Trading volume shrank to 8 trillion, second-board gaps, funds are switching wildly!

Before a deep review, here’s the usual summary of today’s observations;

Taijia Co., Ltd. unfollowed at a high level, then re-followed at the close;
GCL System Integration, ongoing attention strategy.

Deep Dive: Market Sentiment Review
$1
March 4, 2026 (Wednesday)

1. Key Data and Sentiment Diagnosis

1.1 Overall Market Performance
The Shanghai Composite Index gap-down fell, closing at 4,082.47 points, losing the 4,100-point integer mark. Total market turnover shrank significantly to 2.36 trillion yuan, over 760 billion less than yesterday, indicating a large release of panic selling and downward momentum. Over 3,400 stocks declined, but only 11 hit the daily limit down, suggesting the market, while adjusting, did not experience widespread panic selling.

In terms of sentiment indicators, stocks that hit the daily limit yesterday averaged a 3.7% decline today, showing that chasing high has generally trapped funds, with poor profit-taking effects. The rate of limit-down breakages reached 30.16%, further confirming weak momentum continuation. Market temperature has rapidly cooled from previous highs into a freezing zone.

2. Deep Analysis of the Continuous Limit-up Ladder

Today, only 6 stocks hit the limit-up, with a serious gap in the ladder structure.
Top limit: Yasheng Group, Shui Fa Gas (4 days, 4 limit-ups)
Third-tier: Zhun Oil, Shandong Molong, Intercontinental Oil & Gas, Petrochemical Oil Services

The success rate from first to second limit-up is 0%, and from second to third is only 13%, indicating the mid-cap stocks’ relay ecosystem has been completely disrupted. Funds are either clustered in the top limit-up stocks and some oil & gas stocks or completely on the sidelines waiting. This “heavy top, light bottom” ladder structure is very fragile; once high-level stocks loosen, chain reactions are likely. Future focus should be on whether 4-limit-up stocks can continue expanding space and whether new 2-limit-up stocks appear to repair the gaps.

3. Hot Sector and Core Stock Comments

Electric Power Sector: Strong recovery with 13 stocks hitting the limit-up. The logic is driven by electricity demand anxiety from AI computing power surges, which has risen from industry topics to policy agendas, with market expectations that grid investment will enter a long cycle.

Core stock analysis

Shenma Electric Power (3 limit-ups in 5 days): As the sector leader, with strong momentum, it is a barometer for sector recovery.

Computing Power Sector: Eight stocks hit the limit-up, showing active performance. Linked with the electric power sector, the logic is also AI infrastructure construction.

Core stock analysis

Chuanrun Co., Ltd. (4 limit-ups in 12 days): Old-timer stock rebounding, maintaining high oscillation in computing hardware, indicating some funds are still seeking opportunities in this area.

Oil & Gas Sector: Facing significant divergence, shifting from previous uniform rise to differentiation. Only 5 stocks hit the limit-up today, with previously strong stocks beginning to show signs of correction.

Core stock analysis

Intercontinental Oil & Gas (5 limit-ups in 7 days): Still strong amid sector divergence, showing strong fund clustering, but its sustainability is doubtful as the overall sector recedes.

4. Overall Market Sentiment Analysis

Cycle positioning: The market is in a “receding tide” calm phase. Previously, geopolitical conflicts drove safe-haven sectors like oil & gas and shipping, but these are now dissipating. New themes (like electric power, computing power) have shown some movement but haven’t formed a strong collective force, placing the market in a transitional chaos of old and new momentum.

Risks: Correction risk of high-level limit-up stocks; negative feedback continuation from yesterday’s limit-up stocks; technical selling pressure if the index breaks key levels.

Opportunities: Oversold rebound opportunities after panic release; new leaders may emerge if sectors like electric power and computing power continue to strengthen.

Funds’ behavior: Risk appetite has significantly declined, with funds withdrawing from high-level stocks. Some are attempting “high-low switching” in new low-priced themes, but overall, the market remains cautious with trial-and-error behavior, lacking large-scale aggressive moves. The volume shrinkage best proves this.

In the short term, the market will likely enter a phase of low-volume oscillation and structural trends. The index needs to watch the support around 4050 points. Sentiment-wise, signals of ladder repair and profit effect recovery are awaited. Before the “Two Sessions” policy window, the market is likely to remain cautious and wait-and-see.

Focus areas:

• Electric Power Equipment: Can AI-driven electricity demand logic continue to ferment and drive a new cycle?
• Oversold Tech Stocks: Some tech stocks that were wrongly punished may recover as sentiment improves.
• High-Position Stock Risks: Keep close watch on 4- and 3-limit-up stocks; if they weaken collectively, further sentiment decline is possible.

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【Important Notice】: The above is only a sharing of ideas and does not constitute investment advice. The market carries risks; invest cautiously!