Midday Review: Shanghai Composite Index up nearly 1%, pharmaceutical and banking sectors gaining momentum, power sector performing strongly

On the morning of March 24, the Shanghai Composite Index dipped and then recovered during trading, while the ChiNext Index showed weak performance. Over 4,500 A-shares were in the green.

By midday, the Shanghai Composite rose 0.95% to 3,849.34 points, the Shenzhen Component Index increased 0.26%, the ChiNext Index fell 0.79%, and the STAR Market Composite Index gained nearly 2%. The combined trading volume of the Shanghai, Shenzhen, and Beijing markets was about 13.2 trillion yuan.

In terms of sectors, the power sector was strong, with steel, pharmaceuticals, banking, brewing, and securities firms leading the gains. Concepts such as military trade, green energy, innovative drugs, and computing power were active.

Guoxin Securities believes that this market pullback is a normal adjustment in the later stage of the trend. External disturbances are merely amplifiers of the adjustment, not the trigger for a bull or bear market switch. Investors should avoid losing sight of the medium- and long-term direction due to short-term panic. Historical data shows that major declines in the market typically follow a pattern of “sharp drop - rebound - bottoming out,” and reaching new highs takes time to digest pressure. This adjustment period often presents good opportunities for gradual positioning. In terms of market style, short-term fluctuations may lead to a rebalancing, with some undervalued “old economy assets” gaining temporary favor. From a mid-term perspective, sectors representing economic transformation and security, such as artificial intelligence, advanced manufacturing, and strategic resources, remain core allocation areas. These sectors are supported by real industrial policies and fundamentals, and after the adjustment, they are more likely to lead the market to new trends.