At midday on March 26, 2026, the A-share market staged a sideways trading session with shrinking turnover, featuring a rotation between high and low-valued sectors. The Shanghai Composite Index fell 0.58% to 3,909.16 points, the Shenzhen Component Index dropped 0.38% to 13,748.30 points, and the ChiNext Index edged down 0.07% to 3,314.64 points. Hong Kong stocks also weakened, with the Hang Seng Index down 1.37% and the Hang Seng Tech Index slumping 2.15%.
Market turnover hit 1.23 trillion yuan in the morning session, down 242 billion yuan from the same period last trading day, highlighting a prominent stock game pattern. The gain-loss ratio stood at roughly 1:3.25, with 1,262 stocks rising and 4,103 falling. There were 43 limit-up stocks and 4 limit-down stocks, indicating weak profit-making effects and rising risk aversion among investors.
Sector performance was highly differentiated. Lithium batteries, power, photovoltaic and satellite navigation sectors led the gains, with Rongjie Co., Ltd. hitting its third consecutive limit-up and Huadian Liaoning Energy notching its ninth straight limit-up. In contrast, computing power/CPO, memory chips, semiconductors, insurance and consumer electronics sectors led the declines, as capital took profits from high-position thematic stocks.
Capital flows showed that major funds posted a net outflow of 46 billion yuan in the morning session, mainly withdrawing from high-level thematic stocks. The People’s Bank of China conducted open market operations to inject a net 211 billion yuan, providing targeted liquidity support at the quarter-end. Meanwhile, the Ministry of Finance’s budget release clarified fiscal expenditure priorities, stabilizing market expectations.
Analysts predicted that the A-share market will remain in a consolidation phase in the short term, with thin trading reflecting strong wait-and-see sentiment. Investors are recommended to focus on low-valued, high-prosperity tracks such as lithium batteries and power, avoid risks from pullbacks in high-position stocks, and adopt a strategy of batch position building and buying low and selling high to cope with market fluctuations.
