On March 20, China's major stock indices showed mixed performance. By 10:16 a.m., the Shanghai Composite Index had once again fallen below the 4000-point mark. Meanwhile, the Shenzhen Component Index rose by 0.71%, the ChiNext Index gained over 2%, and the STAR Composite Index increased by 0.29%. Sectors such as natural gas, chemicals, and titanium dioxide were among the top decliners.
The Co-Packaged Optics (CPO) index surged significantly, with all constituent stocks trading higher. Mingpu Advanced Materials hit the daily limit-up, while Changguang Huaxin rose 18%. Tianfu Communication advanced 8.77%, and New Easun increased by 6.27. Yuanjie Technology, a popular CPO concept stock, saw its shares soar 20%, surpassing 1100 yuan to set a new historical high. It has become the eighth stock in A-share history to exceed 1000 yuan, overtaking Cambricon to become the second highest-priced stock in the A-share market.
The space-based photovoltaic concept also gained momentum, with Laplace rising nearly 10%. Autowell, Linton CNC, Mayer, Jingsheng Mechanical & Electrical, and Jingjiawei posted notable gains. According to reports, NVIDIA announced the launch of the VeraRubinSpace-1 space computing platform at its GTC developer conference on March 16, marking its official entry into orbital AI data centers and ushering in a new era of space computing.
The energy storage sector remained active, with Zhengtai Power hitting a limit-up after a rebound. Shouhang New Energy, Huabao New Energy, and Airo Energy all rose more than 10%. Peng Hui Energy and Deye Holdings also gained over 5%.
On the downside, the computing power leasing concept weakened during the session. Super Communication approached the daily limit-down, while Eaststar, Capital Online, Lianhua Holdings, Qingyun Technology, and Dawei Technology fell more than 5%.
The Hang Seng Tech Index extended its decline to 1.3%, after briefly turning positive earlier. Xiaomi Group dropped over 6.5% following the launch of its new SU7 electric vehicle. Alibaba declined more than 5%, and XPeng Motors fell over 3%.
The Shanghai Composite Index had briefly fallen below 4000 points during the previous afternoon before recovering slightly by the close. Regarding current market pressures, an independent financial commentator noted that both institutions and investors have accumulated significant paper profits during the 2024–2025 market cycle. Recent rapid sector rotations and lack of profitable opportunities have led to a need for periodic profit-taking. Additionally, with the earnings disclosure season for annual and quarterly reports in March and April, market expectations for earnings delivery have increased. High-flying tech sectors such as AI and semiconductors now face the challenge of aligning valuations with actual performance, leading to corrections in stocks that fall short of expectations. Technically, continued low trading volumes reflect weak investor interest, limiting the sustainability of any rebound.