Jufeng Market Review: The major indices surged then pulled back, and the Shanghai Composite Index fell below 3,900 points

Ask AI · How does Iraq’s oil production cut boost the energy sector?

Author | Ding Zhenyu, Editor | Liang Puxi

Source: Jufen Investment Advisory, Good Stocks App

Market Overview

On Thursday, A-shares rose and then fell back, with the Shanghai Composite Index falling below 3900 points. In the market, energy metals, batteries, coal, and oil rose against the trend, while military equipment, wind power, photovoltaics, rare earths, precious metals, environmental protection, communication services, software development, optical optoelectronics, and others showed significant declines. In terms of themes, combustible ice, lithium mining concepts, lab-grown meat, and propylene oxide saw slight increases, while Huawei Euler, shipbuilding, TOPCon batteries, MicroLED, and edge computing concepts faced substantial declines.

Hot Sectors

Oil and gas extraction strengthened, with Blue Flame Holding hitting the daily limit, followed by Shouhua Gas, Potential Energy Holdings, CNOOC Engineering, New Natural Gas, and Zhongman Petroleum leading the gains.

The lithium mining sector rose, with Rongjie Co. hitting the daily limit, and Yongxing Materials, Tibet Mining, Shengxin Lithium Energy, Tianqi Lithium, and Ganfeng Lithium also climbing.

The power sector increased, with Huadian Liao Energy achieving nine consecutive limit-ups, and Huitian Thermal Power, Hunan Development, Guangxi Energy, Jingyuntong, Ganneng Shares, and Shenzhen Nandian A hitting the daily limit.

News

China Accelerates the Establishment of Long-term Care Insurance System

The General Office and the State Council issued an opinion on March 25 to accelerate the establishment of a long-term care insurance system, which will adapt to China’s basic national conditions, cover all citizens, coordinate urban and rural areas, ensure fairness and unity, safety and regulation, and sustainability. The long-term care insurance system is a social insurance system that provides services or financial support for basic daily care and related medical care for disabled individuals, and it is an important part of China’s social security system and a key component in implementing the national strategy to actively address population aging.

Since March, 85 A-share companies have been investigated by overseas institutions

Since March, 85 listed companies have been surveyed by overseas institutions. By industry, overseas institutions mainly favored electronics, power equipment, and machinery equipment, with 21, 9, and 9 companies investigated respectively; both the pharmaceutical and biological sectors and the computer industry also saw more than 5 listed companies receiving attention from overseas institutions.

OPEC’s Second Largest Oil Producer Has Cut Production by 80%

According to media reports quoting Iraqi energy officials, as the war in Iran continues, Iraq’s oil production has plummeted sharply, with storage tanks reaching critical levels, and the country is still unable to export crude oil through the Strait of Hormuz. These officials stated that production from Iraq’s main oil fields (where most of the country’s crude oil is produced and exported) has further decreased to about 800,000 barrels per day, down approximately 80% from pre-war levels.

Jufen Insights

On Thursday, A-shares opened lower collectively, with the Shanghai Composite Index down 0.17%, the Shenzhen Component down 0.32%, and the ChiNext Index down 0.54%. Small household appliances, engineering machinery, large aircraft, and commercial aerospace opened higher, while wind power, storage chips, and photovoltaics opened lower.

In terms of hot topics, the lithium mining concept surged significantly, with Rongjie Co. showing three consecutive limit-ups, driving the sector higher. Yiwei Lithium Energy’s all-solid-state battery went offline, boosting the solid-state battery and sodium-ion battery concepts simultaneously. Photovoltaic equipment underwent adjustments, with mixed trends in computing hardware, a strong performance in the CPO direction, and a pullback in storage chips.

In the afternoon, international oil prices rose, boosting fossil energy sectors such as oil, natural gas, and coal, while the commercial aerospace sector was partially active; lithium mining and solid-state batteries that rose sharply in the morning fell back, and sectors such as insurance, communication services, environmental protection, photovoltaics, and wind power deepened their declines, with all three major stock indices down more than 1%, and the Shanghai Composite Index breaking below the 3900-point mark. The market showed a widespread decline, with nearly 4,500 stocks falling.

From the current trend, the market has shown clear differentiation, with resource stocks such as oil and gas moving in a seesaw manner against technology stocks. Currently, external black swan events have not settled, and the A-share trend is expected to remain volatile, with investors advised to focus on low-buy opportunities in leading stocks of previously popular industries after corrections.

From a long-term perspective, Jufen Investment Advisory believes that under policy stimulation, A-shares and the economy are expected to enter an upward turning point simultaneously. In terms of specific investment directions, it is recommended to focus on incremental opportunities in high-prosperity sectors such as semiconductors, consumer electronics, artificial intelligence, robotics, and commercial aerospace; for risk-averse investors, it is advisable to pay attention to broad-based funds such as the CSI A500 ETF and the CSI 300 ETF on dips.

Author: Ding Zhenyu License No.: A0680613040001

Disclaimer: The above content is for reference only and does not constitute specific operational advice. Any profits or losses from actions taken based on this content are at your own risk.

Author’s Statement: Personal views for reference only.