The Shanghai Composite Index falls below 4,000 points. Recently, be cautious to avoid high-priced stocks that haven't experienced a pullback.

Changsha Evening News Changsha, March 20 (All Media Reporter Liu Jun) The three major A-share indices showed mixed performance on the 20th, with the Shanghai Composite Index falling below the 4000-point mark, while the ChiNext Index hit a new high since December 2021 during the session. By the close, the Shanghai Composite Index fell by 1.24%, ending at 3957.05 points; the Shenzhen Component Index dropped by 0.25%, closing at 13866.20 points; the ChiNext Index rose by 1.30%, closing at 3352.10 points. The combined trading volume of the Shanghai, Shenzhen, and Beijing markets reached 2.3 trillion yuan, an increase of 175.6 billion yuan compared to the 19th.

The industry sectors showed a general decline, with photovoltaic equipment, energy metals, and battery sectors rising against the trend, while communication services, software development, chemical raw materials, chemical fibers, petroleum and petrochemicals, and computer equipment sectors saw the largest declines. In terms of individual stocks, only 662 stocks rose, with 39 hitting the daily limit; 4786 stocks fell, with 23 hitting the daily limit.

Influenced by a general decline in overseas stock markets, the A-share market opened lower and continued to fall on the 20th. In the morning, the Shanghai Composite Index dipped to around 3984 points. Subsequently, stocks such as new energy and banks led the market to rebound, but the rally lacked volume, and in the afternoon, the market gradually fell back, with the Shanghai Composite Index filling the upward gap left on December 31 last year at around 3977 points, ultimately closing lower.

The strongest performance on the 20th was in the photovoltaic sector. In news, the Tesla team plans to purchase a significant amount of Chinese photovoltaic equipment, involving several listed companies. At the same time, it was reported that the photovoltaic equipment purchased by Musk’s team is expected to be shipped in the first week of May, stimulating strength in this sector. In the afternoon, related stocks experienced a spike followed by a pullback.

After several days of strong gains, the computing power concept saw significant declines on the 20th, with many stocks hitting the daily limit; this sector’s largest negative news led to a correction. Investors should be cautious about avoiding high-priced stocks that have not adjusted recently, as these stocks are very prone to correction in the current market.

On the 20th, there were two negative phenomena and one positive phenomenon in the market. The first negative phenomenon was that main funds flowed out by over 73.8 billion yuan, and the second was that nearly 4000 stocks had been declining for four consecutive days, which greatly impacted market sentiment. The positive news is that under such circumstances, the ChiNext rose by 1.3% on the 20th, indicating that there is still active capital in the market.

From a technical perspective, the Shanghai Composite Index closed with a medium bearish candlestick on the 20th, and the 5-day, 10-day, and 20-day moving averages all showed a downward trend, indicating that the market still has room to decline in the short term. However, the 60-day moving average is still upward, and the MACD green bars have become quite long, indicating that the decline in the Shanghai Composite Index is nearing the bottom, and there is still a high possibility of a rebound next week.

On the 20th, stocks from Hunan showed very weak performance, with only 18 out of 147 stocks rising. Anker Innovations led the rise with a 12.85% increase, and its stock price also returned to above 100 yuan/share since February 12.

Anker Innovations’ main business includes digital charging, consumer-grade energy storage, smart cleaning, smart security, smart audio, and smart projection, making it a leading enterprise in the 3C export sector.

According to public information, the company has cumulatively shipped 16,000 consumer-grade UV printers as of February 9. Compared to FDM 3D printers, UV printers have advantages such as full-color printing and lower entry barriers. As subsequent products become more reliable and costs decrease, UV printers may bring significant potential. Some institutions have indicated that Anker Innovations’ UV printer production progress is relatively leading and have given it a buy rating.