Chongqing Zaisheng Technology Co. Ltd.: A Week of Turbulent Gains Amid Sector‑Wide Momentum

Chongqing Zaisheng Technology Co. Ltd. (stock code 603601, ticker 再升科技) has experienced a dramatic surge in trading activity and share price over the past week, reflecting both company‑specific catalysts and broader market dynamics. The company, listed on the Shanghai Stock Exchange, specialises in the manufacture of glass microfiber filter media and glass‑fiber core materials, positioning it within China’s rapidly evolving clean‑air and energy‑efficiency sectors.

1. Record‑Setting Trading Volumes and Price Movements

  • Five consecutive daily limit‑ups (五连板) were recorded from 12 December 2025, with the stock climbing from 8.43 CNY on 12 December to an intraday peak that pushed the price up by 65.94 % over six trading days.
  • On 12 December, the daily turnover reached 16 亿元 (approximately 1.6 billion CNY), and the average daily turnover for the past five days exceeded 61 %.
  • The average trading volume per transaction rose by over 50 % for 67 individual stocks, indicating heightened market activity and liquidity across the board.
  • Net institutional buying reached 7.99 亿元 on the day, with the top positions being 联特科技, 西部材料, and 安泰科技.
  • The stock’s price‑to‑earnings ratio (TTM) of 107.04× far surpassed the industry average of 53.94×, signalling a significant premium that raises concerns of market‑price over‑valuation.

2. Regulatory and Risk‑Management Disclosure

In response to the rapid price escalation, the board issued a stock‑trading risk warning announcement on 12 December. The notice highlighted:

  • The five consecutive limit‑ups and the 65.94 % price increase over the last week.
  • The potential for non‑rational speculation and market‑sentiment over‑heat, urging investors to exercise caution.
  • An absence of current orders for the company’s “high‑silicon‑oxide‑fiber” products, suggesting that the price surge may not yet be underpinned by new sales commitments.

3. Sector Context and Broader Market Movements

  • A‑share markets posted a modest upward trend across major indices on 12 December: the Shanghai Composite (+0.41 %), Shenzhen Component (+0.84 %), and ChiNext (+0.97 %).
  • Total market turnover hit 2.12 万亿元 (212 trillion CNY), a record for the day, reflecting a surge in trading liquidity.
  • Leverage and financing inflows reached historic highs, with total net financing purchases of over 260 亿元 and a financing balance of 2.49 万亿元, underscoring intensified buying pressure in the market.
  • The “military‑industry” and “communications” sectors received net purchases exceeding 20 亿元, while electronics garnered the largest net inflow at 86 亿元.

4. Company‑Specific Drivers

Chongqing Zaisheng’s core business revolves around micro‑fiber glass wool and related clean‑air technologies. The company has positioned itself as a supplier of:

  • Clean‑air materials for industrial, mobile, and residential environments.
  • High‑efficiency, energy‑saving components that promise reduced energy consumption and lower carbon emissions.

Recently, the company received a policy announcement: the “National Intelligent Manufacturing Standard System Construction Guide” for the civil explosives industry, a development that may enhance the company’s visibility and regulatory support.

5. Investor Sentiment and Outlook

  • Foreign investors remain optimistic about China’s 2026 market, citing robust AI infrastructure growth and an improving earnings outlook for technology sectors.
  • Despite this optimism, the current valuation premium and the rapid price movement have prompted the company’s risk warning, signalling that investors should remain vigilant.
  • The absence of new orders for high‑silicon‑oxide‑fiber products suggests that the price rally may be driven more by speculative momentum than by tangible business expansion.

In summary, Chongqing Zaisheng Technology Co. Ltd. has enjoyed an extraordinary week of trading activity, driven by sector momentum, institutional buying, and policy support. Yet, the company’s high valuation relative to peers, coupled with a lack of confirmed sales, highlights the importance of cautious investment appraisal in the face of such rapid market enthusiasm.