【Daily Review】Three Major Indices Oscillate Lower Across the Board, Controllable Nuclear Fusion Rallies in Afternoon, High-Position Popular Stocks Plunge in Batches

Caixin March 13 News: The market experienced a day of oscillation and adjustment, with a rapid decline at the close. The Shanghai Composite Index fell over 1% intraday. The combined trading volume of the Shanghai and Shenzhen markets was 2.4 trillion yuan, shrinking by 41.6 billion compared to the previous trading day. On the sector front, some hotspots repeatedly gained strength, while individual stocks mostly declined, with over 3,800 stocks falling across the market.

In terms of sectors, the chemical industry continued its strong momentum, with Sanfangxiang and Luxin Technology hitting two consecutive daily limit-ups, and stocks like Jinzengda, Hongbaoli, and Chitianhua also reaching the daily limit. The wind power sector was active again, with Dajin Heavy Industry hitting two consecutive limit-ups, Tongyu Heavy Industry up 20% cap, and Tianshun Wind Energy also hitting the limit-up. The controlled nuclear fusion concept surged rapidly, with Lanshi Heavy Equipment, China Nuclear Construction, and Jiangsu Shentong hitting the limit-up.

On the downside, the computing power leasing concept retreated collectively, with Meiliyun and Huasheng Tiancheng hitting the limit-down. The non-ferrous metals and tungsten concepts continued to decline, with China Tungsten High-tech and Zhangyuan Tungsten dropping to the limit. By the close, the Shanghai Composite fell 0.81%, the Shenzhen Component declined 0.65%, and the ChiNext index decreased 0.22%.

Sector Highlights

The wind power equipment sector maintained yesterday’s gains, with Tongyu Heavy Industry, Dajin Heavy Industry, Tianshun Wind Energy, and Jixin Technology hitting the limit-up. Sun Moon Co., TianNeng Heavy Industry, and Taiseng Wind Power also posted strong gains. According to news, the UK will remove 33 import tariffs on wind turbine components starting April 1, reducing tariffs on core parts like blades and cables from 6% and 2% to zero, aiming to unlock £22 billion in investment and accelerate offshore wind installations in the North Sea.

Guojin Securities recently forecasted that, according to ICIS, Europe’s data center capacity could increase from 10.6 GW to 26.6 GW by 2035. If 50% of the additional data center power demand is met by offshore wind, an extra approximately 24 GW of offshore wind capacity could be added outside current government auction processes. Several data center projects have recently signed offshore wind PPA agreements, indicating demand may be nearing explosive growth.

From a market perspective, the recent active trading of the wind power sector, beyond the above news, can also be seen as a continuation of green energy concept speculation. However, after two days of volume-driven gains, the sector is accelerating, and if sufficient funds do not follow in the coming week, some divergence within the sector may increase, so short-term rhythm should be watched carefully.

The fertilizer sector also showed countertrend activity, with Chitianhua, Luxin Technology, and Jinzengda hitting the limit-up, while Chuanjinnuo, Nongda Technology, and Lutianhua posted notable gains.

On the news front, the ongoing blockade of the Strait of Hormuz, combined with Iran as the world’s second-largest urea exporter, has rapidly transmitted risks of fertilizer supply chain disruptions to the market. Coupled with strong domestic spring planting demand, port fertilizer inventories are at multi-year lows, and prices for potash and phosphate fertilizers are rising systemically. However, it’s important to note that the chemical sector showed increased divergence today, with mid-to-late stocks retreating more clearly. The overall trend is still likely to be a volatile upward movement.

The controlled nuclear fusion concept strengthened in the afternoon, with China Nuclear Construction, Lanshi Heavy Equipment, and Jiangsu Shentong hitting the limit-up. China Nuclear Technology, Changfu Shares, HeDuan Intelligent, and Rongfa Nuclear Power also rose. According to reports, China has joined the “Triple Nuclear Energy Declaration,” initiated by France and 22 other countries, aiming to triple global nuclear capacity by 2050.

Southwest Securities stated that the global nuclear power industry is entering a new development cycle. Driven by energy security, low-carbon transformation, and AI computing power demands, nuclear power is being re-evaluated as a stable, efficient, and clean base-load power source. Future focus should include uranium mining, advanced small modular reactors (SMRs), nuclear fuel companies, and full-industry chain equipment providers.

Individual Stocks

On the individual stock front, today’s market saw an increased “loss effect,” with popular high-flying stocks in hot sectors experiencing sharp declines. Power grid equipment stocks, such as China Electric Power Xinlong and Shun Na Shares, hit the limit-down, while Zeyu Intelligent and Hanlan Shares fell over 9%. Computing power leasing and cloud services also declined sharply, with Meiliyun and Huasheng Tiancheng hitting the limit-down, and UCloud dropping over 10%. Non-ferrous metals, such as Zhangyuan Tungsten and Zhongwu High-tech, also hit the limit-down, with Xiamen Tungsten and Xianglu Tungsten experiencing large-volume declines. Previously high-flying tech stocks like Guangxun Technology and Yunnan Energy Control also adjusted, with Guangxun Technology hitting the limit-down and Yunnan Energy Control falling over 7% on nearly 20 billion yuan in turnover.

Most of these high-momentum stocks had maintained a volatile upward trend before, accumulating profit-taking pressure, and in the context of short-term risk aversion, faced concentrated profit realization. Whether a quick recovery can occur next week remains to be seen; if weakness persists, there is a risk of a broader retreat among high-level stocks.

Market Outlook

Today, the market oscillated downward throughout the day, with the Shanghai Index breaking below the 4100-point level at the close, indicating a loosening of short-term technical support. If next week cannot see a quick rebound, the index may retest the 60-day moving average support. Volume further shrank today, and amid ongoing geopolitical tensions abroad, market sentiment remains cautious. Therefore, consolidation and sideways movement remain the main theme.

From the sector perspective, the chemical sector remains hot due to geopolitical catalysts, but after continuous rises, caution is needed against increased sector divergence. The power industry chain continues to attract attention, with wind power accelerating today, and future opportunities may include nuclear power and energy storage segments. The previously hot sectors like small metals and computing power leasing have weakened collectively, which may suppress market confidence. Whether they can recover promptly remains to be further observed. Overall, in a market with rapid sector rotation, caution against chasing high is advised, and low-priced, high-visibility stocks with solid fundamentals remain relatively safer choices.

Market Highlights

1. The first invasive brain-machine interface medical device approved for market

Recently, the National Medical Products Administration approved the registration of Borreliang Medical Technology (Shanghai) Co., Ltd.’s innovative implantable brain-machine interface system for hand motor function compensation, marking the world’s first launch of an invasive brain-machine interface medical device into clinical application. The product includes a brain-machine interface implant, implantable EEG electrode set, EEG signal transmitter/receiver, pneumatic glove device, disposable surgical kit, EEG decoding software, medical testing software, and clinical management software. It is suitable for patients with quadriplegia caused by cervical spinal cord injury, helping to restore hand grasp function via pneumatic gloves. Patients must be aged 18-60, with C2-C6 cervical spinal cord injury rated A-C, diagnosed more than one year ago, stable for at least six months after standard treatment, unable to grasp with their hands, but with some remaining arm function.

The device uses minimally invasive extradural implantation and wireless energy communication technology. Clinical trials show significant improvement in hand grasp ability, thereby enhancing patients’ quality of life.

2. China to upgrade BeiDou satellite navigation system in orbit

According to the China Satellite Navigation Office, to provide better services, China will implement an in-orbit upgrade of the BeiDou satellite navigation system.