A-Share Market Close: All Three Major Indices Decline! Shanghai Index Falls Below 4100, Wind Power Sector Gains Against the Trend

On March 13, the three major A-share indices experienced slight fluctuations in the morning session, collectively declining at the close. By the end of the trading day, the Shanghai Composite Index fell 0.81% to 4,095 points, the Shenzhen Component Index dropped 0.65%, and the ChiNext Index declined 0.22%. The total market turnover was 2.42 trillion yuan, down 43.3 billion yuan from the previous trading day, with over 3,800 stocks falling.

In the market, the fertilizer and compound fertilizer sectors rose, with multiple stocks like Jinzhengda and Luxi Technology (rights protection) hitting the daily limit; the wind power sector continued to strengthen, with Dajin Heavy Industry and Tongyu Heavy Industry hitting the limit; the coal chemical and coking sectors surged, with Antai Group hitting the limit; kitchen appliances, beer, and battery chemicals also led gains. Additionally, tungsten, small metals, and precious metals sectors plummeted, with China Tungsten High-Tech hitting the limit down and Zhaojin Gold falling nearly 6%; water and power transmission equipment stocks declined, with China Electric Xinlong hitting the limit down; computing power concept stocks weakened, with Meili Cloud hitting the limit down; Kimi concept, Tencent Cloud, and aerospace equipment sectors also saw significant declines.

Specifically:

The wind power equipment sector surged, with Dajin Heavy Industry and Tongyu Heavy Industry hitting the limit; Riyue Shares rose over 7%, with Taisheng Wind Power and Weili Transmission also gaining.

On the news front, tensions in the Middle East have heightened Europe’s energy security concerns. The UK announced that starting April 1, it will eliminate 33 tariffs on wind turbine components, reducing tariffs on core parts like blades and cables from 6% and 2% to 0%, aiming to unlock £22 billion in investment and accelerate offshore wind installations in the North Sea.

The agrochemical sector strengthened, with Jinzhengda and Luxi Technology hitting the limit; Chuanjinnuo rose over 14%, with Nongda Technology and Fubon Technology also gaining.

According to domestic agencies, nearly one-third of global urea exports, 44% of sulfur exports, and nearly one-fifth of ammonia exports are transported through or originate from countries west of the Strait of Hormuz. The security of this waterway directly impacts the global fertilizer industry and, consequently, food security.

The Baijiu sector rose, with COFCO Technology up over 4%, Huangtai Liquor up over 3%, and stocks like Luzhou Laojiao and Kweichow Moutai also gaining.

On the news front, Guizhou issued measures to cultivate and strengthen business entities, aiming to accelerate the construction of a modern industrial system, improve the quality and expand the number of business entities, with the goal that by 2030, enterprises will account for about 30% of all business entities. It will guide resources toward six major industrial clusters and key fields, fostering world-top 500 companies in sectors like Baijiu.

Wandel Securities expects that by 2026, the food and beverage industry will mainly focus on bottoming out and recovery, with structural investment opportunities arising from demand recovery, cost improvements, and industry differentiation.

The precious metals and small metals sectors suffered heavy declines, with China Tungsten High-Tech hitting the limit down; Xiamen Tungsten fell over 8%, Zhaojin Gold dropped over 5%, and other stocks like Western Materials and Xianglu Tungsten also declined.

Ross Norman, CEO of Metals Daily, stated that gold prices lack further upward momentum, mainly due to a strengthening dollar and rising U.S. bond yields.

The power grid equipment sector declined, with Pino Technology falling over 15%, Zeyu Intelligent down over 11%, and stocks like State Grid South and Mingyang Electric also falling.

Industry insiders believe that under multiple catalysts—rising AI computing demand, grid upgrades worldwide, and energy transition—the long-term logic for the power grid equipment sector remains solid, and the recent correction may present opportunities for layout.

The computing power concept sector declined, with Meili Cloud hitting the limit down; Capital Online and others fell over 8%, with Dawi Technology and Oriental Cninfo also declining.

Individual stock movements:

Inco Medical rose 17.7% to 61.79 yuan. On the news front, the average price of nitrile gloves in North China increased by about 16.7% in a week; the prices of plasticizers DOTP and octanol used in PVC gloves rose by 10.7% and 13.6%, respectively. The costs of raw materials for all glove categories have risen simultaneously, signaling the start of industry-wide price increases.

Looking ahead, Bohai Securities pointed out that in the short term, the capital market may continue to fluctuate, but in the medium term, the market is more likely to return to a pattern of oscillating upward. As the first-quarter earnings reports approach, market focus may shift further toward performance, attempting to drive structural growth.