A-share midday review | Multiple factors intertwine disturbance, index differentiation, Shanghai index falls 0.71% in half a day, storage chip stocks active

The Middle East situation, the situation in the Strait of Hormuz, and military movements are intertwining multiple factors that continue to disturb the market. On March 16, the three main indexes of A shares fluctuated, with the Shanghai Composite Index and the Shenzhen Component Index both dropping over 1% in the morning session. By midday, the Shanghai Composite Index fell by 0.71%, the Shenzhen Component Index dropped by 0.7%, and the ChiNext Index rose by 0.18%. The turnover of the Shanghai and Shenzhen markets in the first half of the day was 1.51 trillion yuan, an increase of 20 billion yuan from the previous trading day. In terms of the market, the deep-sea technology concept strengthened against the trend, with Shandong Oriental Ocean Sci-tech and Hynar Water Group hitting the limit up or rising more than 10%; the wind power concept was active against the trend, with Qingdao Tianneng Heavy Industries rising by more than 10%; the storage chip sector remained active, with Netac Technology hitting the limit up, and Biwin Storage Technology rising by over 8% to a new high. The forestry and farming sectors rose, with China Agriculture Development Seed Group and KANGNONG SEED hitting the limit up or approaching the limit; the chemical fiber sector rose in the early trading session, with Jiangsu Sanfame Polyester Material and Zhejiang Unifull Industrial Fibre hitting the limit up; real estate stocks were active early in the session, with Metro Land Corporation hitting the limit up; the oil sector rose in the early trading session, with Shanghai SK Petroleum & Chemical Equipment Corporation hitting the limit up; liquor stocks rebounded, with Gansu Huangtai Wine-Marketing Industry touching the limit up during the session; the PCB concept rebounded, with Changzhou Zhongying Science & Technology, Goldenmax International, and Shandong Ruifeng Chemical hitting the limit up or rising by over 10%. In addition, computing power leasing, cross-border payments, and banks showed some performance. In terms of declines, precious metal concepts such as gold, non-ferrous metals, and energy metals collectively declined, with stocks like Shanjin International Gold, Western Region Gold, Zhaojin International Gold dropping by over 7%; steel stocks dropped, with Gan Su Jiu Steel Group Hong Xing Iron & Steel Co,Ltd falling by nearly 10%; the lithium ore concept fluctuated downwards, with stocks like Qinghai Yanhu Industry and Tibet Urban Development And Investment dropping by over 5%; the power and smart grid sectors fluctuated downwards, with Zhejiang Hengtong Holding, Henan Yuneng Holdings, DATANG POWER falling by over 8%; the chemical industry sector continued to fluctuate downwards, with Luxi Chemical Group and Qingdao East Steel Tower Stock hitting the limit down; stocks related to liquid cooling and computing hardware experienced a volatile adjustment, with Shenzhen Invt Electric touching the limit down. In addition, sectors like gaming, auto parts, and gas showed weaker trends. The US-Iran conflict has entered a stalemate, leading to drastic fluctuations in oil prices. Looking ahead, China Securities Co., Ltd. stated that under the disturbance of global risk preferences and domestic market liquidity constraints, A shares may continue to maintain a volatile pattern in the short term. In terms of opportunities, Zhongtai stated that energy security assets may benefit in the short term, while a focus on avoiding the negative impacts of overseas mapping sectors on the technology sector is necessary. Hot sectors: 1. The storage chip sector remains active, with Netac Technology hitting the limit up and Biwin Storage Technology rising by over 8% to a new high. 2. Liquor stocks rebounded, with Gansu Huangtai Wine-Marketing Industry hitting the limit up, and Jiugui Liquor and Kweichow Moutai showing gains. 3. The deep-sea technology concept strengthened against the trend, with Shandong Oriental Ocean Sci-tech, Shanghai SK Petroleum & Chemical Equipment Corporation, and Ocean's King Lighting Science & Technology hitting the limit up. 4. The forestry and farming sectors rose, with China Agriculture Development Seed Group and KANGNONG SEED hitting the limit up or approaching the limit. Institutional views: China Securities Co., Ltd.: The impact of the Middle East situation is profound, and China is facing strategic opportunities. The US-Iran conflict has entered a stalemate, leading to drastic fluctuations in oil prices. China's diversified crude oil imports, energy structure transformation, and strategic oil reserves will play a buffering role. However, under the disturbance of global risk preferences and domestic market liquidity constraints, A shares may continue to maintain a volatile pattern in the short term. If the US-Iran conflict prolongs, it may have three major impacts: 1) an upward pressure on oil prices, leading to global inflation, disrupting the pace of US interest rate cuts; 2) the loosening of the oil-dollar system could accelerate, and China may become a global safe haven for capital, benefiting the renminbi assets; 3) it may give rise to strategic opportunities for China, with the dual-pillar energy base of "coal + new energy," not only safeguarding its own energy security but also potentially leading the global energy transition. Key industries to focus on: coal, coal chemical industry, power equipment, utilities, petroleum and petrochemical, and the AI industry chain. Themes to focus on: lithium batteries, nuclear power, energy storage, wind power, etc. Zhongtai: How to allocate assets if the geopolitical conflict prolongs? The US-Iran conflict has lasted longer than the market expected. In terms of A shares, the market is still dominated by "seeking refuge" this week. With the prolonged geopolitical conflict, and the rebound in oil futures prices, the main trading themes this week remain focused on the energy and defense sectors. Heavy asset sectors such as coal, utilities, power equipment, and the overall performance of petroleum energy replacement sectors are relatively good. Looking ahead, the US-Iran conflict may trend towards "prolongation." Energy security assets may benefit in the short term, while the technology sector needs to focus on avoiding the negative impacts from overseas mapping sectors. Investment advice: Theme One: Energy security and "conflict-benefit" assets. Theme Two: Technological export chains driven by energy transformation and military expansion. Theme Three: Differentiation in the technology sector - focusing on directions driven by domestic logic. Industrial: How will A shares respond to changes in geopolitical pricing? As the conflict evolves, the core contradiction of market pricing is undergoing two major changes: the core of trading is shifting from "intensity escalation" to "negotiation repetition," and the impact of high oil prices on the economy and policy orientation is beginning to be priced in. After confirming these two major changes, as the market gradually shows a blunting of negative responses and the advantages of domestic policy certainty, A shares are expected to become more "self-oriented." This article is reprinted from "Tencent select stocks", edited by GMTEight: Wang Qiujia.