Unafraid of Global Market Turmoil, ChiNext Index Reaches 4-Year High Intraday

Source: Eastmoney Tuchong Creative/Provided

Securities Times Reporter Mao Jun

This week, due to Middle East tensions, global capital markets experienced significant fluctuations, and the A-shares also adjusted accordingly. The Shanghai Composite Index fell below 4,000 points, hitting a new low for the year; the CSI 50 Index reached a nearly 11-month low; while the ChiNext Index showed strong resilience, reaching a four-year high intraday. The weekly trading volume of A-shares further shrank to 11 trillion yuan.

Leverage funds slightly net sold about 1 billion yuan this week, with the electronics sector receiving over 4.8 billion yuan in net financing; the basic chemicals sector received over 3 billion yuan in net purchases; non-bank financials, steel, automobiles, and transportation sectors also saw net inflows exceeding 1 billion yuan. The non-ferrous metals sector experienced net selling of over 3.1 billion yuan, while defense military, petroleum and petrochemicals, and communications sectors saw net outflows exceeding 1 billion yuan each.

According to Wind data, the power equipment industry saw a net inflow of over 20.2 billion yuan from main funds throughout the week; the communications sector received over 14.8 billion yuan; utilities over 14.2 billion yuan; pharmaceuticals and biotech, electronics each over 4 billion yuan; computer and light manufacturing sectors each over 3 billion yuan. The basic chemicals sector experienced net outflows of over 12.2 billion yuan; defense military outflows exceeded 6.5 billion yuan; steel outflows over 5.2 billion yuan.

“Wind, Solar, Storage” Sector Strengthens

Market hotspots: Recently, Middle East tensions have stirred global energy markets, causing sharp fluctuations in oil prices. Related stocks in the oil industry chain have also fluctuated with oil prices, with the A-share oil and gas exploration sector index fluctuating over 21% since March.

Potential disruptions in Middle Eastern oil supply combined with unstable oil prices have made energy security a global concern. Self-controlled and independent new energy sources are favored. The “Wind, Solar, Storage” sector in A-shares has recently taken turns in strength, with the ChiNext Index reaching multi-year highs driven by major new energy stocks like CATL and EVE Energy.

This week, photovoltaic equipment was the most active, with the sector index reaching a 2.5-year high. China Aviation New Energy repeatedly hit 20% daily limit-ups since March, with stock prices reaching historical highs and a cumulative increase of 85.75%. Guosheng Technology rose 61.62% in March; Airo Energy, Deye Holdings, and others also hit all-time highs on Friday (adjusted).

According to latest data from InfoLink, overall photovoltaic module production is expected to rebound significantly by March 2026, reaching 44-45 GW, a month-over-month increase of about 28-29%. Domestic production capacity increases to 32-33 GW, while overseas production rises to 11-12 GW.

As demand gradually increases, photovoltaic equipment prices have also continued to rise. The National Bureau of Statistics latest data shows that, with ongoing capacity management and anti-competition measures in key industries, the prices of photovoltaic equipment and components increased by 3.2% in February, with the growth rate expanding by 2.7 percentage points from the previous month.

Additionally, Tesla is actively expanding into the photovoltaic sector, strongly supporting space photovoltaic technology development, paving the way for orbital computing power and AI power supply. Since the beginning of the year, market reports of Tesla exploring Chinese PV companies or planning to purchase Chinese PV equipment have surged, leading related concept stocks to rise sharply.

Favorable Policies for Photovoltaic Industry

On the policy front, recent developments have been positive. In early March, six departments including the Ministry of Industry and Information Technology jointly issued the “Guiding Opinions on Promoting the Comprehensive Utilization of Photovoltaic Modules.” By 2027, the green production level of photovoltaic modules will be further improved, with a batch of backbone enterprises for waste PV module recycling cultivated, and the total recycling volume reaching 250,000 tons.

Shenzhen Housing and Construction Bureau recently issued the “Technical Standards for Building Photovoltaic Integration,” aiming to standardize design, construction, acceptance, and operation of building-integrated photovoltaics, promoting green and low-carbon development in the construction sector. These standards will be implemented from May 1, 2026.

Focus on Cyclical Sectors with Price Increase Opportunities

Looking ahead, Dongfang Securities points out that Middle East tensions have not yet eased, and global risk appetite continues to decline. Short-term volatility in A-shares has increased, but medium-term uncertainty remains limited, and overall risks are controllable. They remain optimistic about cyclical sectors with price increase potential (agriculture, chemicals, non-ferrous metals), but as market expectations are gradually fulfilled, the upside space should be cautiously reduced. Under the backdrop of rising global energy security demands, sectors like new energy (photovoltaics, wind power, transmission and transformation) with competitive advantages in China are increasingly attractive.

Huachuang Securities believes that the recent correction may have approached a bottom. Based on experience, during a bull market in A-shares, tightening macro and micro liquidity combined with geopolitical retracement of 60-80% of previous gains could create annual-level investment opportunities. Before oil prices clarify, focus on stable, low-volatility assets at the bottom of the annual report season, such as coal, agriculture, insurance, new energy vehicles, and Hang Seng Tech. If geopolitical tensions ease and wind sentiment and liquidity improve, the innovation and AI sectors will become more resilient.

(Edited by: Wang Zhiqiang HF013)

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