【Afternoon Report】Shanghai Composite Index dips and then rebounds slightly into the green, pharmaceutical sector continues its strong performance, and commercial aerospace concept fluctuates and gains momentum

I. 【Midday Market Overview】

Caixin News, March 30: In the early trading session, the market bottomed out and rebounded. The Shanghai Composite Index climbed back into positive territory. Earlier, it had fallen by more than 1%. The ChiNext Index and the Shenzhen Component Index saw their declines narrow significantly. In the first half of the day, the total trading value on the Shanghai and Shenzhen markets was 1.32 trillion yuan, up by 180.3 billion yuan compared with the previous trading day. On the board, hotspots rotated quickly, with more than 2,700 stocks falling across the entire market. By sector, the pharmaceutical sector remained active. Meinonghua rose into a 7-day 6-board streak, while Jinyao Pharmaceutical and Lianhuan Pharmaceutical both posted 2 consecutive daily limit-ups. The commercial spaceflight theme bottomed out and rebounded. Shenjian Shares hit a 3-board streak, Zengsheng Technology achieved a 3-board streak in 4 days, and Aerospace Power and Zhongheng Design both closed at the daily limit. Agricultural shares surged rapidly in the early trading session. Jinjian Miyie, Beidahuang, and Xinong Development all hit the daily limit. In the nonferrous metals · aluminum direction, shares collectively strengthened, with Minfa Aluminum, Changlu Shares, and Tianshan Aluminum all hitting the daily limit. On the downside, power shares tumbled sharply. Huadian Energy and Jineng Power both hit the daily limit down, while several others such as Yinxing Energy and Yu Energy Holding also touched the daily limit down. As of the close, the Shanghai Composite Index was up 0.23%, the Shenzhen Component Index was down 0.12%, and the ChiNext Index was down 0.5%.

Looking at individual stocks, today’s early session saw 45 daily limit-up stocks (excluding ST and newly listed shares that had not opened yet), with a board-closure rate of 80%. There were 10 stocks with consecutive limit-ups. Meinonghua hit a 5-board streak, Shenjian Shares hit a 3-board streak. Farseng, Zhongnong United, Jinyao Pharmaceutical, Lianhuan Pharmaceutical, Weiyuan Shares, Guiguang Network, Sulig Shares, Hangdian Shares each hit 2 consecutive daily limit-ups.

In terms of sectors, the agricultural planting sector led the gains. Xinong Development and Beidahuang both hit the daily limit. Suken Nongfa, Xinsai Shares, Nongfa Seed Industry, and Wanxiang Denuo were among the top gainers.

Goldman Sachs said that for the agricultural market, the bigger risk likely comes from a decline in crop yields, rather than only from rising input costs. Fertilizer shortages could lead to lower production due to delayed or improper fertilization. At the same time, some farmers may switch to crops with lower fertilizer intensity, further tightening grain supply.

The innovative drugs sector continued its strong momentum. Meinonghua, Asia-Pacific Pharmaceuticals, Shuanglu Pharmaceutical, Lianhuan Pharmaceutical, and others hit the daily limit. Haitest Bio, Sansheng Guojian, Saili Medical, and Baiyang Pharmaceutical were among the stocks that saw bigger gains.

CMB International noted that the biopharmaceutical industry has moved its positioning up into an emerging pillar industry. This suggests that the policy dividends across the whole chain will continue to be released. Breakthroughs in AI drug discovery technology and the surge in Chinese innovative drug overseas BD are creating a double resonance, and the industry’s fundamentals are expected to accelerate toward a better outlook. At present, cooperation for Chinese innovative drugs overseas has upgraded from single-pipeline licensing to platform-level collaboration. Multinational pharmaceutical companies’ recognition of China’s pharmaceutical R&D capabilities is being systematically improved.

Shares in the commercial spaceflight concept sector fluctuated but strengthened. Zengsheng Technology, Shenjian Shares, Aerospace Power, and Zhongheng Design hit the daily limit, while Suojie Shares, CETC Testing, Yangtze Communications, Zhongtian Technology, and Fiberhome Communications were among the stocks with bigger gains.

On the news front, the chairman of Galaxy Power stated that Galaxy Power’s launch orders are scheduled through 2028, with ample mission backlog. The liquid, reusable rocket Zhishenxing-1 will also achieve its maiden flight soon. In addition, according to reports, SpaceX, a commercial spaceflight giant, plans to secretly submit its first public offering prospectus to regulators soon, aiming to be listed in June. This IPO is expected to become the largest first public offering in history.

The nonferrous metals · aluminum direction also strengthened. Minfa Aluminum, Changlu Shares, and Tianshan Aluminum hit the daily limit, while Yunlv Shares, Zhongfu Shiye, Nanshan Aluminum, China Aluminum and others followed higher.

On the news front, according to reports, Iran used missiles and drones to “effectively” strike aluminum plants in the UAE and Bahrain linked to the United States. Triggered by this news, LME aluminum prices rose by 5% after Iran’s attacks on plants in the Middle East. In addition, Tianshan Aluminum announced that it expects Q1 2026 attributable net profit of 2.2 billion yuan, up 107.92% year over year.

Overall, in today’s early session, the market bottomed out and rebounded, with the Shanghai Composite Index turning positive first, and trading volume also increased. Among them, the innovative drugs theme continued to be strong. Momentum leaders Meinonghua saw a 7-day 6-board streak, agricultural shares led the gains, and commercial spaceflight, nonferrous metals, and precious metals also saw intraday strength. It once again demonstrated strong follow-through momentum. However, it is worth noting that the earlier selloff in the popular green power sector as a whole may reflect that the market is still mainly operating with a rotation between “high and low” themes, so pay close attention to the rhythm of rotation.

Intraday limit-up analysis chart

II. 【Market News Focus】

1. China will run high-speed rail under the Yangtze River. The Yangtze-river-under high-speed rail project has total investment of over 500 billion yuan and is expected to drive value-added growth of nearly 1.5 trillion yuan across upstream and downstream industries.

Right now, at the Yangtze River’s mouth into the sea, large cargo ships travel back and forth constantly, and the waterway is bustling. Beneath the river surface, a major project in the “15th Five-Year Plan” period—the flagship project of the Yangtze-river-under high-speed rail—is accelerating construction. At a depth of 89 meters under the Yangtze River, the world’s largest-diameter high-speed rail tunnel boring machine is speeding up its excavation here. The outline of the “15th Five-Year Plan” will integrate and connect the high-standard Yangtze-river high-speed rail corridor into 109 major project initiatives. It will extend from Shanghai all the way to Chengdu, linking three major urban clusters and stretching for about 2,000 kilometers. Tunneling and bridge building will drive R&D and customization of more than 200 sets of tunnel boring machines, bridge-building machines, and other large equipment. Laying rails will bring sales orders for 570,000 tons of high-strength special steel. Even the concrete precast segments used to assemble tunnels will give rise to an intelligent manufacturing factory. With total investment of over 500 billion yuan for the Yangtze-river high-speed rail, it is estimated to drive value-added growth of nearly 1.5 trillion yuan across upstream and downstream industries. A brand-new economic corridor is also accelerating its formation.

2. The world’s largest-diameter high-speed rail tunnel boring machine “Navigator” has completed 23 months of safe boring and successfully “landed.”

On March 29, China’s independently developed world’s largest-diameter high-speed rail tunnel boring machine “Navigator” successfully completed the construction task for the 11.18 kilometers under the Yangtze River, moving one step closer to its precise arrival at the No. 2 vertical shaft “maintenance station.” Since it launched from Chongming Island in Shanghai on April 29, 2024, “Navigator” has completed 23 months of safe boring. It crossed the dike along the south bank of the Yangtze River and successfully arrived in Taicang, Jiangsu, achieving a successful “landing.”

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