Shanghai Index Nears Break-Even as Healthcare Stocks Surge

On March 27, A-shares opened lower but showed signs of recovery during early trading, with the three major indices narrowing their initial losses. The Shanghai Composite Index and Shenzhen Component Index approached positive territory. CRO and innovative drug stocks led the gains, while computing hardware sectors such as memory and optical communication continued to adjust. Hong Kong's market also fluctuated higher, with the Hang Seng Index and Hang Seng Tech Index reducing their declines. Technology and internet stocks showed mixed performance, while new consumption concept stocks rebounded, with POP MART rising over 2% after falling more than 30% in the previous two trading sessions.

In the bond market, government bond futures declined. On the commodities front, most domestic commodity futures fell, with container freight index, polysilicon, and Shanghai silver among the top decliners.

**Key Market Movements:**

**A-shares:** As of writing, the Shanghai Composite Index fell 0.19%, the Shenzhen Component Index dropped 0.42%, and the ChiNext Index declined 0.72%.

**Hong Kong Stocks:** The Hang Seng Index decreased 0.46%, while the Hang Seng Tech Index fell 0.61%.

**Bond Market:** Government bond futures declined across the board. The 30-year main contract dropped 0.12%, the 10-year main contract fell 0.01%, while the 5-year and 2-year main contracts remained flat.

**Commodities:** Most domestic commodity futures traded lower. Fuel oil, lithium carbonate, and eggs rose over 1%, while rubber, crude oil, asphalt, industrial silicon, and Shanghai aluminum saw limited gains. Pulp, rapeseed, Shanghai copper, rebar, Shanghai nickel, Shanghai tin, hot-rolled coil, soybean meal, and iron ore declined. Stainless steel, alumina, coke, platinum, Shanghai gold, and coking coal fell over 1%, with caustic soda and platinum down 2%. Shanghai silver, polysilicon, and the container freight index dropped more than 3%.

**09:54** Lithium battery material stocks extended their strength during early trading, with electrolyte and lithium salt sectors leading gains. Haike Xinyuan surged over 10%, while Binhai Energy, Yongxing Materials, Rongjie Shares, Hongxing Development, Tianhua New Energy, and Shida Shenghua were among the top performers.

According to SMM data, China’s energy storage battery cell output totaled 119.09 GWh in January-February 2026, up 91% year-on-year. Data from the Great East Times database showed that lithium battery market production scheduling reached approximately 219 GWh in March 2026, up 16.5% month-on-month, with energy storage battery cell scheduling accounting for 40.6%, up from 37.7% at the beginning of the year.

**09:47** Innovative drug concepts remained active, with Lianhuan Pharmaceutical hitting the daily limit. Meinuova surged for the fifth time in six trading days, while Jinkai Shengke, Haichuang Pharmaceutical, Kexing Biotech, Dezon Health, and Wanbangde followed the upward trend.

**09:45** The defense sector saw a sudden rise during early trading. Jianshe Industries hit the daily limit for the second time in four sessions, with Northern Changlong, Great Wall Military Industry, Jieqiang Equipment, Neimeng Yiji, and Guoke Military Industry also climbing.

Analysts noted that the "15th Five-Year Plan" period emphasizes new-quality combat capabilities as a key development direction, driving rapid advancements in intelligent, precise, and collaborative weapon systems. This trend is expected to generate structural demand and spur a new round of production expansion, supporting long-term sector growth.

**09:38** The power sector showed intermittent activity, with Jinkong Power and Guangxi Energy both hitting the daily limit. Shennandian A, Yuneng Holdings, Huadian Liaoneng, and Dongfang New Energy also rose.

Data from the National Energy Administration showed that as of the end of February, China’s total installed power generation capacity reached 39.5 billion kilowatts, up 15.9% year-on-year.

**09:34** Chemical stocks defied the broader market trend, with Suli Shares, Lubei Chemical, and Kingenta hitting the daily limit. Shandong Haihua touched the upper limit, while Luhua Technology, Adama A, and Chitianhua followed suit.

Geopolitical tensions escalated in March, compounded by disruptions in shipping through the Strait of Hormuz, driving international crude oil prices higher and lifting the chemical sector. Data showed that methanol prices in southwestern China reached 2,820–3,070 yuan per ton, up 825 yuan per ton since late February—a surge of 38.9%, marking a three-year high.

**09:26** The Shanghai Composite Index opened 0.95% lower, while the ChiNext Index fell 1.1%. The computing hardware industry chain declined, with memory, CPO, and high-speed copper connection sectors leading losses. Photovoltaics, semiconductors, AI computing, Yushu Robotics, and commercial aerospace concept stocks were among the top decliners.

**09:21** The Hang Seng Index opened 0.35% lower, and the Hang Seng Tech Index fell 0.44%. AIA Group and Haier Smart Home dropped over 3%, while Nio and XPeng fell more than 2%. BYD Company rose nearly 3%.