The stock opened with a rapid limit-up! 600370, four consecutive limit-up sessions

Today’s morning session, the A-share market continued its volatile trend, with the insurance, brokerage, and other major financial sectors overall gaining momentum, leading to relative strength in the Shanghai Composite Index. By midday, the Shanghai Composite Index was at 4,083.03 points, down 0.04%; the Shenzhen Component Index fell 0.40%; the ChiNext Index declined 0.58%; and the STAR Market Composite Index dropped 0.72%.

Chemical Stocks Remain Active, Sanchambang Hits Four Consecutive Limit-Ups

In the early trading hours, the chemical sector showed localized activity, with some popular stocks continuing to surge. Sanchambang (600370) opened slightly lower today, then quickly surged after the open, hitting the daily limit again in less than 8 minutes, marking four consecutive limit-ups on the daily chart. Other chemical stocks such as Luxin Technology and Shuangxin Materials hit the daily limit, while Zhongfu Shenying rose over 12%.

On March 16, Sanchambang issued a risk warning notice regarding stock trading, disclosing recent abnormal stock price fluctuations, operational performance, and the status of controlling shareholder shares. The notice highlighted last year’s losses and the freezing of the controlling shareholder’s shares. The company stated that despite changes in the prices of main products, its core business remained largely unchanged, and price fluctuations had no significant impact on profitability or gross margins.

Data shows that Sanchambang’s main products are bottle-grade polyester chips (bottle chips) and PTA, with additional businesses in PBT engineering plastics and thermal power. On the futures market, Zhengzhou Commodity Exchange’s bottle chip futures contracts have recently been on the rise, reaching a high of 9,282 yuan/ton on March 16, with a total increase of about 40% since March.

Guosheng Securities’ research report indicates that the ongoing escalation of geopolitical tensions in the Middle East is driving up crude oil prices, which are accelerating the transmission along the “naphtha-PX-PTA-PET” industry chain. According to Baichuan Yingfu data, from March 6 to 12, the average price of polyester bottle chips was 7,990 yuan/ton, up 23% week-on-week. Major producers reducing contract volumes have caused tight supply, and with the peak demand season for PET in March and April, along with industry-wide production controls to prevent overcapacity, the profitability of bottle chips is showing marginal improvement.

Major Financial Sector Gains, Insurance Stocks Lead

In the early trading hours, the major financial sector was generally strong, with insurance stocks leading the gains. By midday, the Shenwan Insurance Industry Index rose 2.68%, with New China Insurance up over 3%, and Ping An, China Pacific Insurance, and PICC Property & Casualty each up over 2%.

According to the National Financial Regulatory Administration, China’s total insurance assets are expected to maintain growth of over 10% for three consecutive years by 2025, with premium income increasing by 7.4% year-on-year, further accelerating the growth rate compared to 2024.

Guosheng Securities’ research report suggests that external environment and market sentiment disturbances have caused short-term pressure, leading to recent adjustments in the A-share insurance sector. However, the long-term logic of liability and asset-side resonance remains unchanged: long-term benefits from deposit migration trends on the liability side, increasing demand for long-term medical and pension security; and stable long-term interest rates on the asset side, with continued active capital markets. Based on this, the outlook for the insurance sector remains positive.