Breaking! Falling into a bear market!

When it comes to trading stocks, just look at the Golden Qilin analysts’ research reports—authoritative, professional, timely, comprehensive—helping you uncover high-potential theme opportunities!

【Intro】A day of plunging and a major drop—Korean stocks sink into a bear market

China Fund News reporter Taylor

Brothers and sisters, today’s market—let out a bitter laugh.

Today, China’s A-share three major indices continue to plunge. They saw some recovery at midday, but it still can’t stop the downward trend. Let’s look back at what happened today.

Big plunge

On March 31, the market traded with overall volatility throughout the day. All three major indices fell together. By the close, the Shanghai Composite Index fell 0.8%, the Shenzhen Component fell 1.81%, and the ChiNext Index fell 2.7%.

A total of 1,011 stocks rose on both markets, 59 hit the daily trading limit, and 4,378 stocks fell.

The high-speed rail and rail transit sector strengthened against the trend. Multiple stocks—including Geat Eagle Heavy Industry, China Railway Engineering Equipment, and Jinxi Axis—hit the daily trading limit. According to the news, CCTV Finance reported that China is building high-speed rail under the Yangtze River, which is one of the 109 major projects in the “15th Five-Year” planning outline, connecting the three major urban agglomerations.

Motorcycle concept stocks surged again. Hongchang Technology, Zhenghe Industrial, and Qianjiang Motor all hit the daily trading limit. According to the news, in the World Superbike Championship (WSBK) Portugal round WorldSSP class, which ended on the 29th, the Chinese motorcycle manufacturer “Zhang Xue Motorcycle” won the championship in both races of the event. The team was established only recently; this was just its second event, and it still achieved double titles, marking a historic breakthrough for Chinese motorcycle manufacturers in WSBK events.

The “Zhang Xue Motorcycle” success story has been trending nonstop, and the investment backer behind it—Hongchang Technology—indirectly participated in Zhang Xue Motorcycle’s Series A financing by holding 29.8211% of shares in Jinhua Zhejiang Chuang Jinyi Intelligent Control Venture Capital Partnership (Limited Partnership).

Fujian local stocks repeatedly became active. Pingtan Development, Mindong Electric Power, and Shua Sports, among others, hit the daily trading limit.

Banking and other sectors led in gains.

Liquor stocks performed actively. Guizhou Moutai announced that, effective from March 31, 2026, the sales contract price for Feitian 53-degree 500mL Guizhou Moutai liquor (2026) will be adjusted from 1169 yuan per bottle to 1269 yuan per bottle, and the self-operated retail price will be adjusted from 1499 yuan per bottle to 1539 yuan per bottle.

On the downside, computing power hardware stocks adjusted. Deck Technology and Siyuan Fushi both fell by more than 10%.

Korean stocks sink into a bear market

On March 31, Korean stocks fell. Tensions in the Middle East pushed up oil prices, raising concerns about inflation and weakening market risk appetite, which is led primarily by technology stocks.

Korea’s Composite Stock Price Index (Kospi) fell 4.26% on Tuesday. Compared with the historical highs from late February, the cumulative decline is already close to 20%, putting the market into a technical bear market. The two largest companies by market value in the country—Samsung Electronics and SK Hynix—both fell more than 5%, becoming the main drags.

This round of selloff highlights how quickly sentiment can change in a market that is highly dependent on AI investment-driven momentum. Korean stocks had previously been among the strongest performing markets globally, but since the outbreak of the Iran war, as worries that inflation may rise faster and interest rates may increase have intensified, the market has started to question the durability of the AI boom. Korean stocks in March became one of the most impacted markets.

Analysts said: “Market attention is now almost entirely focused on the Middle East war. As long as neither side shows clear signs of easing, the stock market will keep weakening—this also includes large technology stocks within Kospi.”

This pullback has also brought Kospi close to the 5,000-point threshold—a milestone that had been achieved in late January, driven by President Lee Jae-myung.

In addition to geopolitical factors, a new technology from Google has also heightened investors’ unease. The technology is said to significantly reduce the memory capacity needed to train large language models. If in the future cloud computing giants’ demand for high-end chips declines, it could weaken pricing power for Korean chipmakers. As a result, Samsung Electronics and SK Hynix have been falling for consecutive days.

Analysts said: “Investors are also worried about how the progress of Google’s TurboQuant technology will affect demand for memory chips, which is precisely the core product of Korea’s semiconductor industry. With the current market conditions, investors can only endure volatility amid uncertainty.”

Since the beginning of this year, Korea’s stock market volatility has been extremely intense. Kospi’s circuit breaker mechanism (a daily decline of 8% triggers a trading halt) has historically been triggered only 8 times. This month alone has seen it happen twice, and the level of volatility is already comparable to the period of the 2020 pandemic shock.

As of Monday, this month Korea’s stock market value has already been eroded by about $739 billion. On Tuesday, foreign investors net sold Kospi stocks worth 3.8 trillion won, while retail investors and local funds chose to add to positions. However, from the start of the year to now, the index is still up by about 20%.

		Sina statement: This message is a repost from Sina’s partner media. Sina.com publishes this article for the purpose of disseminating more information, and does not mean that it agrees with or verifies the views described. The article content is for reference only and does not constitute investment advice. Investors act on this at their own risk.

A wealth of information and precise analysis—right here in the Sina Finance app

责任编辑：宋雅芳