A sharp rise, 002470 hits the daily limit at the close! Chemical sector, multiple stocks reach the daily limit.

On March 17, all major stock indices declined across the board in the afternoon, with the ChiNext Index and the STAR Market Composite Index falling over 2%. Hong Kong stocks also experienced volatility and a retreat, with the Hang Seng Tech Index turning red in the afternoon.

Specifically, the three major indices fluctuated and declined in the morning, accelerating in the afternoon. By the close, the Shanghai Composite Index fell 0.85% to 4,049.91 points, the Shenzhen Component Index dropped 1.87%, the ChiNext Index declined 2.29%, while the SSE 50 Index rose 0.32% against the trend. The combined trading volume of the Shanghai, Shenzhen, and Beijing markets was about 22.2 trillion yuan, down approximately 115 billion yuan from the previous day.

Over 4,500 A-shares were in the red, with the semiconductor sector sharply down—Chang Guang Hua Xin and Huacan Optoelectronics fell about 10%. Insurance, banking, and brokerage sectors rose against the trend. The real estate sector advanced, with Jingtou Development hitting three consecutive limit-ups. The chemical fiber sector surged in the afternoon, with Zhongfu Shenyan hitting a 20% daily limit and reaching a new high. The green power sector was active, with China Power LiaoNeng and Jiangsu New Energy hitting the daily limit. Some chemical stocks were active, with Jinjingda (002470) closing at the limit and Sanfangxiang (600370) achieving four consecutive limit-ups. The CPO concept plummeted, with New Easun falling nearly 6%, Zhongji Xuchuang dropping over 3%, and Tianfu Communications falling about 10%, with trading volumes ranking first, second, and fourth among A-shares.

In Hong Kong, Yao Cai Securities Finance surged nearly 47%, briefly soaring over 80% during the session; Wuyi Vision rose over 16%, with a nearly 30% intraday increase; Xunce jumped nearly 37% at the close.

Financial Sector Reverses and Rises

Brokerage stocks gained momentum during the session, with Guosen Securities rising over 9% at one point and closing nearly 5% higher; GF Securities rose over 5% intraday, while Orient Securities and CITIC Securities both increased by more than 4% at times.

Institutions indicate that 2026 marks the start of the “14th Five-Year Plan.” Under the dual guidance of building a strong financial nation and deepening reforms in the capital market, the securities industry continues to show steady growth, structural optimization, and reshaping of the landscape. Moderate monetary easing, ongoing market environment improvements, and renewed investor confidence collectively support the upward trend of the securities sector. With long-term funds accelerating into the market, activity remains high, and the market is expected to maintain a “healthy bull” trend. The transformation of wealth management, international expansion, and financial technology empowerment are likely to drive industry ROE improvements. Currently, sector valuations are at historic lows, offering both defensive and rebound opportunities.

Insurance, banking, and related sectors also rose. New China Insurance increased over 5 intraday and closed about 3% higher; CITIC Bank, Ping An Insurance, and China Life also gained.

Regarding banks, Galaxy Securities believes that the “14th Five-Year Plan” provides a clear blueprint for building a financial powerhouse. Through top-level institutional improvements and strategic guidance, it offers direction for high-quality economic development in the next phase. The implementation of the plan will significantly impact the medium- and long-term business models and ecosystems of banks. The banking industry will enter a critical period of restructuring, mode transformation, and valuation reshaping—shifting from total expansion to structural optimization to capture new business opportunities. Diversified development and “anti-involution” efforts will improve pricing order, while institutional improvements, risk mitigation, and long-term capital allocation will support valuation restructuring. Overall, the policy, fundamentals, and capital environment continue to favor bank stocks, presenting good allocation opportunities.

In Hong Kong, Yao Cai Securities Finance also surged nearly 47%, briefly jumping over 80% during the session.

On the evening of the 16th, Yao Cai Securities announced that the takeover bid initiated by Ant Group has been approved by relevant authorities, with settlement expected by March 30. The company stated that, as part of Ant Group’s acquisition, all conditions for the transaction have been met.

Chemical Stocks Active Again

Some chemical stocks regained momentum, with Jinjingda hitting the limit-up in the late trading session; Luhua Technology also hit the limit, marking three limit-ups over four days; Sanfangxiang continued its four-day streak of limit-ups; Chitianhua also hit the limit at the close, achieving three consecutive limit-ups.

Analysts say that the chemical industry is currently affected by Middle Eastern geopolitical conflicts, which restrict oil transportation and push up petrochemical costs. Segments like coal chemicals, chlor-alkali, and phosphate fertilizers, which have cost or supply advantages, are performing strongly. Leading companies’ self-sufficiency and diversified channels create significant competitive advantages. Prices and spreads for products like liquid chlorine, VCM, TDI, and DAP have risen notably, and cost-driven price hikes are brewing for polyurethane and titanium dioxide. Meanwhile, domestic chemical industry expansion cycles are nearing completion, with excess capacity being rapidly cleared. Coupled with overseas chemical capacity closures due to high energy costs, the supply-demand landscape continues to improve, supporting the sector’s overall strength.

Notably, Sanfangxiang has hit the limit for four consecutive days. On the evening of the 16th, the company issued a risk warning, stating that recent fluctuations in major chemical products and company products are influenced by geopolitical and international energy prices, but the core business remains unchanged, with no significant impact on profitability or gross margins.

Chitianhua also noted that recent market prices for methanol have slightly increased. Chemical product prices are cyclical and volatile, and future price fluctuations are uncertain. Currently, the company’s main product, methanol, is not exported, and overall market demand remains stable, so short-term impacts on performance are unlikely. The company’s urea prices remain stable. Investors are advised to invest rationally and be aware of risks.

Proofread by: Wang Chaoquan