Amid market fluctuations triggered by renewed tensions in the Middle East ceasefire, major A-share indices closed lower on April 9, with over 4,200 stocks declining across the board. The combined trading volume for Shanghai, Shenzhen, and Beijing markets totaled 2,147.5 billion yuan, reflecting a decrease of 303.5 billion yuan from the previous session.
The CPO concept sector demonstrated notable strength against the market trend. Suzhou Dongshan Precision Manufacturing Co.,Ltd. achieved its second consecutive daily limit-up, reaching a new historical high. The Electronics ETF (515260), which covers Apple supply chain, semiconductor chain, and PCB chain segments, saw its intraday price rise by up to 1.21%. Zhongji Innolight Co.,Ltd. continued to refresh its record high, while the ChiNext Artificial Intelligence ETF (159363), heavily weighted in optical module leaders, recorded over 1 billion yuan in trading volume with extremely active market participation.
The computing hardware sector remained active with repeated gains. Optical chips showed renewed strength as Shijia Photon surged more than 13% during the session to set a new historical high. The STAR Market Chip ETF (589190), which provides comprehensive exposure to the chip industry, saw its price increase by over 1% during trading before closing 0.22% higher, marking four consecutive days of gains. The chemical sector broke through the market downturn, with petrochemicals, phosphorous chemicals, and lithium battery segments showing strong performance. The Chemical ETF (516020) reached an intraday high of 1.15% before closing up 0.21%.
Despite market volatility, capital flowed into declining sectors. Following the previous day's significant rebound, the financial technology sector led the market decline. The largest Financial Technology ETF (159851) by scale closed down 2.86%, yet attracted substantial capital inflow with a net subscription of 109 million shares for the day.
Market movements were influenced by developments in Middle East ceasefire negotiations. White House Press Secretary Levitt announced on April 8 that the United States and Iran would hold initial talks in Pakistan on the morning of the 11th. The U.S. accepted Iran's revised proposal rather than the original 10-point plan. Former President Trump stated on social media that all U.S. vessels, aircraft, and military personnel would remain stationed around Iran. Reports indicated complete closure of the Strait of Hormuz, forcing some oil tankers to turn back.
CITIC Securities noted that while U.S.-Iran negotiations would likely see repeated fluctuations, strategic direction regarding Iran's situation was becoming clearer under practical constraints. For A-shares, capital that reduced positions but remained invested in March could become potential buyers following the conflict interruption, potentially supporting market recovery. After recession narratives fade, the logic of Chinese manufacturing advantage should regain prominence. For Hong Kong stocks, after full adjustment of earnings expectations following the reporting season, valuation expansion could occur in April-May as risk-averse capital returns.
Regarding allocation strategies, China Merchants Securities suggested that after external shocks subside, market focus in mid-to-late April would likely shift to first-quarter earnings growth sectors. Resource sectors including non-ferrous metals and upstream chemicals, along with new energy, optical communication, and semiconductor industry chains, were expected to demonstrate the most impressive earnings growth.
**STAR Market Chip Sector Demonstrates Resilience** The STAR Market Chip ETF (589190) rose against the market trend, gaining over 1% during trading before closing 0.22% higher for its fourth consecutive advance. Optical chips showed particular strength, with Shijia Photon surging more than 13% to a new record high. With sustained high growth in AI computing demand, optical communication has become crucial for AI computing infrastructure. Industry leader Lumentum projected an 85% compound annual growth rate for indium phosphide optical chips from 2026-2030, highlighting significant growth potential in upstream core components.
Semiconductor materials and equipment remained active, with Zhongchuan Special Gases rising over 10% to synchronize new highs. Companies including Zhongke Feice, Tuojing Technology, and AMEC led gains. China's Ministry of Industry and Information Technology released draft industry standards for semiconductor equipment testing methods. The World Semiconductor Trade Statistics organization forecasted global semiconductor market sales would grow 26.3% year-over-year to $975 billion by 2026.
In memory chips, TrendForce research indicated Consumer DRAM contract prices would maintain quarterly growth of 45%-50% in Q2 2026, considering ongoing capacity reductions, order transfers, and limited capacity expansion among mature process suppliers. Notably, some memory chip companies have disclosed strong preliminary Q1 earnings, with Biwin Storage projecting revenue growth of 340%-395% and net profit growth of 921.77%-1086.13% for the first two months of 2026.
Amid ongoing geopolitical tensions affecting market sentiment, robust earnings and high industry景气度 may provide relative certainty. Aijian Securities expressed optimism about historical development opportunities for domestic chip industry chains, including memory chip modules, packaging and testing, manufacturing, and upstream equipment materials. Equipment and materials were identified as key segments for semiconductor industry development, with investment opportunities focused on import substitution.
**Chemical Sector Breaks Through Market Pressure** The Chemical ETF (516020) opened with a brief decline before rallying to an intraday high of 1.15%, eventually closing up 0.21%. Component stocks in petrochemicals, phosphorous chemicals, and lithium batteries led gains. Hengyi Petrochemical surged 5.19%, while Hebond Biotech and Hongda Group both rose over 4%. Baofeng Energy, Satellite Chemical, and Capchem advanced more than 3%.
Since the beginning of the year, the chemical sector has significantly outperformed the broader market. The Sub-sector Chemical Index tracked by the Chemical ETF has gained 9.69% year-to-date, substantially exceeding the Shanghai Composite Index (-0.07%) and CSI 300 Index (-1.38%) over the same period.
Market developments included the suspension of operations at Russia's fourth-largest refinery, NORSI, following a Ukrainian drone attack on April 5. The refinery, Russia's second-largest gasoline producer with annual capacity of 16 million tons, sustained damage to two facilities. Analysis suggested that despite short-term volatility, optimized industry structure and supply contraction would support sustained profitability improvement in refining.
Looking ahead, Great Wall Securities indicated the basic chemical industry had entered a recovery cycle since Q3 2025, with fixed asset investment slowing across sub-sectors. Combined with supply-side anti-involution policies and gradual implementation of consumption stimulus measures, upstream chemical prices were expected to enter an upward cycle with PPI index recovery. Kaiyuan Securities noted short-term regional conflicts might transfer overseas orders to China, supporting domestic chemical demand and price stability. Medium-to-long term, global chemical inventory replenishment demand could emerge, supporting value reassessment of Chinese chemical assets.
**Financial Technology ETF Attracts Capital After Decline** Following the previous day's strong rebound, the financial technology sector led the market decline, with the CSI Financial Technology Theme Index falling 3%. Component stocks including Yinzjie, Guidepoint, Wealth Trend, Yxlink, and Wins declined significantly. The largest Financial Technology ETF (159851) fell 2.86% with over 200 million yuan in trading volume, yet attracted a net subscription of 109 million shares.
According to Soochow Securities research, the financial technology sector currently demonstrates multiple resonances across policy, market, technology, and valuation dimensions, highlighting investment opportunities. Policy drivers include regulatory requirements for securities IT investment and encouragement of core system upgrades. Market activity recovery has boosted performance, with 2025 average daily A-share trading volume increasing 63% to 1.73 trillion yuan. Technological empowerment is shifting from cost reduction to revenue generation, with AI and domestic substitution creating incremental space. Valuation-wise, the sector has retreated to near one-year lows with sufficient digestion.
The Financial Technology ETF (159851) and its feeder funds provide comprehensive exposure to internet securities, financial IT, cross-border payment, and AI application themes. With over 10 billion shares outstanding, it leads among eight ETFs tracking the same index.
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