Market sentiment improved significantly after former U.S. President Donald Trump suggested the conflict could conclude within two to three weeks, while Iran's president simultaneously expressed willingness for peace talks. These dual positive factors quickly ignited market optimism. On Wednesday, global stock markets, which had previously suffered heavy losses, staged a robust rebound. Overnight, U.S. stocks recorded their largest single-day gain in recent sessions. Asian markets followed suit with broad gains at the open: Japan's Nikkei surged 3%, South Korea's market triggered a circuit breaker, Hong Kong's Hang Seng Index opened 2.3% higher, and the Hang Seng Tech Index rose 2.75%. Oil prices stabilized after recent declines.
In the A-share market, the three major indices opened substantially higher. As of 9:40 a.m., the Shanghai Composite Index was up 1.01%, the Shenzhen Component Index gained 1.08%, and the ChiNext Index advanced 1.09%. In early trading, the memory chip sector opened collectively higher, with Shenzhen Techwinsemi Technology Co.,Ltd. hitting the daily limit up at the open. The shipping sector saw active buying, with China Merchants Energy Shipping and Jinjiang Shipping reaching the limit up. The infrastructure sector remained active, with China High Speed Railway Technology Co.,Ltd. securing its third consecutive limit-up board, Norinco International Cooperation Ltd. hitting the limit up at the open, and China CAMC Engineering Co., Ltd. and Jinxi Axle Co., Ltd. touching the limit up. The fiberglass concept rose rapidly, with Shandong Fiberglass Group approaching the limit up and International Reams gaining over 10%. The airport and shipping sector showed strength at the start, with China Eastern Airlines and China Express Airlines both rising over 5%.
Among focus stocks, Sungrow Power Supply Co.,Ltd. opened lower and extended losses, falling over 12% after the company reported a simultaneous decline in both revenue and net profit for the fourth quarter of last year.
Looking ahead, Huaxi Securities stated that the direction of the U.S.-Iran conflict remains the core overseas variable and the primary external factor suppressing risk appetite in A-shares. Given the significant gap between the core demands of both sides, the difficulty of a "TACO" deal has increased substantially. Regarding opportunities, China Securities Co., Ltd. noted in a research report that the future of commercial aerospace is vast, with both China and the U.S. placing it at a very high strategic importance.
**Hot Sectors:**
1. **Memory Chip Concept Opens Higher Collectively** The memory chip sector opened broadly higher, with Shenzhen Techwinsemi Technology Co.,Ltd. hitting the limit up at the open. Shares such as Biwin Storage Technology Co., Ltd., Netac Technology Co., Ltd., Jiangsu Caina Technology Co., Ltd., and Shannon Semiconductor Co., Ltd. followed with gains. *Commentary: On the news front, U.S. memory chip stocks generally rose sharply overnight, with SanDisk surging over 10%, and Western Digital and Micron Technology both gaining over 7%. Additionally, Shenzhen Techwinsemi Technology Co.,Ltd. announced an estimated first-quarter net profit of 3.15 billion to 3.65 billion yuan.*
2. **Infrastructure Sector Remains Active** The infrastructure sector continued its active performance. China High Speed Railway Technology Co.,Ltd. marked its third consecutive limit-up board, Norinco International Cooperation Ltd. hit the limit up at the open, while China CAMC Engineering Co., Ltd. and Jinxi Axle Co., Ltd. touched the limit up. Stocks like Tietuo Machinery Co., Ltd. and Jin Ying Heavy Industry Co., Ltd. followed with gains. *Commentary: According to a CCTV Finance report, a flagship project for the "16th Five-Year Plan" period—the Yangtze River Delta high-speed railway—is accelerating construction at the Yangtze River estuary. This railway will extend from Shanghai to Chengdu, connecting the Yangtze River Delta, the middle reaches of the Yangtze River, and the Chengdu-Chongqing economic circles, spanning approximately 2,000 kilometers. The total investment for the high-speed railway exceeds 500 billion yuan.*
**Institutional Views:**
**Huaxi Securities: Transition from Defense to Offense Requires Time; Await More Market-Stabilizing Policies** The trajectory of the U.S.-Iran conflict remains the key overseas variable and the primary external factor suppressing A-share risk appetite. The significant gap in core demands between the parties makes a "TACO" agreement considerably more difficult. The conflict has now lasted one month. Although negotiation signals emerged multiple times this week, the substantial differences between the U.S.'s "15-point ceasefire plan" and Iran's "five conditions for a truce" suggest high uncertainty, with a scenario of "fighting while talking" being highly probable. In terms of sector allocation, a defensive strategy is tactically advantageous. Recommendations include: 1) Defensive sectors like banking, utilities, and consumer staples; 2) Sectors related to energy autonomy, such as new energy, power, energy storage, and lithium batteries; 3) High-growth sectors with strong earnings visibility, like AI computing power and innovative drugs.
**China International Capital Corporation (CICC): Future Industry Investment Opportunities Lie in the "Future," Not the "Present"** Future industries hold significant importance, with relatively clear industrial and policy trends. However, their market performance may exhibit characteristics of being phased, thematic, and showing significant internal divergence. In the short to medium term (approximately one year), it is advisable to monitor the progress of future industries without necessarily seeking "immediate deployment" in most areas. Instead, attention should be paid to the risks associated with the alignment of asset prices and corporate development. Over the long term (one year or more), as industries develop, application paths become clearer, more excellent companies emerge, and competitive landscapes solidify, further investment opportunities can be identified.
**China Securities Co., Ltd.: Bullish on the Subsequent Performance of the Commercial Aerospace Sector** A research report from China Securities Co., Ltd. stated that the future of commercial aerospace is vast, with both China and the U.S. assigning it extremely high strategic priority. SpaceX leads in constellation deployment progress, rocket launch capacity and cost, revenue scale, and valuation. Driven by the strategic value of securing orbital slots and frequencies and the commercial value of operational services, China's policies support the development of commercial aerospace from both industrial and capital market perspectives. Domestic development is accelerating to catch up, with large reusable rockets beginning intensive maiden flights, which is expected to gradually overcome core industry bottlenecks and accelerate the formation of a closed-loop industrial chain. The outlook for the commercial aerospace sector is positive. Within the satellite segment, focus on payload systems, antennas and supporting equipment, laser communication terminals and components, and solar wings and energy systems. In the rocket segment, focus on engines and related 3D printing, as well as rocket body structures. For ground equipment, focus on civil terminals and direct-to-cell connectivity. In the operational services segment, focus on companies possessing稀缺 qualifications.
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