On March 2, China’s A-share market opened lower and experienced divergent trends throughout the trading session, eventually closing mixed with a significant surge in trading volume, reflecting strong market activity amid geopolitical uncertainties. The Shanghai Composite Index, a key benchmark for China’s mainland stock market, edged up 0.47% to close at 4182.59 points, supported by gains in energy and resource-related stocks. In contrast, the ChiNext Index, which focuses on growth-oriented and tech-heavy stocks, fell 0.49% to 3294.16 points, while the Sci-Tech Innovation 50 Index dropped 1.56% to 1464.77 points, as investors took profits in high-growth sectors.

Trading volume hit a notable high, with the total turnover of the Shanghai and Shenzhen stock markets reaching 3.02 trillion yuan, an increase of 532.6 billion yuan from the previous trading day, representing a 21.2% day-on-day growth. The Shanghai market contributed 1.3459 trillion yuan in turnover, while the Shenzhen market accounted for 1.6748 trillion yuan, indicating strong capital participation. The surge in trading volume was mainly driven by capital rotation from high-tech sectors to defensive and resource sectors, amid rising geopolitical tensions in the Middle East.

Sector performance showed clear divergence. Energy and gold stocks led the gains, with the “Big Three Oil Companies” – PetroChina, CNOOC, and Sinopec – all hitting their daily limits. PetroChina even touched a nearly 11-year high, boosted by rising international crude oil prices. Related industrial chain stocks, including coal, shipping, and chemicals, also rose sharply, with more than 20 stocks hitting the daily limit or rising over 10%. On the flip side, AI applications, semiconductors, and media sectors pulled back, with many media stocks falling more than 6%, as investors shifted their capital to safer assets. Overall, market sentiment remained cautious, with 1,141 stocks rising and 4,277 stocks falling, resulting in a weak profit-making effect for retail investors.