The three major indices fluctuated with reduced volume throughout the day. The concept of controlled nuclear fusion surged against the trend, while computing power and robotics continued to recede. [Stock Market Closing Review]

The market experienced a volatile adjustment throughout the day, with the three major indices dropping slightly. The total trading volume of the Shanghai and Shenzhen stock markets reached 1.26 trillion yuan, a decrease of 192.5 billion yuan compared to the previous trading day. On the futures market, the hot topics were scattered, with more stocks declining than rising, and over 2,700 stocks falling across the market. In terms of sectors, controllable nuclear fusion concept stocks surged against the trend, with more than 10 stocks, including Lanzhou LS Heavy Equipment, hitting the daily limit. Cyclical sectors such as chemicals performed actively, with stocks like Shandong Haihua also hitting the daily limit. On the downside, computing power concept stocks continued to adjust, with Capital Online falling over 19%. Deep-sea technology concept stocks also adjusted, with Zhongke Haixun hitting the 20CM daily limit. At the close, the Shanghai Composite Index fell 0.00%, the Shenzhen Component Index fell 0.43%, and the ChiNext Index fell 0.33%.

In terms of sectors

On the sector front, controllable nuclear fusion concept stocks exploded across the board, with more than 10 stocks, including Hahan Huatong, Zhongzhou Special Materials, Jiusheng Electric, Hailu Heavy Industry, Hongxun Technology, Hefei Forging & Press Intelligence, and Baoli Electric, hitting the daily limit.

On the news front, recent institutional research reports pointed out that the tender process for controllable nuclear fusion projects has accelerated. Since 2025, companies such as Fusion New Energy and the Institute of Plasma Physics of the Chinese Academy of Sciences have conducted intensive tenders, with a cumulative total of about 46 procurement projects. Key materials and equipment links in the controllable nuclear fusion industry chain are expected to benefit from the order demand during the accelerated construction phase of domestic and overseas devices, and may start to show revenue scale from this year. With downstream projects being tendered one after another, the industry will transition from the thematic stage to a stage driven by both fundamentals and industrial progress. However, it should be noted that in the context of continuous volume contraction, the continuity of short-term hot topics in the recent period has often been relatively poor. After the full-scale explosion of the controllable nuclear fusion concept today, it is expected that related stocks may experience some differentiation.

Chemical stocks became active again, with Zhongyida hitting the daily limit for the 6th time in 12 days, and stocks like Jiangtian Chemical, Shandong Haihua, Hongbaoli, Quartz Corp, Lubei Chemical, and Hongxing Development also hitting the daily limit.

The recent strength of chemical stocks mainly benefited from the price increase logic, directly improving the industry's profit expectations. Coupled with the support of raw material costs forming a price transmission mechanism, the bargaining power of producers has been substantially enhanced. The continuous inflow of main funds indicates institutional recognition of the industry's inflection point, and they will be the first to benefit during the cost transfer process. Considering the approaching traditional peak demand season in Q2, the market has strong expectations for the performance realization after the price increase.

Power and coal sectors also strengthened, with stocks like Huayang Co., Jiangsu New Energy, and Dayou Energy hitting the daily limit, and stocks like Mingxing Electric, Jiawei New Energy, Guangxi Energy, Ningbo Energy, and Huaihe Energy leading the gains. GF Securities released a research report stating that the stabilization and catalytic signals of the utilities sector have appeared simultaneously. The unexpected drop in coal prices and the release of hydropower storage have driven the reversal of thermal and hydropower performance expectations. Coupled with the intensive implementation of high-dividend strategies and market value management plans, the sector's allocation value has become prominent.

From the overall market perspective, after a long period of adjustment, the valuation of cyclical sectors is at a historical low, with a high safety margin. As the market's risk appetite continues to decline, it is reasonable for funds to shift from high-tech stocks to low cyclical stocks for "high-low switching." It is expected that cyclical stocks will still be active as a transitional direction in the subsequent futures market.

In terms of individual stocks

From the perspective of individual stocks, high-level themes have all entered adjustment, and the market's consecutive board height has dropped to 3 boards. Among them, the divergence of deep-sea technology direction stocks has intensified, with Sun Cable and Youfu Co. successfully advancing. Although the front-line core stocks Dalian Heavy Industry and Shaoyang Hydraulics broke the board, they still closed in the red, while Yaxing Anchor Chain suffered a daily limit drop, and Haiguo Co. fell over 10%. However, overall, some funds still hold optimistic expectations for the deep-sea technology direction and retain short-term active positions. If short-term sentiment recovers in the future, this theme is expected to become active again.

On the other hand, the two major core themes of computing power and robotics continued to recede. Computing power stocks opened low and closed low throughout the day, with Capital Online falling over 19%, and stocks like Zheda Wangxin, Dawei Technology, and Hangzhou Iron & Steel hitting the daily limit, while Cambricon fell over 6%. As for the robotics concept, it attempted a counterattack in the morning session driven by the rebound of Southern Precision's daily limit, but it fell again with the plunge of the popular stock Shuanglin Co. (closing down over 12%, after rising over 9% intraday). Additionally, stocks like Yuandong Transmission, Yuhuan CNC, and Qijing Machinery hit the daily limit again. However, after continuous sharp declines and adjustments, these two directions may see partial recovery and repair in the future, and it will be important to focus on which segments or individual stocks will strengthen first.

Post-market analysis

Today, the market continued its volatile adjustment, with the trading volume further shrinking to less than 1.3 trillion yuan. In terms of the index dimension, the 5-day line will be the first to watch. Before effectively standing above it, the short-term weak consolidation structure of volatile decline is likely to continue. On the other hand, although the overall decline of the indices today was not significant, the loss-making effect of individual stocks was still evident. At the close, more than 80 stocks fell over 9%, with the two major core themes of robotics and AI computing power becoming the main force of the market's decline. Therefore, for the market to truly stop falling and stabilize, the repair of the loss-making effect of the previous high-level popular sectors is still key, meaning one or two highly recognizable popular stocks need to emerge to boost short-term sentiment.

From the perspective of market style, the short-term has entered a stage of style rebalancing. The technology growth sector is under pressure due to high valuations, and funds are shifting to defensive sectors, with high-dividend yield assets performing steadily. With the continuous implementation of domestic macro-control and growth-promoting policies, the future market is expected to switch between technology, defensive dividends, and consumption recovery, and seizing structural opportunities remains key.

Short-term sentiment remains relatively weak, with the sentiment indicator fluctuating near the low zone throughout the day.

Market news focus

1. Unit price of 77,409 yuan/m², Hangzhou's land price record was refreshed again

Cailian Press, March 25th, Hangzhou today auctioned 4 residential plots, with a total auction area of 85,154 m² and a starting auction price of 6.683 billion yuan. Ultimately, all 4 plots were sold at a premium, with Greentown and Jieli Real Estate each winning 1 plot, and Binjiang Group winning 2 plots, totaling 10.153 billion yuan. Among them, the BJ030102-25 plot in Xixing Unit was won by Binjiang after 72 rounds of bidding for 5.203 billion yuan, with a transaction floor price of 77,409 yuan/m² after deducting the kindergarten construction area, and a premium rate of 69.86%. The transaction unit price of this plot once again refreshed the record for residential land transaction floor price in Hangzhou. Note: On January 24th this year, Binjiang Group won the GS0201-R21-05 plot in Hangzhou's Hushu Unit for a transaction floor price of 64,834 yuan/m² and a premium rate of 71.25%, refreshing the unit price record at that time.

2. Alibaba's Joseph Tsai: Began to see bubbles in AI data center construction, many US data center investment announcements are "repetitive"

Cailian Press, March 25th, Alibaba Group's Chairman Joseph Tsai stated at the HSBC Global Investment Summit held in Hong Kong that he began to see signs of bubbles in AI data center construction. Many data center investment announcements in the US are "repetitive" or overlapping. Alibaba's employee count has hit bottom and will "restart and rehire." The company will provide reasonable returns to shareholders through dividends.