Market Insights: Mar 11th, 2024

Stock Market Update:

• The A-share market moved higher amid fluctuations in the morning session, with the ChiNext Index being particularly active, closing with a gain of 3.28%.
• The new energy and photovoltaic sectors surged, leading to significant increases in related companies' stock prices, such as Contemporary Amperex Technology Co. Limited, which saw a near 14% rise.
• The new energy vehicle supply chain was lively, with Celis’ stock soaring over 9%. The liquor and pharmaceutical sectors strengthened, while the coal and oil industries experienced pullbacks.
• Stocks generally rose, with over 3600 stocks advancing. The transaction volume in the Shanghai and Shenzhen stock markets reached 605 billion yuan, and northbound funds saw significant net inflows, with a net inflow of 17.3 billion yuan for the Shanghai Stock Connect in the morning session and 35.8 billion yuan for the Shenzhen Stock Connect.

Global Markets:

• Crude oil prices fell by more than 1%, while gold futures prices reached new highs for six consecutive days, with a weekly gain of nearly 5%.
• Bitcoin surpassed $70,000 for the first time during intraday trading but then fell by nearly $4,000.

China-US Market Dynamics:

• Chinese concept stocks showed strong performance during the US trading session but posted their first weekly decline of the year. Bilibili’s stock price increased by 5% after its financial report was announced, and JD.com’s stock price rose by 3%.
• The offshore RMB exchange rate broke through 7.19, reaching a new high in over two weeks.

Economic Data:

• China's Consumer Price Index (CPI) for February changed from a decrease of 0.8% last month to an increase of 0.7%, marking the first positive turn since August last year. The core CPI, which excludes the prices of food and energy, rose by 1.2% year-on-year, the highest increase since February 2022.

New Energy Sector:

• The new energy sector was active today, with several stocks hitting the upper limit, including Billion Electric and Leading Ideal. Stocks like EVE Energy and Sungrow Power Supply also saw prominent gains.

Technology and Industry Trends:

• OpenAI's chatbot ChatGPT has a significant power consumption. It is reported to use over 500,000 kilowatt-hours of electricity per day, which is 17,000 times the daily power consumption of an average household.
• Research by the cryptocurrency tax platform CoinLedger suggests that the Bitcoin halving event could potentially push Bitcoin's price above $115,000.

Corporate Changes:

• Zhejiang Farmer Industrial Development Co., Ltd. has undergone commercial changes, with Zhong Zanzi no longer serving as the legal representative, replaced by Rao Minghong. However, Zhong Zanzi still holds the position of executive director in the company.

Issues with TikTok in the United States:

• The US Congress plans to demand that ByteDance divests TikTok's operations in the US, otherwise, it may face a ban.