Shanghai Composite Index falls below 4,000 points, 4,700 stocks decline, and the photovoltaic sector surges against the trend

According to data from Oriental Fortune Network, on March 20, the three major A-share indexes moved in different directions today; the Shanghai Composite Index fell below the 4,000-point mark, and the ChiNext Index set a new high intraday since December 2021. By the close, the Shanghai Composite Index was down 1.24%, closing at 3,957.05 points; the Shenzhen Component Index was down 0.25%, closing at 13,866.20 points; and the ChiNext Index was up 1.30%, closing at 3,352.10 points. Trading value across the Shanghai, Shenzhen, and Beijing markets totaled 2.3 trillion yuan, up by 175.6 billion yuan from the previous day.

Sector and industry themes showed a broad-based decline. Photovoltaic equipment, energy metals, and battery-related sectors rose against the trend, while sectors and concepts including computing power leasing, cloud computing, chemical fiber, chemical raw materials, internet finance, military equipment, and online gaming saw leading declines.

On individual stocks, across the whole market, more than 4,700 stocks have fallen for two consecutive days.

The photovoltaic sector surged. Shangneng Electric and Shouhang New Energy both hit 20cm limit-up; Zhongli Group, Yongzhen Shares, and Guosheng Technology also hit limit-up.

In the morning of March 20, rumors indicated that Tesla plans to purchase photovoltaic manufacturing equipment from China with a total price of $2.9 billion (20 billion yuan). The Chinese companies currently in negotiations with Tesla solar projects include Shangneng Electric and Laplace. Based on Musk’s remarks at this year’s Davos Forum, Tesla and SpaceX will build 100GW of photovoltaic production capacity in the United States over the next three years.

The power sector repeatedly showed renewed activity. Huaneng Liaoning Energy achieved a fifth consecutive limit-up; ShaoNeng Shares achieved a third consecutive limit-up; Huaneng Energy achieved a second consecutive limit-up; and Yinxing Energy and Guangxi Energy both hit limit-up.

On the downside, the chemical sector fell. Jinniu Chemical, Luhua Technology, Jinzhengda, and Hongbaoli both hit limit-down.

The computing power leasing concept weakened across the board. Chuangxie Data touched the 20cm limit-down; multiple shares including Hongjing Technology, Dayi Technology, and Capital Online saw steep declines.

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