Middle Eastern funds are pouring into the A-share market! The next 10x winning stock, "Yuanjie Technology," is already on its way.

Why Do Middle Eastern Funds Favor A-Share Tech and Energy Stocks?

By | Water’s Edge

‍Currently, despite the impact of conflicts in the Middle East, it seems that the rise of some strong stocks has not been affected. For instance, there are Huadian Liaoning and Huadian Energy, which have initiated a “short and quick” main upward trend, as well as Changfei Optical Fiber, which established a slow bull market and then hit the daily limit, along with Yuanjie Technology, a “10x bull stock” continuing to set new highs…

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How to Discover “10x Bull Stocks” like Yuanjie Technology?

There is a saying in investing: “The darkest hour is just before dawn.” The implication is that history has repeatedly proven that a strong rebound often follows an extreme decline. Recent market performance has once again confirmed this market rule. Since March 24, the A-shares have been in a mood recovery period (after prior panic adjustments), with the Shanghai Composite Index and Shenzhen Component Index both having cumulative increases of over 3% from March 24 to March 25.

The market warming has been further validated by an increase in the number of limit-up stocks, breaking the hundred mark repeatedly. Data shows that on March 24 and March 25, the number of limit-up stocks in the A-share market was 101 and 106, respectively. In contrast, on March 20 and March 23, when the market experienced larger adjustments, the number of limit-up stocks was only around 40.

Looking at the limit-up stocks from March 25, the focus has been concentrated on sectors such as technology and energy power, including Huadian Liaoning, a stock related to computing and electricity synergy (which had 8 consecutive limit-ups as of March 25, and hit the limit again during trading on March 26); optical communication/fiber stocks like Changfei Optical Fiber, Yangtze Communication, and Sanfu Co., Ltd. Additionally, the explosion of Token has ignited stocks related to computing power leasing, such as Litong Electronics (see attached table).

From the above limit-up stocks, it can be seen that capital is increasing its bets on technology stocks driven by price increases, technological iterations, and rising demand.

For instance, Litong Electronics, whose stock price has started a main upward trend this year and has already doubled, continued to close with a “10cm” limit-up on March 25 and rose nearly 9% on March 26. The company has a computing power leasing concept, benefiting from a boost in market demand, leading to an increase in stock price. According to the National Bureau of Statistics, China’s daily Token usage has exceeded 140 trillion. Tokens are the basic measurement units for AI model computation, reasoning, and interaction, and their consumption determines the scale of computing power demand. Litong Electronics reported that its computing power leasing business revenue is expected to grow by 398.21% year-on-year in the first half of 2025. By the end of October 2025, the computing power scale is expected to be nearly 33,000 P (self-owned + subleased).

Similarly, Mingpu Optoelectronics closed with a limit-up on March 25 and continued to hit the limit on March 26. According to its report on March 24, 2026, the company has achieved small batch shipments of its 800GLPO, and is jointly developing the 800GNPO with customers, along with a 1.6T optical module in cooperation with JDM, entering the high-speed transmission track for AI data centers.

Changfei Optical Fiber, stimulated by fiber price increases, recorded two consecutive “10cm” limit-ups on March 24 and March 25. Changfei Optical Fiber has been a core leader in optical communication since the second half of 2025, with an increase of up to 5 times during this period.

Long-term tracking and research into computing power, optical communication, and other areas of technological growth have allowed for the precise identification of core industry leaders and the capture of low-start signals for leading stocks. For example, Changfei Optical Fiber mentioned above is a research case from May 28, 2025, and December 10, 2025 (see Figure 1); similarly, Yuanjie Technology, which has seen a 10-fold increase in the past year and is continuing to surge recently, is a research case from June 18, 2025 (see Figure 2).

The Heat of Power and Energy Chemical Stocks Continues to Rise

Middle Eastern Funds Increasing Their Investments

Currently, many sectors and stocks have returned to their own trading logic, creating high-elasticity excess opportunities. Moreover, from the perspective of market development, the focus is shifting from a previous tech dominance to a multi-pattern involving technology along with power and energy chemicals. Additionally, it is worth noting that in the energy and power sector, Middle Eastern funds and other foreign capital have recently begun to increase their investments.

Since March, the computing and electricity synergy concept has been hotly discussed in the market, as it was first included in the “Government Work Report,” leading to a sudden increase in market attention on computing and electricity synergy. Computing and electricity synergy is an extension of the computing power theme as well as a logical expansion of the power theme. Currently, although the A-shares are under pressure from external conflicts, this has not affected the strong performance of popular leaders like Huadian Liaoning and Huadian Energy. Since February, both stocks have risen over 160% (see Figures 3 and 4).

It is worth mentioning that for stocks related to computing and electricity synergy and energy, many foreign institutions have increased their investments, such as the Kuwait Investment Authority and the Abu Dhabi Investment Authority.

For example, Yunda Co., Ltd. According to the latest disclosed shareholder holdings in its 2025 annual report, the Kuwait Investment Authority has emerged as one of the top ten circulating shareholders, holding 5.8535 million shares, with a holding value of 112 million yuan. Yunda’s main business is wind power units, and the company has indicated that it will strengthen the research and development of computing and electricity synergy technology, achieving deep coupling of computing power and energy through innovation, and actively exploring new scenarios for “power + computing power + data + algorithms” parallel applications.

Baofeng Energy has also received further increases in holdings from the Abu Dhabi Investment Authority. According to the latest shareholder holdings disclosed by Baofeng Energy, the Abu Dhabi Investment Authority increased its holdings by 400,000 shares to 44.8128 million shares in the fourth quarter of 2025, with a holding value of 880 million yuan. Notably, prior to this, the Abu Dhabi Investment Authority had already initiated multiple quarters of continuous increases in holdings in Baofeng Energy, having first appeared as one of the top ten circulating shareholders in Baofeng Energy in the 2024 annual report, with a holding of 30.0539 million shares, and subsequently increasing its holdings by 4.9008 million shares, 2.6003 million shares, and 6.8579 million shares in the 2025 first, second, and third quarterly reports, respectively.

Baofeng Energy’s main business includes olefins and coking products, with an olefin production capacity of 5.2 million tons/year and a polyolefin (including EVA) production capacity of 5.5 million tons/year. The company’s olefin project in Ningdong is expected to achieve a capacity utilization rate of 105% in 2025. The second 1 million tons/year production line and the third 1 million tons/year production line of the Inner Mongolia olefin project were put into production in January and March 2025, respectively.

It is noteworthy that Baofeng Energy’s stock price has started a strong upward trend since 2026, rising over 80% at one point from January to mid-March (see Figure 5). The Abu Dhabi Investment Authority’s forward-looking continuous layout may have already reaped considerable profits.

(The stocks mentioned in the article are for example analysis only and do not constitute buy or sell recommendations.)