Jufeng Market Review: The major indices surged then pulled back, while the photovoltaic and energy storage sectors rose against the trend

Ask AI · What positive factors are behind the surge of solar and energy storage against the trend?

Author | Ding Zhenyu, Editor | Liang Pu Xi

Source: Jufeng Investment Advisory, Good Stocks app

Market Snapshot

On Friday, the A-shares market rose then fell; the Shanghai Composite fell by more than 1% and slipped below 4,000 points, while the ChiNext rose by more than 1%. In terms of sectors, solar photovoltaic equipment, energy metals, batteries, and electric power led the gains. Oilfield services engineering, telecom services, software development, chemical materials, computer equipment, home appliances, aerospace equipment, and other industries also saw strong performance. For theme stocks, BC batteries, Kirin batteries, BC batteries, and others led the gains; Huawei Ascend, the state-owned enterprise cloud concept, computing across regions and across provinces (from East to West), Zhipu AI, smart government affairs, data confirmation and registration, and others led the declines.

Hot Sectors

Solar photovoltaic equipment strengthened: Shouhang New Energy and Sungrow Electric at 20cm hit the daily limit. Laplace, Airo Energy, Pylon Technologies, and JINLONG Technologies gained more than 10%, while Goodwe Power Supply and Deye Co., Ltd. hit the daily limit.

The battery sector strengthened: Huabao New Energy and EVE Energy gained more than 10%. Shida Shenghua and Hunspark Technology hit the daily limit. Pylon Technologies, GigaDevice, Wrun New Energy, and Hunan Yurong saw leading gains.

News

PBOC: Firmly maintain the steady operation of financial markets such as stocks, bonds, and foreign exchange

On March 18, the Party Committee of the People’s Bank of China held an expanded meeting to thoroughly study the spirit of the two sessions, implement the requirements from the 11th plenary session of the State Council, and study and deploy specific implementation measures. Pan Gongsheng, Party Secretary of the PBOC and Governor, chaired the meeting and delivered remarks. The meeting pointed out that the PBOC should conscientiously implement the arrangements of the Government Work Report and the “15th Five-Year Plan” Outline, and create a favorable monetary and financial environment for economic steady growth, high-quality development, and the stable operation of financial markets, providing strong support for a strong start to the “15th Five-Year Plan.”

Three departments deploy further steps to further standardize competitive order in the new energy vehicle industry

The Ministry of Industry and Information Technology, the National Development and Reform Commission, and the State Administration for Market Regulation jointly held a symposium with enterprises in the new energy vehicle industry to deploy further steps to regulate competition in the new energy vehicle industry, enhance industry innovation capacity, expand automobile consumption, optimize industry management, and more. Representatives from the China Association of Automobile Manufacturers and 17 key automobile enterprises attended the meeting.

Is Tesla planning to purchase China’s solar equipment? Insiders: Before the holiday, a team visited for inspection

On March 20, a market rumor said that the Tesla team planned to purchase large-scale Chinese solar photovoltaic equipment, involving several listed companies. In response to the above rumor, a solar photovoltaic industry insider told a reporter that before the 2026 Chinese New Year, the Tesla team conducted on-site inspections of multiple domestic solar photovoltaic equipment production enterprises.

Jufeng Viewpoint

On Friday, A-shares opened mixed, with the Shanghai Composite opening down 0.05%, the Shenzhen Component opening up 0.86%, and the ChiNext index opening up 1.6%. Sectors such as communication equipment, energy metals, small metals, and semiconductors opened higher. Oil and gas extraction, gas supply, and coal opened lower.

On the hotspots front, tensions in the Middle East eased somewhat, leading oil, coal, and oil and gas extraction to fall sharply against the trend. The CPO concept, fiber optics, solar photovoltaic, electric power, batteries, energy storage, and other “calculating synergy” sectors rebounded in tandem, driving the ChiNext index up 3%.

In the afternoon, the solar photovoltaic sector surged then pulled back sharply, while sectors such as optical and optoelectronics, consumer electronics, wind power equipment, and gaming saw significant pullbacks. The Shanghai Composite failed to hold the integer level of 4,000 points, and no market-stabilizing support from “China’s central SOEs” stocks and financial stocks was observed. The Middle East situation affects market sentiment at all times; the market showed a pattern of broad sell-offs on rising volume, with more than 4,700 stocks declining.

Judging from the current trend, the market has already shown clear differentiation: resource stocks such as oil and gas are displaying a distinct seesaw pattern versus technology stocks. With external “black swan” events not yet fully settled, A-shares’ performance will still likely fluctuate; investors may focus on opportunities to buy on dips after pullbacks among leaders in previously hot industries.

From a long-term perspective, Jufeng Investment Advisory believes that with policy stimulus, A-shares and the economy are expected to see a synchronized upward turning point. In terms of specific investment directions, in the medium term it is recommended to focus on incremental opportunities in sectors that maintain high levels of prosperity, such as semiconductors, consumer electronics, artificial intelligence, robotics, commercial aerospace, and others. For investors with a lower risk appetite, consider opportunities to buy on dips in broad-based funds such as the CSI A500 ETF and the CSI 300 ETF.

Author: Ding Zhenyu Practice Certificate: A0680613040001

Disclaimer: The above content is for reference only and does not constitute specific investment advice. Any gains or losses from actions taken based on it are your own responsibility; you bear the risks.

Author Statement: This is my personal view for reference only