On the first trading day of the Year of the Horse, A-shares opened higher, with the Shanghai Composite Index starting above 4,100 points and the ChiNext Index opening above 3,300. The Shenzhen Component Index and the Beijing Stock Exchange 50 Index also recorded significant gains at the open. More than 4,300 stocks advanced, with market turnover showing rapid expansion.
Leading the gains were sectors such as oilfield services, fiberglass, precious metals, and electronic components, while film and cinema, artificial intelligence, gaming, and intellectual property lagged behind.
Tensions in the Middle East have driven a sharp rise in oil prices, boosting the entire oil industry chain. The oilfield services sector led the rally, with its index opening sharply higher and surging nearly 10% during the session. Within less than an hour after the market opened, trading volume in the sector had already exceeded the previous day's total. Tong Petrotech Corp. (300164) jumped 20% and hit the daily limit within just one minute of trading. Companies such as China Oilfield Services, Zhunyou Energy, Zhongman Petroleum, and Huibo Technology also surged to the limit-up within five minutes.
Indices tracking shale gas, natural gas, flammable ice, and oil and gas exploration also opened significantly higher and extended gains. Stocks including JinJin Power, Bomesc, Taishan Petroleum, and SPT Energy Group saw multiple limit-up moves.
According to Wind data, as of the midday close, the petroleum and petrochemical sector recorded a net inflow of over 4.6 billion yuan in main funds. Thirteen stocks, including Tong Petrotech Corp., Intercontinental Oil & Gas, SPT Energy Group, and CNOOC, attracted net inflows exceeding 100 million yuan each.
The market movement was driven by escalating tensions in the Middle East, which pushed global crude oil prices significantly higher during the Lunar New Year holiday. Both Brent and WTI crude futures hit their highest levels in more than six months.
Domestic crude oil futures also opened sharply higher in early trading, with the main contract rising over 6%. Low-sulfur oil, fuel oil, liquefied petroleum gas, and asphalt futures also opened higher and extended gains.
Goldman Sachs, which has long held a bearish view on oil prices, recently raised its price forecast, citing lower-than-expected inventory growth in developed countries, coupled with sanctions and supply disruptions that have pushed prices above previous expectations.
According to foreign media reports, U.S. President Trump stated that he has not ruled out the possibility of military action against Iran and is considering a "preliminary limited strike" to pressure Iran into accepting U.S. demands regarding the nuclear agreement.
On February 23, the U.S. State Department ordered non-emergency government staff and their families at the U.S. Embassy in Lebanon to evacuate. The embassy also updated its travel advisory, strongly recommending that U.S. citizens in Lebanon leave immediately.
Cinda Securities noted that the fundamentals of the crude oil market are expected to bottom out by 2026, with prices likely to fluctuate widely within a range of $55 to $65 per barrel due to multiple balancing factors. Against the backdrop of optimized supply structure and steady demand recovery, the refining and petrochemical industry is expected to enter an upward cycle.
Fiberglass continued its strong performance from before the holiday, with the sector index opening sharply higher and surging nearly 9% to a new record high. International Composite Materials surged 20% to a historic high, while Shandong Fiberglass hit the limit-up within just one minute of trading, marking its third limit-up in the past four sessions. Companies such as Zisun Technology, Honghe Technology, and Changhai Composites also rose strongly, with many hitting limit-ups or gaining over 10%.
The global surge in demand for AI chips has triggered a shortage of high-end fiberglass, a key raw material. According to SCI99 data, standard electronic-grade fiberglass has undergone four price increases in October and December 2025, and January and February 2026. The cumulative increase for 7628 thick cloth reached 1 to 1.2 yuan per meter, with thin cloth seeing even larger gains.
Recent expectations from suppliers and industry insiders suggest that fiberglass manufacturers will initiate another round of price hikes due to rising costs and tight supply. The planned monthly price adjustments are expected to range between 10% and 15%. This anticipated increase follows cumulative annual price rises of over 50% since 2025.
Nittobo, a major supplier of T-type fiberglass, holds over 90% of the global market share for low thermal expansion electronic cloth. Due to quality considerations, Nittobo cannot rapidly expand production, and new capacity is not expected to come online until 2027, with only a 20% increase in output. This suggests that the tight supply-demand balance for fiberglass is unlikely to ease significantly in the short term.
Huatai Securities pointed out that the new round of price hikes is substantial and the cycle is shortening, indicating that the tight supply of electronic cloth is spreading from high-end to standard products. Supply constraints for standard electronic cloth remain significant, and a new price increase cycle is expected to begin in 2026. High-end electronic cloth, including second-generation low-dielectric and low thermal expansion products, will continue to face supply shortages in 2026, supporting further price increases.