The A-share market experienced a broad rally today (April 10), with the Shanghai Composite Index climbing above 4,000 points during the session and closing up 0.51%. The Shenzhen Component Index surged 2.24%. Market sentiment improved significantly, with nearly 4,000 stocks advancing across the board, and the total trading volume for the two exchanges reached approximately 2.3 trillion yuan.
Notably, the ChiNext Index delivered the strongest performance, closing up 3.78% and hitting its highest level since December 2021. Leading sectors were highly concentrated, with the battery industry chain experiencing a full-scale breakout. The power equipment and electronics sectors also performed strongly, serving as the core drivers of today's market.
Huabao Fund’s ChiNext Composite Enhanced ETF (159292), which provides one-click exposure to high-growth sectors, rose sharply in early trading and maintained high levels throughout the day, closing up 2.41% with an on-market turnover of 6.74 million yuan. Among its constituents, Sunwoda Electronics surged over 14%. It is reported that Sunwoda Power, its subsidiary focused on power batteries, has entered Tesla's global supply chain, becoming Tesla's fifth global power battery supplier. Nine of the ETF's top ten weighted constituents closed higher, with Contemporary Amperex Technology, New Sense Technology, and Zhongji Innolight all rising more than 6%.
On the capital flow front, market sentiment clearly improved, with funds primarily targeting growth sectors. The largest weighted industry in the ChiNext Composite Index once again attracted significant capital inflows, as the power equipment sector saw net main fund inflows of 7.049 billion yuan, ranking first among the 31 primary Shenwan industries.
In terms of news, the State Council recently issued the "Overall Plan for the China (Inner Mongolia) Pilot Free Trade Zone," supporting the Inner Mongolia Power Trading Center in conducting international cooperation on green power certificate trading and certification. The plan also promotes the establishment of standards for the recycling and utilization of equipment such as wind and solar power generation. Inner Mongolia Power Group simultaneously released "Ten Measures," projecting an additional 30 million kilowatts of new energy capacity integration by 2026 and green electricity transactions reaching 90 billion kilowatt-hours.
A research report from China Securities (CSC) pointed out that starting in 2026, North American AI power demand is expected to exceed conventional load growth for the first time, becoming the most critical factor influencing North America's electricity demand. Given China's advantages in the full power equipment industry chain, increasing North American AI computing investments, Europe's urgent need for energy transition, and tightening lithium battery supply-demand dynamics, sectors such as new energy, energy storage, lithium batteries, and power grids are poised for growth. The report estimates that under a neutral scenario assuming 75% AI penetration, the incremental market space for AI-enabled power trading could reach 29.52 billion yuan by 2030.
The recent strong rebound in the stock market is widely viewed by analysts as the result of falling external risk premiums, a strengthening tech theme, and the clearing of blue-chip earnings risks. From the current perspective, tech manufacturing and stabilizing domestic demand have become consensus directions among many analysts. A chief strategist from a major securities firm stated that the Chinese market is expected to complete its recovery in the second quarter and reach new highs in the third quarter, with emerging technology as the main theme, while value sectors will also see a recovery window. For the current rebound, tech manufacturing and domestic demand stabilization are favored.
A China equity strategist at UBS Securities believes that in the short term, uncertainties from geopolitical risks may still cause volatility, and investors should maintain a relatively balanced allocation between growth and value, as well as large-cap and small-cap stocks. Once the market stabilizes, growth and cyclical styles are favored in the medium term, as a "slow bull" market benefits growth, while narrowing or turning positive PPI declines coupled with recovering industrial enterprise profit growth could drive cyclical styles to outperform.
[Exploring Tech Growth, One-Click Access to High-Growth Sectors] Huabao Fund’s ChiNext Composite Enhanced ETF (159292) offers four key advantages: 1. Exposure to high-growth sectors: The ETF tracks the ChiNext Composite Index (399102), whose top five sectors—power equipment, electronics, communications, pharmaceuticals/biotech, and computers—are all high-growth areas, collectively accounting for 68% of the index. 2. Bull market leader: During the last two bull markets, the ChiNext Composite Index significantly outperformed major broad-based indices like the CSI 300 and CSI 500. 3. Low-barrier, one-click investment: Direct investment in ChiNext stocks involves certain restrictions, while ETFs have relatively lower thresholds; at current prices, investment can start with just a few hundred yuan. 4. Pursuit of excess returns: The ETF primarily uses a quantitative multi-factor stock selection model, focusing on fundamental factors supplemented by technical factors, aiming to achieve excess returns.
Reminder: Recent market volatility may be significant; short-term gains or losses do not indicate future performance. Investors should make rational investment decisions based on their financial situation and risk tolerance, paying close attention to position and risk management.
Data source: Shanghai and Shenzhen Stock Exchanges, among others.
Fee explanation: Huabao Fund’s subscription and redemption agents for the ChiNext Composite Enhanced ETF may charge a commission of up to 0.5%. On-market trading fees are subject to the rates set by securities firms.
Risk disclosure: The ETF tracks the ChiNext Composite Index, which has a base date of May 31, 2010, and was launched on August 20, 2010. Its annual returns from 2021 to 2025 were 17.93%, -26.77%, -5.41%, 9.63%, and 40.40%, respectively. Index constituents are adjusted according to its compilation rules; past performance does not indicate future results. Constituent stocks mentioned are for illustrative purposes only and do not constitute investment advice or reflect the holdings or trading activities of the fund manager. The fund manager assesses this fund's risk level as R4 (moderately high risk), suitable for aggressive (C4) and higher risk-rated investors. Suitability assessments should be confirmed with selling institutions. All information provided (including but not limited to stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only; investors are solely responsible for their investment decisions. Furthermore, no views, analyses, or predictions herein constitute investment advice of any kind to readers, and no liability is accepted for any direct or indirect losses resulting from the use of this content. Fund investments carry risks; past performance does not guarantee future results, and the performance of other funds managed by the fund manager does not assure this fund's performance. Invest with caution.
MACD golden cross signals formed, these stocks are performing well!
Comments