A-share market review: The Shanghai Composite Index once fell below 4,000 points, the Shenzhen Component Index plummeted over 2%, nearly 5,000 stocks across the market turned red, while green electricity, computing power synergy, and oil & gas stocks moved higher against the market trend.

Ask AI · How is the concept of green energy reversing the market trend related to AI computing power demand?

On March 19, the three major A-share indices opened lower and declined throughout the day, maintaining a volatile trend. During trading, the Shanghai Composite Index fell below 4,000 points. By the close, the Shanghai Index dropped 1.39% to 4,006.55 points, the Shenzhen Component Index fell 2.02% to 13,901.57 points, the ChiNext Index declined 1.11% to 3,309.1 points, and the STAR 50 Index decreased 2.44% to 1,339.03 points. The combined trading volume of Shanghai and Shenzhen markets was 2.11 trillion yuan, with nearly 5,000 stocks in the market declining.

In terms of sectors, green energy and computing power synergy concepts defied the trend and strengthened. Oriental New Energy, Guangdong Electric Power A, Shao Energy, Guang’an Aikang, and Huadian Liaoning hit the daily limit, with Jiwei New Energy reaching a 20% limit-up. The computing power leasing concept was active again, with Meili Cloud hitting two consecutive limit-ups, and Guiguang Network, Tongniu Information, and Litong Electronics also hitting the limit. The oil and gas sector performed strongly, with China New Energy, Blue Flame Holdings, Tianhao Energy, and Hongtong Gas hitting the limit-up. On the downside, non-ferrous metals led declines, with Weiling Shares, Zhongjin Gold, Industrial Bank Silver Tin all falling sharply.

Hot Sectors

Oil and Gas Industry Chain Rallies Collectively

The oil and gas industry chain rallied collectively, with China New Energy hitting the limit-up; coal sector fluctuated and surged, with Shaanxi Black Cat hitting the limit-up.

News-wise, Iran’s South Pars gas field (supplying about 40% of natural gas) and the Asaluyeh methanol hub were attacked by the US and Israel, causing most production capacities to halt, with repairs expected to take weeks or months. Iran’s Revolutionary Guard warned of strikes on Saudi, UAE, and Qatar oil facilities, escalating conflicts. WTI crude oil rose to $98 per barrel, Brent crude to $105 per barrel. Additionally, US natural gas futures surged over 6%, currently at $3.258 per million British thermal units.

Green Energy and Computing Power Synergy Concepts Strengthen Against the Trend

Green energy and computing power synergy concepts strengthened against the trend, with Jinkai New Energy, Oriental New Energy, Guangdong Electric Power A, Shao Energy, Guang’an Aikang, and Huadian Liaoning hitting the limit-up, Jiwei New Energy reaching a 20% limit-up.

Computing Power Leasing Concept Rebounds

The computing power leasing concept was active again, with Meili Cloud hitting two consecutive limit-ups, and Guiguang Network, Tongniu Information, and Litong Electronics also hitting the limit.

News-wise, Alibaba Cloud announced that prices for AI computing power and storage products increased by up to 34%. Baidu Smart Cloud also announced price adjustments for AI computing power and storage products on the same day.

Non-Ferrous Metals Sector Declines

The non-ferrous metals sector declined sharply, with Weiling Shares, Shanjin International, Zhongjin Gold, and Baowu Magnesium all falling.

News-wise, on Wednesday’s after-hours in New York, spot gold fell 3.67%, to $4,822.05 per ounce. It remained roughly stable before 18:00 Beijing time, then expanded its decline. Within 15 minutes before the US stock market opened, gold broke below $4,850. After the Federal Reserve announced no change in interest rates and raised its core PCE inflation expectations, the decline widened again. After the US stock market closed, gold hit a daily low near $4,800.

Market Outlook

Huatai Securities: Geopolitical Risks and Oil Price Upside Remain Main Market Risks

Huatai Securities’ chief strategist He Kang stated that, based on market trading structure and capital behavior, overall risk appetite has cooled. Geopolitical tensions and rising oil prices remain the main contradictions in market pricing. Looking ahead, macro-wise, short-term risks have not been fully released; global stagflation concerns are rising. Although domestic liquidity is ample, the sustainability of improving import-export and inflation data remains to be seen. Micro-wise, global investors still worry about AI’s disruptive impact. The most important earnings season of the year for A-shares is approaching. Industries with high early-stage prosperity, such as power grid equipment, optical fiber cables, and chemical sectors with cyclical capacity turning points and high consensus expectations, will be key to validation.

CICC: US Federal Reserve’s Rate Cut Restart Likely Delayed to Second Half

CICC pointed out that the Fed kept interest rates unchanged at the March meeting, in line with market expectations. The dot plot and economic forecasts showed upward revisions in inflation expectations and a narrowing of rate cut room, indicating a cautious overall policy stance. Although Powell believes oil shocks are uncertain and the economy remains resilient, CICC considers the situation more complex. Tariffs and immigration policies have constrained supply, and combined with oil price shocks, the US economy is entering a “stagflation-like” phase. Meanwhile, risks in private credit are emerging, and financial conditions may tighten spontaneously. Under this backdrop, the Fed is likely to remain on hold in the short term due to sticky inflation; in the medium term, demand weakening and rising financial risks could force a policy shift toward rate cuts. It is expected that the Fed will keep rates steady in the first half, with rate cuts delayed until the second half. However, if rate cuts are a passive response to worsening economic or financial conditions, market risk appetite may still struggle to improve.

CITIC Securities: North American Power Shortages Persist, Energy Storage and Grid Construction Will Soon Mirror Gas Turbine Boom

Currently, North America’s power system faces long grid connection cycles, aging power and grid equipment, and insufficient backup capacity. The explosive growth in AIDC demand will lead to a power gap of 39.9, 51.8, and 67.8 GW in North America around 2026-2028. Gas turbines, energy storage, and grid equipment are expected to become core beneficiaries, gradually becoming reality. Currently, the market only recognizes the boom in gas turbines; in the next six months to a year, investments in grid and energy storage are expected to increase steadily. North America’s profit scale surpasses other regions globally, making related industries highly attractive.