The market opened lower but climbed higher yesterday, with the Shanghai Composite Index reclaiming the 4,100-point level. The ChiNext and Shenzhen Component indices both rose over 1%. The ChiNext Composite Index hit a new all-time high, surpassing its previous peak from June 3, 2015. Trading volume across the Shanghai and Shenzhen exchanges reached 2.56 trillion yuan. In terms of sectors, concepts such as computing hardware, optical fiber, and computing power leasing were active. On the downside, film and cinema-related stocks saw collective adjustments. At the close, the Shanghai Composite Index was up 0.52%, the Shenzhen Component Index gained 1.3%, and the ChiNext Index advanced 1.73%.
In today's brokerage morning meetings, China Securities Co., Ltd. suggested the semiconductor industry is experiencing dual catalysts. China Merchants Securities Co.,Ltd. noted that mutual funds focused significantly on adding positions in resources and technology during the first quarter, while their allocation to Hong Kong stocks continued to decline. Huaxi Securities Co.,Ltd. projected that lithium carbonate prices are expected to remain relatively strong in the near term.
China Securities Co., Ltd.: Semiconductors Benefit from Dual Catalysts
The semiconductor equipment components sector is currently under a backdrop of overlapping dual self-sufficiency trends. Firstly, AI is driving the start of a capacity expansion cycle downstream. With the requirement for self-sufficiency in semiconductor equipment within mainland China and the increasing localization rate of equipment, the overall market space for components is opening up. Secondly, the overall localization rate for key components remains relatively low, and import substitution for high-end products is still in its early stages. It is recommended to monitor 1) the progress of import substitution and breakthroughs in categories with low localization rates, and 2) the rapid volume growth of categories with smooth localization progress, which is driving performance improvements for listed companies.
China Merchants Securities Co.,Ltd.: Mutual Funds Heavily Added Resources and Tech in Q1, HK Allocation Fell Further
In the first quarter of 2026, active fund scale returned to growth while passive fund scale declined. Positions across various fund types generally decreased, and stock concentration also fell. The allocation to Hong Kong stocks continued its downward trend, with the significant overweight relative to the benchmark substantially reduced. The strategy for adding positions primarily revolved around resource commodities and technology. Increases in resource commodities benefited sectors like basic chemicals, petroleum and petrochemicals, and coal, boosted by geopolitical conflicts. Technology additions focused on the AI theme, arranged around computing power, power supply, and storage capacity. Ultimately, at the primary industry level, significant additions were made in communications, electrical equipment, and basic chemicals. The style of additions balanced cyclical and small-cap growth styles.
Huaxi Securities Co.,Ltd.: Lithium Carbonate Prices Expected to Remain Strong in Near Term
According to data from the China Automotive Battery Innovation Alliance, in March, sales of power and energy storage batteries in China reached 175.1 GWh, a month-on-month increase of 54.7% and a year-on-year increase of 51.6%. Specifically, power battery sales were 114.7 GWh, accounting for 65.5% of total sales, up 53.9% month-on-month and 31.1% year-on-year. Energy storage battery sales were 60.4 GWh, constituting 34.5% of total sales, rising 56.2% month-on-month and 115.9% year-on-year. Data from TD Times Intelligence indicates that China's lithium battery market production scheduling is expected to reach 235 GWh in April, a 7.3% increase from the previous month. Furthermore, geopolitical fluctuations in the Middle East could lead to increased mining costs and transportation constraints for countries reliant on diesel imports, providing additional support to lithium prices from the cost side. Overall, both demand and cost factors are expected to form solid support for the price floor, and lithium carbonate prices are projected to maintain a relatively strong trend in the short term.
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