【Market Recap】All Three Major Indices Fell Over 4% During Intraday Trading, Only 300+ Stocks in the Entire Market Rose in Red, Green Energy, Coal and Oil Stocks Stood Out Alone

What are the key international factors behind the market plunge?

Cailian Press, March 23 — Today, 28 stocks hit the daily limit, 15 stocks were halted from trading, with a board-closure rate of 65%. China Huadian Liaoning Power achieved 6 consecutive limit-ups, Dashianda 4, Chint Power 5 days of hitting the limit, RiseSun 5 days, and Dongfang New Energy 4 days. The market experienced a full-day volatile correction, with the three major indices opening lower and falling over 4% intraday. The Shanghai Composite Index barely held above 3,800 points at the close. The combined trading volume of the Shanghai and Shenzhen markets reached 2.43 trillion yuan, an increase of 144.7 billion yuan compared to the previous trading day. Market sentiment plummeted to freezing point, with over 5,100 stocks declining, including 133 stocks hitting the daily limit down.

In terms of sectors, coal, oil and gas, automotive, and green energy sectors defied the trend and remained active; meanwhile, precious metals, tourism, hotels, agriculture, animal husbandry, and fisheries sectors led the decline. By the close, the Shanghai Index fell 3.63%, the Shenzhen Component Index dropped 3.76%, and the ChiNext Index declined 3.49%.

Market Sentiment and Continuous Limit-up Stocks Analysis

The rate of stocks achieving consecutive limit-ups dropped to 42.86%. As the market experienced a day of widespread volume-driven declines, short-term sentiment was severely damaged again. Previously, two stocks with five consecutive limit-ups showed divergence: China Huadian Liaoning Power narrowed its volume and achieved an upgrade, but Shenzhen Hua Fa A encountered a limit-down. Meanwhile, the previously three-day hollow limit-up green energy stock Shao Neng Co. was halted after a limit-down, and several stocks like Sanfangxiang experienced two consecutive limit-downs.

Dragged down by international gold and silver prices plunging over 7% intraday, the non-ferrous metals sector continued to see broad declines today, with stocks like Chifeng Gold and Sichuan Gold hitting the limit-down. Following the sharp decline in US stocks last Friday and tech stocks in Japan and South Korea today, the previously outperforming computing hardware sector also saw a correction. Leading chip concept Cambrian fell more than 5%, breaking below 1,000 yuan for the first time since August last year. The banking sector also experienced significant intraday adjustments, with Agricultural Bank of China and others falling over 5% at times.

With several strong sectors experiencing mass corrections today, market short-term sentiment has again hit freezing point, and a market rebound could occur at any time.

Main Trend Hotspots

Last week, energy infrastructure became a key variable in Middle Eastern geopolitical tensions, with Brent crude oil futures hovering around $110. The high activity in futures markets shifted from oil and gas to chemicals and black metals, with contracts for synthetic rubber, polypropylene, and coking coal hitting the daily limit. The chemical sector ended its correction and showed signs of recovery, with Hengyi Petrochemical and Jinke Technology hitting the limit-up, and Yihua Chemical, Xinjiang Tianye, and Chengzhi Co. reaching the daily limit at times. The coal sector also rebounded, with Yunnan Coal Energy hitting the limit-up, and Shanxi Coking Coal and Zhengzhou Coal & Electricity approaching the limit during trading.

The current surge in the energy and chemical sectors remains highly dependent on the sharp rise in related futures prices. However, the overseas increase in oil and gas prices faces significant challenges in fully transmitting to the domestic market, especially during the current off-peak electricity demand season, with downstream industries like steel also uncertain, constraining coal prices. Therefore, the emotional performance of chemical and coal sectors remains unstable, but some integrated coal chemical and leading coal industry stocks with high dividend yields are still attractive for long-term investment.

Huatai Securities stated that in March 2026, Liaoning issued a document establishing a sustainable nuclear power price settlement mechanism, marking a phased end to the ongoing “coal and electricity price decline” since 2023 at the policy level. The past three years of profit pressure in clean energy are reaching a turning point. Under multiple favorable policies, the green energy industry chain remains active against the trend, with China Huadian Liaoning Power upgrading to 6 consecutive limit-ups, Dongfang New Energy to 3, and low-priced stocks like Zhejiang New Energy rebounding.

However, some strong stocks related to power calculation coordination experienced corrections, with Shao Neng Co., which had three consecutive limit-ups, encountering a limit-down. GCL New Energy and Jinkai New Energy, previously popular stocks, surged early but then faced significant selling pressure. Last week, it was noted that the weakening of the entire computing power industry chain is unfavorable for the continued strengthening of power calculation coordination, indirectly increasing the correlation between green energy and oil and gas price fluctuations. Caution is advised regarding short-term oil price volatility affecting green energy.

Recently, Middle Eastern geopolitical conflicts have continued to push oil prices higher. Some analysts believe that the oil price shock in March 2026 could become a critical point for two-wheeler electrification in Asia, as Vietnam has announced plans to gradually ban fuel-powered motorcycles. The electric motorcycle concept surged against the trend, with Aima Technology and Xinri Co. hitting the daily limit, and Jiuyi Co. and Ninebot also rising. This mirrors the energy security threats faced by Europe and other regions, driving energy storage industry chains.

Unlike the energy storage chain, which covers inverters, batteries, and photovoltaics, the core logic of the motorcycle industry’s shift from oil to electricity is mainly driven by sentiment, and substantial performance realization will take time. The previously strong energy storage chain sectors, such as inverters and batteries, showed divergence today, with some rising sharply then retreating. However, as the market continues to anticipate long-term high oil prices, the long-term benefits of the energy storage industry chain are expected to strengthen.

Tesla’s in-house chip factory “Terafab” project is set to launch soon, aiming to produce over 1 terawatt of computing power annually, with about 80% for space applications and 20% for ground. Previously, SpaceX procured equipment from a leading domestic heterojunction device manufacturer, with delivery expected in the first week of May. The space photovoltaic concept, which surged last Friday and then retreated, made a comeback today, with Zhongli Group hitting the limit-up and achieving 2 consecutive limit-ups, Huamin Co. and Tuori New Energy also hitting the limit-up, and GCL Integration, Maiwei Co., Shuangliang Eco-Energy, and Dongfang Risheng experiencing sharp rises.

According to prior research reports, Tesla and SpaceX have chosen TOPCo and P-type HJT technology routes based on cost, safety, and stability considerations. Leading domestic companies are expected to benefit significantly and alleviate overcapacity concerns. Coupled with optimistic overseas photovoltaic and energy storage installation prospects, industry leaders are likely to see early positive performance.

Market Outlook

After last week’s Shanghai Composite Index repeatedly fell below key support levels, including the six-month moving average, today’s three major indices, under continued panic in global capital markets, showed a full-day accelerated decline, with intraday drops exceeding 4%. The Shanghai Index briefly broke below 3,800 points. Since March 12, when the index temporarily recovered above the moving averages, the daily KDJ and MACD indicators did not turn positive simultaneously, posing a major risk for the future. Today’s decline of 3.63% marked the second-largest single-day drop since April 7 last year.

In individual stocks, over 100 stocks hit the limit-down, and 1,200 stocks declined more than 7%, reflecting widespread panic. The Shanghai Index gapped down and broke through the double bottom formed between November and December last year, indicating potential for further downside. However, as the index rapidly approaches the lower Bollinger band on the weekly chart, a technical rebound is expected in the short term.