The Shanghai Composite Index falls below 3,900 points, Zhang Xue's locomotive concept stocks hit two consecutive limit-ups, white home appliances defy the trend and strengthen, and Hong Kong tech and internet stocks decline across the board.

Reporter | Jin Shan, Li Yiwen

Editor | Li Yutong

On March 31, the four major A-share market indices all fell sharply. The Shanghai Composite Index once again slipped below 3,900 points, and more than 4,300 stocks across the entire market declined.

Photo source: 21st Century Business Herald client

In terms of specific sectors, the high-speed rail concept was strong throughout the day. Shenzhou High-Speed Rail achieved a second consecutive daily limit-up, and Jinying Heavy Industry rose to a 20cm limit-up.

The white goods sector strengthened against the trend. Chun Guang Technology hit a limit-up, Midea Group rose nearly 6%, and Wanlang Magnetic Plastic, Hisense Home Appliances, Gree Electric Appliances, Changhong Meiling, and others also followed suit. The direct catalyst for the sector’s strong performance may be attributed to price increase notices issued in dense fashion by multiple mainstream home appliance brands. According to public reports, brands including Hisense, Haier, Midea, Siemens, TCL, Panasonic, Rongsheng, and Fotile have gradually announced price increases for their products starting in April. The magnitude of the increases varies by category and model, generally ranging from 5% to 20%. In particular, for Midea air conditioners, some individual models saw price increases as high as 30%.

Independent financial commentator Zhao Huan told the reporter from 21 Fast News that the main driver behind this round of home appliance price hikes is the sustained and significant rise in the prices of core raw materials, especially non-ferrous metals such as copper and aluminum. In addition, the escalation of geopolitical risk in Iran has pushed oil prices higher; the entire petrochemical chain rose across the board, driving sharp increases in chemical raw material prices such as ABS, PP plastic, and polyurethane foaming agents.

Huarong Securities stated that, going forward, it is necessary to focus on three indicators: first, if upstream raw material costs continue to rise, whether manufacturers’ side price increases can be sustained; second, whether retail-end prices can track the increase in pickup prices; and third, changes in sales volume and market share after price increases by each manufacturer, to judge the sustainability of “price passing through.” See details >>

In addition, the motorcycle sector saw an intraday surge in the afternoon. Hongchang Technology delivered a second consecutive 20cm limit-up, Zhenhe Industrial and Qianjiang Motorcycle both hit limit-ups, and leaders such as Huayang Racing, Hongquan Technology, and Jiuqi Co., Ltd. saw gains in the lead. According to news, domestic motorcycle dark horse Zhang Xueji Motorcycle won the championship at the World Superbike Championship (WSBK), breaking Western dominance.

Bank stocks were active. Bank of China and Agricultural Bank of China rose more than 3%; Pudong Development Bank, Ningbo Bank, Huaxia Bank, and others led gains.

On the downside, coal stocks continued to decline, with Zhengzhou Coal Electric leading the losses. Oil and gas stocks were volatile and adjusted, with Shouhua Gas and Tongyuan Petroleum falling the most. The storage chip concept fell broadly, with BOWEI Storage and Shanong Chuangxin Technologies dropping sharply.

In Hong Kong stocks, the Hang Seng Index fell nearly 0.3%, and the Hang Seng Tech Index fell more than 1.3%. Large internet and technology stocks generally declined. BYD Electronic fell nearly 6%, Hua Hong Semiconductor fell more than 4%, and Xiaomi Group, Kingsoft Software, SMIC, XPeng Motors, and others fell more than 2%.

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(Statement: The content of this article is for reference only and does not constitute investment advice. Investors act on this at their own risk.)

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