--- title: "A-share closing review: The Shanghai Composite Index fell below 3,900 points, the Shenzhen Component Index and the ChiNext Index both dropped over 1.3%, the total trading volume of the two markets fell below 2 trillion, and over 4,400 stocks in the entire market declined" type: "News" locale: "en" url: "https://longbridge.com/en/news/280581255.md" description: "On March 26, the three major A-share indices opened lower and continued to decline, with the Shanghai Composite Index falling 1.09% to 3,889.08 points, the Shenzhen Component Index dropping 1.41% to 13,606.44 points, and the ChiNext Index decreasing 1.34% to 3,272.49 points. The trading volume fell below 2 trillion, with over 4,400 stocks declining. Sectors such as electricity, lithium battery materials, and commercial aerospace performed actively, with some individual stocks hitting the daily limit; while sectors like photovoltaics, LEDs, and futures declined. The battery supply chain rose across the board due to factors such as geopolitical conflicts, AI computing power, and solid-state battery technology, with lithium mines and electrolytes performing prominently. BASF will increase product prices due to rising costs" datetime: "2026-03-26T07:09:12.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/280581255.md) - [en](https://longbridge.com/en/news/280581255.md) - [zh-HK](https://longbridge.com/zh-HK/news/280581255.md) --- # A-share closing review: The Shanghai Composite Index fell below 3,900 points, the Shenzhen Component Index and the ChiNext Index both dropped over 1.3%, the total trading volume of the two markets fell below 2 trillion, and over 4,400 stocks in the entire market declined On March 26, the three major A-share indices opened lower and continued to decline throughout the day. By the close, the Shanghai Composite Index fell 1.09% to 3,889.08 points, the Shenzhen Component Index dropped 1.41% to 13,606.44 points, the ChiNext Index decreased 1.34% to 3,272.49 points, and the STAR Market 50 Index fell 2.02% to 1,288.81 points. The total trading volume of the Shanghai and Shenzhen markets was 1.96 trillion yuan, falling below 2 trillion, with over 4,400 stocks in the entire market declining. The market saw weak rotation of hot sectors, with the power sector performing actively. Huadian Energy had 4 limit-ups in 6 days, Hunan Development achieved 3 consecutive limit-ups, and Jinkong Power, Guangxi Energy, and Shenzhen Nandian A hit the limit-up. Lithium battery material stocks repeatedly strengthened, with Rongjie Co., Ltd. achieving 3 consecutive limit-ups, and Shida Shenghua and Dadongnan hitting the limit-up. The commercial aerospace concept saw partial gains, with Shenjian Co., Zhongchao Holdings, Western Materials, and Zaiseng Technology hitting the limit-up; oil and gas stocks, railway transportation, express delivery, and battery sectors led the gains. Photovoltaic equipment and photovoltaic power generation stocks declined, with Guosheng Technology hitting the limit-down; the LED sector weakened, with Sanan Optoelectronics and Lianjian Optoelectronics leading the decline; futures and insurance stocks fell, with Ruida Futures hitting the limit-down; computing power concepts oscillated downward, with Dongfang Guoxin dropping over 7%; shipbuilding, bathroom appliances, precious metals, and software development sectors saw significant declines. **Hot Sectors** The battery industry chain rose across the board The concentrated outbreak of three major logics: geopolitical conflicts (oil prices) + AI computing power (power shortages) + solid-state batteries (technology) led to a rise across the battery industry chain, with lithium mines, electrolytes, and solid-state batteries all performing well, and multiple stocks like Rongjie Co., Ltd. and Shida Shenghua hitting the limit-up. In terms of news, the latest data from the China Automotive Power Battery Industry Innovation Alliance shows that from January to February 2026, China's power and energy storage battery exports reached 48.0 GWh, a year-on-year increase of 24.6%, with energy storage battery sales increasing by 108.9% year-on-year. Chemical sector continues to rebound The chemical sector continued to rebound, with Xinghua Co. and Bohai Chemical hitting the limit-up. In terms of news, on Wednesday local time, global chemical giant BASF announced that due to rising costs from the Israel-Hamas war, the company would increase prices for more products. BASF announced that it would raise prices for its basic amine product portfolio in Europe, with increases of up to 30%, and some products may see even higher increases. Innovative drug concept stocks continue to be strong Innovative drug concept stocks rose, with Menova and Haishen Pharmaceutical hitting the limit-up. Guotai Junan Securities emphasized that the clinical development of domestic innovative drugs is progressing smoothly, with multiple excellent clinical data recently released at academic conferences, suggesting a focus on major conferences such as ASCO in the second quarter. Commercial aerospace concept is active The commercial aerospace concept was active, with Zhongchao Holdings hitting the limit-up, and Xinwei Communication, Western Materials, Chunhui Zhikong, Tanuo, and Tianyin Electromechanical following suit. In terms of news, SpaceX plans to submit its initial public offering prospectus to regulators later this week or next week. The company may aim to raise over $75 billion in the IPO, higher than the previously reported estimate of $50 billion, with the company's latest valuation at $1.25 trillion. **Institutional Market Outlook** CITIC Securities: The situation in the Middle East has far-reaching impacts, and China is facing strategic opportunities The conflict between the U.S. and Iran has entered a stalemate phase, causing significant fluctuations in oil prices. China's diversification of crude oil imports, energy structure transformation, and strategic petroleum reserves will also play a buffering role. However, under the constraints of global risk appetite disturbances and domestic market liquidity, the A-share market may still maintain a volatile pattern in the short term. If the U.S.-Iran conflict persists, it may lead to three main impacts: 1) An upward shift in the oil price center, rising global inflation, and disruptions to the Federal Reserve's interest rate cut pace; 2) A loosening of the petrodollar system accelerating, with China likely becoming a global capital safe haven, benefiting from RMB assets; 3) Potentially creating strategic opportunities for China, leveraging a dual-pillar energy base of "coal + new energy" to not only ensure its own energy security but also possibly become a leader in global energy transition. Key industries to focus on: coal, coal chemical, power equipment, public utilities, oil and petrochemicals, AI industry chain, etc. Themes to pay attention to: lithium batteries, nuclear power, energy storage, wind power, etc. Guotai Junan Securities: In the long term, gold is expected to enter a new bull market Guotai Junan Securities pointed out that historical experience shows that gold typically performs well in a stagflation environment, but this round of market has focused on pricing inflation factors while neglecting the economic "stagnation" pressure. The U.S. economy has shown signs of weak growth, and high oil prices may further accelerate the arrival of recession. If economic stagnation resonates with a downturn in the capital market, liquidity expectation differences may become a trigger for gold's rebound. In the long term, the consensus in the market is that the comprehensive national strength of the U.S. is transitioning from prosperity to decline, and gold is expected to enter a new bull market. Guotai Haitong: Oil prices stimulate overseas demand for new energy vehicles, optimistic about domestic brands going abroad Guotai Haitong Securities research report states that in this round of oil price cycle, the economic advantages of HEV (Hybrid Electric Vehicle), PHEV (Plug-in Hybrid Electric Vehicle), and BEV (Battery Electric Vehicle) are expanding, which is expected to drive their penetration rates in high oil price regions. Domestic brands may seize export opportunities. According to data from the China Association of Automobile Manufacturers, in January-February 2026, China's passenger car export volume increased by 53.3% year-on-year, and the export volume of new energy vehicles increased by approximately 110% year-on-year. With global oil prices remaining high in March, the annual new energy export expectations are likely to be revised upward. 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