On March 31, A-shares ushered in the quarterly closing battle, and the market showed a clear differentiation trend. As of midday, the Shanghai Composite Index reported 3927.43 points, up 0.11% slightly; the Shenzhen Component Index fell 0.62%; the ChiNext Index fell 1.13%. The trading volume of the two markets shrank sharply compared with the previous trading day, with the main capital net outflow of 21.696 billion yuan.

In terms of sector performance, defensive sectors became the focus of capital pursuit. Sectors such as non-ferrous aluminum, gold and jewelry, and petrochemicals led the gains. Among them, Tianshan Aluminum Industry and Minfa Aluminum Industry hit their daily limits, mainly benefiting from supply disruptions and safe-haven demand brought by the geopolitical situation in the Middle East. The auto whole vehicle sector performed brightly, with Yutong Bus and Shuguang Co., Ltd. hitting their daily limits, supported by the logic of intensive landing of bus export orders.

At the same time, previously popular tracks pulled back. Sectors such as optical communication, lithium ore, and photovoltaic led the decline, reflecting that funds are withdrawing from high-valuation tracks and turning to low-valuation defensive sectors. Northbound funds had a small net inflow today, mainly focusing on fields such as military industry and satellite navigation. Industry insiders said that the market capital side tends to be cautious at the end of the quarter, and the short-term market will still be dominated by structural market. It is recommended to pay attention to resource-based defensive sectors and individual stocks with strong performance certainty, and be vigilant about the fluctuation risks brought by geopolitical situations and capital outflows.