China's three major stock indices opened higher collectively. The Shanghai Composite Index rose by 0.1%, while the ChiNext Index gained 0.42%. In terms of sector performance, memory chips, Apple concept stocks, and shipping sectors led the gains. Conversely, oil-related concepts, pharmaceuticals, and precious metals sectors experienced declines.
Looking ahead, Everbright Securities suggested that the A-share market has likely found a short-term bottom and may enter a phase of volatile recovery. April traditionally serves as a decisive period for the A-share market, with two key events expected to shape its medium-term direction. First, the intensive release of annual reports and first-quarter results from listed companies may shift market focus from thematic expectations to fundamental valuations. Second, a major policy meeting scheduled for late April will set the tone for annual economic development. Market participants generally anticipate continued moderately loose monetary policy and proactive fiscal measures, including initiatives to boost consumption and the rollout of ultra-long-term special government bonds to support consumer goods trade-ins.
In terms of portfolio strategy, investors could consider a dual approach focusing on beneficiaries of high oil prices and companies with earnings certainty. The first theme encompasses the broader energy sector, including coal, coal chemical, oil and gas, and shipping ports, which directly benefit from rising oil prices, as well as new energy segments like solar, energy storage, wind, and nuclear power that align with energy substitution trends. The second theme centers on high-performing technology sectors, particularly electronics (semiconductors, AI hardware), communications, and power equipment (AI power, energy storage), which are supported by strong industry trends and demonstrated earnings capabilities.
Dongxing Securities noted that the market remains in a phase of weak volatility with significant sector divergence, where technology and growth stocks continue to attract attention. In the short term, the Shanghai Composite Index is expected to fluctuate around 3,900 points, with potential to test the resistance level near 3,950 points.
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