A-share market midday report | The index opened lower and then rose, with the ChiNext Index up 0.85% at midday! The concept of innovative medicines rebounded strongly.

The external influence is weakening, market sentiment continues to recover, and the three major stock indexes of A-shares opened low and rose collectively in the morning. By the noon break, the Shanghai Composite Index rose by 0.25%, the Shenzhen Component Index rose by 0.80%, and the ChiNext Index rose by 0.85%. On the market, the pharmaceutical concepts such as innovative drugs, weight-loss drugs, and CRO were strong across the board, with stocks like YAHOO Pharmaceuticals and Thalys Medical Technology Group Corporation hitting the limit up; the AI power industry chain, including gas turbines, power grid equipment, and virtual power plants, continued to explode, with stocks like CSG Digital Power Grid Research Institute and Qingdao Hanhe Cable hitting the limit up; the agricultural concepts such as grain planting and agricultural machinery continued to rise, with Gansu Dunhuang Seed Group hitting the limit up; the chemical concepts such as titanium dioxide and phosphorus chemicals rebounded, with stocks like Hongbaoli Group Corporation, Ltd. and Guangdong Redwall New Materials hitting the limit up; the military industry concepts such as aircraft engines, military equipment, and drones were boosted, with stocks like AECC Aero Science And Technology and China Shipbuilding Industry Group Power hitting the limit up. In terms of declines, the oil and gas industry chain, including oil concepts, oil and gas pipelines, oilfield services, and natural gas, continued to decline, with stocks like Nanjing Tanker Corporation and Sinopec Oilfield Service Corporation dropping by over 7%; the port and shipping concepts continued to decline; the Micro LED concept had a one-day tour, with Shenzhen Jufei Optoelectronics dropping by over 10%; and the fiber optic cable and electronic cloth concept experienced a pullback. Looking ahead, Meng Lei, a stock strategy analyst at UBS Securities, stated that recent global geopolitical risks, combined with a technology sector correction, have led to increased volatility in global stock markets. However, looking ahead, factors such as incremental macro policies, accelerated A-share profit growth, and net inflows of long-term funds into the stock market are resonating, which is expected to help the A-share market maintain stability and move forward. Popular sectors 1. Pharmaceutical concepts are strong across the board Cellular immunotherapy, innovative drugs, weight-loss drugs, CRO, and other pharmaceutical concepts are strong across the board, with stocks like YAHOO Pharmaceuticals and Thalys Medical Technology Group Corporation hitting the limit up. Commentary: In terms of news, the government work report has listed biomedicine as an emerging pillar industry, on par with integrated circuits, aerospace, and low-altitude economy. BD's total amount in the two-plus months since 2026 has exceeded 50 billion yuan, exceeding 40% of 2025. 2. Agricultural planting concepts continue to rise Seed industry, genetically modified organisms, grain planting, agricultural machinery, and other agricultural concepts continued to rise, with Gansu Dunhuang Seed Group hitting the limit up, and ShanDongDenghai Seeds, Hainan Shennong Seed Industry Technology, QIULE SEEDS, and Wanxiang Doneed following the trend. Commentary: Pacific Securities previously analyzed that international grain prices are expected to rise strongly under multiple factors, and this is expected to be transmitted domestically; combined with the support of the minimum purchase price policy for domestic grains, domestic grain prices are expected to continue to rise, and planting enterprises and seed companies will continue to benefit. 3. Chemical sector shows active performance The chemical sector showed active performance, with Kingenta Ecological Engineering Group, Gpro Titanium Industry, Hongbaoli Group Corporation, Ltd., and Guangdong Redwall New Materials hitting the limit up. Commentary: In terms of news, as the Middle East conflict escalates, farmers worldwide are facing soaring fertilizer and fuel prices. With the spring planting season approaching, some regions have already fallen into a crisis of panic buying. The war has resulted in the closure of the Strait of Hormuz, causing fertilizer plants in the area to shut down, disrupting shipping routes. As farmers in the northern hemisphere prepare for spring planting, this could suppress the supply to major fertilizer-importing countries worldwide. 4. Power grid equipment concept emerges The power grid equipment concept surged, with Guangdong Shunna Electric, Qingdao Hanhe Cable hitting three consecutive limit ups, and Hangzhou Zhonhen Electric, China Energy Engineering Corporation, and Shanghai Guangdian Electric Group hitting the limit up. Commentary: In terms of news, the three major regional grid operators in the United States have successively obtained approval for a total of $75 billion worth of transmission expansion projects, constructing a number of 765 kV ultra-high voltage transmission lines with a capacity six times that of traditional lines, with a total mileage extending to 10,000 miles, equivalent to four times the existing mileage. In addition, Ningbo Sanxing Medical Electric announced that its subsidiary, Sanxing Sweden, has signed a total of 117 million euros framework contract with the Dutch Enexis power department. 5. Oil and gas stocks continue to decline Oil and gas stocks performed weakly, with Sinopec Oilfield Service Corporation and Zhongman Petroleum And Natural Gas Group Corp., Ltd. experiencing significant declines. Commentary: In terms of news, early in the morning, the main crude oil contract on the Shanghai Futures Exchange fell by more than 6%, while Brent crude oil futures and NYMEX crude oil futures both fell by more than 3% during the day. In addition, on March 5, local time in the eastern United States, President Trump made a statement. Trump said that gasoline prices have not risen significantly; the Strait of Hormuz will remain open. Institutional Views UBS: Multiple factors resonate and are expected to help the A-share market maintain stability and move forward Meng Lei, a stock strategy analyst at UBS Securities in China, stated that recently, due to global geopolitical risks and the correction in the technology sector, global stock market volatility has intensified. However, looking at the medium term, the resonance of incremental macro policies, accelerated A-share profit growth, and net inflows of long-term funds into the stock market are expected to help the A-share market maintain stability and move forward. In terms of style allocation, it is recommended that investors balance their investments between value and growth in the short term, and then overweight growth styles after the market sentiment stabilizes. CITIC Fund: The government work report has released positive policy signals, opening up broad development space for the capital market On the morning of March 5, the Fourth Session of the Fourteenth National People's Congress opened in Beijing. CITIC Fund believes that the government work report has released positive policy signals, opening up broad development space for the capital market. The report clearly proposes deepening comprehensive reforms in capital market financing, improving mechanisms for mid-to-long-term capital entry into the market, increasing the proportion of direct financing and equity financing, further highlighting the strategic importance of the capital market. With the continuous optimization and upgrade of the macroeconomic structure, the foundation of capital market development will continue to be solid, and there is a broad potential for long-term development. CICC: Overseas power supply-demand contradictions are prominent Chinese manufacturers usher in an accelerated overseas window According to a CICC research report, overseas data centers are facing difficulties in finding electricity, with queues in congested regions in Europe and the United States lasting more than 7 years. We have observed that power grid capacity is determining fund flows, with major developers focusing on Northern Europe, Southern Europe, and emerging markets, while some areas in the US and Europe's FLAP-D markets are switching from optional to mandatory self-power generation, exploring multiple new power supply options simultaneously. With prominent supply-demand contradictions overseas, Chinese manufacturers are ushering in an accelerated window of overseas expansion to capture high-elasticity market opportunities. This article was reprinted from "Tencent Selection Stocks," edited by Wang Qiujia.