Daily Market Review: Shanghai Composite Index rises over 1%, reclaims 3900 points; the entire market hits limit-up for the second consecutive day with over 100 stocks. Computing power and green energy continue to surge.

Sourced from: Caixin Global

Caixin Global March 25—Market volatility rebounded. The Shanghai Composite Index rose more than 1%, reclaiming the level above 3,900 points, and the ChiNext Index rose more than 2%. The combined trading value of the Shanghai and Shenzhen markets was 2.18 trillion yuan, an increase of 97 billion yuan from the previous trading day. On the trading board, market themes rotated rapidly. More than 4,800 stocks across the market rose, including 105 stocks that hit the daily limit. There were consecutive two trading days with over 100 stocks hitting the daily limit. By sector, the power sector surged. Green power concepts led the gains, with more than a dozen component stocks hitting the daily limit. Huadian Liaoning achieved an 8-day limit-up streak, ShaoNeng Co. reached 5 limit-ups in 6 days, and Guangdong Electric A logged 4 limit-ups in 6 days. The computational leasing concept strengthened. Erlan Electronics, Orayde, Litong Electronics, and Dawei Technology all hit the daily limit. The CPO concept was active: MINGP Global, Aired, and Keway Technology all hit the daily limit. The fiber optics concept saw a volatile rebound and rise. Tongding Interconnect achieved a 2-day limit-up streak, and Te Fa Information was locked at the daily limit. On the downside, oil and gas stocks were weaker, with Keli Share and Tongyuan Petroleum declining. As of the close, the Shanghai Composite Index rose 1.3%, the Shenzhen Component Index rose 1.95%, and the ChiNext Index rose 2.01%.

By sector

The optical communications concept strengthened again. The fiber optics concept led the gains. Stocks such as FiberHome Technology, Yangtze Optical Fiber & Cable, Tongding Interconnect, Yangtze River Communications, Hangdian Shares, and others hit the daily limit. Stocks including Changguang Huaxin, Changying Tong, and Hengtong Optic-Electronics ranked among the top gainers.

On the news front, China has refreshed its optical communications transmission record. For the first time, on 10.3 kilometers of 24-core single-mode optical fiber, a real-time two-way transmission capacity of 2.5 petabits per second (Pb/s) was achieved. In addition, entering March, driven by demand resonance in areas such as unmanned aerial vehicles and AIDC construction, the price of G.657.A2 optical fiber has already surpassed 210 yuan per core-kilometer, completely breaking the historical price ceiling.

China Galaxy Securities stated that, due to the rapid development of AI and computational power networks in the current fiber-optic and optical cable market, as well as the high difficulty of capacity expansion, fiber-optic prices have continued to rise. On the demand side, smart computing centers have seen a major increase in demand for DCI, all-optical networks, and other areas. Meanwhile, on the supply side, because the global fiber preform expansion cycle is relatively long (the fiber preform expansion cycle is about 2 years), and given the backdrop of earlier price pressure, overall capacity expansion has been relatively conservative. The firm expects that fiber-optic and optical cable prices still have room to rise.

The computational leasing direction also performed impressively. LITONG Electronics, TeFa Information, Dawei Technology, and Zhongjia Bochua all hit the daily limit, while stocks such as Huanhuan New Net, Orient Guoxin, Nushub Technology, and Aofei Data were among the top gainers.

On the news front, Liu Lihong, Director of the National Data Bureau, said that Token provides a quantifiable possibility for the realization of a business model. He also, from an official perspective, provided a translation for Token—“token (词元).” He noted that in early 2024, China’s average daily Token (token) calls were 100 billion; by end of 2025, this rose to 100 trillion; and in March this year, it has already exceeded 140 trillion—an increase of over 1,000 times in two years.

However, it’s worth noting that computational leasing has previously experienced repeated game-like trading, and it is inherently a direction with deep capital involvement. Therefore, when today’s strong rally is triggered by favorable news, some of the more popular high-profile stocks have still seen a certain amount of profit-taking sell pressure emerge. It may be challenging for the sector as a whole to kick off a new round of uptrend right away. Going forward, this theme is still expected to be carried out mainly in the form of localized activity in individual stocks.

Individual stocks

Today’s market sentiment continued to recover. With more than 100 stocks hitting the daily limit for two consecutive trading days, the green power sector continued to surge, and high-level consecutive limit-up stocks maintained the hot money-making effect. Among them, Huadian Liaoning further pushed the market height up to an 8-day limit-up streak; ShaoNeng Co. reached 5 limit-ups in 6 days; Huadian Energy achieved 7 limit-ups in 12 days; and Guangdong Electric A logged 4 limit-ups in 6 days. However, it should be noted that after two consecutive days with more than 10 stocks hitting the daily limit in the power sector, short-term sentiment may move toward a climax. If tomorrow does not have enough capital to take over, some stocks may be the first to fall behind due to capital divergence. For short-term response, it is advisable to adhere to the principle of “cutting exposure to weakness and keeping strength.”

Computational hardware rebounded repeatedly. FiberHome Technology and Tongding Interconnect both achieved back-to-back limit-up streaks. MINGP Global also pulled off a reversal limit-up. In addition, popular stocks such as JIJI XUChuang, New E Sheng, Yuanjie Technology, Damingli, and others maintained an uptrend structure. As emphasized many times earlier, AI-chain related stocks have a strong driving effect on short-term sentiment. If they can maintain strong momentum, it will be beneficial for the continuation of this round of rebound.

Outlook analysis

Today’s market continued its rebound. All three major indices rose by more than 1%. The Shanghai Composite Index returned to the 3,900-point level, and it has also basically filled the gap left by the decline on Monday. Considering the daily KD indicators also formed a golden cross at low levels, short-term there may still be further upside momentum. At that time, the low point of the prior box-shaped range at 4,002 is an important level worth watching. If it can successfully break above and hold, it may indicate that capital has undergone sufficient turnover, and market confidence in going long could gradually recover. Even if the index experiences a second pullback, the risk may be relatively controllable. Also, after two days of broad-based rebound, a certain amount of profits have accumulated. If trading volume cannot continue to increase, differentiation among individual stocks and sectors is expected to become more pronounced. Therefore, it is still key to time the response with the right rhythm, and it’s best to focus on pullback buying opportunities during adjustments in popular tracks amid divergence.

Market news highlights

1、COSCO SHIPPING Container Lines: Starting today, resumes new bookings for routes from the Far East to six Middle Eastern countries, such as Saudi Arabia and Iraq (general cargo containers)

COSCO SHIPPING Container Lines issued a service notice on March 25. Starting today, new bookings will resume for the following Middle Eastern countries for routes from the Far East to the Middle East region (general cargo containers), including the United Arab Emirates, Saudi Arabia, Bahrain, Qatar, Kuwait, and Iraq.

2、National Energy Administration: By end of February, the nationwide cumulative installed power generation capacity was 3.95 billion kW, up 15.9% year on year

The National Energy Administration released national power statistics for January–February 2026. As of end of February, the nationwide cumulative installed power generation capacity was 3.95 billion kW, up 15.9% year on year. Of this, installed capacity for solar power generation was 1.23 billion kW, up 33.2%; installed capacity for wind power was 650 million kW, up 22.8%. For January–February, the nationwide power generation equipment’s cumulative average utilization hours were 466 hours, which is 39 hours lower than the same period last year.

(Caixin Global, Fenglin)