A-shares oscillate and climb, new energy sector strengthens across the board

On March 11, A-shares fluctuated and rose. At the close, the Shanghai Composite Index was at 4,133.43 points, up 0.25%; the Shenzhen Component Index was at 14,465.41 points, up 0.78%; the ChiNext Index was at 3,349.53 points, up 1.31%; the STAR Market Composite Index was at 1,774.03 points, down 0.98%. The total daily turnover of the Shanghai, Shenzhen, and Beijing markets was 2.5283 trillion yuan, an increase of 111.5 billion yuan compared to the previous trading day.

From the market perspective, the new energy sector performed strongly across the board yesterday, with active performance in photovoltaic, lithium batteries, energy storage, and other sub-sectors. By the close, First Horizon New Energy hit the daily limit up by 20%, Mingyang Electric, Airo Energy, and JINLONG Technology rose over 10%, and many stocks like Deye Co., Ltd. and Colic also hit the daily limit.

Leading weight stock CATL (Contemporary Amperex Technology Co., Limited) continued to strengthen yesterday, with the highest stock price reaching 403.55 yuan per share. By the close, CATL was at 396.80 yuan, up 5.45%, with a total market value exceeding 1.8 trillion yuan. Its trading volume was 22.643 billion yuan, ranking second among A-shares. Recently, CATL disclosed its 2025 annual report, stating that the company expects to achieve operating revenue of 423.702 billion yuan in 2025, a year-on-year increase of 17.04%; net profit attributable to shareholders of the listed company is projected at 72.201 billion yuan, up 42.28% year-on-year. Notably, the Q4 performance exceeded market expectations.

Sunpower, a leader in photovoltaic inverters, surged over 12 intraday yesterday. By the close, Sunpower was at 170.92 yuan per share, up 9.49%, with a total market value of 354.4 billion yuan and a trading volume of 24.312 billion yuan, ranking first among A-shares. Recently, Sunpower stated on its investor interaction platform that the company plans to invest in building a European manufacturing plant in Poland, with an annual capacity of 20GW of photovoltaic inverters and 12.5GWh of energy storage systems. The plant is currently in the preparatory stage.

Recently, global energy storage demand has continued to heat up, driven by both policies and markets, leading to accelerated installation scale expansion. Guosen Securities research report indicates that after the introduction of domestic energy storage capacity pricing policies, market-driven energy storage orders have experienced explosive growth; power shortages caused by data centers and other loads in the U.S. have driven increased demand for large-scale storage installations; Europe’s unstable power grid and rising natural gas prices have also boosted energy storage demand; emerging markets’ government support policies are frequent, and energy storage installation demand is expected to significantly increase. It is estimated that by 2026, global energy storage installation demand will reach 455GWh, a 40% year-on-year increase.

In the afternoon, chemical stocks collectively increased significantly, with chemical raw material sectors leading the gains. By the close, stocks such as Zhongtai Chemical, Xinjiang Tianye, Jinnuo Chemical, and China Salt Chemical all hit the daily limit up.

Huatai Securities research report states that recent geopolitical conflicts have triggered concerns over global oil, gas, and some energy chemical supplies, driving a global rally in energy chemicals. China’s energy chemical industry chain is relatively resilient; short-term supply impacts are weaker than overseas companies. Once supply chain expectations stabilize, global inventory replenishment will support a continued recovery in the chemical industry.

Additionally, the previously rebounding computing hardware sector showed mixed performance yesterday. The CPO concept was active locally, with Changfei Fiber temporarily hitting the daily limit, closing up over 7%. Liante Technology, Xin Yisheng, and Tanfeng Communications declined.

CITIC Construction Investment Securities states that compared to traditional cloud computing networks, AI training networking is shifting from Yejing architecture to fat-tree architecture. The number of switches and optical modules has increased significantly, and with the growth in communication data volume, the requirements for optical module speeds are higher. 800G optical modules will maintain rapid growth from 2024 to 2026, with 1.6T optical modules starting shipments in 2025 and expected to ramp up in 2026. The entire optical module industry chain is entering a cycle of volume and price increases.

Regarding the future trend of the A-share market, China Galaxy Securities’ research report suggests that A-shares are expected to gradually shift from “emotion-driven” to “fundamentals-driven,” showing a pattern of “oscillating digestion, increasing momentum, and focusing on structure.” The intensive disclosure of 2025 annual reports and 2026 Q1 reports of listed companies will be the core focus in the next phase, with stocks exceeding expectations likely to attract capital.

In terms of industry and thematic allocation, Hualong Securities’ strategy team states that, due to generally reasonable valuations, stable fundamentals, and ample liquidity, the domestic market is expected to remain resilient. They recommend focusing on three main lines: first, growth sectors such as technology and advanced manufacturing, including electronics, software, and communication services; power equipment, defense, and automation equipment. Second, sectors that boost and expand domestic demand, such as automotive, home appliances, and medical devices, supported by strong Spring Festival consumption. Third, sectors related to anti-“involution” and supply-demand changes.