On the first trading day after the Qingming Festival holiday, China's three major stock indices showed divergent trends, with the ChiNext Index giving up earlier gains and turning negative after briefly rising more than 1% during the session. The morning session saw new energy stocks leading the charge initially, but the rally was short-lived as pharmaceutical stocks dragged down the market, coupled with a lack of follow-through in trading volume, resulting in a sharp pullback. By the midday close, the Shanghai Composite Index edged up 0.03%, while the Shenzhen Component Index fell 0.20% and the ChiNext Index dropped 0.46%. The combined turnover of the Shanghai and Shenzhen markets reached 1.07 trillion yuan in the morning session, up 10 billion yuan from the previous trading day.
In terms of sector performance, chemical concepts such as urea, methanol, chemical fibers, dyes, and soda ash saw a broad-based surge, with stocks like Chitianhua and Liuhua Co. hitting the daily limit-up. Xinduidui concept stocks continued their strong gains, with Faersheng and Guosheng Technology also reaching the limit-up. Breeding industry concepts, including pork and chicken, rebounded, with Zhongmu Co. and Huatong Group hitting the limit-up. Agricultural concepts such as soybeans, cotton, and genetically modified crops also strengthened. HBM and memory chip concepts staged a rebound, with Shengquan Group and Shenzhen Huaqiang hitting the limit-up. PCB upstream resin concept stocks surged sharply, with Tongyu New Materials and Huazheng New Materials among the gainers. Consumer electronics and Apple concept stocks advanced, with Furong Technology hitting the limit-up. Components of the STAR 50 Index rose, with Cambricon surging over 10%. Technology concepts such as semiconductors and advanced packaging showed collective strength. Digital currency and cross-border payment concepts continued to rise, with Cuwei Co. hitting the limit-up. AI applications, coal, cement, lithium batteries, and consumer sectors also gained across the board.
On the downside, gas turbine concept stocks weakened, with Jereh Group falling over 5%. Satellite internet concepts continued to decline. Dexterous hand and humanoid robot concepts remained weak. Space computing and sea-based rocket recovery concepts also extended losses. Banking, insurance, airport shipping, and token economy concepts underperformed.
Looking ahead, Everbright Securities stated that the A-share market has likely bottomed out in the short term and is expected to enter a phase of volatile recovery. In terms of allocation, investors can focus on two main themes: "beneficiaries of high oil prices" and "earnings certainty." The first theme includes the broader energy sector, such as coal, coal chemicals, oil and gas, and shipping ports, which directly benefit from rising oil prices, as well as new energy sectors like solar, energy storage, wind power, and nuclear power, which are supported by energy substitution logic. The second theme centers on high-performing technology sectors, particularly electronics (semiconductors, AI hardware), communications, and power equipment (AI power, energy storage), which are backed by strong industry trends and solid earnings delivery capabilities.
Note: The Hong Kong Stock Exchange remained closed today due to the Easter holiday, with southbound and northbound trading suspended. Trading will resume fully on Wednesday.
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