Defense, communications equipment, consumer electronics, and West Taiwan Strait sectors recorded significant gains. On March 25, A-shares continued to rally with a strong opening and upward movement. The STAR Composite Index and the CSI 500 Index were among the first to fill the downward gap left on Monday. The Shanghai Composite Index reclaimed the 3,900-point level, while the ChiNext Index recovered the 3,300-point mark. More than 4,900 stocks advanced, with trading volume moderately expanding to 2.19 trillion yuan.
Sectors such as defense, communications equipment, consumer electronics, and West Taiwan Strait led the gains, while oil and gas extraction, coal, chemical raw materials, and shipping ports were among the few decliners. Wind data showed that the electronics sector attracted over 15.4 billion yuan in net inflows from main funds, communications received more than 13.1 billion yuan, utilities saw over 9.6 billion yuan, and computers garnered over 4.6 billion yuan. Construction decoration, machinery equipment, and banking each attracted more than 3 billion yuan in net inflows. Only nonferrous metals and petroleum petrochemicals experienced net outflows, with approximately 1.1 billion yuan and 600 million yuan exiting, respectively.
Among individual stocks, Luxshare Precision received over 5.3 billion yuan in net inflows from main funds, while Guanghuan New Network attracted more than 2.8 billion yuan. Seven other stocks, including Biwin Storage, Changfei Fiber, and Zhongli Group, also saw net inflows exceeding 1 billion yuan.
In market highlights, following heavy buying at the close of the previous session, defense stocks once again showed unusual activity in the afternoon. The ground weaponry sector index, which was only slightly positive at 13:54, suddenly surged with heavy volume, soaring more than 6% at its peak. Anhui Greatwall Military Industry Co.,Ltd. (601606) hit the limit-up strongly near the close. Stocks such as Northern Long Dragon, Construction Industry, and Jieqiang Equipment also advanced with heavy volume toward the end of trading.
Subsectors including military trade concepts, aviation equipment, civil-military integration, and drones followed the upward trend. Stocks like Changjiang Communications, Zhongli Group, Hailunzhe, and Zhenshitong rose by the daily limit or gained over 10%. Shenwan Hongyuan noted that China's defense equipment development is entering a new cycle driven by dual engines: steady growth in traditional military sectors and the potential release of military technology for civilian use. High-end technologies accumulated in the defense sector are accelerating spillover effects, fostering and empowering emerging industries such as commercial aerospace, aero-engines and gas turbines, and controllable nuclear fusion, collectively raising the long-term growth ceiling for the industry.
West Taiwan Strait concept stocks also strengthened in the afternoon. Weike Technology hit the 20% limit-up, Ruineng Technology surged with heavy volume right after the midday opening, reaching the limit-up in about 11 minutes. Zhangzhou Development hit the limit-up in the final 10 minutes before the close. Stocks such as Fujian Cement, Pingtan Development, and Mindong Power also rose by the daily limit near the end of trading.
Looking ahead, China Merchants Securities pointed out that from a technical and sentiment perspective, A-shares are currently in the latter stage of a decline, with limited room for further downside. However, external shocks may still trigger periodic fluctuations, and confirming the bottom range will require time. After each adjustment, the market tends to identify sectors with the highest growth potential for bargain hunting. Key allocation directions include AI infrastructure—such as computing power, data centers, and power supporting facilities—and new energy, which benefits from long-term policy support and demand growth under the strengthened energy transition goals of the 15th Five-Year Plan.
Hualong Securities believes that current policies clearly aim to stabilize market expectations, liquidity remains ample, valuations are within a reasonable range, and fundamental expectations are steady. Once influencing factors are sufficiently priced in by the market, favorable allocation opportunities may emerge. Focus areas include TMT sectors such as electronics, software, and communication services, as well as themes like the 15th Five-Year Plan, artificial intelligence+, commercial aerospace, low-altitude economy, and humanoid robots.
Comments