A-shares declined sharply in the afternoon with widening losses, while chemical, nuclear power, wind power, and lithium battery sectors bucked the trend and strengthened.

The three major A-share stock indices opened lower collectively on March 13. Early trading was scattered with no clear hotspots, and the two markets fluctuated narrowly. In the afternoon, a unilateral decline emerged, with the decline significantly widening.

From the market perspective, stocks in cloud computing, computing power leasing, stablecoins, smart grids, AI applications, cybersecurity, CPO, commercial aerospace, humanoid robots, and rare earth permanent magnet concepts led the declines; meanwhile, chemical, nuclear power, wind power, and lithium battery sectors defied the trend and strengthened.

By the close, the Shanghai Composite Index fell 0.82%, closing at 4,095.45 points; the STAR 50 Index dropped 0.72%, ending at 1,373.64 points; the Shenzhen Component Index declined 0.65%, finishing at 14,280.78 points; and the ChiNext Index decreased 0.22%, closing at 3,310.28 points.

Wind statistics show that a total of 1,502 stocks in both markets and the Beijing Stock Exchange rose, while 3,824 declined, with 159 remaining unchanged.

The total trading volume of the Shanghai and Shenzhen markets was 2,400.3 billion yuan, down 416 billion yuan from the previous trading day’s 2,441.9 billion yuan. Among them, the Shanghai market traded 1,063.9 billion yuan, a decrease of 143 billion yuan from the previous day’s 1,078.2 billion yuan; the Shenzhen market traded 1,336.4 billion yuan.

According to Dazhihui VIP, 71 stocks across both markets and the Beijing Stock Exchange gained over 9%, while 36 stocks fell more than 9%.

Bank stocks strengthened, while the computer sector weakened.

In terms of sectors, food and beverage led the gains across both markets, with Sanyuan Foods (600429) up over 4%, Chongqing Beer (600132), Huangtai Liquor (000995), Luzhou Laojiao (000568), Huichuan Beer (600573), and Haitan Flavoring and Food (603288) rising over 2%.

Bank stocks defied the trend and strengthened, with Shanghai Rural Commercial Bank (601825), Chongqing Bank (601963), Huaxia Bank (600015), CCB (601998), Yunnan Rural Commercial Bank (601077), and Changsha Bank (601577) rising over 1%.

Construction and decoration stocks saw notable gains, with Kexin Development (600234), China Nuclear Engineering (601611), Yaxiang Integration (603929), Yabo Shares (002323), Beautiful Ecology (000010, rights protected), and China Power Construction (601669) hitting the daily limit.

The computer sector experienced the largest declines, with Hand Enterprise (300170), China Electric Xinlong (002298), Huasheng Tiancheng (600410), UCloud (688158), and Meiliyun (000815) hitting the limit down or falling over 10%. Yun Tian Liyu (688343), Calet (301391), and Capital Online (300846) declined over 7%.

Defense and military stocks fluctuated downward, with Aerospace Electronics (002025), Guangwei Refractory Materials (300699), Zhongjian Technology (300777), Fuyirui (688272), and Aerospace Electronics (600879) falling over 7%, while Aerospace Technology (688239) and AVIC Optoelectronics (002179) declined over 5%.

Non-ferrous metals performed poorly, with Zhanyuan Tungsten (002378) and China Tungsten High-tech (000657) hitting the limit down; Xianglu Tungsten (002842), Xiamen Tungsten (600549), and Western Materials (002149) fell over 6%, while Sairui New Materials (688102), Zhaojin Gold (000506), and Zinc Industry (000751) declined over 5%.

Overall, the A-share market remains in a pattern of oscillating recovery.

Hualong Securities believes that technically, the A-share market is still in a state of oscillating recovery, and further upward movement requires volume support.

Caixin Securities suggests that as the Middle East situation’s disturbance diminishes and China’s two sessions conclude, the market may gradually return to its own rhythm. The overall trend of the market should not be overestimated for two main reasons: first, the energy supply crisis caused by Middle East tensions remains uncertain, and concerns about global inflation rising are intensifying; second, A-shares will soon enter a period of intensive earnings disclosures, increasing focus on performance risks. Both factors will suppress market risk appetite, potentially leading to continued wide-range fluctuations. In the short term, funds may favor sectors with improving prospects, and investors can consider participating in structural opportunities while reasonably controlling positions. Medium-term, external macro events still influence the market, and a trend-based rally may need to wait until the end of April, with likely wide fluctuations and increased volatility. It is recommended to control positions prudently and wait for signs of a market turning point. It’s important to note that recent regulatory efforts to strengthen strategic reserves and stabilize the market have significantly reduced volatility, and the A-share market is expected to remain resilient compared to overseas markets, so excessive worry is unwarranted.

Bohai Securities notes that during the two sessions, the market was generally cautious. Even if external markets fluctuate more due to Middle East issues and oil prices, the A-shares have shown good resilience, reflecting stability in the capital market. In the short term, the market may continue to oscillate, but in the medium term, a return to a pattern of oscillating upward movement is more likely. As the first-quarter earnings disclosure approaches, market focus may shift further toward performance, attempting to drive structural growth.

CICC believes that the Middle East conflict is a typical supply shock, directly impacting oil supply and prices. For the US, which already faces supply constraints, slow inflation decline, and rising government debt, the conflict exacerbates the risk of stagflation, creating a dilemma for macro policies. If the conflict does not last long, its impact may be moderate. However, if it escalates, US economic fundamentals could weaken further, financial turmoil may intensify, spillover effects could increase, and the impact on the global economy and markets could become significant.

Galaxy Securities points out that in traditional valuation logic, US Treasuries, the dollar, and core US stocks are considered “safe assets.” But if the conflict prolongs, rising energy costs, weakening US fiscal constraints, and strategic credit damage could shake this system. Gold, energy assets, non-dollar currencies, and markets with supply chain resilience and geopolitical stability (such as China) may gain new premiums.

CITIC Securities reports that the green fuel industry is crucial for national energy security, serving as an alternative to oil and gas. Its role has shifted from a decarbonization option to a strategic national priority with clear growth potential. The valuation premium driven by oil substitution and energy security will fundamentally reshape the wind power industry’s development logic, leading to a systemic rise in valuation centers, a comprehensive shift in valuation systems, and a long-term growth ceiling being fully unlocked.

Huaxi Securities believes that by 2026, the main investment themes may shift from technology to the price-increase chain. Key areas to watch include: first, imported inflation, with energy chains (oil and gas, coal chemical, upstream raw materials, shipping) likely to see high certainty of price increases driven by geopolitical tensions; metals like small and medium-sized non-ferrous metals and aluminum are also relatively certain, while gold and copper show mixed signals. Agricultural products such as feed raw materials, fertilizers, and pesticides are also of interest. Second, endogenous inflation, focusing on recovery in traditional industries driven by “anti-involution,” including chemicals, steel, coal, building materials, and pig farming. Third, technological price increases, especially in upstream AI computing infrastructure (servers, chips), storage chips, optical communication, PCB upstream materials (fiber optics, glass fiber), and power energy.

Reporter Xu Hongwen from The Paper