On the morning of April 10, Chinese assets experienced a strong rally, with the Shanghai Composite Index climbing back above the 4000-point mark. Hong Kong stocks and the FTSE China A50 Index Futures also rose in tandem.
By around 10:00 a.m., the Shanghai Composite Index had surged more than 1%, reclaiming the 4000-point level after 14 trading sessions. The ChiNext Index rose over 3%, once again hitting a new high since late December 2021. The STAR Composite Index and the Shenzhen Component Index both gained more than 2%, with over 4,600 stocks advancing across the market.
Semiconductor and chip stocks led the gains, with Demingli approaching a daily limit-up and continuing to set new historical highs. Companies such as Puran, Jiangbolong, Baiwei Storage, and GigaDevice also followed with increases. Overnight, U.S. storage-related stocks extended their gains, with Sandisk rising over 9% to another record high, bringing its monthly cumulative gain to more than 30%.
The financial sector also moved higher, with Nanhua Futures hitting the daily limit-up. Citic Securities rose over 8%, while Orient Wealth, Huatai Securities, Industrial Securities, GF Securities, Yinzhijie, and Tonghuashun all gained more than 5%.
The lithium battery industry chain saw a notable uptick, with Guoxuan High-Tech and Xinyuren both rising by the daily limit.
Stocks linked to Inner Mongolia opened broadly higher, with Inner Mongolia Xinhua and OJ Technology starting the session at the limit-up. This followed the release of the overall plan for the China (Inner Mongolia) Pilot Free Trade Zone by the State Council on April 9. The plan grants greater reform autonomy to the Inner Mongolia free trade zone, encouraging pilot reforms and exploratory initiatives across broader and deeper domains.
On the downside, optical fiber concepts weakened, with previously high-flying stock Huirong Communication, which had seen five consecutive limit-ups, falling by the daily limit.
Hong Kong stocks also rose sharply, with the Hang Seng Tech Index advancing 2%. AI application stocks strengthened, with Xunce rising over 9%.
The FTSE China A50 Index Futures expanded gains to 1%.
According to China Merchants Securities, late April is expected to be a critical window for marginal improvements in both domestic and international conditions. Once external pressures subside, market focus will shift to sectors with strong first-quarter earnings growth. Based on current data, resource sectors such as non-ferrous metals and petroleum石化, as well as new energy, optical communication, and semiconductor industry chains, are likely to deliver the most impressive earnings growth.
Huayuan Securities believes the ChiNext Index will benefit in the medium to long term from dual drivers—"new quality productive forces" and "domestic demand recovery." High-growth sectors such as AI, lithium batteries, and energy storage remain core themes. As policies to boost consumption take effect, quality companies in the service consumption sector also present attractive investment opportunities, with valuations having retreated to reasonable levels and cost-effectiveness becoming increasingly apparent.
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