A-share markets experienced volatile upward movement today, with the Shanghai Composite Index reclaiming the 3900-point level. The non-ferrous metals sector showed strength, while optical module and computing power concept stocks surged significantly.
On March 25, major A-share indices opened higher, with the ChiNext Index rising over 1%. The market continued its fluctuating ascent during the session. At the time of writing, the Shanghai Composite Index had regained the 3900-point mark, advancing nearly 1%, with more than 4,900 stocks across the market trading in positive territory.
Sector performance showed strength in non-ferrous metals, communications, electronics, and computer-related stocks, with particular activity in optical modules, optical communications, computing power leasing, and high-speed copper connection concepts. Conversely, coal, petroleum and petrochemicals, and banking sectors demonstrated weakness.
In the communications sector, optical modules and optical communications concepts led gains during early trading. Multiple stocks reached their daily upper limits, including Mingpu Optical Magnet and Alide with 20% gains, along with Tongding Internet, Zhongjiabochuang, Erliusan, and Tefa Information.
The "token" concept continued gaining traction, with Huanwang New Network hitting the 20% upper limit. Fiber optic concept stocks maintained their upward trajectory, with Changfei Fiberoptic achieving two consecutive days of limit-up gains.
Recent developments include Shenzhen's Industrial and Information Technology Bureau issuing an action plan for accelerating high-quality development in the AI server industry chain from 2026-2028. The plan targets leapfrog growth in production capacity and shipments across the AI server supply chain, with significant global market share improvements expected in core chips, storage, PCB, power storage, optical modules, and passive components. The initiative also promotes technological upgrades from 800G to 1.6T/3.2T optical modules and supports mass production projects for 800G and above modules.
Additionally, China Information Technology Group's optical communication technology laboratory, in collaboration with Pengcheng Laboratory and烽火藤仓光纤科技有限公司, achieved a breakthrough in ultra-large-capacity real-time transmission technology. The team accomplished 2.5 Pb/s real-time bidirectional transmission capacity over 10.3 kilometers of 24-core single-mode fiber, representing a key advancement in China's optical transmission capabilities.
The non-ferrous metals sector also demonstrated strength during early trading, with activity in industrial metals, gold jewelry, and rare metals. Rongjie Shares hit the upper limit, while Xiaocheng Technology, Xingye Silver Tin, Chifeng Gold, Shengda Resources, and Zhongjin Gold all posted significant gains.
Hong Kong-listed precious metals stocks followed the trend, with Zijin Gold International surging 9%, while Lingbao Gold, International Gold Group, Chifeng Gold, and Shandong Gold advanced accordingly.
International precious metal prices strengthened during the morning session, with spot gold rising over 2.5% and spot silver gaining more than 4%. COMEX gold futures advanced 4%, while silver futures climbed over 6%. Platinum and palladium also recorded notable increases.
Market observers noted that gold prices have begun a recovery rebound following recent declines. UBS analysts commented that structural drivers supporting gold's rise in recent years—including debt issues, political pressure for Fed rate cuts, high inflation, low interest rates, and a weaker dollar—remain fundamentally unchanged.