Morning Report: Shanghai Index Falls Nearly 1% at Midday, Over 4,700 Stocks in the Market in Red, Oil & Gas and Green Power Sectors Rise Against the Trend

Source: Cailian Press

1.【Morning Market Review】

Cailian Press, March 19 — The market experienced oscillation and adjustment in the early session, with the Shanghai Composite Index falling nearly 1% and the Shenzhen Component Index dropping over 1%. The half-day trading volume for Shanghai and Shenzhen was 1.3 trillion yuan, an increase of 64.9 billion yuan compared to the previous trading day. The market showed weak rotation among themes, with 4,700 stocks declining across the entire market.

From sector perspective, the green energy and computing power collaboration concepts defied the trend and strengthened. Goldwind New Energy, Oriental New Energy, Yue Electric Power A, Shao Energy Shares, Guang’an Aozhong, Huadian Liaoning hit the daily limit, and Jawi New Energy reached a 20% daily limit. Computing hardware concepts rebounded with volatility; Yuanjie Technology rose 8%, hitting a new high, and Changguang Huaxin increased over 10%. The computing power leasing concept was active again, with Meili Cloud hitting two consecutive limits, and Guiguang Network, Tongniu Information, Litong Electronics reaching the daily limit.

On the downside, non-ferrous metals led declines, with Weiling Shares, Shanjin International, Zhongjin Gold, Baowu Magnesium Industry all falling. By the close, the Shanghai Composite Index fell 0.95%, the Shenzhen Component Index dropped 1.11%, and the ChiNext Index declined 0.11%.

In individual stocks, 24 stocks hit the daily limit (excluding ST and newly listed stocks not yet open for trading), with a 76% limit-up rate. Eight stocks continued their limit-up streak, including Shenhua Development A, China Power Liaoning (4 consecutive limits), Yue Electric Power A, Shao Energy Shares, Meili Cloud, Jiuan Medical, Ourde, and Dashengda (2 consecutive limits).

The oil and gas sector strengthened again, with China National New Energy hitting the limit, and others like Kaitian Gas, Shouhua Gas, Keli Co., Source Petroleum, Hongtong Gas leading gains.

News: WTI crude oil rose to $98/barrel, Brent crude to $105/barrel. U.S. natural gas futures also surged over 6% at one point. As the US-Israel-Iran conflict persists, analysts and traders worldwide are increasingly seeing the possibility of long-term supply disruptions through the Strait of Hormuz, gradually adjusting risk pricing. Additionally, the market believes current global responses to long-term supply interruptions are limited, with speculative trading features becoming more apparent, further increasing energy market volatility.

The green power sector continued its strong momentum, with Huadian Liaoning, Jinkai New Energy, Yue Electric Power A, Lixin New Energy, Shao Energy Shares hitting the limit, and Jawi New Energy, Zhejiang New Energy, and Energy-saving Wind Power among the top gainers.

The government explicitly requires that new data centers in national computing hubs must have at least 80% green electricity usage. This strict requirement not only creates significant new consumption scenarios for green power but also accelerates the implementation of new business models like “green power direct connection” and “source-grid-load-storage integration.” Moreover, under the explosive growth of AI, the demand for computing power consumption is expected to increase sharply, providing strong support for green energy needs.

The computing power leasing concept was active again, with Meili Cloud hitting two limits in a row, and Guiguang Network and Litong Electronics reaching the limit-up. On the news front, Alibaba Cloud announced a maximum price increase of 34% for AI computing power and storage products. Baidu Smart Cloud also announced price adjustments for AI computing power and storage on the same day.

Guojin Securities’ research report states that 2026 will be a critical year for China’s shift from “cloud training” to a dual-driven model of “training + inference” in computing power demand. The gap will rapidly release under the catalysis of more modalities and broader scenarios. Consumer traffic and AI-related scenes like AI dramas and programming will explode, coupled with the accumulation of B-side niche models, jointly driving a significant increase in real-time inference computing power consumption.

Near midday, data element concepts surged, with Tongniu Information hitting a 20% limit, and Yihua Recording rising over 10%. China Ke Chuan, Shensan Da A, Guomai Culture, CITIC Publishing, and Taiji Shares also gained.

News: Policies in the data element field are accelerating implementation. On March 9, the National Data Administration proposed making 2026 the “Data Element Value Release Year.” On the same day, the draft of the “State-owned Assets Law of the People’s Republic of China” was publicly solicited, officially ending, and for the first time, “data assets” were listed as an important component of state-owned assets. On March 10, the Ministry of Industry and Information Technology launched the Industrial Data Foundation Initiative.

Overall, the morning A-share market was under pressure with clear structural differentiation. Due to ongoing Middle East conflicts, funds concentrated in defensive sectors such as oil and gas, electricity, and utilities. The tech and computing power chain experienced a correction under external liquidity pressure, but funds in segments like CPO and computing power leasing remained relatively controlled, with no obvious trend disruption. Overall, the early session was characterized by defensive rotation amid reduced market risk appetite, awaiting sufficient short-term risk release before re-entering or adopting a more cautious approach once clearer signs of strength emerge.

Midday Limit-up Analysis Chart

2.【Market News Highlights】

1. US National Debt Surpasses $39 Trillion, a New Record, Increasing by $1 Trillion in 5 Months

The total US national debt exceeded $39 trillion, reaching a new historic high, just weeks after the US-Israel coalition launched military action against Iran. According to new data released by the US Treasury on Wednesday, as of March 17, the federal debt reached $39,016,762,910,245.14. This milestone surpasses the $39 trillion mark, only about five months after first hitting $38 trillion in late October 2022. Prior to that, in mid-August last year, the figure had just crossed $37 trillion.

2. Domestic Airlines Collectively Raise Fuel Surcharge Fees, with the Highest Doubling

China Southern Airlines issued a notice to ticket agents that, affected by international fuel price adjustments, international fuel surcharges will be adjusted in phases. The increases include a 100 yuan rise for flights to Southeast Asia, 270 yuan to Australia, 150 yuan to the UAE, 250 yuan to the US economy class, and 500 yuan to business class. Additionally, Spring Airlines, Juneyao Airlines, China Eastern, and Chenglong Airlines have also gradually increased international fuel surcharges, with some doubling—for example, Spring Airlines’ Shanghai to Kuala Lumpur and Penang routes increased from 180 yuan to 360 yuan.

(Cailian Press)