A-shares and Hong Kong stocks fluctuate higher in the afternoon: Shanghai Composite Index rises over 1.3%, Hang Seng Index's gains expand to 2%

On the afternoon of March 24, both the A-share and Hong Kong stock markets rose consecutively.

As of the time of writing, the Shanghai Composite Index increased by over 1.3%, the Shenzhen Component Index also rose by over 1%, and the ChiNext Index, which had once fallen over 2.4% in the morning session, successfully turned positive.

From a sector perspective, the small metals sector surged in the short term, with Yunnan Tin Company (002428) hitting the daily limit, followed by gains in Yian Technology (300328), Xiamen Tungsten (600549), and Zhangyuan Tungsten (002378).

Guotai Junan Securities believes that this round of market correction is a normal adjustment in the later stage of the trend, and external disturbances are merely amplifiers of the adjustment rather than triggers for a bull-bear switch. It is necessary to avoid losing sight of the medium to long-term direction due to short-term panic. History shows that significant corrections in the market usually follow the path of “sharp decline - rebound - bottoming,” and reaching new highs requires time to digest pressure, while this adjustment period is often a good opportunity for gradual positioning. Directionally, in the short-term fluctuations, the market style may rebalance, and some undervalued “old economy assets” may have a temporary advantage. From a mid-term perspective, sectors representing economic transformation and upgrading, as well as security directions, such as artificial intelligence, advanced manufacturing, and strategic resources, remain core areas for allocation. These sectors have genuine industrial policies and fundamental support and are more likely to lead the market out of a new trend after adjustments.

The Hong Kong stock market also performed remarkably, with the Hang Seng Index rising over 2% as of the time of writing, and the Hang Seng Technology Index currently up over 1.4%.

Specifically, Laopuhuang Gold rose over 12%. On the evening of March 23, Laopuhuang Gold disclosed its performance announcement for the fiscal year 2025. The announcement indicated that the group’s sales performance (sales performance refers to the amount of revenue including tax) for 2025 is approximately RMB 31.375 billion, a year-on-year increase of about 220.3%, with operating income of approximately RMB 27.303 billion, a year-on-year increase of about 221.0%. In terms of profit, Laopuhuang Gold’s gross profit for 2025 is approximately RMB 10.274 billion, an increase of about 193.4% compared to the gross profit for 2024, with annual profit of approximately RMB 4.868 billion, a year-on-year increase of about 230.5%.

Among other constituent stocks of the Hang Seng Index, AIA Insurance, Master Kong Holdings, and Zijin Mining also saw significant gains.