Rongjie Co., Ltd. hits three consecutive limit-ups, with funds flocking to lithium batteries! Will it continue to strengthen tomorrow? | Sichuan View Analysis

Brought to you by: Sichuan Online

Sichuan Online reporter Li Feifei

On March 26, after enjoying two days of continuous gains on the A-share market, the warmth was quickly met with another sharp pullback. By the close, the Shanghai Composite Index fell 1.09% to 3889.08 points; the Shenzhen Component Index fell 1.41% to 13606.44 points; and the ChiNext Index fell 1.34% to 3272.49 points. Across the entire market, total trading value was only 195.70 billion yuan, down 235.9 billion yuan from yesterday.

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At the stock level, the situation changed abruptly as well: more than 4400 stocks across the market turned green and fell, while fewer than 1000 stocks rose. The ratio of gainers to decliners was nearly “one-sided,” as if the market had been hit by a “reverse gear” button.

With the market suddenly turning course, the key trigger is the unclear next direction of the situation following the Iran-Iraq conflict. According to a report on Xinhua News Agency that cites Iranian media on the 25th, Iran may open a new front in the Strait of Hormuz. Affected by this, risk-off sentiment in global capital markets has surged to the extreme.

During today’s A-share trading session, Brent crude oil kept strengthening, with the gain nearing 2% by 15:00; the U.S. Dollar Index repeatedly oscillated around the flat line; spot gold, however, plunged in the afternoon, with losses exceeding 1%.

In a weak market, the fund-pooling effect is obvious. What shows up in the market is the direct manifestation of “the strong always remain strong.” Today, power stocks continued to be strong, and 9 stocks in the sector hit their daily trading limit. However, it’s worth noting that toward the end of the trading day, the power sector showed clear divergence: some power benchmark stocks like Huadian Liaoneng saw their limit-up boards “collapse,” while other names like Tongbao Energy in the back end rallied up to hit the limit-up again—high-stakes games between bulls and bears are intense.

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In addition, due to the weekend outlook for the situation in the Middle East being unpredictable, funds left early at today’s midday session as well; other funds avoided uncertainty and instead pooled into sectors with clearer earnings expectations. As a result, the lithium battery sector became a common choice for some funds. In terms of sector performance, energy metals and battery-related sectors ranked first and second on the gainers list. The former at one point reached a rise of 4.14%, including popular stock Rongjie Co., Ltd. hitting three consecutive daily limit-ups.

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Looking ahead to tomorrow, the outlook for the power sector is full of uncertainty. The double game of “safe-haven demand” versus “taking profits” is intensifying. Industry insiders analyze that tomorrow’s power sector will most likely see a fierce contest between bulls and bears. For ordinary investors, blindly getting involved in this sector’s game currently offers a poor cost-effectiveness; it is recommended to mainly observe and avoid the risk of high-level volatility. Another highlight is that safe-haven sentiment may further steer fund preferences toward certainty. Whether to continue pooling into lithium batteries and whether a new main market theme can emerge is worth watching.

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From the perspective of Sichuan stocks, even in a weak market there are still many companies that strengthen against the trend. Among them, Sinocera Technology, Shengxin Lithium Energy, Yahua Group, and ST Huaxi all saw gains exceeding 5%, giving investors some warmth amid market turbulence.

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In just a single day, the A-share market flipped abruptly from a repair rally, returning to the adjustment track. Industry insiders point out that the essence of this round of pullback is that external geopolitical risk has sharply heated up, temporarily overwhelming the market’s internal repair momentum. Looking forward to the future, in the short term, market performance will still be highly driven by the evolution of the geopolitical situation. The market will most likely continue the pattern of choppy consolidation and bottoming out, turning “time into space.” A trend reversal will still require clearer signals to wait for.

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