On the morning of April 10, A-shares fluctuated with a rebound. The Shanghai Composite Index briefly climbed above 4,000 points, while the ChiNext Index surged over 3% during the session, hitting a new high since December 2021. The half-day turnover in the Shanghai and Shenzhen markets reached 1.5 trillion yuan, an increase of 77.1 billion yuan from the previous trading day, with more than 4,400 stocks rising across the board.
The CPO concept continued to surge, with leading stock Eoptolink Technology Inc.,Ltd. reaching an intraday high of 508 yuan, setting another record high. Its total market capitalization has exceeded 500 billion yuan, with a cumulative increase of over 830% in the past year.
Photovoltaic and energy storage concepts continued to rise, with stocks like Yi Jing Photoelectron and Deye Holding Group hitting limit-ups. The lithium battery sector saw over ten stocks surge to limit-up at one point. By the midday close, Xinyuren rose by the 20% limit-up, Sunwoda Electronics gained nearly 16%, and Guoxuan High-Tech hit limit-up. According to incomplete statistics from China Merchants Securities, lithium battery production capacity expansion is expected to approach 1 TWh by 2026, setting a new historical record. Dongguan Securities maintains an optimistic outlook for the full-year growth rate of lithium battery demand, expecting continued improvement in the supply-demand dynamics of the industry chain, with multiple segments likely to see both volume and price increases.
The securities sector, often regarded as a bellwether for bull markets, rallied sharply. Nanhua Futures hit limit-up, Haton Investment touched limit-up, and leading stock CITIC Securities rose over 7%, with its Hong Kong-listed shares also gaining over 9%. The positive sentiment was partly driven by CITIC Securities' strong first-quarter earnings report released the previous day.
Additionally, the innovative drug concept rebounded after hitting bottom, with Haofan Biotech rising nearly 10%. The liquid cooling server concept continued to climb, with Envicool, Ningbo Jingda, and Sinpow hitting limit-ups, while Oulutronic surged over 7% to another record high.
On the downside, the fiber optic concept weakened. Sichuan Huiyuan Optical Communications Co.,Ltd., which had previously gained for five consecutive sessions, hit limit-down, while Faersheng nearly touched limit-down. Yangtze Optical Fibre and Cable fell nearly 5%, and its Hong Kong-listed counterpart dropped over 9%. Gold stocks also retreated again, with Zhaojin Mining leading the decline.
Huatai Securities recommends prioritizing trading on sentiment recovery before confirming a market inflection point. In the short term, investors may moderately seek rebound opportunities in previously oversold sectors. As liquidity and risk appetite improve, technology and growth sectors are expected to show greater elasticity, with attention on AI computing power, software, Hong Kong-listed tech stocks, and non-ferrous metals. The energy sector may face profit-taking pressure.
Huatai Securities also suggests that, in the medium to long term, China's stable supply chain and security premium are likely to gain recognition gradually. The continued appreciation of the renminbi may help Chinese assets command a certain premium. Trends such as energy diversification, rising security premiums for resources, global military competition, and post-conflict infrastructure reconstruction may accelerate, benefiting related industries. Key areas to watch include new energy, power, defense, and non-ferrous mining stocks.
Dongwu Securities reminds investors that a sharp rise in indices does not necessarily translate to easy profits. It remains crucial to follow the movements of major capital. Currently, AI and semiconductors remain the primary focus, while previously active tech stocks such as robotics and satellite-related shares may also warrant attention. Additionally, the securities sector, which experienced significant declines earlier, could be worth monitoring.
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