Afternoon Report: GEM Index Rises Over 3% and Hits New Stage High, Energy Storage and Computing Power Hardware Both Surge

From: Cailian Press

1.【Morning Market Review】

Cailian News, March 20 — The Shanghai Composite Index turned positive again during the trading session, with the ChiNext Index surging over 3%, breaking previous highs. The yellow and white sector differentiation is severe, with large-cap stocks performing strongly. The half-day trading volume of the Shanghai and Shenzhen markets reached 1.44 trillion yuan, an increase of 139.2 billion yuan compared to the previous trading day. Over 3,200 stocks in the market declined.

In terms of sectors, energy storage concepts quickly strengthened, with First Horizon New Energy and Deyei Shares hitting daily limits and reaching new historical highs. Chint Power also closed at the daily limit after a rebound. Computing hardware concepts rose during the session, with Yuanjie Technology hitting the 20% daily limit, and Xinyi Sheng rising over 9%, setting a new high. Zhongji Xuchuang, Changguang Huaxin, and Guangku Technology also saw significant gains. The power sector remained active, with Huadian Liaoning Energy hitting five consecutive daily limits, Shaoneng Shares three, and Yinxing Energy and Guangxi Energy reaching daily limits.

On the downside, the chemical sector declined, with Luhua Technology hitting the daily limit down, and stocks like Jinniu Chemical, Jinjingda, and Hongbaoli falling sharply. By the close, the Shanghai Composite rose 0.16%, the Shenzhen Component Index increased 1.57%, and the ChiNext Index surged 3.3%.

Regarding individual stocks, today’s morning session saw 28 stocks hitting the daily limit (excluding ST and newly listed stocks not yet opened for trading), with a 69% limit-up rate. There were 7 stocks with consecutive limits, including Shenzhen Huafa A, China Power Liaoning Energy (5-day streak), Shaoneng Shares (3-day streak), and others like Dongfang Xinneng, Guo New Energy, and China Power Energy with 2-day streaks.

Energy storage concept stocks led the gains, with Sunon Electric, Chint Power, and Zhaoxin Shares hitting daily limits. Jinneng Technology, EVE Energy, and Sungrow Power Supply also posted notable gains.

On the news front, according to incomplete statistics from the CESA Energy Storage Application Branch Industry Database, by February 2026, Chinese companies secured 30 overseas energy storage orders totaling 35.71 GWh. Dongwu Securities predicts that residential energy storage will enter a new growth cycle, with global energy storage installations expected to grow over 60% by 2026, and a compound annual growth rate of 30-50% from 2027 to 2029.

Photovoltaic equipment also strengthened, with First Horizon New Energy hitting the 20% daily limit. Stocks like Lakala, Jiejia Weichuang, Maiwei Shares, and Jinko Energy led the gains.

On the news front, rumors of Tesla’s “big purchase” of Chinese PV equipment have resurfaced. On March 20, a market rumor claimed Tesla plans to procure large-scale Chinese PV equipment involving several listed companies. A PV company confirmed this to reporters, revealing the contract scale is in gigawatts.

Additionally, on March 16, NVIDIA announced at the GTC Developer Conference the launch of the Vera Rubin Space-1 space computing platform, officially entering the orbital AI data center market and opening a new era of space computing. Space-based PV is unaffected by day-night cycles and weather, with high illumination and energy density far exceeding ground-based systems, becoming a core energy solution for space computing and opening a long-term new battlefield for the PV industry.

Computing hardware concepts rose during the session, with Yuanjie Technology hitting the 20% limit, Xinyi Sheng rising over 9% to a new high, and Zhongji Xuchuang, Changguang Huaxin, and Guangku Technology also gaining significantly.

On the news front, overnight U.S. storage concept stocks generally strengthened, with most chip stocks rising. Optical communication stocks mostly advanced, with Lumentum up 10.18%, Applied Optoelectronics up 10.03%, Fabrinet up 8.06%, Coherent up 7.14%, and Corning up 2.48%.

As AI computing demand shifts from “training” to “inference” in 2026, investment logic in hardware is undergoing profound changes. With NVIDIA’s GTC conference officially introducing optical communication into chip interconnects and the unexpected realization of 1.6T optical module orders, new technologies like CPO (photonic-electronic co-packaging) have entered a critical phase of commercial scale validation.

The power sector remained active, with Huadian Liaoning Energy hitting five consecutive limits, Shaoneng Shares three, and Yinxing Energy and Guangxi Energy reaching daily limits. Notably, the 2026 government work report first mentioned “computing-power and electricity synergy,” explicitly listing it as a new infrastructure project. Market analysts believe this marks an upgrade of the coordinated development of computing power and electricity into a national strategy, opening new growth space for green power operators and boosting expectations for green electricity consumption and industry valuation.

Overall, today’s three major indices rebounded, with the ChiNext Index opening high and rising over 3%, and the Shanghai Composite Index recovering from lows to turn positive. The new energy sector, represented by energy storage and PV equipment, collectively exploded, and hardware stocks related to computing power continued their strength. However, the market shows clear structural differentiation, with most profit opportunities centered around these two sectors, while other sectors remain mainly consolidating. By midday, over 3,200 stocks declined. Therefore, focus should remain on core market hotspots.

Midday Limit-up Analysis Chart

2.【Market News Highlights】

1. Shanghai: Organizing the Construction of National Computing Power Interconnection Industry Nodes to Improve Overall Computing Power Level

The Shanghai Municipal Commission of Economy and Information Technology and the Shanghai Communications Administration jointly issued the “Notice on Organizing the Construction of National Computing Power Interconnection Industry Nodes.” The notice states that industry nodes will build a computing power supply and demand matching system for key local industries, achieving standardized interconnection and efficient flow of computing resources across different regions, entities, and architectures within the city to enhance overall computing power. Each node will provide market-oriented services such as resource aggregation, identification, and selection, connecting to regional nodes. Main components include computing internet service centers, resource aggregation, resource selection, security, and safety management systems.

2. March LPR Quotation Announced: 5-Year and 1-Year Rates Remain Unchanged

The March Loan Prime Rate (LPR) quotations are out: the 5-year and above LPR remains at 3.5%, unchanged from last month. The 1-year LPR remains at 3%, also unchanged.

(Cailian Press)