Review of the past 10 years' data: Shanghai Composite Index averaged a 2.1% increase in March; small and micro-cap stocks and dividend indices performed better.

A-shares March market is about to begin. Based on historical data from the past 10 years (2016 to 2025), the Shanghai Composite Index has increased in nearly 40% of March, with an average gain of about 2.1%. Notably, in March 2016 and 2019, the Shanghai Composite Index performed well, with monthly increases of 11.8% and 5.1%, respectively. In contrast, during March 2020 and 2022, it declined by 6.1% and 4.5%.

Note: Performance of the Shanghai Composite Index in March over the past 10 years

Regarding other major market indices, small-cap and dividend indices performed relatively well in March over the past decade. The CSI 2000 and GuoZheng 2000 indices had average gains of 2.7% and 2.3%, respectively. The Dividend Index, CSI 1000, and ChiNext Index also saw average increases of over 1%. Meanwhile, the SSE 50 and CSI 300 averages for March over the past ten years showed declines, but the drops did not exceed 1%. Based on the upward ratio, the Dividend Index, Small-Cap Index, and Shenzhen Component Index had proportions of 50% or higher.

Note: Performance of major market indices in March over the past 10 years

At the sector level, out of 31 Shenwan first-level sectors, 23 recorded gains in March over the past decade, accounting for nearly 74%. Among them, agriculture, forestry, animal husbandry, fishery, beauty and personal care, pharmaceuticals and biologicals, computers, utilities, comprehensive sectors, and construction decoration performed well, with gains of 3.8%, 3.3%, 3.0%, 2.8%, and 2.7%, respectively. Conversely, sectors such as steel, petroleum and petrochemicals, non-bank financials, electronics, automobiles, banking, and basic chemicals experienced relatively larger monthly declines.

Note: Performance of industry sector indices in March over the past 10 years

Breaking down further into sub-sectors (Shenwan third-level), sectors such as thermal power equipment, international engineering, natural scenic spots, other planting industries, livestock feed, heating services, cement products, cross-border e-commerce, comprehensive power services, and pharmaceutical distribution had the highest average gains in March over the past decade. In terms of upward ratios, sectors like natural scenic spots, cement products, cross-border e-commerce, pharmaceutical distribution, tourism, commercial property management, hydropower, footwear and headgear, other building materials, power transmission and transformation equipment, and beer had ratios of 80% or above.

(Source: Cailian Press)