The market's performance reflects a positive reassessment of China's economic stability following yesterday's key meeting. The absence of new stimulus measures is interpreted as confidence in the underlying strength of the economy. Global capital markets are increasingly recognizing China's relative stability. Consequently, the market resumed its upward trajectory today, with the Hang Seng Index rising 1.68% to reclaim the 26,000-point level.
Regarding international tensions, U.S. media reports citing officials indicate that President Trump has instructed aides to prepare for a long-term blockade of Iran, aimed at forcing nuclear concessions. The assessment is that alternatives, such as resuming bombing or disengaging, carry greater risks. This suggests limited options for the U.S. A potential concern is whether this could drive oil prices higher and fuel inflation. Bank of America offers an explanation, suggesting that expectations for AI-driven deflation may be capping long-term inflation prospects. While this appears plausible currently, over a longer cycle, inflationary risks cannot be ignored. Notably, the UAE's recent proposal to exit OPEC may be influenced by external pressures, likely aimed at facilitating increased production to stabilize oil prices. A prolonged U.S. blockade would almost certainly push oil prices higher. Previously mentioned stocks like
The brokerage sector, noted yesterday for its solid earnings, continued its rebound among high-performers. The insurance sector also saw activity as companies release quarterly reports. While results were generally below expectations, the market is focusing on the marginal easing of geopolitical risks since April and the steadying rebound in equity markets.
The lithium battery sector experienced a frenzy today. Data from Gaogong Lithium indicates that China's energy storage lithium battery shipments reached 215GWh in the first quarter of 2026, a year-on-year increase of 139%. Leading companies currently have production schedules filled through late 2026 to the second quarter of 2027, with capacity at saturation levels, allowing them to be selective with orders. Earnings reports from the sector have been spectacular. A-share company Rongjie Co., Ltd. (002192.SZ) reported a more than ten-fold increase in net profit attributable to shareholders, leading to a direct limit-up today. In Hong Kong,
The CPO (Co-Packaged Optics) sector remained strong. A-share Yuanjie Technology (688498.SH) rose over 6%, continuing to hit new historical highs and becoming the highest-priced stock in its market. Institutions predict the global optical chip market will reach 31.83 billion yuan in 2025, surpassing 81.56 billion yuan by 2032, with a CAGR of 14.5%. In Hong Kong, Cambridge Technology (06166), a pure-play optical module concept stock, fell sharply yesterday due to a significant share unlock (nearly half of its shares). However, it rebounded strongly today, rising nearly 15%, buoyed by the positive industry sentiment. As a cornerstone investor with a cost of HK$68.88, its stake is now nearly doubled. If bullish on prospects, these investors might continue holding. The PCB sector also performed well. Shengyi Technology (02476) rose 7% after reporting a nearly 40% year-on-year increase in first-quarter net profit. Kingboard Laminates (01888), mentioned yesterday, gained over 5% again. In the memory sector, GigaDevice (03986) rose over 7%.
With the World Cup scheduled for June, the beer sector has already shown strength. Other consumer segments are expected to benefit, such as food. Anjoy Foods (02648) reported better-than-expected first-quarter 2026 operations, with net profit up 42.74% year-on-year, benefiting from effective strategies in both B-end and C-end markets. Future growth may depend on overseas expansion; the company plans to target the halal food market with its "Anzhai" brand and meet demand in Southeast Asia. TV sales and stock prices, particularly for overseas markets, are also expected to rise. Reports indicate Samsung plans to cease retail sales of TVs, refrigerators, washing machines, and air conditioners in China within 2026, with a final decision possible by end-April and inventory clearance within the year. Intense competition is cited as the reason. While Samsung remains the global sales leader in TVs, the gap with TCL Electronics (01070) has narrowed to about 6 million units. Samsung's growth has stagnated, while TCL achieved 5.6% year-on-year growth, suggesting it may eventually overtake the leader. TCL Electronics (01070), another April top pick, rose over 5% today.
Yesterday's meeting of the CPC Politburo on April 28 emphasized efforts to stabilize the property market and advance urban renewal. While there was no immediate reaction yesterday, the property sector gained today, supported by positive news: the Shenzhen Housing and Construction Bureau issued a notice on April 29th to further optimize and adjust real estate policies, effective from April 30, 2026, which explicitly eases home purchase restrictions. China Overseas Grand Oceans (00081), China Overseas Land & Investment (00688), and China Jinmao (00817) all rose over 9%. China Resources Land (01109), Greentown China (03900), and China Vanke (02202) gained over 6%. CIMC (02039), highlighted in yesterday's sector focus, rose over 7%, and Sany International (00631), mentioned in stock picks, gained over 6%.
The Federal Reserve is scheduled to release its policy statement at 2:00 AM Beijing time on Thursday, followed by Chairman Powell's press conference at 2:30 AM. It is almost certain the Fed will hold the benchmark rate steady in the 3.5%-3.75% range for the third consecutive time. This is likely Powell's final speech as Chair. He is expected to maintain a slightly hawkish tone to uphold the Fed's independence. A key focus is whether he will remain on the Board of Governors, as his term normally runs until January 2028. If he resigns, it would mean Trump-appointed officials hold four seats on the Board, potentially动摇 its independence, which may not be favorable for capital markets.
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