A-shares Three Major Indices Close Lower; Wind Power Equipment and Agricultural Chemical Products Sectors Gain Against the Trend

A-shares’ three major indices all declined today. By the close, the Shanghai Composite fell 0.81%, closing at 4,095.45 points; the Shenzhen Component Index dropped 0.65%, closing at 14,280.78 points; and the ChiNext Index decreased 0.22%, closing at 3,310.28 points. The combined trading volume of the Shanghai, Shenzhen, and Beijing markets was 2.42 trillion yuan, a slight decrease of 43.3 billion yuan from yesterday.

Most industry sectors closed lower, with wind power equipment and agrochemical products bucking the trend and rising. Leading decliners included small metals, precious metals, power grid equipment, rare earths, communication services, non-ferrous metals, electricity, and software development.

In individual stocks, over 1,500 stocks rose, with nearly 70 hitting the daily limit. The chemical sector continued its strength, with Sanfangxiang and Luxin Technology hitting two consecutive daily limits. Jinzhengda, Hongbaoli, and Chitianhua also saw their stocks hit the limit. The wind power sector was active again, with Daikin Heavy Industries hitting two limits in a row, Tongyu Heavy Industry reaching a 20% limit, and Tianshun Wind Energy also hitting the limit. The controlled nuclear fusion concept rose, with Lanshi Heavy Equipment, China Nuclear Construction, and Jiangsu Shentong hitting the limit.

Today’s Highlights

Ministry of Commerce Spokesperson Answers Questions on China-U.S. Economic and Trade Negotiations

A reporter asked: We note that China previously announced that China and the U.S. will hold the 6th round of China-U.S. economic and trade negotiations soon. Does the Ministry of Commerce have any latest updates? Answer: According to an agreement between China and the U.S., Member of the Political Bureau of the CPC Central Committee and Vice Premier He Lifeng will lead a delegation to France from March 14 to 17 to hold economic and trade talks with the U.S. side. The two sides will be guided by the important consensus reached during the China-U.S. summit in Busan and previous phone calls, and will conduct negotiations on economic and trade issues of mutual concern.

Iran Deputy Foreign Minister: Allow Some Countries’ Ships to Pass through the Strait of Hormuz

According to the Islamic Republic News Agency on December 12, Iran’s Deputy Foreign Minister Ravanji said in an interview that Iran allows ships from some countries to pass through the Strait of Hormuz. Ravanji stated that some countries have discussed the passage through the Strait of Hormuz with Iran, and Iran has cooperated with them. However, countries involved in aggression against Iran do not enjoy “safe passage rights” through the Strait of Hormuz.

Ministry of Commerce Responds to U.S. Launching Section 301 Investigation on 16 Economies Including China Over “Overcapacity”

A reporter asked: On March 11, U.S. Trade Representative’s Office announced the launch of a Section 301 investigation against 16 economies, including China, citing “overcapacity” as the reason. What is China’s comment? Answer: China notes that the U.S. has launched a Section 301 investigation against 16 economies, including China, citing “overcapacity.” Section 301 investigations are typical unilateral actions that severely disrupt the international trade order. The WTO expert panel has already ruled that the tariffs imposed based on the Section 301 investigation violate WTO rules.

Apple Announces Reduction of App Store Commission Rates in China

On the 13th, Apple’s developer official website announced that, following communication with Chinese regulators, Apple will lower the commission rate for the App Store in China for mobile phones and tablets. The standard commission rate for in-app purchases and paid apps will be reduced from 30% to 25%.

Trump Administration Considers Exempting the Jones Act to Address Fuel Price Surge

The Trump administration is considering a temporary exemption of the century-old Jones Act to ensure the free transportation of energy and agricultural products between U.S. ports. White House Press Secretary Karine Jean-Pierre stated on Thursday that this move aims to address supply disruptions caused by the Iran situation.

Institutional Views

Huatai Securities: Emphasize Investment Opportunities in Pipeline Network Renovation During the 14th Five-Year Plan

Huatai Securities research report states that looking ahead to the 14th Five-Year Plan, the shift from “incremental” to “stock” demand applies not only to housing renovation but also to infrastructure investment. By the end of the 14th Five-Year Plan, China’s urbanization rate of permanent residents has reached 67.9%, with the scale of existing buildings growing larger. Urban development may shift from the “large demolition and construction” phase to a new stage of “stock enhancement.” Since 2024, policies have repeatedly emphasized “promoting urban renewal,” and with recent extreme weather and frequent floods, pipeline network renovation has great potential. It may become one of the key investment focuses of the 14th Five-Year Plan. It is recommended to pay attention to related supply chains and stocks, including engineering pipes, waterproofing materials, and pipeline inspection and maintenance.

CITIC Securities: Wind Power Industry to Undergo Triple Revaluation of Value

CITIC Securities’ research report states that the green fuel industry concerns national energy security, positioning as a substitute for oil and gas. The sector has shifted from a decarbonization optional to a mandatory national strategy, with clear growth potential. The valuation premium logic based on oil substitution and energy security will fundamentally reshape the development logic of the wind power industry. The industry will experience a systemic upward shift in valuation centers, a comprehensive switch in valuation systems, and a long-term growth ceiling being fully unlocked, leading to a triple revaluation of value.

CICC: Optimistic About China Developing Green Methanol as a Maritime Decarbonization Fuel Trend

CICC’s research report states that the global shipping industry’s policy-driven or spontaneous decarbonization trend is expected to continue strengthening. China’s development of green fuels, represented by green methanol, will help promote new energy non-electric utilization and ensure energy security. The trend of developing green methanol as a maritime decarbonization fuel is promising, especially for projects that can attract overseas high-quality clients. Companies capable of early green methanol capacity construction, deployment, and order locking are expected to benefit. CICC believes that green methanol may still be in short supply over the next 1-2 years, but project order locking and production stability will be critical.

CITIC Securities: 2026 Will Be a Key Year for the Turnaround of Consumer Industry Prosperity

CITIC Securities’ research report states that the current consumer market is at a critical window of weak recovery and policy expectations. Based on marginal improvements in macro data and verification from high-frequency micro data, 2026 is expected to be the year when the consumer industry’s prosperity trend is established. Due to the still-weak macro environment, the self-repair of consumer confidence will take time. In the short term, opportunities related to fiscal stimulus policies should be monitored. For long-term allocation, focus remains on changes in consumption structure, with an emphasis on high-dividend assets and resilient growth consumption sectors, such as service consumption, to leverage policy and wealth effects, and on sectors like catering and dairy that may benefit from rising CPI.