Market Wrap: Shanghai Index Dips 0.19% as Leading Companies' Strong Results Ignite Pharmaceutical Sector

The market experienced volatile adjustments today with clear style rotation. Sectors like coal and petrochemicals were active, while the Shanghai Composite Index showed relative resilience. The ChiNext and STAR Market boards performed weaker. Total market turnover reached 2.5 trillion yuan for the day, with over 3,600 stocks declining across the two exchanges.

Notably, the title of "Stock King" on the A-share market changed hands three times today. The protagonists in this rare event were three stocks trading above 1,000 yuan: Yuanjie Semiconductor Technology Co.,Ltd., Kweichow Moutai Co.,Ltd., and Cambricon Technologies Corporation Limited. Specifically, Yuanjie Semiconductor Technology Co.,Ltd. initially led, gapping higher and rising further in the morning session after reporting better-than-expected Q1 results. Its share price briefly surpassed 1,500 yuan, securing the position of the highest-priced A-share. Subsequently, Yuanjie Semiconductor Technology Co.,Ltd. plummeted, while Cambricon Technologies Corporation Limited surged, gaining over 4% at one point to overtake both Kweichow Moutai Co.,Ltd. and Yuanjie Semiconductor Technology Co.,Ltd. and claim the "Stock King" title. Later, as Cambricon Technologies Corporation Limited also retreated, Kweichow Moutai Co.,Ltd. rallied, surpassing the other two to reclaim the title. By the market close, Yuanjie Semiconductor Technology Co.,Ltd. temporarily held the top spot.

Sector-wise, the industrial gas concept saw repeated activity, with ShuiFa Gas hitting its sixth limit-up in seven sessions and ShuDao Equipment surging by the 20% daily limit. The green power concept rose rapidly, with Huadian Energy Company Limited securing its fourth consecutive limit-up. The pharmaceutical sector was active, with WUXI APPTEC, Rundo Pharma, Hansen Pharmaceutical, and Jinyao Pharmaceutical all reaching the upside limit. The computing power leasing concept strengthened during the session, with Qunxing Toys, Sanren Xing, and Litong Electronics hitting limit-ups.

On the downside, the non-ferrous metals sector weakened, with Nanshan Aluminum touching the downside limit, and companies like Yunnan Tin, Zhuzhou Smelter, and Chifeng Gold declining. The tourism and hotel concept collectively adjusted, with Shaanxi Tourism falling by the limit-down, and Tianmu Lake, Lijiang Co., Ltd., and Jinling Hotel leading the losses.

Looking at individual stocks, 1,698 companies advanced, 3,682 declined, and 130 closed unchanged across the two exchanges. Seventy-seven stocks hit the upside limit, while fifty-four fell by the downside limit.

At the close, the Shanghai Composite Index fell 0.19% to 3,078.64 points, with a turnover of 1.114 trillion yuan. The Shenzhen Component Index dropped 1.10% to 9,483.46 points, with a turnover of 1.4224 trillion yuan. The ChiNext Index declined 1.43% to 1,796.71 points.

**Fund Flows** Main funds focused on sectors like securities, medical services, and marine equipment today. Top net inflow targets included China Great Wall, WUXI APPTEC, and Industrial Fulian.

**Key Review** 1. Guangdong's "15th Five-Year" Plan Outline: Promotes Low-Cost Mass Production of Key Products like Satellites and Rockets The Guangdong Provincial Government issued the "Outline of the 15th Five-Year Plan for National Economic and Social Development of Guangdong Province." It proposes leveraging cities like Guangzhou, Shenzhen, Zhuhai, and Yangjiang to build industrial chains for rockets, satellites, ground stations, and terminal equipment. It supports the planning and construction of commercial aerospace industrial parks and aims to enhance the entire development chain of aerospace vehicle R&D, manufacturing, general aviation equipment production, operation, and maintenance. The plan emphasizes promoting low-cost mass production of key products like satellites and rockets, accelerating the development of innovative application scenarios for the BeiDou system, and actively expanding satellite applications.

2. Sungrow Power Supply Co.,Ltd.: Overall Energy Storage Installation Scale Expected to Increase Over Next Three Years; Growth Rate Forecast at 30%-50% Sungrow Power Supply Co.,Ltd. stated in a teleconference on April 27th that rising raw material prices, such as lithium carbonate, are challenging project returns. This has a limited impact on small and medium-sized projects, which can more agilely pass on costs, but it suppresses particularly large projects. Overall, the total installed scale of energy storage is still expected to increase over the next three years, with an anticipated growth rate between 30% and 50%.

**Market Outlook** 1. Sealand Securities: Focus on Phased Return of Small and Mid-Cap Thematic Styles from Late April to May Zhao Yang, Chief Strategist at Sealand Securities, suggested that attention could be paid to the phased return of small and mid-cap thematic styles from late April to May. Firstly, after the Q1 earnings season concludes in May, the earnings factor temporarily weakens, potentially creating favorable risk-reward ratios in high-growth directions. Secondly, for investors with high turnover who wish to participate in themes, May could be a time to focus on themes with potential catalysts and lower crowding, such as military/commercial aerospace, robotics, innovative drugs, and domestic computing power.

2. China Merchants Securities: Sustained High AI Computing Demand; Semiconductor Industry Profits Expected to Maintain Strong Growth AI computing power demand continues to grow rapidly, driving up semiconductor demand. Global semiconductor sales growth expanded to 61.8% year-on-year in February, while sales growth in China expanded to 57.4%. Computing power is driving exponential growth in demand for HBM and advanced packaging. The supply-demand imbalance for memory chips persists, with DDR4 and DDR5 memory prices remaining high and expected to continue rising. The domestic chip industry chain is accelerating production expansion, supported by both policy and capital, with increased investment in key areas like equipment and materials. The performance of domestic chips continues to improve steadily, strengthening the logic of self-sufficiency. Driven by both volume and price, the industry's Q1 reports are expected to show high growth. With accelerating AI computing demand release, spreading price increases, and steady progress in localization, semiconductor industry profits are expected to maintain a strong growth trend.

3. China Securities Co., Ltd.: Bullish on AI Application Deployment and AI Computing Power Demand Growth A research report from China Securities Co., Ltd. noted that OpenAI launched GPT-5.5 and DeepSeek released the DeepSeek-V4 preview. Both GPT-5.5 and DeepSeek-V4 coincidentally emphasized extreme compression of inference costs. This does not signal peak computing power demand; on the contrary, lower per-task costs may trigger exponential growth in Token consumption. The report is optimistic about a subsequent explosion in AI application development and maintains a long-term positive view on the North American computing power supply chain and domestic players breaking through in AI computing.