[Focus Review] The Shanghai Composite Index surged then fell back, losing the six-month moving average; energy storage concepts remain hot, while computing power leasing concepts plummeted in the afternoon.

Cailianpress, March 20—Today, 28 stocks hit the daily limit up, 23 stocks were board failures, and the board-uptake rate was 55%. Huafa Electric A and Huadian Liaoning Energy both posted five consecutive limit-ups; Dashengda and Shaoneng Co. recorded three consecutive limit-ups; Huadian Energy had six limit-ups in nine days; Zhengtai Power Supply and Guosheng Technology delivered four consecutive limit-ups in eight days. The market saw a high-and-then-fall pattern throughout the day. The Shanghai Composite Index fluctuated and adjusted, broke below the 6-month moving average, and fell below the 4,000-point round-number threshold. The ChiNext Index briefly refreshed its intra-day yearly high before quickly pulling back. The A and B lines showed clear differentiation. Mid- and small-cap stocks fell broadly, and the micro-cap index dropped more than 3%. Total trading volume on the Shanghai and Shenzhen markets was 2.29 trillion yuan, up 175.9 billion yuan from the previous trading day. On the trading floor, the whole market saw more than 4,700 stocks decline for two consecutive days. By sector, solar photovoltaics, energy storage, power, and lithium batteries led the gains; while compute leasing, oil & gas, and chemical sectors led the declines. By the close, the Shanghai Composite fell 1.24%, the Shenzhen Component fell 0.25%, and the ChiNext Index rose 1.3%.

Analysis of momentum and consecutive limit-up stocks

The advancement rate for consecutive limit-up stocks rebounded to 50%. Excluding Huadian Liaoning Energy, which achieved 4-to-5 in a long-leg style, the other consecutive limit-up stocks all advanced in the “hollow board” pattern. As international crude oil prices rebounded and then retreated yesterday, the chemical and oil & gas sectors that had locally warmed up yesterday suffered widespread pullbacks today. Meanwhile, the compute-leasing concept that had been surging fiercely earlier became the worst-hit area for selling pressure. After noon, Yitian Intelligent and Chuangchuang Data touched 20-cm limit-downs. Trend-following crowd-favorite momentum stocks such as Dongfang Guoxin and Hongjing Technology also moved to the top of the biggest decliners list. Earlier in the day, a popular stock in optical modules—Yuanjie Technology—briefly touched a 20-cm limit-up and even surpassed Cambrian Technology, becoming the 8th thousand-yuan stock in A-share history. Battery leader Contemporary Amperex Technology’s share price approached its historical high, prompting funds to further cluster toward compute hardware and new-energy track heavyweight stocks, but it instead caused liquidity to drain from smaller thematic stocks. After noon, the micro-cap index plunged more than 3%. This sharply polarized “two-eight” split in the current market reflects that a certain liquidity risk has emerged, which may further fuel the spread of short-term panic sentiment.

Main line themes

As the conflict in the Middle East escalated, energy production facilities such as natural gas became targets of attacks by parties involved. ICE UK natural gas futures rose 121.5% from the 2026 low yesterday, and TTF Dutch natural gas futures rose 120.8%. Expectations for energy prices to feed through from upstream gas prices to electricity prices were strengthened. The energy storage industry chain continued to stand out at the forefront. The inverters direction saw a booming rally: Shangneng Electric and Shouhang New Energy both sealed limit-ups; while Genvin Technology, Yinuo Technology, and Deye shares led by gains. In addition, benefiting from the “dual-strong” production scheduling for energy-storage battery demand, the battery industry chain also saw a strong catch-up rally. Shida Shenghua, Putailai, and Ganfeng Lithium all touched limit-ups; Huabao New Energy and Penghui Energy both rose more than 10%. Besides overseas anxiety about energy security, the strong installed-capacity demand for distributed energy storage projects, and the domestic AIDC’s extreme requirements for power supply stability, could make energy-storage supporting upgrades a necessity. However, the new-energy track still led by energy storage remains highly driven by sentiment linked to developments in the Middle East, and short-term funds have over-concentrated in the new-energy track, so short-term volatility risks should not be ignored.

Cailianpress reporter learned from sources that previously, a team at SpaceX, Musk’s company, purchased equipment from a domestic leading heterojunction (HJT) equipment manufacturer; shipment is expected in the first week of May. After noon, the solar photovoltaic industry chain surged broadly but kept oscillating and then fell back within the day. After Jiejia Weichuang and Junda Co. touched limit-ups, their gains narrowed significantly. Several other photovoltaic equipment stocks, including Mawier shares, Laplace, and Autovie, also all closed with long upper-wick daily candlesticks. In fact, in late January this year, along with expectations that SpaceX would inspect and approve its factory, a wave of notable rallies lifted HJT, perovskite battery-related themes, and upstream processing equipment such as CPI films and other sub-leader stocks. With today’s renewed batch explosion, however, the pressure from trapped-share holders selling into the move above still cannot be digested quickly in the short term. Moreover, the traditional commercial spaceflight direction had already completed some repair earlier, but today, Shunhao shares and Aerospace Development—previous popular stocks—were hit again with heavy setbacks. Space photovoltaics still struggles to escape the broader commercial spaceflight concept trend to form an independent pattern.

Recently, Datang Ningxia Branch plans to develop two phases of a green-electron data-computing power park in Zhongwei, Ningxia, with a total planned scale of 4.6 million kilowatts and total investment of nearly 20 billion yuan. This will become the largest “power-usage synergy” green-electron supply project in China at present. The green-electron industry chain continued its prior strength: Huadian Liaoning Energy, Shaoneng shares, and Huadian Energy achieved consecutive limit-up advancements; Zhizhou Group briefly touched a 20-cm limit-up; Yue Dianli A and GCL Energy Technology also briefly surged in the daytime, almost hitting limit-up. According to estimates from Huachuang Securities, for IDC operations, the cost of using green electricity is lower than using grid electricity. Electricity costs account for 56.7% of a data center’s operating costs. Taking a certain IDC project as an example, direct purchase of grid electricity costs 0.25 yuan; wind/solar plus storage direct connection costs 0.19 yuan, allowing electricity expenditure to be reduced by 24%. Therefore, integration between domestic data centers and regional green-electron projects remains the trend. However, for earlier popular “power-usage synergy” stocks such as Kaijin Energy, short-term pressure remains heavy; and in recent days, the power sector has continued to spread toward low-priced pure green-electricity stocks. After internal rotation between high and low within the sector continues, further differentiation next week is still possible.

At the 2026 OFC conference, Lumentum, a leader in the optical communications industry, expects that by the end of fiscal 2026, EML capacity will grow by more than 50% compared with 2025. Overnight, U.S. stocks in the optical communications concept kept their strong performance: Tower Semiconductor surged nearly 17%, and both Lumentum and Applied Optoelectronics rose more than 10%. The CPO concept saw another broad surge early in the day. Optical chip concept stock Yunnan Germanium Industry was the first to seal a limit-up. Yuanjie Technology briefly touched a 20-cm limit-up; its total market value neared 100 billion yuan. Changguang Huaxi, and New Ease盛 also refreshed historical highs. But in the afternoon, the flash collapse downward of the compute-leasing concept still dragged on compute hardware stocks from above. Currently, the strength on the hardware side is still based on strong overseas demand for upstream optical components driven by data center construction. However, in the short term, the走势 of U.S. tech stocks is still to a certain extent constrained by the impact of the Middle East conflict. And within the sector, core large-cap stocks remain near historical high levels, so short-term risks may still be higher than rewards.

Outlook for the market

Today’s market showed an extremely split pattern throughout the day. Active funds further narrowed their focus to new energy and compute hardware direction heavyweight stocks, which made the ChiNext Index rise by more than 3% intraday. Meanwhile, the continuous differentiation between the yellow and white lines in the intraday line, and the expansion of declines in small and micro-cap themed stocks after noon, led the micro-cap index to rise in volume and drop more than 3%, falling below the 60-day moving average. Since the Shanghai Composite first fell below the 6-month moving average since April 7 last year, the annual chart has also turned into a downtrend. As today’s number of stocks hitting limit-downs rose to double digits, the continuing increase in the bodies of recent index candles down more than 5% indicates that panic selling has been released in a concentrated manner today. However, the Shanghai Composite has already been below the lower band of the daily Bollinger Bands for two consecutive days, which may trigger a short-term technical rebound. But on the weekly chart, the Shanghai Composite is still in the early stage of MACD and KDJ forming a downward dead cross. To quickly reverse the downturn, it is still necessary to watch when the Shanghai Composite can move back upward to reclaim the 5-week moving average.

Today’s limit-up analysis chart

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