A-shares rally across the board, ChiNext Index surges 3.3% in half day

Everyday Economic Reporter | Liu Mingtao Everyday Economic Editor | Peng Shuiping

On March 20, A-shares began to rebound, with the ChiNext Index rising over 3%. By the morning close, the Shanghai Composite Index increased by 0.16% to 4,013.16 points, the Shenzhen Component Index rose by 1.57%, the ChiNext Index gained 3.3%, the Beijing 50 rose by 0.63%, the STAR 50 increased by 0.07%, the CSI A500 went up by 1.01%, and the half-day trading volume of A-shares was 1.45 trillion yuan.

In terms of liquidity, the People’s Bank of China announced that on March 20, it conducted 20.5 billion yuan of 7-day reverse repurchase operations at a fixed rate through fixed-rate, quantity-based bidding, with an operation rate of 1.4%. The bid amount was 20.5 billion yuan, and the winning amount was 20.5 billion yuan. Wind data shows that 37.5 billion yuan of reverse repos matured that day, resulting in a net withdrawal of 17 billion yuan for the day.

On the news front, from March 15 to 20, the 71st APEC Energy Working Group meeting and a series of related meetings were successfully held in Nanchang, Jiangxi Province. This was the first major institutional energy meeting hosted by China during its tenure as APEC host in 2026. Representatives from various economies discussed three priority areas: “High-Quality Universal Energy Services,” “Artificial Intelligence + Energy,” and “APEC Energy Collaborative Governance.” They focused on the implementation of existing initiatives and the design of outcomes for the 2026 APEC China Year, laying the groundwork for consensus in the energy sector.

State-owned Assets Supervision and Administration Commission of the State Council: Strengthen application demonstrations, deepen scenario empowerment, enhance data governance, explore platform-based development, and build large-scale cross-sector AI industry clusters to promote the large-scale deployment of AI in central enterprises. Strengthen open cooperation, develop national open-source communities, fully leverage the role of “Huanchuang Community,” promote cross-sector and interdisciplinary collaboration, build a “AI+” industrial community among central enterprises, accelerate global AI cooperation, and foster a mutually beneficial and win-win industrial development ecosystem.

In terms of sectors, optical modules and CPO concept stocks surged collectively, with Yuanjie Technology hitting the daily limit and breaking through 1,000 yuan; Xinyi Sheng reached a new historical high, while Zhongji Xuchuang also rose sharply. Photovoltaic concept stocks exploded, with Chint Power and Shangneng Electric among the top gainers.

Catalysts such as GTC, OFC, and Q1 reports continue to arrive. The valuation of leading optical module manufacturers may significantly recover as geopolitical concerns ease. Second-tier optical module companies benefit from spillover demand from OEMs and the persistent “capacity locking” expectations. Meanwhile, confidence remains high in the huge incremental potential brought by in-cabinet optical solutions for FAU, MMC, and SNMT jumpers.

Here, by integrating the latest research reports from multiple brokerages, we present brief introductions of four companies for fans’ reference.

1. Yuanjie Technology

Based on continuous deep cultivation of the telecommunications market, the company actively seizes the opportunities brought by AI development in the data center market, accelerating the transformation into a high-end optical chip solution provider driven by “Telecom + Data Communication.”

— Guotou Securities

2. Changguang Huaxin

The company, through its wholly-owned subsidiary Suzhou Xingyao Photonic Technology Co., Ltd., is developing silicon photonics; by investing in Yunjing Optoelectronics to develop new materials, with thin-film lithium niobate breaking bandwidth limits and innovating integration processes, it is reshaping high-speed optical communication architecture.

— China Post Securities

3. Tengjing Technology

Benefiting from the growth trend driven by AI computing power demand, the company continues to expand its optical communication business and product delivery, promoting revenue growth in the optical communication field.

— Guotai Haitong Securities

4. Guangku Technology

The company’s optical communication devices are growing rapidly. Through acquisitions that enhance product and customer synergy, the thin-film lithium niobate layout has broad prospects.

— Tianfeng Securities

Cover image source: Everyday Media Asset Library

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