Boosted by the commencement of the National People's Congress and significant gains in overseas markets, Chinese equities staged a strong rebound today. The STAR Market and ChiNext led the advance, with capital flowing into technology growth sectors such as semiconductors. Total market turnover reached 2.3 trillion yuan, remaining largely unchanged from the previous session. Over 4,000 stocks rose across the two exchanges.
The semiconductor sector performed strongly, with C*Core Technology Co.,Ltd. and Biwin Storage Technology Co.,Ltd. among the top gainers. According to South Korean media reports, Samsung Electronics has raised its first-quarter DRAM price increase forecast from 70% to 100%. Industry estimates suggest similar price hikes are expected from SK Hynix and Micron Technology. Market analysts noted that the continued surge in DRAM prices bodes well for the memory chip segment.
The Micro LED concept saw explosive growth, with Boe Hc Semitek Corporation, Shenzhen Jufei Optoelectronics Co.,Ltd., and Shenzhen Liantronics Co.,Ltd. surging by the 20% daily limit. A recent TrendForce survey indicated that rising demand for high-speed data transmission in data centers, driven by generative AI, has highlighted the advantages of Micro LED Co-Packaged Optics solutions. These solutions offer significantly lower energy consumption per unit of transmission, potentially reducing overall power usage to just 5% of that required by copper cable solutions, positioning them as a promising energy-efficient alternative for optical interconnects.
In other market highlights, the power grid equipment sector maintained its strength, with China Xd Electric Co.,Ltd. hitting a new record high after reaching the daily limit. The computing power leasing concept also saw a rapid uptick, with Meili Cloud and Tongniu Information both rising by the daily limit. On the downside, the seed industry experienced broad-based declines, with Qiule Seeds, Kangnong Seeds, and Shennong Seeds all falling over 10%. Oil and gas stocks gave up early gains in the afternoon session, with Shuifa Gas and Lanyan Holdings touching the daily downside limit.
Looking ahead, Guotai Haitong stated that stability is the defining characteristic of both the current Chinese economy and its stock market, advocating for proactive contrarian positioning. Founder Securities recommended focusing on three key themes: first, the diffusion and deepening of technology growth assets, particularly in hard tech and AI application segments; second, increasing allocations to sectors like energy, chemicals, non-ferrous metals, and building materials that benefit from "anti-involution" policies; and third, identifying recovery opportunities in undervalued sectors with low institutional ownership and stabilizing fundamentals.
In terms of individual stock performance, 4,079 companies advanced, while 1,306 declined, and 102 ended unchanged. Seventy-nine stocks hit the daily upside limit, compared to seven that fell by the daily limit. At the close, the Shanghai Composite Index was up 0.64% at 4,108.57 points, with a turnover of 1,068.1 billion yuan. The Shenzhen Component Index rose 1.23% to 14,088.84 points, with a turnover of 1,322 billion yuan. The ChiNext Index gained 1.66% to 3,216.94 points.
Fund flows showed concentrated buying in communication equipment, semiconductors, and optoelectronics. Among the top net inflows by main funds were New Easun, Shanghai Electric, and Yanshan Tech.
Key news reviews included the draft outline for the 15th Five-Year Plan proposing high-quality development in the real estate sector, emphasizing a new development model and a housing system featuring multiple suppliers and support channels. Minister of Industry and Information Technology Li Lecheng pledged full efforts to advance breakthroughs and iterations in new-generation AI products, including brain-computer interfaces and autonomous vehicles. The government work report called for further improving the mechanism for long-term capital market entry and expanding exit channels for private equity and venture capital funds.
Regarding market outlook, Guotai Haitong emphasized stability as the foundation, while Founder Securities suggested the market is shifting towards an "earnings verification phase," reiterating its three-theme focus. SDIC Securities highlighted that "old and new economy sectors dancing together" remains the most crucial portfolio configuration theme, noting that price increases driven by PPI stabilization, rather than just AI disruption, are creating excess return opportunities, making a rebalancing strategy essential for 2026.
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