Margin trading activity in the A-share market showed a net buying trend this week (April 7-9), with the outstanding balance reaching 2.590206 trillion yuan by April 9. The total net buying amount reached 31.71 billion yuan.
By sector, the Electronics industry led with net margin buying of 13.532 billion yuan. The Communications sector followed with 6.839 billion yuan in net buying. Nonferrous Metals and Power Equipment sectors also saw significant inflows, each exceeding 2 billion yuan.
At the individual stock level, 28 companies experienced net margin buying exceeding 300 million yuan this week. The top five stocks by net buying amount were Cambricon (1.984 billion yuan), Biwin Storage (1.263 billion yuan), Suzhou Tfc Optical Communication (1.215 billion yuan), Gigadevice Semiconductor (971 million yuan), and Suzhou Dongshan Precision Manufacturing (891 million yuan). Notably, Cambricon, Biwin Storage, and Gigadevice Semiconductor are all semiconductor chip companies. Other chip-related firms on the list included VeriSilicon Microelectronics, Montage Technology, and OptiXmind Technology.
Sector news indicated that since April, several leading semiconductor manufacturers have issued price increase notices, signaling a shift from previous price competition to a profit recovery phase. Analysts suggest this price hike trend is driven by both supply-side cost pressures and rising AI demand, supported by domestic industrial policies. These factors are expected to directly boost profit expectations for semiconductor companies. Segments with increasing localization rates, such as equipment and materials, along with leading manufacturers capable of passing on costs, are likely to benefit first.
Communication equipment stocks like Hengtong Optic-Electric, ZTT Group, and Yongding Co., Ltd. also attracted net margin buying. In the first quarter, State Grid completed fixed-asset investments of nearly 130 billion yuan, a year-on-year increase of approximately 37%, while China Southern Power Grid completed investments of 38.45 billion yuan, a sharp 49.5% rise. This data marks the official start of a strong investment cycle for the power grid during the "16th Five-Year Plan" period, improving order visibility for downstream grid equipment companies and indicating a clear upward景气 cycle.
Conversely, 33 stocks saw net margin selling exceeding 100 million yuan. Wuxi Apptec, Wanhua Chemical, China Merchants Energy Shipping, and Kingsoft Office had net selling amounts over 300 million yuan, at 389 million, 342 million, 324 million, and 304 million yuan respectively. Baofeng Energy Group and Xinjiang Beixin Road & Bridge Group experienced net selling above 200 million yuan.
Wuxi Apptec reported revenue of 45.456 billion yuan for 2025, a 15.84% year-on-year increase, and a net profit attributable to shareholders of 19.151 billion yuan, surging 102.65%. The company attributed this growth to its continued focus on the CRDMO business model, ongoing optimization of production processes and operational efficiency, and improved capacity utilization from growing late-stage clinical and commercial projects, which enhanced overall profitability.
Notably, several aluminum stocks, including Aluminum Corporation of China, Shenhuo Group, and Tianshan Aluminum Group, faced margin selling. While some institutions believe sentiment has improved due to US-Iran talks, uncertainties remain, and they are optimistic about potential price increases for aluminum.
Minmetals Futures pointed out that supply reductions caused by Middle East conflicts persist. Emirates Global Aluminium announced a halt to all facilities, potentially affecting 1.6 million tons of annualized capacity, significantly tightening overseas primary aluminum supply expectations and likely keeping spot markets tight. Although domestic downstream operating rates have declined, rising aluminum billet processing fees and expanding import losses are favorable for increased exports, helping to shift inventory towards destocking. Aluminum prices are expected to remain strong in the short term.
Looking ahead to next week, the technology sector remains the most favored. The A-share market rose steadily this week, with the Shanghai Composite Index gaining 2.73% to close at 3986.22 points, nearing the 4000-point mark.
A recent survey indicated good profitability for respondents this week, with 70% reporting gains. Specifically, 62% achieved profits within 10%, while 16% experienced losses within 10%.
Regarding positions, 40% of respondents were fully invested or using margin loans. In terms of position changes, 26% increased their holdings this week, a significant rise, 20% reduced holdings, and 50% maintained their positions unchanged.
Following the market's steady rise, most respondents expect the upward trend to continue next week. Survey data shows 54% believe the market will "continue rebounding, reclaiming the 4000-point level," representing the most common view. Another 40% anticipate the market will "fluctuate between 3800 and 4000 points," while only 4% expressed a bearish outlook for next week.
By sector, the technology sector is the most popular for the coming week, with its preference rating surging 28 percentage points to 60%. In contrast, the pharmaceutical sector's rating fell by 8 percentage points to 7%. From a thematic perspective, computing power, memory chips, and artificial intelligence are the top-ranked concepts, at 24%, 17%, and 14% respectively.
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