1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report Based on the "Gain - Loss - Crowding" quadrant chart and ETF fund flow as of the market on March 20, the semiconductor sector is worthy of continuous attention. From March 16 - 20, the communication equipment and artificial intelligence sectors were strong, with the trading heat of communication equipment slightly increasing and the crowding of artificial intelligence rising significantly. The decline of semiconductor equipment was limited, and the crowding was at a historical low. The chemical industry had a large decline, and the crowding dropped from a high level. The consumer electronics sector declined, and the crowding increased significantly. Combining the ETF fund flow, semiconductors are steadily increasing in holdings, which may be the direction for funds to bet on the price - increase logic under the strong demand for computing power. The grid equipment sector has cash - out, increasing the difficulty of participation. The chemical sector has a net outflow of funds, and subsequent fluctuations may increase [1]. 3. Summary by Relevant Catalog 3.1 Market Review: Overall Market Decline, AI Hardware Performs Strongly - **Overall market trend**: From March 16 - 20, the market significantly corrected. As of March 20, 2026, the closing price of Wande All - A was 6471.92, a 4.13% drop from March 13 [6]. - **Performance of major stock indices**: The ChiNext Index performed well, rising 1.26%. The CSI 500 and CSI 2000 had relatively large declines, dropping 5.82% and 5.70% respectively [9]. - **Stock - type ETF flow**: From March 16 - 20, stock - type ETFs had a net outflow of 20.904 billion yuan, with the outflow scale narrowing compared to March 9 - 13. Structurally, theme - index ETFs had a net outflow of 23.086 billion yuan, industry - index ETFs had a net outflow of 1.937 billion yuan, and broad - based index ETFs had a net inflow of 8.9 billion yuan [12][13]. - **Industry - level performance**: The AI hardware sector was strong. The communication equipment index slightly rose, and the crowding slightly increased. The artificial intelligence index slightly declined, but the crowding significantly increased. The semiconductor equipment index had a limited decline, and the crowding was at a low level. The chemical industry index had a large decline, and the crowding dropped from a high level. The consumer electronics index declined, and the crowding significantly increased [16]. 3.2 Future Focus: Computing Power Price Increase, Semiconductors May Benefit - **Semiconductor**: The semiconductor ETF declined 2.78%, with a relatively small drop. It had a cumulative net inflow of 603 million yuan this week and a cumulative net inflow of 628 million yuan this year. With the strong demand for AI computing power and the price increase of computing power announced by Alibaba, the semiconductor sector is expected to expand production. The sector has a net inflow of funds and a low crowding, so the subsequent market is worthy of attention [24]. - **Grid equipment**: The grid equipment ETF declined 8.42% this week, with a single - week net outflow of 543 million yuan. Since 2026, the grid equipment sector has a cumulative increase of 25.21%, and the closing price is at the 99.33% quantile level since 2010. There is a large pressure for profit - taking, and the subsequent capital - receiving ability is weak, so short - term adjustments may continue [25]. - **Chemical industry**: From March 16 - 20, the chemical ETF declined 11.18%, with a net outflow of 4.373 billion yuan. Since 2026, the chemical sector has had a net inflow of 10.095 billion yuan. After the Spring Festival, the pressure for profit - taking has increased, with a cumulative net outflow of 6.514 billion yuan from February 24 to March 20. Coupled with the high crowding level, the difficulty of participation may significantly increase [25].

Group 1 - The core viewpoint of the report highlights that the Beijing Stock Exchange (BSE) has reached a milestone of 300 listed companies, with over 55% being "little giants" and 65 single champions, establishing a strong foundation for new productive forces [2][11][18] - The BSE has shown a steady increase in the number of specialized and innovative small and medium-sized enterprises, with the proportion of national-level "little giants" rising from 44% to 55.33% as the number of such companies grew from 44 to 99 [2][18][19] - The report indicates that the 300 listed companies are primarily concentrated in advanced manufacturing and strategic emerging industries, which are crucial for enhancing the capital market's role in empowering new productive forces and addressing supply chain deficiencies [2][28] Group 2 - The report notes that the average and median revenue for companies queued for listing in 2024 are projected to be 791 million and 588 million respectively, indicating a high-quality pipeline of future listings [2][39] - The distribution of companies by revenue shows that 32.85% of the queued companies are expected to generate revenue between 5-10 billion, while 25.12% are anticipated to exceed 10 billion [29][31] - The report emphasizes that the BSE's focus on "specialized, refined, unique, and innovative" enterprises is creating a market ecosystem that supports the growth of these companies, which are characterized by their unique products and advanced technologies [15][18] Group 3 - The report highlights that the BSE's market performance has been affected by rising risk premiums, with the North Certificate 50 and specialized new index experiencing declines of 5.76% and 7.57% respectively [3][57] - The valuation metrics for various sectors indicate that high-end equipment, chemical new materials, and biomedicine have significant valuation advantages compared to information technology, with respective P/E ratios of 36.58X, 44.08X, and 32.34X [3][65] - The report suggests that the BSE is positioned to enhance its market appeal by attracting high-quality specialized and innovative enterprises, particularly in sectors that are currently underrepresented compared to other boards like the Sci-Tech Innovation Board and the Growth Enterprise Market [45][49]

Group 1 - The article discusses a series of online meetings scheduled for March 2023, focusing on various sectors including pharmaceuticals, agriculture, new energy, and chemicals [24]. - The first meeting on March 23, 2023, at 19:00, will cover a deep report on Zai Ding Pharmaceutical, presented by the chief analyst and an analyst from the pharmaceutical sector [24]. - The second meeting on March 23, 2023, at 20:00, will focus on investment strategies in the planting sector, led by the chief agricultural analyst and an agricultural analyst [24]. Group 2 - A meeting on March 25, 2023, at 20:30, will explore new opportunities in the new energy sector, specifically the seventh series of discussions, presented by the vice president and chief analyst of the electric new energy sector [24]. - On March 27, 2023, at 11:00, a session titled "Europe's Risks, China's Opportunities" will address the impact of natural gas supply shocks on the vitamin industry, led by a chemical industry analyst [24]. - The final meeting on March 27, 2023, at 15:00, will provide insights into the electronic industry for April, presented by the chief analyst of the electronic sector [24].

Core Insights - The report indicates that the current market adjustment is considered a healthy one, with expectations for a transition into a profit-driven bull market in the second phase after the adjustment period [3][6][30]. Market Perspectives - The ongoing geopolitical tensions, particularly the unresolved US-Iran conflict, continue to exert pressure on market sentiment, with the March FOMC meeting signaling a hawkish stance from the Federal Reserve due to inflation concerns [4][16]. - Economic data for January and February showed better-than-expected performance, with retail sales and fixed asset investment rebounding, but the growth is attributed to seasonal effects from the late Spring Festival [5][18][21]. Industry Allocation - During the healthy adjustment period, sectors benefiting from price increases and dividend assets are expected to outperform. Key sectors include banking, utilities, and industries with price catalysts such as chemicals and machinery [3][39]. - The report outlines a framework for identifying when the second phase of growth for the growth style will begin, emphasizing the need for a reduction in external risk factors and a confirmation of high performance in growth sectors [6][28][30]. Configuration Hotspots - The report suggests that the growth style is currently in its first healthy adjustment phase, with expectations for a second phase to begin around mid-April, contingent on specific market indicators being met [6][29][31]. - Recent strong performances in the communication sector and representative growth stocks are viewed as part of a rebound process within the adjustment phase, with the potential for a final dip before a new upward trend [7][34][35].

Domestic Developments - The Ministry of Industry and Information Technology and three other departments issued the "Implementation Plan for High-Quality Development of Energy-Saving Equipment (2026-2028)" on March 20, 2026, focusing on enhancing the efficiency of energy-saving equipment in key industries[10] - The plan targets six categories of energy-saving equipment, including energy-saving motors and transformers, aiming for international leading efficiency levels by 2028[10] - The plan emphasizes the integration of advanced technology, green design, and artificial intelligence to accelerate the intelligent and green development of energy-saving equipment[10] ESG Financial Products Tracking - As of March 21, 2026, China has issued 4,006 ESG bonds, with a total outstanding amount of 5.84 trillion RMB, where green bonds account for 62.42% of the total[4] - In March 2026, 103 ESG bonds were issued, raising 902 billion RMB, while a total of 1,359 ESG bonds were issued in the past year, amounting to 14,281 billion RMB[4] - The market has 1,096 existing ESG public funds, with a total net asset value of 17,653.90 billion RMB, where socially responsible products represent 41.55%[4] - There are 1,232 existing ESG bank wealth management products, with pure ESG products making up 53.98% of the total[4] Index Performance - As of March 20, 2026, major ESG indices outperformed the market, with the Shenzhen ESG 300 index experiencing the largest decline of 2.78%[38] - Over the past year, major ESG indices have shown positive growth, with the Shenzhen ESG 300 index increasing by 16.85%[38] Expert Insights - Zhang Zhentao, a member of the National Committee of the Chinese People's Political Consultative Conference, highlighted the chemical industry as a significant energy consumer with substantial carbon reduction potential, aiming for a 3.8% reduction in carbon emissions per unit of GDP[6] - He emphasized the importance of technological innovation in achieving carbon reduction goals and the potential for companies that integrate energy-saving technologies into their processes to lead in green transformation[6] Risk Factors - Potential risks include slower-than-expected ESG development, challenges in advancing carbon neutrality strategies, and delays in policy implementation[41]

1. Report Industry Investment Rating - No relevant content provided 2. Core Viewpoints of the Report - The trading activity in the commodity options market decreased this week, with the average daily trading volume at 8.28 million lots and the average daily open interest at 9.05 million lots, showing a -22.31% and +5.14% change respectively compared to the previous period. The geopolitical impact in the Middle East led to a continued strong upward trend in commodity option underlying assets, especially in the energy and chemical sectors. Many varieties' implied volatility is at a high level in the past year, and investors are advised to pay attention to short - volatility opportunities [1][8][17]. 3. Summary by Directory 3.1 Commodity Option Market Activity - The trading activity in the commodity options market decreased from March 16 to March 20, 2026. The average daily trading volume was 8.28 million lots, and the average daily open interest was 9.05 million lots, with a -22.31% and +5.14% change respectively compared to the previous period. The actively traded varieties included styrene (770,000 lots), methanol (650,000 lots), and silver (520,000 lots). Three varieties' trading volume doubled, namely asphalt (+368%), lead (+191%), and silver (+112%). The varieties with a significant decline in trading volume were staple fiber (-84%), propylene (-84%), and caustic soda (-75%). The varieties with high average daily open interest were soybean meal (750,000 lots), cotton (550,000 lots), and corn (520,000 lots). The varieties with a rapid increase in average daily open interest were asphalt (+154%) and p - xylene (+102%) [1][8]. 3.2 This Week's Key Data Review of Commodity Options - **Underlying Asset Price Movements**: Affected by the geopolitical situation in the Middle East, commodity option underlying assets, especially in the energy and chemical sectors, continued to rise. The varieties with high weekly increases included LPG (+19.08%), ethylene glycol (+13.20%), and methanol (+11.66%); the varieties with high weekly decreases included silver (-15.76%), polysilicon (-10.17%), and tin (-8.45%) [2][17]. - **Market Volatility**: The geopolitical impact in the Middle East kept the market sentiment high. The implied volatility of 47 varieties was above the 80th percentile of the past year. The varieties with a significant increase in implied volatility included ethylene glycol (+14.27pct), gold (+11.49pct), and tin (+10.01pct); the varieties with a significant decrease in implied volatility included pure benzene (-85.51pct), styrene (-54.17pct), and p - xylene (-36.17pct) [2][17]. - **Option Market Sentiment**: Currently, the trading volume PCR of silver, copper, lithium carbonate, and industrial silicon is at a historical high, indicating a short - term concentrated bet on a downward trend; the trading volume PCR of oilseeds, LPG, soda ash, and urea is at a one - year low, indicating a concentrated bet on an upward trend. The open interest PCR of PVC, asphalt, plastic, and soybean meal is at a historical high, indicating a high level of bearish sentiment; the open interest PCR of live pigs, silver, polysilicon, and rapeseed meal is at a one - year low, indicating a bullish sentiment [3][18]. 3.3 Key Data Overview of Major Varieties - This chapter presents key data of major varieties, including trading volume, volatility, and option market sentiment indicators. More detailed data can be found on the Dongzheng Fanwei official website (https://www.finoview.com.cn/) [23]. - **Energy**: Relevant charts show the total trading volume, volatility, open interest PCR, and trading volume PCR of crude oil [24][25][26]. - **Chemicals**: - **PTA**: Charts display the total trading volume, volatility, open interest PCR, and trading volume PCR of PTA [30][31][33]. - **Caustic Soda**: Charts show the total trading volume, volatility, open interest PCR, and trading volume PCR of caustic soda [40][41][42]. - **Glass**: Charts present the total trading volume, volatility, open interest PCR, and trading volume PCR of glass [49][50][52]. - **Soda Ash**: Charts show the total trading volume, volatility, open interest PCR, and trading volume PCR of soda ash [58][59][60]. - **Precious Metals**: Charts show the total trading volume, volatility, open interest PCR, and trading volume PCR of silver [66][71][68]. - **Ferrous Metals**: - **Iron Ore**: Charts display the total trading volume, volatility, open interest PCR, and trading volume PCR of iron ore [75][76][77]. - **Silicomanganese**: Charts show the total trading volume, volatility, open interest PCR, and trading volume PCR of silicomanganese [84][85][86]. - **Non - Ferrous Metals**: - **Copper**: Charts present the total trading volume, volatility, open interest PCR, and trading volume PCR of copper [92][93][95]. - **Aluminum**: Charts show the total trading volume, volatility, open interest PCR, and trading volume PCR of aluminum [101][102][103]. - **Agricultural Products**: - **Soybean Meal**: Charts display the total trading volume, volatility, open interest PCR, and trading volume PCR of soybean meal [109][110][114]. - **Palm Oil**: Charts show the total trading volume, volatility, open interest PCR, and trading volume PCR of palm oil [118][119][121]. - **Cotton**: Charts present the total trading volume, volatility, open interest PCR, and trading volume PCR of cotton [126][128][130].

Investment Rating - The industry investment rating is maintained as "Positive" [5] Core Viewpoints - The geopolitical situation in the Middle East continues to impact the stability of raw material supplies, which is a primary concern for the chemical industry. Despite fluctuations in stock prices, the underlying demand for certain chemical products remains strong, particularly in sectors like polyurethane, PVC, and polyester [2][8] - The sweetener industry is showing signs of marginal improvement, with a notable increase in exports of sucralose and acesulfame K, indicating a potential recovery in demand. The domestic market for sucralose as a feed additive is also expected to expand, enhancing the industry's growth prospects [8] Summary by Relevant Sections Investment Recommendations and Targets - The report highlights several key companies across various sub-industries within the chemical sector: - MDI leader: Wanhua Chemical (600309, Buy) - PVC industry players: Zhongtai Chemical (002092, Not Rated), Xinjiang Tianye (600075, Not Rated), Chlor-alkali Chemical (600618, Not Rated), Tianyuan Co., Ltd. (002386, Not Rated) - Refining industry leaders: Sinopec (600028, Buy), Rongsheng Petrochemical (002493, Buy), Hengli Petrochemical (600346, Buy) - Agricultural chemical chain: Guoguang Co., Ltd. (002749, Buy), Xinyangfeng (000902, Buy), Shidanli (002588, Not Rated), Yuntu Holdings (002539, Not Rated), Runfeng Co., Ltd. (301035, Buy) - Phosphate chemical companies benefiting from energy storage growth: Chuanheng Co., Ltd. (002895, Not Rated), Yuntianhua (600096, Not Rated) - Oxalic acid industry: Hualu Hengsheng (600426, Buy), Huayi Group (600623, Buy), Wankai New Materials (301216, Buy) - Titanium dioxide leaders: Tianyuan Co., Ltd. (002386, Not Rated), Longbai Group (002601, Increase) - Sweetener industry: Jinhui Industrial (002597, Buy), Cooch Chemical (603968, Not Rated) [3]

Group 1 - The core message is about the meeting between the General Manager of State Power Investment Corporation, Xu Shubiao, and Matthias Dohrn, the President of Global Procurement at BASF, focusing on deepening cooperation in the energy sector [1] - The collaboration will include practical cooperation in areas such as green power trading, green hydrogen energy, and biomass fuel [1]

Group 1 - The registered capital of Changzhou Bridgestone Fluid Technology Co., Ltd. has increased from 2.019 billion yen to 2.719 billion yen [1] - The company is jointly held by Bridgestone (China) Chemical Investment Co., Ltd. and Bridgestone Fluid Technology Co., Ltd. of Japan [1]

Group 1 - The core driver of the recent decline in precious metals is the complete reversal of interest rate expectations, with the Federal Reserve signaling a potential halt to rate cuts due to rising inflation concerns driven by escalating oil prices [2][3][4][88] - The market's expectation of two rate cuts this year was shattered, with the probability of any cuts dropping from 93% to below 60% following the Fed's March meeting [2][4] - The strong dollar, which reached a 10-month high, and profit-taking from investors who had benefited from previous price increases also contributed to the sell-off in precious metals [7][8][88] Group 2 - The sell-off pressure was exacerbated by forced liquidations of leveraged positions, particularly in gold and silver, as retail investors had heavily invested in these assets through leveraged ETFs [5][6] - The SPDR Gold Shares ETF experienced a record outflow of $2.91 billion on March 5, marking the largest single-day withdrawal since 2016 [5] - Silver, which saw a 30% drop at one point, was particularly affected due to its dual role as both a precious and industrial metal, leading to compounded selling pressure [8] Group 3 - The different decline rates among precious metals can be attributed to their unique market dynamics, with gold falling 11%, silver 17%, platinum 17%, and palladium 15% [8] - Gold's decline was primarily driven by interest rate expectations, while silver's drop was influenced by both its precious and industrial metal attributes, leading to greater volatility [8] - The industrial demand outlook for platinum and palladium has also been negatively impacted by economic uncertainty, contributing to their respective declines [8] Group 4 - The geopolitical tensions in the Middle East, particularly the attacks on energy facilities, have created significant supply disruptions, impacting global energy markets and related commodities [11][12][16] - The closure of the Strait of Hormuz, a critical shipping route for oil, has led to a complete halt in maritime traffic, further straining supply chains and increasing market volatility [18] - China's methanol imports, which heavily rely on supplies from Iran, Saudi Arabia, and Qatar, are at risk due to these geopolitical developments, potentially leading to significant supply shortages [17][19]