Today, the March market officially comes to a close.
All 9 major broad-based indices closed down in March, with small and mid-cap stocks experiencing significant declines. The monthly drop for the CSI 1000, CSI 500, STAR 50, and National 2000 exceeded 10%. The average stock price index fell by 10.54%.
Most individual stocks adjusted, with over 4,600 stocks that traded in March recording declines, and the proportion of rising stocks was less than 15%.
The number of declining stocks and the performance of the average stock price indicate the bleakness of the March market.
Now, let's return to today's market.
Today, the three major A-share indices collectively retreated. By the close, the SSE Index fell by 0.80%, while the Shenzhen Index and ChiNext Index dropped by 1.81% and 2.70%, respectively.
The market turnover was 2.01 trillion yuan, surpassing 2 trillion yuan after a gap of three trading days. Over 4,300 stocks declined, with the median change in individual stock prices being a drop of 1.43%.
Three negative phenomena appeared in today's market.
First, the defensive style of funds continued to play out.
Second, the market experienced a one-sided intraday decline without much bullish resistance, a phenomenon that has occurred several times in March, along with a pattern of sell-off → inflow → further sell-off, which objectively reflects the weakness of the market.
Third, some sectors with explosive earnings growth experienced a money-losing effect. These stocks typically attract fund attention and generally yield excess returns during earnings season. Now that they are experiencing a money-losing effect, it has a negative feedback impact on the market.
In terms of the overall market, despite today's weakness, the SSE Index broke through last Thursday's high, confirming this round of rebound from the right side, unless extreme or unexpected situations arise in the market.
Overall, the market remains volatile, and even if it continues to rebound, the short-term space is limited. However, the performance of different sectors is unpredictable, and timing is crucial.
The UBS Wealth Management Investment Director's Office expressed the view that the current adjustment in the Chinese market may have been excessive, providing investors with an opportunity to increase their holdings in quality Chinese AI stocks at lower valuations. Policies continue to actively support AI development and technological innovation, and as market sentiment and fundamentals improve, profits, valuations, and positions are expected to gradually recover.
In terms of sectors, technology stocks have become the &#34;hard-hit area&#34; of the adjustment, which is related to several factors.
First, there is a defensive flow of funds, continuing yesterday's style, with sectors like banks and home appliances rising.
Second, the situation in the Middle East continues to affect investor sentiment. U.S. President Trump stated that if an agreement is not reached, he will &#34;completely destroy all power plants, oil wells, and Hark Island in Iran.&#34;
Finally, the negative news surrounding technology stocks continues to ferment, with storage stocks represented by Micron Technology suffering heavy losses, leading to significant adjustments in U.S. tech stocks.
Recent concerns about AI tech stocks have been triggered by TurboQuant, and in the last two days, there have been reports of a noticeable loosening in the spot market prices for memory modules, as well as rumors about the &#34;downgrade&#34; of NVIDIA's Rubin Ultra architecture.
With these factors combined and technology stocks generally at high levels, it is not surprising that tech stocks are being hammered.
As of 5 PM today, the CME Micro E-mini S&amp;P 500 Index futures and CME Micro E-mini Nasdaq 100 Index futures both rose by over 0.8%. If U.S. tech stocks rise tomorrow morning, it will have a certain uplifting effect on the market sentiment of A-share tech stocks
On the news front, Federal Reserve Chairman Jerome Powell stated that the Fed's interest rates are in a &#34;favorable position&#34; and can overlook oil price shocks related to Iran, but must remain vigilant about changes in inflation expectations. This has eased market concerns about the Fed potentially tightening monetary policy.
The transportation equipment sector has risen for two consecutive days, leading the industry today, mainly driven by news of the high-speed rail along the river.
Huafu Securities stated that in conjunction with the scale of the &#34;14th Five-Year Plan&#34; railway network, to achieve the 2035 target, approximately 35,000 kilometers of railway need to be built from 2026 to 2035, including about 20,000 kilometers of high-speed rail, averaging about 3,500 kilometers of new railway lines put into operation each year, of which about 2,000 kilometers will be high-speed rail. The long-term target of 200,000 kilometers is expected to create a broad market space for the rail transit equipment industry.
Considering the position of the sector and the logic of its strength, the transportation equipment sector is likely to experience a short-term market driven by news.
The commercial aerospace sector briefly surged, with several recent industry events acting as catalysts, such as Artemis 2 being &#34;ready to go,&#34; the successful maiden flight of the Zhongke Aerospace Lijian 2, and Galaxy Space starting its listing guidance.
The liquor sector surged before experiencing a significant pullback.
When Kweichow Moutai announced price increases for Feitian Moutai in 2012, 2017, and 2023, the stock price rose by 15% to 20% within a month during the first two instances; however, when the price increase was announced in 2023, the stock hit a peak on the first trading day and subsequently entered a long-term correction lasting over 10 months.
Now, let's look at today's news.
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China's manufacturing PMI for March is 50.4%, an increase of 1.4 percentage points from last month.
</li>
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The Ministry of Industry and Information Technology: will organize the preparation of the &#34;15th Five-Year Plan&#34; for new battery development.
</li>
<li>
Goldman Sachs: referencing the 1990 oil crisis, the Fed will eventually lower interest rates.
</li>
<li>
The Hong Kong stock market's IPO financing in the first quarter surpassed 100 billion yuan. Last year, it took half a year to reach this target.
</li>
</ol>
Finally, a summary from Da Ge: Today the market surged and then pulled back, but the index broke through last Thursday's high, confirming the rebound trend on the right side, and for now, it should be viewed as a fluctuating market. In terms of operations, positions should not be too heavy; be cautious about high-priced stocks that have seen significant gains in the last year or two.
In terms of sectors, some stocks in the performance line have shown a loss effect, so it is advisable to focus on mid-to-low position stocks.
PS: If you want to learn more about Da Ge's views or wish to communicate with him, please follow the WeChat public account &#34;Dao Da Hao.&#34;
(Zhang Da Da)
According to the latest regulations from relevant national departments, this note does not involve any operational advice, and market entry risks are borne by the individual.
Daily Economic News

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The March market closed with all 9 major broad-based indices ending lower, and small and mid-cap stocks saw significant declines, with the average stock price index dropping by 10.54%. The three major A-share indices collectively retreated today, with the SSE Index falling by 0.80%. The market exhibited a defensive style, with individual stocks generally declining, and over 4,300 stocks fell. UBS Wealth Management believes that the adjustment in the Chinese market may be excessive, and investors can increase their holdings in quality AI stocks. Technology stocks have become the hardest hit during the adjustment, influenced by various factors

腾讯新闻 - 财经

SSE Index

SD-GOLD

JCCL

Shenzhen Index

ZHONGJIN GOLD

SZSE ETF

ChiNext

Zijin Mining

Guotai CSI All Share Investment Banking & Brokerage ETF

GF Fund CSI HK Connect Financials(ex Banks) Thematic ETF

E Fund SZSE ChiNext Growth ETF

Dacheng SZSE Component ETF

E Fund CSI All Share Investment Banking & Brokerage ETF

ChinaAMC CSI Banks ETF

Yinhua CSI All Share Investment Banking & Brokerage ETF

Fullgoal CSI 800 Banks ETF

Fullgoal SSE Composite ETF

E Fund Shenzhen 100 ETF

Huaan CSI Banks ETF

E Fund GEM ETF

Hwabao WP CSI Banks ETF

GTJA Allianz SSE Bulk Commodity ETF

Hwabao WP CSI All Share Investment Banking & Brokerage ETF

E Fund Shenzhen 50 ETF

WP CSI Banks ETF

China Merchants SZSE 100 ETF

Guotai SSE Composite ETF

ChinaAMC Gold ETF

High-priced stocks plummet! A significant phenomenon has emerged again — DaDa Investment Notes