The market experienced volatile adjustments throughout the previous trading session, with both the Shanghai Composite Index and the ChiNext Index declining over 0.5%. The total trading volume for the Shanghai and Shenzhen markets reached 2.13 trillion yuan. In terms of sector performance, concepts such as computing hardware, CPO, liquid cooling servers, and semiconductor equipment were active. Conversely, the pharmaceutical commerce sector saw a collective adjustment. At the close, the Shanghai Composite Index was down 0.72%, the Shenzhen Component Index fell 0.33%, and the ChiNext Index dropped 0.73%.
In today's broker morning briefings, China International Capital Corporation (CICC) expressed the view that safety premia are expected to persist. Kaiyuan Securities believes the Google ecosystem could continue to outperform expectations and advises paying attention to related investment opportunities. Huatai Securities suggests that supply reductions have created potential for aluminum price elasticity, pending a recovery in demand expectations.
CICC: Safety Premia Expected to Persist Globally, a "Safety Asset Index" represented by sectors like energy, materials, technology hardware, and industrial manufacturing has increasingly attracted capital favor in recent years, with its performance strengthening during periods of geopolitical conflict. Particularly following US-Iran-Israel tensions, a distinct "safety premium" has emerged in both Chinese and major global markets. Within the new geo-economic context, Chinese assets, benefiting from a large-scale and comprehensive modern industrial system, may see their safety premia undergo a systematic revaluation.
Kaiyuan Securities: Google Ecosystem Could Continue Exceeding Expectations; Focus on Investment Opportunities The Google Cloud Next '26 conference is scheduled for April 22-24 in Las Vegas, Nevada, USA. The event will focus on enterprise AI, cloud innovation, and agentic AI. Regarding infrastructure development, the conference is expected to unveil a new-generation TPU architecture, reveal practical applications of memory pooling and OCS optical circuit switches, and detail the rollout schedule for the new architecture. This conference could mark the starting point for a new technological roadmap for Google, potentially further expanding the incremental demand space for OCS.
Huatai Securities: Supply Cuts Create Aluminum Price Elasticity Awaits Demand Recovery According to Wood Mackenzie, the Al Taweelah aluminum plant in the UAE, owned by EGA, was struck by Iranian missiles and drones, causing severe damage to power facilities and forcing an emergency shutdown of electrolytic cells. This has left the facility inoperative, affecting a total annual capacity of approximately 1.6 million tons. Bahrain's Aluminium (Alba), which had previously announced a 19% production cut due to an alumina shortage, suffered significant facility damage after another attack on March 28. Wood Mackenzie estimates its current operating capacity has been reduced to about 30%, impacting approximately 1.12 million tons of capacity. Qatar Aluminium (Qatalum) is operating at about 60% of normal capacity due to an LNG supply disruption. This recent series of events has led to new production halts and cuts totaling approximately 2.416 million tons. Combined with the previously announced affected capacities at Alba and Qatalum, the cumulative disrupted capacity likely exceeds 3 million tons.
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