The market staged another rebound from intraday lows on Tuesday, with the Shanghai Composite Index turning positive in the afternoon session. The technology sector, particularly chips and computing power, showed strong momentum, driving the ChiNext Index up over 2%. Total market turnover reached 2 trillion yuan, though this represented a contraction of over 100 billion yuan compared to the previous session. More than 3,500 stocks advanced across the two exchanges.
Computing power and cloud computing sectors led the gains, with a wave of stocks hitting their daily upside limits, including Meili Cloud. The surge was fueled by an announcement on Alibaba Cloud's official website. Citing exploding global AI demand and rising supply chain costs, Alibaba Cloud stated it would increase prices for its AI computing power and storage products by up to 34%. Specific hikes include a 5%-34% increase for computing cards like the T-Head Zhenwu 810E and a 30% increase for the CPFS (Intelligent Computing Edition) file storage product.
The storage chip concept also surged, with BIWIN Storage hitting a new all-time high. This movement follows reports from Yonhap News Agency that union members at Samsung Electronics have voted to strike. Industry analysts note that as the world's largest memory chip maker, a production halt at Samsung could take up to two months to resume, potentially resulting in losses of tens of billions of US dollars. Such an event would also exacerbate global semiconductor supply bottlenecks, impacting chip availability for industries ranging from automobiles and computers to smartphones.
In other market highlights, the liquid cooling server concept saw volatile gains, with stocks like Dayuan Pump Industry, Jialongtu, Ningbo Jingda, and Qiangrui Technology rallying to their daily limits. The computing-power grid synergy concept was also active, with Shaoneng Group and Yue Dianli A opening at their limit-up prices and maintaining those levels. On the downside, oil and gas stocks weakened, with companies like Zhouji Oil & Gas and Tongyuan Petroleum experiencing significant declines. The chemical sector also faced pressure, as Jinniu Chemical and Luzhou Tianhua fell by the daily limit.
Looking at individual stocks, 3,554 companies advanced, 1,831 declined, and 105 ended unchanged. Seventy stocks hit the daily upside limit, while 14 fell by the daily limit. At the close, the Shanghai Composite Index was up 0.32% at 4,062.98 points, with a turnover of 876.3 billion yuan. The Shenzhen Component Index gained 1.05% to close at 14,187.80 points, with a turnover of 1.1697 trillion yuan. The ChiNext Index rose 2.02% to finish at 3,346.37 points.
In terms of capital flows, main funds focused on buying into communication equipment, semiconductors, and IT services sectors. Stocks such as New Essex, Tianfu Communication, and Zhongji Xuchuang were among the top beneficiaries of net inflows.
**Key News Recap:** 1. **Alibaba Cloud Hikes AI Computing, Storage Prices Up to 34%:** Alibaba Cloud announced significant price increases for its AI computing power and storage products, citing surging global AI demand and supply chain cost pressures. Increases range from 5% to 34% for specific products. 2. **NDRC Pushes for Low-Altitude Intelligent Network System Development:** The National Development and Reform Commission's report on the 2025 plan execution and 2026 draft plan explicitly stated the goal to improve the low-altitude economy industrial and innovation ecosystem in 2026, focusing on building safety infrastructure like low-altitude intelligent networked systems. 3. **Ministry of Science and Technology to Jointly Promote Beijing-Tianjin-Hebei International Sci-Tech Innovation Center:** Vice Minister of Science and Technology Lin Xin stated at a press conference that the ministry will collaborate with other departments and local governments to advance the construction of the Beijing-Tianjin-Hebei International Sci-Tech Innovation Center. Efforts will focus on enhancing regional synergy, with Beijing playing a leading role, supported by an innovation network centered on Zhongguancun.
**Post-Market Analysis:** 1. **GF Securities: Chinese Assets May Present Buying Opportunity After Short-Term Geopolitical Uncertainties Subside:** Following the Iran conflict, GF Securities analyzes that while short-term geopolitical developments are unpredictable, medium-term impacts may be digested. They suggest that the core logic for a non-US asset bull market in 2026 is unlikely to be overturned by regional tensions. Once short-term uncontrollable geopolitical factors ease, Chinese asset markets might offer the best buying opportunity of the year. 2. **Tebon Securities: A-Shares Likely to Continue Structural Market Characteristics:** Tebon Securities believes the A-share market will likely continue its pattern of structural行情, with rotation between tech growth and traditional cyclical stocks being the main theme. As the earnings season approaches in late March, corporate results will be a key differentiator for individual stocks. Policy directions regarding industries, finance, and货币 will also require close attention. 3. **CSC Financial: Chemical Price Hikes Spread, Price Spread Index Surges:** Driven by post-holiday work resumption and rising oil prices, the diffusion index for chemical products (percentage of products with weekly price increases) reached 64.94%, up 4.55 percentage points week-over-week, indicating a broadening of price hikes. Contrary to the previous week's narrowing, the chemical product price spread index jumped sharply to 13.65% of its 10-year range, up 9.39 percentage points week-over-week, suggesting that rising oil costs are being transmitted to mid-stream products. The view remains positive that rising oil prices from cycle lows will lead to inventory reduction through price increases, potentially kick-starting a new inventory cycle.
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