A-shares three major indices rise, Shanghai Composite surges nearly 2%, over 5,100 stocks turn red

The three major A-share indices all rose collectively today. By the close, the Shanghai Composite Index increased by 1.78%, closing at 3,881.28 points; the Shenzhen Component Index rose by 1.43%, closing at 13,536.56 points; and the ChiNext Index gained 0.50%, closing at 3,251.55 points. The combined trading volume of the Shanghai, Shenzhen, and Beijing markets was 20,962 billion yuan, a decrease of 3,523 billion yuan compared to yesterday.

Industry sectors saw rare full-scale gains, with ground military, electricity, trade, environmental protection, healthcare services, decoration and building materials, industrial metals, utilities, professional engineering, power grid equipment, and textiles and apparel leading the gains.

In individual stocks, over 5,100 stocks rose, with hundreds hitting the daily limit. The power sector exploded, with more than ten constituent stocks hitting the limit up; China Power LiaoNeng hit 7 consecutive limits, ShaoNeng Shares hit 4 limits in 5 days, Liaoning Energy hit 2 limits, and Huaneng Power, Jinkai New Energy, and Disen Shares all hit the limit up. The military industry sector strengthened, with Great Wall Military Industry, Hunan Tianyan, and Construction Industry hitting the limit up. The optical fiber concept continued to rise in the afternoon, with Long Fiber Optical and Tongding Interconnection hitting the limit up. The space photovoltaic concept fluctuated actively, with Zhongli Group hitting 3 limits in a row and Tuori New Energy hitting 2. The shipping sector surged with volatility, with China Merchants South Oil hitting the limit up.

Today’s Highlights

US-Iran Talks “Rashomon”: Trump Claims Negotiations with Iranian Officials, Iran Firmly Denies

On March 23, local time, before the deadline set by Trump for Iran to open the Strait of Hormuz, the US announced that “very good and productive talks with Iran have taken place,” and that negotiations would continue until the end of this week. Iran, however, firmly denied this, stating that Iran’s stance on the Hormuz Strait issue and ending the conflict has not changed.

Israeli Media: US Plans to End Iran War by April 9

According to Israel’s Ynet news website on the 23rd, an Israeli official said that the US has set April 9 as the target date to end the Iran war. The official indicated that US-Iran talks are expected to be held later this week in Pakistan.

Domestic refined oil prices see first temporary adjustment, about 0.85 yuan/liter below market expectations

On the afternoon of March 23, amid high market attention, the sixth domestic refined oil price adjustment of the year was finally implemented. The National Development and Reform Commission announced the first temporary regulation of refined oil prices. As a result, this round of domestic refined oil price adjustments was about 0.85 yuan per liter lower than the theoretical increase, significantly below market expectations.

China’s Overseas Transformer Orders Surge, Multiple Stocks Expected to See Significant Performance Growth (List)

According to CCTV News, recently, transformer manufacturers across many regions in China have been operating at full capacity, with overseas orders continuously filling up; some companies have production schedules extending to 2027. Based on predictions from three or more institutions, 12 power transmission and distribution equipment stocks are expected to see steady performance growth this year. Among them, institutions forecast that Jinpian Technology’s net profit will increase by 50% year-on-year, and Liangxin Shares and Mingyang Electric are also expected to achieve over 30% growth. Tred, China Western Electric, Pinggao Electric, and Huaming Equipment are all predicted to have net profit increases of over 20%.

First Quarter Earnings Forecasts Released! (List Included)

As of March 24, ten A-share listed companies have released their Q1 2026 earnings forecasts. Eight are expected to see profit increases or slight increases, one is expected to turn a profit from loss, and one is expected to continue losing money. Based on the median forecast, Haiguang Information, Ailis, and Wanbond have net profits exceeding 1 billion yuan, at 670 million, 590 million, and 165 million yuan respectively.

Institutional Views

CITIC Securities: Policy Support for Electricity Prices Has Bottomed Out, Industry Valuations Rebound

CITIC Securities’ research report states that Liaoning Province has introduced nuclear power mechanism electricity pricing policies, which effectively stabilize the returns of nuclear power within the province. Other coastal nuclear power provinces may follow suit. The trend of stabilizing returns through tangible policy measures is expected to spread to other regions and power sources. The government’s attitude is shifting from lowering power generation prices to ensuring reasonable returns. Although the market supply and demand balance point may be around 2028, policy guarantees are expected to help the industry’s electricity prices bottom out early, improving the fundamentals and overall valuation expansion of the power industry.

Huatai Securities: Focus on Low Valuation, Low Congestion Industries and Potential Beneficiaries of High Oil Prices

Huatai Securities’ research report notes that the overall trend may see a short-term rebound from oversold conditions; it recommends controlling positions and responding flexibly. In terms of style, large-cap and value stocks are favored. For sectors, focus on low valuation, low congestion intersections, and industries that could benefit from high oil prices: 1) Direct beneficiaries: oil and natural gas, though short-term oil price volatility and domestic refined oil price regulation suggest avoiding chasing highs; 2) Substitution effects: coal, power chain (lithium battery materials, power equipment, power operators, etc.); 3) Strong pass-through ability: chemical raw materials, oil services, cement, daily necessities; 4) Defensive essentials with low valuation and chips: food and beverages, breeding, general retail. Mid-term, wait patiently for signals on the right side, and after proper adjustment, continue to focus on the power chain and prosperity trends.

CICC: The Current Market May Be the Mid- to Long-term Low Point for A-shares, Deep Correction Offers Good Entry Opportunities

CICC believes that the current point may be the mid- to long-term low for A-shares, and the deep correction has created good opportunities for deployment. Although short-term movements still carry some uncertainty, after the adjustment, risks in the A-share market are further released. Valuations are relatively reasonable; as of March 23, the earnings yield of the CSI 300 compared to the 10-year government bond yield’s equity risk premium was 5.5%, at the 42nd percentile since 2010. The dividend yield of the CSI 300 is 2.7%, indicating good value for money. In the medium term, macroeconomic conditions remain fundamentally unchanged, supporting the logic of “steady progress” in the A-share market. Risk release and downward adjustments are likely to bring good allocation opportunities. China’s manufacturing advantage is evident, and artificial intelligence is in a stage of new technological iteration and application. The demand for energy and costs in training new models is growing exponentially, supporting upstream demand and driving product price increases and profit improvements for related listed companies.