The Shanghai Composite Index rebounded against the trend, returning to 3,900 points, with over 4,300 stocks rising. Innovative medicine and lithium battery concepts triggered a wave of limit-up surges. The combined trading volume of the two markets was less than 1.9 trillion yuan.

(Source: Bay Area Finance Media)

Today, the A-share market opened low and rose high, with the Shenzhen Component Index up over 1%. The trading volume in both the Shanghai and Shenzhen markets has been below 2 trillion for two consecutive days, only reaching 1.85 trillion today, a decrease of 90.3 billion compared to the previous trading day.

On the market, hot spots are quickly rotating, with more than 4,300 individual stocks rising across the market. From the sector perspective, the lithium battery industry chain exploded, with more than ten constituent stocks hitting the daily limit up, Rongjie Co. with four consecutive limit-ups, Shida Shenghua with two consecutive limit-ups, Jiangte Motor, Jinyuan Co. (rights protection), Shengxin Lithium Energy, Ganfeng Lithium, Haike New Source, and Chuaneng Power all hitting limit-ups. The pharmaceutical sector strengthened, with Keta Bio hitting the daily limit up at 20cm, Menova (rights protection) achieving five limit-ups in six days, Wanbangde with three limit-ups in four days, and Shuanglu Pharmaceutical with three limit-ups in three days. The chemical sector performed actively, with Suli Co., Luban Chemical, Jinzhen Da, and Jinkei Technology all hitting limit-ups.

On the downside, multiple stocks in the green energy sector fell, with Liaoning Energy hitting the daily limit down, and Xinneng Wind Power, Haili Wind Power, and Hunan Development experiencing significant declines.

By the close, the Shanghai Composite Index rose by 0.63%, the Shenzhen Component Index rose by 1.13%, and the ChiNext Index rose by 0.71%.

Hot sectors

1. Military Industry Sector

Jianshe Industrial hit the daily limit up, with many stocks such as Hunan Tianyan and Great Wall Military Industry rising.

Lanyan Holdings hit the daily limit up, with stocks like Shouhua Gas and Qieneng Hengxin also rising.

On the news front, the Middle East game continues to ferment, with external expectations of uncertainty regarding the prospects of negotiations between the U.S. and Iran.

2. Innovative Drugs

Shutai Shen, Rejing Bio, and Keta Bio hit the daily limit up at 20cm, with Zhaoyan Pharmaceuticals and Lianhuan Pharmaceuticals also hitting limit-ups.

On the news front, data shows that as of March 21, 2026, the total value of China’s innovative drug overseas BD contracts has reached $57.1 billion, with a down payment of $3.3 billion and a total of 53 contracts. The total contract value corresponds to 41% of the entire year of 2025, exceeding the levels of the entire year of 2024.

A-share market sector gainers and losers ranking

In the Hong Kong market, as of 15:00, the Hang Seng Index rose over 0.5%, and the Hang Seng Technology Index rose over 0.8%.

Hong Kong innovative drug stocks and lithium battery stocks rose simultaneously. Ingenuity Smart and CSPC Pharmaceutical rose over 13%, Zhaoyan Pharmaceuticals rose over 12%, Sanofi Pharmaceuticals rose over 10%, and Innovent Biologics and Xiansheng Pharmaceuticals rose over 8%. Ganfeng Lithium rose over 8%, Tianqi Lithium rose over 6%, and BYD and CATL rose over 3%.

Institutional views

Wang Han, Chief Economist and Co-Director of the Economic and Financial Research Institute at Industrial Securities, recently stated that for asset allocation in the second quarter, strategically, A-shares should not be overly pessimistic and have clear support. The certainty of China’s medium to long-term economic development provides solid support for the market; at the same time, the domestic capital market’s regulation and macro decision-making highly value market stability, giving A-shares a role as a “stabilizing force”; although the West’s containment of China’s development remains a core external constraint, the U.S. being in a passive situation in the Middle East objectively creates a more favorable strategic environment for China.

Caixin Securities believes that looking ahead, although the situation in the Middle East may still fluctuate, a trend toward stability is highly likely, and its impact on A-shares will marginally weaken. The short-term market may continue its rebound trend. However, the global “quasi-stagflation” effect caused by the overseas energy crisis and the performance risks brought by the A-share earnings season will suppress the pace of incremental capital entry, leading to certain fluctuations during the market rebound. Therefore, the recent market may show a structurally differentiated trend among thematic sectors. In the medium term, with the continuation of the “dual easing” tone of fiscal and monetary policy, residents’ savings continuously entering the market, “anti-involution” improving the performance of listed companies, and global AI technology continuing to break through, the foundation for this round of A-share market remains solid. It is expected that the ongoing conflict in the Middle East will only affect the short-term sentiment and market operation rhythm of the A-share market and will not change the market direction. Confidence remains in the medium to long-term positive trend of the market, and there is no need for excessive worry.