The Shanghai Composite Index falls below 4,000 points again, and Xiaomi's Hong Kong stock drops over 6%.

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Journalist | Zhang Jiayu

Editor | Liu Xueying

On March 20, the three major A-share indices showed mixed performance. As of 10:16, the Shanghai Composite Index fell below 4,000 points again, the Shenzhen Component Index rose 0.71%, the ChiNext Index increased over 2%, and the STAR Market Index gained 0.29%. The sectors leading declines included gas, chemicals, and titanium dioxide.

Source: 21 Finance Client

The optical module (CPO) index surged significantly, with all constituent stocks rising. Mingpu Optoelectronics hit the daily limit, Changguang Huaxin rose 18%, Tianfu Communication increased 8.77%, and Xinyi Sheng gained 6.27%. Popular stocks related to the CPO concept saw Yanjie Technology’s stock price soar 20%, breaking through 1,100 yuan and reaching a new historical high, becoming the eighth stock in A-shares to reach a thousand yuan. Its stock price surpassed Cambrian and became the second-highest priced stock in the A-share market.

The space photovoltaic concept strengthened, with Laplace rising nearly 10%, and stocks like Autowise, Liancheng CNC, Maiwei Co., Jing Sheng Electric, and Jiejia Weichuang also saw notable gains. According to Caixin, on March 16, local time, Nvidia announced the launch of the VeraRubinSpace-1 space computing platform at the GTC Developer Conference, officially entering the orbital AI data center market and opening a new era of space computing power.

Energy storage concepts showed renewed activity, with Chint Power (rights protection) hitting the daily limit after a rebound, and companies like Shouhang New Energy, Huabao New Energy, and Airo Energy rising over 10%. Penghui Energy and Deyei Co. also gained more than 5%.

On the downside, the computing power leasing concept experienced volatility and weakening during the session. SuperXun Communication (rights protection) approached the limit down, while Dongfang Guoxin (rights protection), Capital Online, Lianhua Holdings, Qingyun Technology, and Dawi Technology all fell more than 5%.

The Hang Seng Tech Index fell further by 1.3%, after previously turning positive. Xiaomi Group dropped over 6.5% following the launch of Xiaomi Auto’s new SU7. Alibaba declined over 5%, and Xpeng Motors fell more than 3%.

During midday yesterday, the Shanghai Index briefly fell below 4,000 points but recovered slightly in the late trading session, closing above that level. Regarding the immediate pressures facing the market, independent financial commentator Zhao Huan told 21 Express that in the 2024–2025 market, both institutions and investors have accumulated significant unrealized gains. Recently, sector rotations have been too rapid, and profit-taking needs have increased. There is a temporary need to realize gains. Additionally, earnings disclosure pressures are mounting, as March and April are the reporting periods for annual and first-quarter results, raising market expectations for “earnings fulfillment.” Previously high-flying tech sectors (such as AI and semiconductors) are facing valuation-to-earnings matching tests, with some stocks underperforming expectations and experiencing corrections. Technically, trading volume continues to shrink, and investor enthusiasm for entering the market remains low, making sustained rebounds unlikely. [Details]