The market staged a strong rally today, with the Shanghai Composite Index reclaiming the 4100-point level and the ChiNext Index surging over 2%. Total trading volume approached 2.6 trillion yuan for the session, with more than 3,900 stocks advancing across the two exchanges and over 100 hitting the daily upside limit. As the first-quarter earnings season draws to a close, the market appears to be entering a phase where negative news has been largely digested. Capital is flowing back into leading companies with strong earnings visibility, such as rare earth producers (notably China Northern Rare Earth(Group)High-Tech Co.,Ltd., which reported doubled profits), despite significant declines in some individual stocks that reported disappointing results. Several underperforming stocks, including Zhuoran Shares, Zhongjian Technology, Caibai Shares, and Bai'ao Chemical, fell by the daily limit. The lithium battery sector witnessed another wave of limit-up gains, with strong performances across battery manufacturers and upstream material suppliers. Guangzhou Great Power Energy And Technology Co.,Ltd. surged by the 20% daily limit, while Shenzhen Dynanonic Co.,Ltd., Yongxing Special Materials Technology Co.,Ltd., and others also hit the limit-up. Industry data showed that China's energy storage lithium battery shipments reached 215GWh in the first quarter of 2026, a 139% year-on-year increase. Leading companies have order backlogs stretching into late 2026 or the second quarter of 2027, with capacities saturated and prioritizing high-margin orders. In other sectors, the computing power leasing concept remained active, with Xingyun Technology touching the 20% limit-up. The CPO (Co-Packaged Optics) concept fluctuated but recovered intraday, with Cig Shanghai Co.,Ltd. and Ruisi Kangda both rising by the limit. The rare earth permanent magnet concept strengthened rapidly, with China Northern Rare Earth(Group)High-Tech Co.,Ltd., China Rare Earth, Huahong Technology, and Shenghe Resources all hitting the limit-up. The PCB industry chain extended its gains, with Shandong Fiberglass securing two limit-ups in three days and Honghe Technology hitting a new record high. On the downside, semiconductor material stocks experienced adjustments, with Olai New Materials, Huate Gas, and Anji Technology declining. Among focus stocks, recent market leader Yuanjie Technology continued its upward trend, closing at 1,515 yuan per share today, marking a more than tenfold increase over the past year. The company previously reported first-quarter 2026 revenue of 3.55 billion yuan, up 320.94% year-on-year, and net profit attributable to shareholders of 179 million yuan, surging 1,153.07%. Overall, 3,973 stocks advanced, 1,403 declined, and 135 were unchanged. A total of 121 stocks hit the daily limit-up, while 42 fell by the limit-down. At the close, the Shanghai Composite Index rose 0.71% to 4,107.51 points, with a turnover of 1.1266 trillion yuan. The Shenzhen Component Index gained 1.96% to 15,120.96 points, with a turnover of 1.4635 trillion yuan. The ChiNext Index advanced 2.52% to 3,687.17 points.
Fund flows today showed major capital inflows into sectors like minor metals, batteries, and glass fiber. Top net inflow recipients included China Northern Rare Earth(Group)High-Tech Co.,Ltd., Shenghong Technology, and Zhongji Innolight.
Key developments include the release of the National Data Resources Survey Report (2025) at the 9th Digital China Summit, indicating that China's data resources are increasingly empowering AI innovation. The report highlighted exponential growth in daily "token" calls, a fundamental unit for AI data processing, rising from over a trillion at the start of 2025 to 100 trillion by year-end, with cumulative annual calls reaching approximately 21,100 trillion.
The China Iron and Steel Association noted that prices for raw materials like coking coal and coke remain high due to Middle East tensions, which have increased oil prices, mining costs, and freight expenses. Despite iron ore port inventories reaching a record 170 million tons in April, import prices have hovered between $105-$110 per ton, maintaining cost pressures on steel enterprises.
The Ministry of Natural Resources disclosed China's mineral resource reserves, revealing that the country leads globally in reserves of 14 minerals, including rare earths, tungsten, tin, and gallium. In 2025, China ranked first in production of 17 minerals, with the mining industry's output value around 32.7 trillion yuan, accounting for over 23% of GDP, bolstering resource self-sufficiency.
Looking ahead, Guojin Securities emphasized that large-scale AI clusters are accelerating CPO adoption, benefiting related supply chain companies due to demands for lower power consumption and higher interconnect density. CICC suggested that high-growth sectors may regain dominance as industry trends and profit realization outweigh macro uncertainties, driven by recent AI breakthroughs and easing geopolitical risks.
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