A-shares maintain volatility, Shanghai Composite Index down 0.22% midday

MaticHoleFiller · 2026-03-16T20:24:06+00:00

On March 13, the A-share market moved within a narrow range with slight declines across major indices. Market liquidity remained stable as the central bank conducted reverse repo operations. UBS analysis suggests that the A-share market demonstrated some downside protection, with geopolitical impacts having limited market influence. Meanwhile, the marine economy outlook remains positive with sustained growth in related industries, while sectors such as agrochemicals and lithium batteries showed strong performance. The prospects of four companies were viewed favorably by brokers.

MaticHoleFiller

2026-03-16 20:24:06

Abstract generation in progress

Everyday Reporter | Liu Mingtao Everyday Editor | Xiao Ruidong

On March 13, A-shares fluctuated within a narrow range. By the close in the morning, the Shanghai Composite Index fell 0.22% to 4,120.14 points, the Shenzhen Component Index declined 0.17%, the ChiNext Index dropped 0.03%, the CSI 300 decreased 0.02%, the Beijing Stock Exchange 50 fell 0.1%, the STAR Market 50 declined 0.24%, and the CSI A500 dropped 0.22%. A-shares traded 1.52 trillion yuan in the half-day session.

In terms of liquidity, the People’s Bank of China announced that on March 13, it conducted 37.5 billion yuan of 7-day reverse repurchase operations at a fixed rate of 1.40%, with a bid amount of 37.5 billion yuan and an equal amount of 37.5 billion yuan in successful bids. Wind data shows that 44.8 billion yuan of reverse repos matured that day, resulting in a net withdrawal of 7.3 billion yuan.

On the news front, Wang Zonghao, head of China equity strategy research at UBS, pointed out in a report that the A-share market has shown some downside protection against recent geopolitical events, mainly due to China’s relatively low dependence on oil. Factors such as a preference for A-shares over H-shares and American Depositary Receipts (ADRs), along with high trading volumes, will support the A-share market.

The China Satellite Navigation System Management Office revealed that to provide better services, China will upgrade the Beidou satellite navigation system in orbit.

The Ministry of Natural Resources released the “2025 China Marine Economy Statistical Bulletin.” Preliminary estimates show that in 2025, the national marine gross domestic product (GDP) will reach 110.18 trillion yuan, a 5.5% increase over 2024, accounting for 7.9% of GDP, up 0.1 percentage points from 2024. Regarding the three industrial sectors, the added value of the primary industry is 4,923 billion yuan, the secondary industry 41,017 billion yuan, and the tertiary industry 64,240 billion yuan, accounting for 4.5%, 37.2%, and 58.3% of the marine GDP, respectively.

In terms of sectors, pesticides and fertilizers collectively rose, led by Chitianhua, Lutianhua, and Jinjingda. Lithium battery material stocks led the gains, with Zhongke Electric, Putailai, and Haike Xinyuan among the top performers.

The Middle East is a major player in global urea supply and trade, with Iran’s urea capacity accounting for about 3%–4% of the global capacity, and annual urea exports around 4 to 5 million tons, nearly 10% of global urea trade, making it one of the top three urea exporters worldwide. Therefore, the Middle East plays a crucial role in international urea supply. The escalation of US-Iran tensions is likely to reduce this capacity’s supply, pushing up international urea prices.

By integrating the latest research reports from over ten brokerages including Tianfeng, Anxin, and Guoxin, here are brief profiles of four companies for your reference.

Chuan Jin Nuo

A high-quality enterprise in the wet-process phosphoric acid sector, continuously developing flotation and utilization of medium- and low-grade phosphate ores, purification of wet-process phosphoric acid, sulfuric acid production from pyrite, and comprehensive utilization of phosphogypsum. These technologies enable graded utilization of wet-process phosphoric acid and improve the value of phosphate resources per unit. — Guotai Haitong Securities

Fubon Technology

In China, the company continuously adjusts its strategic layout, focusing on R&D and promotion of energy-saving and consumption-reducing agrochemical auxiliaries, strengthening sales management, optimizing talent structure, and promoting steady expectations and growth in the domestic auxiliary agent business. — Guotai Haitong Securities

Oriental Iron Tower

As an overseas potassium fertilizer company, Laos’ potassium fertilizer capacity is 1 million tons, and the company is actively advancing a second million-ton project, which is expected to support future growth. — Debang Securities

Salt Lake Shares

As a leading salt lake enterprise, the acquisition of Yiliping has finally been completed. With the subsequent consolidation of the Yiliping project and the completion of long-term resource layout for potassium and lithium, the company’s performance is expected to continue improving. — Tianfeng Securities

Cover image source: AIGC

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