The Shanghai Composite Index falls below 4,000 points to a new low for the year; a 70-billion-dollar computing power giant suddenly crashes during trading; silver prices plummet.

Reporter | Zeng Jingjiao Yang Nana

Editor | Liu Xueying

March 20, the A-share market staged an exciting “4000-point defense battle.” After losing the 4000-point mark yesterday, the bulls launched a counterattack today. By the close, the Shanghai Composite Index fell over 1%, losing the 4000-point level and hitting a new low for the year; the Sci-Tech Innovation Board Index dropped 0.87%, the Shenzhen Component Index closed slightly lower, and the ChiNext Index rose 1.43%. Nearly 4,600 stocks in the market declined.

Image: 21 Finance Client

In the market, concepts such as computing power leasing, financial technology, cybersecurity, AI applications, commercial aerospace, robotics, and memory chips all declined. Photovoltaics, lithium batteries, and CPO themes performed against the trend and strengthened.

Specifically, in the afternoon, the decline in the computing power leasing sector widened, with the 70 billion market cap computing giant Zhaoxuan Data approaching a 20% limit down, closing down 14.89%; SuperXun Communication (rights protection) hit the limit down, Dongfang Guoxin (rights protection) fell more than 12%, and several stocks like Dawi Technology, Capital Online, and Qingyun Technology dropped over 8%.

The sharp drop of Zhaoxuan Data may have been influenced by a small article regarding the company’s server procurement compliance. Zhaoxuan Data quickly responded to investor concerns about server procurement compliance, stating that some investors reported that certain overseas server manufacturers were involved in illegal transactions. After careful verification, the company clarified that these issues are unrelated to the company. All of the company’s intelligent computing products are purchased through compliant commercial channels, and business operations are conducted in accordance with market rules and laws. Currently, the company’s production and operations are normal, and all business activities are proceeding in an orderly manner.

The chemical sector declined, with Jinniu Chemical, Luhua Technology (rights protection), Jinzengda, and Hongbaoli hitting the limit down.

On the upside, the computing hardware concept stocks rose during the session, with Yuanjie Technology hitting a 20% limit up, and Xinyi Sheng rising over 8%, reaching a new high.

The lithium mining concept quickly rebounded, with Ganfeng Lithium approaching the daily limit, and Zhongda Mining up over 8%. Tianhua New Energy, Salt Lake Shares, Chuaneng Power, and Guocheng Mining (rights protection) also gained.

In commodities, gold and silver prices diverged. As of the report, spot silver suddenly plunged nearly 2% intraday, breaking below $72. Silver futures on the Shanghai Futures Exchange once fell over 6%, but the decline narrowed to about 3.5%. Spot gold rose slightly by 0.39%, approaching $4,670 per ounce.

International crude oil opened lower and continued to decline. As of the report, WTI crude oil fell over 1%, and ICE Brent crude dropped about 0.5%.

Main Hong Kong stock indices all declined. As of the report, the Hang Seng Index fell over 1%, and the Hang Seng Tech Index dropped nearly 3%. Tech stocks collectively tumbled, with Xiaomi Group and Alibaba down over 6%, JD.com and SMIC down over 3%, Baidu and Meituan down over 2%. AI application concept stocks retreated, with MiniMax and Zhipu falling over 5%.

Yue Sheng Investment Research: Clues and extensions on popular theme companies

(Statement: The content of this article is for reference only and does not constitute investment advice. Investors operate at their own risk.)