchuang, Mars People, China News Group, and Snow Dragon Group have responded on platforms like Interactive Easy about their shareholding and investment in Yushu Technology.

Major Developments in the Middle East This Weekend! Companies Respond to Impacted Situations

Since March, over 50 companies have responded on investor relations platforms regarding the impact or extent of impact. Overall, more than 10 companies indicated that Middle Eastern geopolitical conflicts have affected their business, with both positive and negative effects; nearly 30 companies reported minimal impact; the rest, including Sichuan Jiuzhou, Satellite Chemical, Jianlin Home, Sirui Pu, etc., reported no impact.

Pang Gongsheng, Governor of the People’s Bank of China, Latest Statement: Current Social Financing Conditions Are Relaxed

On March 22, Pang Gongsheng delivered a keynote speech at the China Development High-Level Forum 2026, stating that China will continue to implement moderately relaxed monetary policy. By using tools such as reserve requirement ratios, policy interest rates, and open market operations, liquidity will remain ample. Currently, China’s social financing environment is relaxed, with reasonable growth in total financial assets.

Institutional Views

Galaxy Securities: Changes in Crude Oil Prices Under Geopolitical Conflict Will Continue to Be a Key Variable Affecting Market Structure

Galaxy Securities’ research report states that the duration and evolution of geopolitical conflicts remain highly uncertain. Disruptions to global risk assets are unlikely to subside in the short term, and global equity markets are expected to continue high volatility. However, the downside for A-shares is relatively limited, and the market is likely to digest external pressures through oscillation, differentiation, and sector rotation. Focus areas include: the ongoing escalation of US-Iran conflict driving energy and alternative demand, with attention to coal chemical, coal, shipping ports, oil and gas sectors; the recent correction in non-ferrous metals, with focus on valuation and cost-effectiveness after the pullback; a shift towards defensive assets such as finance, utilities, and transportation; and technology innovation sectors like power equipment, new energy, energy storage, semiconductors, computing power, and communication equipment. Additionally, the valuation of consumer sectors remains historically low, with some segments showing potential for recovery, such as agriculture, forestry, animal husbandry, fishery, food and beverages, and household appliances.

Caixin Securities: Expect Wide Fluctuations in the Market from Post-Lunar New Year to End of April

Caixin Securities notes that recent macro events abroad have increased uncertainties. The “stagflation-like” trading has warmed up, but a trend-based rally is still awaited. From after the Lunar New Year to the end of April, the market is likely to fluctuate broadly, with increased volatility. It is recommended to control positions prudently, wait for signs of a market turning point, and consider low-cost high-dividend assets, “HALO trading” concepts, policy favorable sectors, and high-growth tech stocks on dips.

CITIC Construction Investment: Favor Long-Term Beneficiaries of High Oil Prices, Such as New Energy and Energy Storage

CITIC Construction Investment’s research suggests that, amid soaring global energy prices and suppressed consumption, sectors likely to be significantly impacted include high-valuation stocks, high-energy-consuming industries (oil consumption), and demand-constrained cost-inflation sectors. Favorable sectors include: 1. industries benefiting from the closure of the Strait of Hormuz and sustained high oil prices, such as coal chemical, new energy, energy storage, nuclear power, and power grid; 2. defensive stocks with stable cash flow like coal and hydropower; 3. growth stocks that may be mispriced, such as AI supply chain and power shortage chains.

CICC Securities: A-shares Are in the Later Stage of Correction, Limited Downside Space for Further Decline

Based on technical and sentiment indicators, A-shares are in the latter part of this round of decline, with limited room for further sharp drops. External shocks may still cause temporary volatility, but confirming a bottom will take time. The key signal for a bottom is when the market stabilization mechanisms take substantial action. After the correction ends, three main allocation directions are recommended: resource stocks benefiting from geopolitical premiums and domestic replenishment demand; AI infrastructure such as computing power, data centers, and power support, driven by policy and industry trends; and new energy, supported by long-term policies and demand growth under the “14th Five-Year Plan” energy transition goals.