An afternoon surge! 600328, hit the daily limit in 3 minutes!

On March 11, the Shanghai Composite Index fluctuated and rose during the trading session, with the ChiNext Index strongly rallying; Hong Kong stocks experienced volatility and declined, with both major indices turning red in the afternoon.

Specifically, the Shanghai Composite Index moved within a narrow range in the morning, then gained momentum and rose in the afternoon driven by financial and oil sectors; the ChiNext Index was relatively strong, once rising over 2% during the session. By the close, the Shanghai Index increased by 0.25% to 4133.43 points, the Shenzhen Component Index rose 0.78%, and the ChiNext Index gained 1.31%. The combined turnover of the Shanghai, Shenzhen, and Beijing markets was about 2.53 trillion yuan, an increase of over 110 billion yuan compared to the previous trading day.

The market showed clear differentiation, with military, semiconductor, and pharmaceutical sectors declining; chemical fiber stocks surged in the afternoon, with Zhongfu Shenyan up over 14% and Shuangxin Materials hitting the daily limit. The green power sector was strong, with Gannan Energy and Green Power Electric hitting the limit. The chemical sector exploded, with China Salt Chemical (600328) hitting the daily limit within three minutes of opening, followed by JinNiu Chemical and Sanyou Chemical also quickly reaching the limit. The CPO concept remained hot, with Vogt Optoelectronics hitting the limit and Huagong Technology approaching the limit during trading. Lithium batteries and solid-state battery concepts were active, with Xiongtao Holdings and Linko Technology hitting the limit, and EVE Energy rising nearly 8%. Photovoltaic industry chain stocks advanced, with Airo Energy and Jinneng Technology up over 10%. Sunshine Power increased by more than 9%, with total daily turnover exceeding 24 billion yuan, ranking first in A-shares trading volume.

In Hong Kong stocks, new energy vehicle stocks collectively rose, with NIO up over 14% at the close; Geely Auto surged over 8%. News reports that Zeekr 001 8X will hold a technology launch event on the evening of March 16 and open pre-sales simultaneously. This model, built on the SEA-S super electric hybrid architecture, will offer 5- and 6-seat configurations, with plans to officially launch in the first half of 2026.

Photovoltaic Industry Chain Stocks Explode

Photovoltaic industry chain stocks surged strongly during the session, with Shouhang New Energy hitting the daily limit with a 20% increase, Mingyang Electric, Airo Energy, and Jinneng Technology rising over 10%, and Deye Holdings hitting the limit. Sunlight Power increased by more than 9%.

Some analysts pointed out that the core driving force of this round of photovoltaic market has shifted from a simple technical rebound to a structural revaluation driven by the reshaping of the global energy geopolitical landscape. As conflicts in the Middle East continue to intensify, global power grid investments are accelerating toward distributed and decentralized development. As a key supply pillar of distributed green power, photovoltaic’s strategic position and scene value are being redefined.

Institutions indicate that global energy storage installations continue to grow rapidly, becoming a certainty-driven growth track. AI computing power development is causing persistent power shortages in the US and Europe. Besides gas turbines and SOFC solutions, space-based photovoltaic systems promoted by Elon Musk may be the ultimate solution. The new technologies of HIT and perovskite are considered optimal options for extreme space environments, benefiting related battery component manufacturers and auxiliary material companies.

Chemical Sector Rises

The chemical sector surged strongly in the afternoon, with JinNiu Chemical, China Salt Chemical, Sanyou Chemical, Zhongtai Chemical, and Baofeng Energy hitting the daily limit.

Institutions noted that concerns over oil supply disruptions are intensifying, pushing international oil prices higher, which in turn drives up prices for basic chemicals like naphtha and ethylene, as well as downstream plastics and chemical fiber products. Meanwhile, domestic chemical industry expansion cycles are nearing their end, with excess capacity being rapidly cleared. Coupled with overseas chemical capacity closures due to high energy costs, the industry’s supply-demand pattern continues to improve, supporting the overall sector strength.

Fertilizer stocks performed notably, with Guangdong-Gui Chemical hitting the limit, Luxi Chemical rising over 7%, Hualu Hengsheng and Huarte up over 6%, and Chitianhua and Liuguo Chemical gaining more than 5% by the close.

According to Xinhua News Agency, ongoing Middle Eastern conflicts are affecting fertilizer transportation, impacting global fertilizer supply. As planting season approaches, U.S. domestic fertilizer prices are expected to rise, adding to the challenges faced by American farmers already impacted by tariffs under the Trump administration and low agricultural product prices. AFP cited Kpler data on the 10th, indicating that about 33% of global fertilizer shipments pass through the Strait of Hormuz, but shipping risks in this vital route have surged.

Fangzheng Securities pointed out that the Middle East is a major force in global urea supply and trade, with Iran’s urea capacity accounting for about 3-4% of the global total, and annual exports around 4-5 million tons, nearly 10% of global urea trade. Qatar is also a key player, exporting over 5 million tons annually. Iran and Qatar together influence about 9-10 million tons of global urea trade, nearly 20% of the total. Therefore, the Middle East plays a crucial role in international urea supply, and escalating US-Iran tensions are likely to reduce this capacity, pushing up international urea prices. Drawing from the evolution of the Russia-Ukraine conflict in 2022, geopolitical conflicts tend to prompt governments to prioritize food security and supply stability, which can elevate valuations in the fertilizer sector.

Proofreader: Yang Lilin