On March 30, A-shares opened lower but climbed higher, with major indices showing mixed performance. The Shanghai Composite Index edged up slightly, while the Shenzhen Component Index, STAR Composite Index, BSE 50 Index, and ChiNext Index recorded minor declines. Gainers outnumbered decliners, and trading volume expanded moderately to 1.93 trillion yuan. Leading the gains were sectors such as agriculture, forestry, animal husbandry, and fishery; industrial metals; optical communication; and pharmaceuticals. Conversely, white goods, gaming, hotel and catering, and diversified financials were among the laggards.
Wind data indicated that most primary sectors experienced net inflows of main funds, with communications and pharmaceuticals each attracting over 5 billion yuan. Agriculture, forestry, animal husbandry, and fishery saw net inflows exceeding 4 billion yuan, while defense, computer, and machinery equipment sectors each recorded net inflows of more than 3 billion yuan. Utilities suffered net outflows of over 8.9 billion yuan, power equipment saw outflows exceeding 6.9 billion yuan, and petroleum, petrochemicals, and coal each registered net outflows of over 1 billion yuan.
At the individual stock level, Pingtan Development received net main fund inflows of over 2.8 billion yuan. Seven stocks, including Yangtze Optical Fibre And Cable Joint Stock Limited Company, OKE, Aerospace Power, and ZS Technology, each attracted net inflows exceeding 1 billion yuan.
Industrial metal concept stocks remained strong throughout the trading session, with the sector index opening higher and surging nearly 3% to close at the day's peak. Minfa Aluminum, Ye Chiu Non-Ferrous Metal, Jiangsu Changhai Composite Materials, and China Hongqiao Group opened at their limit-up prices, while Nanshan Aluminum hit the limit-up in the final six minutes of trading.
On the news front, Aluminium Bahrain B.S.C. reported on March 29 that its plant was struck by Iran on March 28, resulting in two minor injuries. The company is assessing property damage. Previously, Aluminium Bahrain and its parent company declared force majeure due to disruptions in shipping through the Strait of Hormuz, reducing production by approximately 20%.
Emirates Global Aluminium, one of the world's largest aluminum producers, also confirmed an attack by Iran on March 28, with significant damage to a plant in Abu Dhabi's industrial zone. Combined, these two aluminum companies account for over 6% of global production capacity.
Additionally, China Hongqiao Group released its 2025 annual results, reporting revenue of 295.02 billion yuan, a year-on-year increase of 5.03%, and net profit of 48.18 billion yuan, up 8.13% year-on-year. The company also forecasted a net profit of 22 billion yuan for the first quarter of 2026, representing growth of over 100%.
Communications stocks surged across the board, with optical communication being the most active segment. Yangtze Optical Fibre And Cable Joint Stock Limited Company and Wuhan Yangtze Communication Industry Group Co.,Ltd. both hit limit-up immediately after the afternoon session opened. Fasten, Yangtze Optical Fibre And Cable Joint Stock Limited Company, Hangzhou Cable, and Fujian Castech also rose sharply to their limit-up prices.
Sub-sectors such as communication engineering, communication equipment, satellite navigation, and 6G concepts also advanced strongly. Tianyin Mechanical & Electrical Equipment, ZTT Group, and Chaoxun Technology were among the top performers.
Sustained demand for AI computing power has driven a sharp increase in orders for high-speed optical modules. According to LightCounting, current demand for optical modules exceeds supply by more than twofold. Demand for 800G optical modules remains robust, while 1.6T modules are expected to enter large-scale deployment by 2026. Overseas clients have already revised their 2026 procurement plans upward to 20 million units.
Furthermore, a recent CRU report projected global data center fiber demand to reach 91.6 million fiber-km in 2026, a 32% year-on-year increase.
Looking ahead, Oriental Securities noted that while overseas risks have not fully subsided, the pattern of external turbulence and internal stability remains unchanged, with the established fluctuation range intact. Last week's low point is considered near the bottom of the range. Amid geopolitical uncertainties, market sentiment fluctuates with short-term news, leaving many investors uncertain. The focus should shift from speculating on short-term fluctuations to identifying long-term trends, particularly the global urgency for energy independence. The firm recommends focusing on investment opportunities in sectors such as photovoltaics, offshore wind power, and power transmission and transformation.
Huaan Securities suggested that external disruptions persist while internal support remains insufficient. Until these factors ease, the market is likely to continue fluctuating. From an allocation perspective, consensus is forming around sectors with rising prices and strong fundamentals, including energy and related industries, energy storage, machinery equipment, and memory and semiconductor equipment. Additionally, the first healthy correction in growth-oriented styles is nearing its end, presenting opportunities to gradually build positions in the second phase of the AI-driven rally. Lastly, dividend assets such as banks continue to attract safe-haven demand in the short term.
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