At around 10:30 AM on March 17, the three major A-share indices collectively rose, with the Shanghai Composite Index climbing back above the 4100-point mark. Over 2,700 stocks advanced across the market.
Large financial stocks strengthened, with Aijian Group hitting the daily limit up. Guosen Securities, East Money Information, Huijin Co., Ltd., GF Securities, Compass, DZH Ltd., and Fortune Trend followed the upward trend. Bank of Hangzhou reached a new historical high during the session.
In today's Hong Kong market, Bright Smart Securities & Commodities Group resumed trading with a significant surge, with intraday gains once exceeding 80%. According to a report, on the evening of March 16, Bright Smart announced that the offer for acquisition initiated by Ant Group had received approval from relevant Chinese authorities and is expected to be completed on March 30. "Ant has long sought a securities license and has now achieved its goal," a Hong Kong brokerage source previously revealed, suggesting that Ant had likely been testing securities functions internally for some time, potentially heralding the arrival of "Ant Securities."
The innovative drug concept saw gains, with Jidan Biotech rising over 10%, Sansheng Guojian increasing more than 7%, and Rongchang Biotechnology briefly surging nearly 7% to a new record high. Yuandong Bio, Yuekang Pharma, and Bebitide also advanced.
Insurance stocks collectively rose sharply, with New China Life Insurance climbing over 4%. Ping An Insurance (Group) Company of China, Ltd. and China Life Insurance Company Limited, among others, followed suit.
The green power concept remained active during the session, with Jiangsu New Energy hitting the daily limit up. Prior to this, Huadian Liaoneng Energy saw two consecutive limit-up days, and Zhejiang New Energy sealed its limit up again. Xinneng Technology, Jieneng Wind Power, and Lüfa Power were among the top gainers. The power grid equipment sector experienced a short-term uptick, with Sanhui Electric touching the limit up. Baobian Electric, China XD Electric, and Siyuan Electric followed the rise.
The steel sector strengthened, with Anyang Iron & Steel, Faersheng, and Jiugang Hongxing reaching the daily limit up. Bayi Iron & Steel and Shandong Iron & Steel Group Co., Ltd., among others, also advanced.
Institutions stated that A-shares exhibit a greater safety premium compared to overseas stock markets. Concerns have been raised regarding potential chain reactions from the possible escalation of US-Iran conflict, including persistently high energy prices and increased global supply chain costs. Tracing the root cause, the transit status of the Strait of Hormuz has become a core variable affecting the global economy.
"If the US-Iran conflict de-escalates in the short term and the Strait of Hormuz resumes normal transit, the overall impact on the global economy would be limited. However, if the conflict prolongs, the global economy could face stagflation risks, potentially leading to profound changes in asset prices and investment logic," said Luo Zhiheng, Chief Economist and Dean of the Research Institute at Yuekai Securities, in an interview.
Luo Zhiheng pointed out that the safety premium of A-shares relative to overseas markets is more prominent, suggesting the market may demonstrate strong resilience. In an era of frequent geopolitical events, China possesses robust economic, military, and diplomatic capabilities as external security guarantees, coupled with a stable domestic institutional environment and a comprehensive industrial production system. This forms the foundation and confidence for a long-term positive outlook on A-shares.
Regarding specific allocation strategies, he recommended focusing on two main directions: "HALO" trading targets benefiting from improved supply-demand dynamics, stronger price increase expectations, and potential profit recovery; and sectors related to domestic self-sufficiency and technological independence, such as domestic computing power, artificial intelligence, energy storage, commercial aerospace, and national defense.
Comments