A-shares midday review: Shenzhen Component Index opens lower and recovers, nearly 1% gain by midday, with the innovative drug and lithium battery sectors experiencing a collective surge

(Source: Sci-Tech Innovation 100 ETF Fund)

A-shares’ three major indices rose collectively in the morning session. By midday, the Shanghai Composite Index rose by 0.26%, the Shenzhen Component Index increased by 0.93%, and the ChiNext Index climbed by 0.83%. The Beijing Stock Exchange 50 Index fell by 0.06%. The total transaction amount in the Shanghai, Shenzhen, and Beijing markets for half a day reached 1,146.9 billion yuan, a decrease of 86.3 billion yuan compared to the previous day. Over 3,700 individual stocks in the market were in the green.

In terms of sectors, energy metals, small metals, innovative pharmaceuticals, fertilizers, chemical raw materials, precious metals, dairy, and battery sectors saw significant gains; while electricity, coal mining and processing, banking, insurance, port shipping, and wind power equipment sectors experienced major declines.

On the market front, domestic innovative pharmaceutical overseas BD transactions continued to thrive, driving the sector’s explosion, with nearly 10 stocks such as Tianjin Pharmaceutical (600488), Lianhuan Pharmaceutical (600513), and Zhaoyan New Drug (603127) hitting the daily limit. Affected by the ongoing escalation of Zimbabwe’s lithium ore export ban, lithium, battery, and other new energy sector stocks performed strongly, with Rongjie Co., Ltd. (002192) recording four consecutive limit-ups. Additionally, sectors such as chemicals, precious metals, and dairy also performed well. On the other hand, the electricity sector mostly adjusted, with Zhejiang Xinneng (600032) and Hunan Development (000722) leading the declines. The coal and oil & gas sectors fluctuated alongside international oil prices, with Zhengzhou Coal Electric (600121), Shaanxi Black Cat (601015), and Yunmei Energy (600792) all falling.

Limit-up leaderboard:

[4 consecutive limit-ups] Xinneng Taishan (000720), Rongjie Co., Ltd., Meinuohua (603538).

[2 consecutive limit-ups] Jinkong Power (000767), Wanbangde (002082), Dadongnan (002263), Shenjian Co., Ltd. (002361), Guangxi Energy (600310), Jinmei Technology (600844), Lianxiang Co., Ltd. (603272).

Main net inflow sectors:

NO.1 [Lithium Battery Concept] received a net inflow of 9.836 billion yuan, with 10 stocks hitting the daily limit and 406 stocks rising.

NO.2 [Small Metals Concept] received a net inflow of 7.477 billion yuan, with 6 stocks hitting the daily limit and 144 stocks rising.

NO.3 [Chip Concept] received a net inflow of 7.334 billion yuan, with 3 stocks hitting the daily limit and 596 stocks rising.

Hotspot Overview:

What the market is speculating on today:

[Innovative Pharmaceuticals]

Related stocks: Keta Biological (300858), Zhaoyan New Drug, Warner Pharmaceuticals

Related ETFs: Innovative Pharmaceutical ETF from FT Fund, Innovative Pharmaceutical ETF from E Fund

In the 2026 government work report, biomedicine was first listed as an emerging pillar industry, indicating a significant policy upgrade. This marks the continuous release of policy dividends for innovative pharmaceuticals as a core high-value segment of the industry chain. Domestic innovative pharmaceutical overseas BD transactions continue to thrive, reaching a total contract amount of 57.1 billion USD by March 21, 2026, exceeding the entire level of 2024, with the initial payment amount reaching 3.3 billion USD, reflecting the global recognition of Chinese innovative assets. The core speculation in the market lies in the policy dividends brought about by the strategic positioning upgrade of the biopharmaceutical industry, combined with the verification of the global value of domestically produced innovative assets through overseas BD transactions exceeding expectations. Meanwhile, the performance of leading enterprises confirms the industry profit inflection point, and AI-enabled drug research and development opens up long-term growth space, with multiple positive factors resonating to boost sector sentiment.

[Energy Metals]

Related stocks: Shengxin Lithium Energy (002240), Rongjie Co., Ltd., Yongxing Materials (002756)

Related ETFs: Nonferrous ETF from FT Fund, Nonferrous ETF from Huitianfu

Huatai Securities’ research report indicates that the liquidity contraction and changes in risk preference caused by Middle Eastern events have led to weak fluctuations in lithium prices. However, considering the supply disruption risks in the Yichun area in the second half of the year as well as in Zimbabwe and other regions, and the high oil prices’ boost to the demand expectations for electric vehicles and energy storage, if we assume a neutral expectation for 2026 (with a year-on-year growth rate of 10%-15% for global new energy vehicle sales and 50%-60% for energy storage cell shipments), the global lithium carbonate supply and demand may maintain a tight balance.

[Small Metals]

Related stocks: Yunnan Geology (002428), Xianglu Tungsten (002842), Zhangyuan Tungsten (002378)

A recent research report from Huatai Securities points out that rare earths, tungsten, molybdenum, cobalt, and other small metal varieties are catalyzed by geopolitical conflicts, with expectations for strategic reserves and military stockpiling continuing to strengthen. The supply side is highly concentrated domestically, making external shocks difficult to substitute, highlighting their anti-fall characteristics and mid-term investment value. Overall, the repair opportunities after significant declines are worth actively monitoring.

Massive information and precise interpretation can be found in the Sina Finance APP.