Beijing’s push for “compute-power + grid” jolts China’s market rotation; UGREEN (绿联科技) rides NAS storage boom

Policy signal resets the week’s narrative

China’s 2026 Government Work Report has elevated “compute-power and electricity coordination” (算电协同) to a national strategy, spurring a late-week rally in grid equipment and AI-compute plays even as major indices finished lower overall for March 2–6. After risk-on moves in oil and gas and a shipping surge early in the week—and a sharp midweek whipsaw—capital rotated into power-grid suppliers and the “compute-power” supply chain on Thursday and Friday, according to Huxiu (虎嗅). The policy blueprint calls for ultra-large intelligent computing clusters and nationwide monitoring/dispatch of compute capacity, effectively tying China’s data center buildout to grid upgrades. In a market still heavy with retail traders, a clear policy anchor matters. Can this momentum translate into earnings?

Company spotlight: UGREEN (绿联科技)

UGREEN (绿联科技, SZ: 301606), a Shenzhen (深圳)-listed peripherals maker known globally for chargers and cables, is emerging as a beneficiary of the storage leg of this theme. The company forecasts 2025 net profit of RMB 653–733 million, up 41–59% year on year, with charging products as its revenue core and office connectivity as a steady second line. The standout? Smart storage. Revenue from this segment reached RMB 726 million in the first three quarters of 2025, with NAS (network-attached storage) contributing RMB 545 million—up 315% year on year. For Western readers, NAS in China has become a fast-growing “private cloud” alternative to international incumbents, a trend reinforced by data-sovereignty preferences and the push to localize key tech stacks amid U.S. export controls on advanced semiconductors.

Market pulse and what’s next

The week traced a rapid rotation: geopolitics-fueled hedges (oil/gas) gave way to policy-driven trades (grid/compute-power), and then selected price-hike stories (chemicals). Institutions reportedly judge the geopolitical shock as largely sentiment-driven and expect the market to refocus on fundamentals tied to the coming 15th Five-Year Plan (2026–2030)—namely power grids, compute infrastructure, and semiconductors—alongside first-quarter results. Retail enthusiasm continues to lean on classic technical patterns such as flags and pennants, but durability will hinge on delivery: can policy-backed capex in grids and AI computing survive power constraints, supply-chain bottlenecks, and ongoing U.S.–China tech frictions? The answer will shape whether this week’s theme turns into a cycle.