Market Close: ChiNext Index up 1.41%, semiconductor sector surges strongly, ocean economy concepts and other sectors active

On March 16, the Shanghai Composite Index experienced weak fluctuations during the trading session, with the decline narrowing in the afternoon; the ChiNext Index surged more than 1%, and over 2,800 A-shares closed higher.

By the close, the Shanghai Composite fell 0.26% to 4,084.79 points, the Shenzhen Component Index rose 0.19%, and the ChiNext Index increased 1.41%. The combined turnover of the Shanghai and Shenzhen markets and the Beijing Stock Exchange was approximately 2.34 trillion yuan.

In terms of sectors, steel, coal, electricity, non-ferrous metals, and gas declined, while semiconductors surged strongly. Agriculture, media, brewing, and food and beverage sectors also gained, with activity in seed industry, storage chips, and marine economy concepts remaining lively.

CITIC Construction Investment Securities believes that as the US-Iran conflict enters a stalemate phase, crude oil prices fluctuate sharply. China’s diversified crude oil imports, energy structure transformation, and strategic petroleum reserves will play a buffering role. However, under global risk appetite disturbances and domestic market liquidity constraints, the A-share market may continue to fluctuate in the short term. If the US-Iran conflict becomes prolonged, it could lead to three main impacts: 1) rising oil prices and increased global inflation, disrupting the Federal Reserve’s rate cut pace; 2) the loosening of the petrodollar system may accelerate, making China a potential safe haven for global capital, with RMB assets possibly benefiting; 3) it could create strategic opportunities for China, leveraging a dual energy foundation of “coal + new energy” to not only ensure energy security but also potentially lead global energy transition.

Current disturbances and opportunities coexist. It is recommended to adopt a dual approach of “physical assets + certainty in growth.” On one hand, the revaluation of physical assets continues, with energy security-related sectors such as coal, coal chemicals, power grids, utilities, and petrochemicals holding investment value; on the other hand, sectors benefiting from electrification transformation, such as wind, solar, electric vehicles, and energy storage, have clear growth potential, supported by strong momentum in AI-related supply chains and power shortage chains.