Daily Market Summary: The ChiNext Index fluctuated and declined by 2.7%, with hot sectors like lithium batteries and computing power losing momentum. High-speed rail concept stocks defied the trend and remained active.

Source: Caixin (財聯社)

Caixin, March 31: The market fluctuated and fell across the board, with all three major indices closing lower collectively. The ChiNext Index and the STAR Market 50 both fell by more than 2%. The total trading value across the Shanghai and Shenzhen markets for the whole day was 1.99 trillion yuan, up by 76.8 billion yuan from the previous trading day. In terms of market themes, the focal points were relatively scattered, and nearly 4,400 stocks across the market declined. From the sector perspective, the high-speed rail concept continued to perform strongly; Shen Zhou High-Speed Railway achieved a second consecutive daily limit-up, and Jiying Heavy Industry hit the 20CM daily limit-up. The commercial aerospace concept strengthened against the trend; Shijian Shares delivered a fourth consecutive daily limit-up. The innovative drug theme remained active with repeated bursts; Tianjin Pharmaceuticals and others, as well as Kellyine (凯莱英), hit the daily limit-up. On the downside, the storage chip concept fell collectively; Baiwei Storage, Demingli, and Shancun Chuang (香农芯创) saw sharp declines. By the close, the Shanghai Composite Index fell 0.8%, the Shenzhen Component Index fell 1.81%, and the ChiNext Index fell 2.7%.

Sector-wise

The high-speed rail concept strengthened against the trend. Jiying Heavy Industry, Shen Zhou High-Speed Railway, Jinxi Train Axle, and China Railway Group (中铁工业) all hit daily limit-ups, while Shanghai Jiaotong Trefa (交大铁发), Techi Technology (特大科技), and High-Speed Rail Electric (高铁电气) led in gains.

On the news front, according to reports, at the Yangtze River’s estuary, the “15th Five-Year Plan”-era major project—the flagship project of along-the-river high-speed rail—is being rushed in construction. The high-speed rail will extend from Shanghai all the way to Chengdu, linking up three major urban clusters in the Yangtze River Delta, the middle reaches of the Yangtze River, and the Chengdu–Chongqing region. It stretches for about 2,000 kilometers, with total investment in the along-the-river high-speed rail exceeding 500 billion yuan. In addition, according to planning, by the end of the “15th Five-Year Plan,” China will basically have completed the main corridors of the “eight verticals and eight horizontals” high-speed railway network, and the completion rate of the main backbone of the national integrated three-dimensional transportation network will rise from the current 90% to more than 95%.

In the afternoon, the motorcycle concept saw unusual movement. Hongchang Technology delivered a second consecutive 20cm daily limit-up; Qianjiang Motor hit the daily limit-up. Hanyang Racing (华洋赛车), Hongquan Technology (鸿泉技术) rose more than 10%, and Zhen’ao Industry (征和工业), Jiuqi Shares (久祺股份), and others also followed higher. According to the news, on March 28 Beijing time, at the World Superbike Championship (WSBK) venue, Chinese motorcycle brand Zhangxue Motorcycle (张雪机车) won the race with an absolute advantage of nearly 4 seconds, breaking the decades-long monopoly in that class by international powerhouses such as Ducati, Yamaha, and Kawasaki.

From the market perspective, themes such as high-speed rail and motorcycles are relatively on the periphery, and the overall sector capacity is small, with the market caps of related targets generally low. Against the backdrop of mainstream hot themes collectively pausing and rotations slowing, these themes attract some active capital for phase-focused attention. However, because their ability to drive market sentiment and the main market storyline is limited, they are still generally positioned as independent themes driven by specific events, or they do not have diffusion effects at the main-line level.

Banking stocks strengthened against the trend. Bank of China and Agricultural Bank of China both rose by more than 3%. Yasheng Bank (夏银行), Pudong Development Bank (浦发银行), Postal Savings Bank of China (邮储银行), China Construction Bank (建设银行), and CITIC Bank (中信银行) also posted leading gains.

The performance “report cards” for 2025 of the six major state-owned banks—Industrial and Commercial Bank of China (工行), Agricultural Bank of China (农行), Bank of China (中行), China Construction Bank (建行), Bank of Communications (交行), and Postal Savings Bank—were released all at once. All of them achieved a “both revenue and net profit increased” outcome, with total cash dividends exceeding 420 billion yuan. For many banks, core operating indicators improved quarter by quarter. On the other hand, as market risk appetite continues to decline, the dividend attributes of high-dividend and low-valuation banks become more attractive to long-term capital such as insurance funds, and the logic for allocating dividend value continues to strengthen.

Individual stocks

On the individual stock level, the pharmaceutical sector has continued to remain active. Wanbangde won a fourth consecutive limit-up over six trading days; Tianjin Pharmaceuticals achieved a third consecutive limit-up; popular targets such as Shuanglu Pharmaceutical, UMG (舒泰神), and Haitai Bio (海特生物) have also continued the upward trend. However, it should be noted that differentiation among stocks within the sector remains significant. In the early phase, core high-volume leader Menovo Pharma (Weiquan) (美诺华（维权）) weakened after high-volume at higher levels. If market sentiment continues to retreat further tomorrow, the short-term overall sentiment in the pharmaceutical sector may face noticeable pressure.

Fueled by the successful launch event of the Force Arrow No. 2 (力箭二号) unmanned launch vehicle, the commercial aerospace sector strengthened against the trend. Shijian Shares advanced to a fourth consecutive limit-up. Shaoyang Pharmaceuticals, Shunhao Shares, and Julijisu (Weiquan) (巨力索具（维权）) also hit the daily limit-up. Although some targets have shown strong continuity in recent days, under the current game of limited incremental capital, it is difficult in the short term to simply replicate the sector-wide行情 (overall rally) from last January. Capital will most likely continue to focus on engaging in competition around the front-row popular core names.

Outlook analysis

Today’s market fell back into adjustment again, with all three major indices closing lower across the board. Among them, the Shanghai Composite rose and then pulled back; 3,900 points were lost again. Overall, it is still appropriate to view the situation first as a structure of building a base through consolidation. As for the ChiNext Index, it has been relatively weaker. In addition to breaking below 3,200 points with a weighted medium-to-long bearish candle, it has already retraced to the lower band of the Bollinger Bands. The market faces an important threshold ahead. In the short term, if investors want to stabilize, they need to hold the lower Bollinger Band while also quickly regaining the level above the 5-day moving average. Conversely, if the adjustment continues, then the medium-term trend may gradually shift toward a bearish market. From the board, previously popular sectors such as lithium batteries, photovoltaics, semiconductors, and compute hardware all fell into adjustment, and some high-level popular stocks also showed doubts about the loosening of tight grouping. Therefore, when the “money-losing effect” of the above hot themes will be repaired is also a key factor for halting the decline in the future.

Market news focus

1、Ministry of Finance: Total operating revenue of state-owned enterprises for January to February was 19.9k yuan, up 0.2% year over year

According to data from the Ministry of Finance, from January to February, the total operating revenue of all national and state-controlled enterprises across the country was 12.57T yuan, up 0.2% year over year, while total profits were 626.62 billion yuan, down 2.0% year over year. At the end of February, the asset-liability ratio of state-owned enterprises was 65.4%, up 0.5 percentage points year over year.

2、After Zhangxue Motorcycle claimed the championship, orders surged within two or three days; they have already been queued to June

In the World Superbike Championship (WSBK) Portugal round, in the SSP class race, the Zhangxue Motorcycle 820RR-RS bike won the championship. This is the first victory in the SSP class history for this Chinese motorcycle manufacturer. A salesperson from Zhangxue Motorcycle told reporters that from the time of winning the championship to the past two or three days, purchase orders have already been queued for June of this year.

(Caixin; Fenglin)

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