At today’s morning meeting of securities firms, China Merchants Securities opined that the A-share market is already in the latter half of its adjustment phase, with limited room for further significant declines; East Money Securities suggested adopting a bottom-line mindset to position for medium-term winners; and Pacific Securities believed that the slow bull trend remains intact, with investment opportunities in the new energy sector becoming increasingly prominent.
According to the China Securities Network on March 23, the market experienced a rise and fall throughout last Friday. The Shanghai Composite Index fluctuated and fell below the 200-day moving average, breaking through the 4,000-point integer mark, while the ChiNext Index hit a new high for the year before retreating sharply. There was a significant divergence between large-cap and small-cap stocks, with widespread declines in small and medium-sized stocks; the micro-cap stock index fell by more than 3%. The total trading volume of the Shanghai and Shenzhen stock exchanges reached RMB 2.29 trillion. From a sector perspective, concepts such as power, energy storage, and computing hardware performed actively. On the downside, sectors like chemicals and computing power leasing weakened collectively. By the close, the Shanghai Composite Index fell by 1.24%, the Shenzhen Component Index dropped by 0.25%, and the ChiNext Index rose by 1.3%.
At today’s morning meeting of securities firms, China Merchants Securities opined that the A-share market is already in the latter half of its adjustment phase, with limited room for further significant declines; East Money Securities suggested adopting a bottom-line mindset to position for medium-term winners; and Pacific Securities believed that the slow bull trend remains intact, with investment opportunities in the new energy sector becoming increasingly prominent.
CMB International: A-share market has entered the latter phase of adjustment, with limited room for further sharp declines.
From a technical pattern and sentiment indicator perspective, the current A-share market is in the later stages of this downturn. While there is limited room for further sharp declines, external shocks may still trigger periodic volatility. Confirming the bottom range will require time to consolidate. The core observation signals for a phased bottom are when substantial stabilizing mechanisms in the capital market begin to take action. After the adjustment concludes, there are three key allocation directions: First, resource stocks — benefiting from sustained geopolitical premiums and domestic restocking demand; second, AI infrastructure — including computing power, data centers, and power support, driven by both policy and industry trends; third, renewable energy — supported by long-term policy backing and demand growth amid strengthened “15th Five-Year Plan” energy transition goals.
East Money Securities: Adopt a bottom-line mindset and position for medium-term winners.
The situation in Iran remains highly uncertain. In global financial markets, U.S. equities have reacted mildly, but U.S. Treasury bonds are pricing in inflation expectations, while industrial metals are reflecting stagnation concerns. Overall, the baseline scenario for global financial markets is shifting toward mild stagflation. Recent adjustments in the A-share market also reflect some influence from overseas stagflation expectations. (1) From the perspective of medium-term industrial advantages and global energy diversification trends, China’s renewable energy sector (including wind power, energy storage, solar photovoltaics, and the new energy vehicle supply chain) stands to benefit. (2) As the earnings season approaches, the market will tend to counter valuation pressures with resilient and predictable profitability. High-growth industries with strong fundamentals, such as optical modules, PCBs, memory, fiber optics, and semiconductor equipment, should be monitored. (3) With short-term risk appetite under pressure, low-volatility assets in the Chinese stock market relatively exhibit stability. Beyond industry-specific logic, one can also consider investments based on volatility metrics, such as low-volatility dividend-paying stocks and the financial sector.
Pacific Securities: The slow bull trend remains intact, with prominent investment opportunities in renewable energy.
With crude oil prices hovering around elevated levels and showing volatile fluctuations above $100 per barrel since mid-March, compounded by ongoing uncertainties surrounding the conflict involving the U.S., Israel, and Iran, investment opportunities in renewable energy are becoming increasingly evident. On one hand, disruptions to power generation from sources such as solar and wind energy are less affected by geopolitical conflicts or fossil fuel price fluctuations. On the other hand, increasing penetration rates of electric vehicles help reduce dependence on oil, while energy storage systems mitigate the volatility of renewable energy and enhance its absorption capacity. In recent years, shifts in the global political and energy structure have led to an increase in both the frequency and intensity of geopolitical frictions. Against this backdrop, global energy security needs are likely to intensify continuously, and various segments within the renewable energy sector are expected to benefit significantly.
