The agricultural sector is experiencing a remarkable rise, with Yasheng Group hitting the daily limit-up five times in six days.

Despite the sharp decline in European and American stock markets, on Friday (March 6), the A-shares opened higher and moved higher thanks to net liquidity injection from the central bank. By the close, the Shanghai Composite Index closed at 4,124.19 points, up 15.62 points, a 0.38% increase; the Shenzhen Component Index closed at 2,698.32 points, up 25.50 points, a 0.95% increase; the STAR Market Index rose 0.87%; the SME Board Index increased 1.01%; and the ChiNext Index rose 0.87%. The total trading volume of A-shares was 2.2192 trillion yuan, 8% less than Thursday.

Main stock indices opened sharply lower, briefly tested the bottom, then led by the STAR Market, followed closely by the ChiNext. Shortly after the afternoon opening, both the STAR Market and ChiNext weakened, but the main boards in Shanghai and Shenzhen performed relatively strongly, offsetting some of the selling pressure. In the end, major indices closed in the green.

According to Tongdaxin statistics, the proportion of A-shares that rose and fell was 4,260:1,154; the proportion of stocks with a change of more than 10% was 80:2; and the proportion with a change greater than 5% was 296:54. Looking at the market, the agriculture (farming, forestry, animal husbandry, and fishery) sector, which plunged sharply on Thursday, surged across the board. The Agriculture, Forestry, Animal Husbandry, and Fishery Index rose by 3.94%. In sub-sectors, the water products, pork, chicken, grains, and seed sectors had average gains of 2.14%, 3.93%, 3.76%, 3.45%, and 3.24%, respectively. Among them, Yasheng Group hit the daily limit five times in six trading days, breaking its short-term record since listing. Additionally, Dunhuang Seed also closed at the daily limit.

“Next week, structural opportunities will become more prominent as the Shenzhen market accelerates its adjustment,” said Tang Hewen, Chief Advisor at Galaxy Securities on Jiangnan Avenue. From a technical perspective, as one of the leading indicators of the Shenzhen market, the “Shenzhen 50” index showed a downward shift in its weekly closing center compared to Thursday, filling the gap from Thursday’s jump. This week, it formed a volume-driven bullish doji star pattern, meaning it broke down but also completed a rebound, which could have adverse effects in the short and long term. When leading indicators continue to break down, it is difficult for the Shenzhen Composite Index to sustain an upward trend and will likely join the ranks of lagging stocks, meaning most individual stocks may see accelerated declines. However, the accelerated decline of most stocks highlights the value of fundamentally sound growth stocks with core competitive advantages. Therefore, investors should closely monitor high-quality growth stocks that remain resilient amid turbulent times.

【The views expressed are for informational exchange only and do not constitute investment advice; stock market risks are inherent, invest cautiously.】

Upstream News Reporter Wang Ye