【Focus Review】Shanghai Composite Weakly Tests Bottom Near Six-Month Line, Funds Contrarily Hot on Traditional Energy, Computing Power Rental Concept Remains Active

Caixin News, March 19 — Today, 28 stocks hit the daily limit, 10 stocks experienced board-breaking, with a board rate of 74%. Deep Hua Fa A, China Power Liao Neng, achieved four consecutive limit-ups; China Power Energy hit five limit-ups in eight days; CNOOC Capital and Oriental New Energy each achieved two limit-ups in four days. The market experienced a day of oscillation and adjustment, with all three major indices falling more than 1%. The Shanghai Composite Index briefly fell below 4,000 points during the session. The combined trading volume of the Shanghai and Shenzhen markets reached 2.11 trillion yuan, an increase of 64.9 billion yuan compared to the previous trading day.

Market hot spots showed weak rotation, sentiment dropped to freezing point, with nearly 5,000 stocks declining. In terms of sectors, oil and gas, coal, and green electricity sectors remained active against the trend; non-ferrous metals, chemicals, rare earth permanent magnets, and steel sectors led the decline. By the close, the Shanghai Composite fell 1.39%, Shenzhen Component Index dropped 2.02%, and the ChiNext Index declined 1.11%.

Popularity and Board-Joining Stock Analysis

The success rate of consecutive limit-up upgrades remains below 30%, short-term sentiment remains pressured. Although two stocks achieved three consecutive limit-ups yesterday, all stocks attempting to upgrade from two to three limit-ups failed, including Yabo Shares, which briefly hit the limit-down during the session. The Middle East situation escalated again, but within the chemical industry chain, there is extreme divergence. The chemical sector saw only Xinghua Shares hit the daily limit with a straight-up move; previously, the five-limit-up highest stock Sanfangxiang surged then fell back, touching the limit-down in the afternoon. Rongsheng Petrochemical and Hengyi Petrochemical continued to accelerate downward after short-term breakdowns. Several natural gas concept stocks like Tianhao Energy hit limit-ups against the trend; meanwhile, China National Offshore Oil Corporation (CNOOC) and China National Petroleum Corporation (CNPC) both surged over 5%, but still remain far from previous highs.

With the Federal Reserve’s rate cut prospects dimming, international gold prices plummeted over 3%, dragging down non-ferrous metals led by precious metals. Stocks like Luoyang Molybdenum and Zijin Mining fell more than 7%. Previously active aluminum electrolysis concept stocks also began to decline, with Hongqiao Holdings hitting the limit-down. As short-term funds continue to shrink, the spreading of high-level correction trends is unfavorable for index stabilization.

Main Trend Hotspots

The 2026 government work report for the first time included “green fuels” and “computing power synergy” as industry cultivation directions, leaving room for renewable energy industry development this year. Coupled with ongoing tensions in the Middle East, the value of green energy is highlighted, and the green electricity concept re-emerged. China Power Liao Neng, Guangdong Power A, and Shao Energy Shares achieved consecutive limit-ups; China Power Energy hit the limit-up again, reaching new stage highs. Popular stocks in the computing power synergy concept, such as Jinkai New Energy and Yueneng Holdings, also surged significantly. Unlike the chemical sector, which mostly followed the trend previously, the green electricity industry chain relies relatively less on external news stimuli. Several stocks with consecutive limit-ups are mainly driven by computing power synergy factors, often led by high-priced stocks rather than low-priced stocks catching up. It remains to be seen whether green energy stocks can outperform expectations once oil and gas volatility stabilizes.

Alibaba Cloud announced up to 34% price increases for AI computing power and storage products. Baidu Smart Cloud also announced price adjustments for similar products on the same day. Amid a strong industry-wide price increase atmosphere, the computing power leasing industry continues to be favored. Aorui De, Meili Yun achieved two consecutive limit-ups; copper bull stocks Tongniu Information, Hongjing Technology, Jiechuan Intelligent, and Litong Electronics accelerated upward, reaching new highs. Low-priced stocks like Hengrui Shares, State Grid Information & Communication, and Mengwang Technology also began to catch up. The enthusiasm for the computing power leasing industry has started to spread to data elements and some AI application sectors, with Deep Sand A hitting the limit-up at one point, and Yihualu and Kunlun Wanwei surging over 10% intraday. Unlike previous periods where tech sectors like computing power diverged from oil and gas prices, recent performance of the computing power leasing chain has been much stronger than hardware and less affected by overall market sentiment. Whether it can resonate with the index and strengthen further remains to be seen.

The conflict between Israel and Palestine has ignited, causing a surge in domestic and international oil and gas prices. Brent crude futures broke through $110 per barrel, and European natural gas futures soared 35% at one point. The oil and gas industry chain reignited in gains, with gas stocks Tianhao Energy, Guo Xin Nengyuan, Lanyan Holdings, and Hongtong Gas hitting the limit-up; “Two Big Oil” companies, CNOOC and CNPC, both surged over 5% during the session. Since the peak on March 5, the oil and gas sector has undergone nearly two weeks of correction, with many stocks nearly returning to their starting points. The strong recovery today is understandable. However, compared to recently leading sectors like green electricity, the sector lacks popular leaders with multiple limit-ups or stage highs, which remains the biggest uncertainty for sustained growth in oil and gas stocks.

On March 18, Micron released its quarterly report, expecting third-quarter revenue of approximately $33.5 billion and EPS of about $19.15, both significantly exceeding analyst expectations. However, plans to increase 2027 fiscal year spending by $10 billion caused its stock to fall about 6% after hours. Previously, the storage chip concept stocks showed divergence; Hengshuo Shares fell over 10%, while Langke Technology, Demingli, and Baiwei Storage declined over 5%. Conversely, companies like Xice Testing, Tongyou Technology, and Puran Shares surged against the trend. With Samsung Electronics’ union planning a large-scale strike, supply tensions may intensify. Spot market prices for some products have risen nearly 20% compared to last month. Additionally, domestic cloud providers like Alibaba Cloud and Baidu Cloud announced price hikes, indicating that high storage product prices are still easily passed on through cloud service providers’ price increases. Strong downstream demand will likely support storage prices long-term.

Market Outlook

Today, all indices showed a weak bottoming pattern throughout the day, with the Shanghai Composite Index briefly falling below 4,000 points. Regarding individual stocks, only five non-ST stocks hit the limit-down, but over 4,950 stocks declined, second only to the record 5,071 on November 21, 2025. The median decline was as high as 2.69%, setting a monthly record. The index has broken below the lower Bollinger Band on the daily chart, but a technical rebound near the half-year moving average is possible. However, with all major indices recovering from yesterday’s long lower shadows and the Shanghai Index effectively breaking below the 60-day moving average, and with KDJ and MACD indicators in death crosses, short-term technical rebounds are unlikely to reverse the current weak bottoming trend.

Daily Limit-Up Analysis Chart