On March 12th, A-Shares showed a trend of shrinking volume and pullback at midday, with market sentiment turning cautious. By the midday close, the Shanghai Composite Index reported 4106.96 points, down 0.64%; the Shenzhen Component Index reported 14270.35 points, down 1.35%; the ChiNext Index reported 3293.49 points, down 1.67%. The half-day turnover reached 1.59 trillion yuan, a decrease of 73.8 billion yuan from the previous trading day, indicating a decline in market trading activity, with more than 4,100 individual stocks falling.

The performance of sectors showed obvious differentiation. Energy-related sectors strengthened against the trend, with coal, chemical, chemical fiber, green power and other sectors leading the gains, mainly benefiting from the transmission effect of the sharp surge in international oil prices. Affected by the tense situation in the Middle East and the interruption of Oman’s ports, Brent crude oil prices returned to 100 US dollars per barrel, and the intraday gains of domestic Shanghai crude oil and low-sulfur fuel oil futures contracts both reached 9%, driving the rise of related industrial chain stocks.

At the same time, sectors such as military industry, minor metals, and semiconductors performed weakly, becoming the main decliners. In addition, many domestic banks have lowered deposit interest rates by up to 30 BP, involving Xinjiang, Yunnan, Jiangsu and other regions, aiming to release liquidity and reduce social financing costs. Market analysts said that short-term A-Shares will be affected by factors such as fluctuations in international oil prices and the implementation of macro policies, and it is necessary to focus on the sustainability of the energy sector and changes in the policy environment in the follow-up.