Shanghai Composite Index gains over 100 points, approaching 4,000 points; ChiNext Index surges nearly 6%; nearly 5,200 stocks rise.

China’s A-share market’s three major indexes showed strong momentum today, with the Shanghai Composite Index soaring more than 100 points on a long green day, nearing 4,000. As of the close, the Shanghai Composite rose 2.70% to 3,995.00 points; the Shenzhen Component rose 4.79% to 14,042.50 points; and the ChiNext Index rose 5.91% to 3,347.61 points. The combined trading value across the Shanghai, Shenzhen, and Beijing markets reached 24.5k yuan, up sharply by 827.2B yuan from yesterday.

Industry and sector themes surged across nearly the board. Precious metals, advertising and marketing, IT services, components, semiconductors, media, aerospace equipment, software development, and consumer electronics led the gains. Only the petroleum and petrochemical, coal, and commercial pharma sectors fell against the trend.

As for individual stocks, the number of advancing shares was close to 5,200, and more than 130 stocks hit their daily trading limit. The AI industry chain surged across the board. In the compute-rental concept, gains strengthened; stocks including Dayi Technology, Hangyun Technology, Orelid, Hanggang Shares, and Huafu Fashion all hit the trading limit. In the AI compute hardware concept, the sector rallied; JiiKCsky Advanced Communications rose more than 10% and set a new all-time high, while multiple stocks including MINGPU Optics, Dongshan Precision, Huali Electronics, and Shennan Circuits also hit the trading limit. On the AI application side, performance was active: more than a dozen constituent stocks hit the trading limit. Bluefocus 20cm hit the trading limit, and Zhisheng Information 30cm also hit the trading limit. The precious metals concept moved higher as a group, with Hunan Gold, Sichuan Gold, and Western Gold all hitting the trading limit.

Top news today

Imay agrees to a ceasefire for two weeks; talks to begin on the 10th; the Strait of Hormuz will be opened for two weeks

Just as the last deadline set by U.S. President Donald Trump for Iran arrived, the Iran-related conflict saw new developments: on the 8th, Pakistan announced that Iran, the United States, and both countries’ allies have agreed to an immediate ceasefire in all areas, including Lebanon, “effective immediately.” On the 8th, Iran released a statement saying that Iran will hold two weeks of political talks with the United States in Islamabad, the capital of Pakistan; the Strait of Hormuz will achieve safe navigation within two weeks. On the same day, Iran released the main content of 10 ceasefire terms.

New rules on industrial and supply chain security are introduced; scientific countermeasures are specified

On March 31, the State Council Premier Li Qiang signed State Council Order No. 834 and issued the “Regulations of the State Council on the Security of Industrial and Supply Chains,” which took effect on the date of its promulgation. The “Regulations” uphold coordinated development and security, focusing on the security of industrial and supply chains in key areas related to economic and social stability and national security—using “small entry points” to build the relevant institutional framework.

As high as 8,747%! Storage companies’ performance surges; many companies attract capital attention (list)

On the evening of April 7, Shannong Chuangxin released a first-quarter performance forecast. The company expects that in the first quarter of this year, its net profit attributable to the parent company will be 1.14 billion yuan to 1.48 billion yuan, up 6,714.72% to 8,747.18% year over year; non-recurring profit net will be 1.12B yuan to 1.46B yuan, up 7,424.82% to 9,713.23% year over year.

Valuation contraction may be ending! Public funds’ second-quarter allocation approach revealed; technology remains the first choice

Several fund companies believe that the market has most likely already passed the phase of rapid valuation compression. Going forward, pricing will return more to company fundamentals. Against the backdrop of significant performance differentiation in the first quarter and pressure on heavily weighted stocks, public funds, while maintaining the core position of the technology main theme, place even more emphasis on earnings certainty. They also set a clear direction for second-quarter positioning by balancing portfolio volatility with high-dividend-yield assets.

**　　Institutional viewpoints**

CICC: In the short term, gold’s allocation value is relatively superior to other non-cash assets

CICC said that over the coming months, inflation in major global economies may rise noticeably and growth faces downside risks, meaning global assets may face new challenges. Compared with the Russia-Ukraine conflict in 2022, current global supply-chain pressures are smaller, economic demand is weaker, and the absolute level of inflation is lower. Therefore, CICC expects that the impact of stagflation this round will mainly be reflected as temporary disruptions; the inflation peak is clearly lower than in 2022, so global asset performance will not be as bad as in 2022. Based on oil futures forward contracts, the peak of U.S. inflation in this round is expected to occur around June, close to 4%. CICC predicts that U.S. inflation will decline again in the second half of the year. Combined with growth pressures and financial risks, the U.S. Federal Reserve may continue cutting rates in the second half. In the medium term, the easing trade for the Fed could return, providing fresh support for assets such as stocks, bonds, and gold, with particular optimism about China’s stock performance over the long run. In the short term (the next 1–2 months), the market faces uncertainty, so it suggests maintaining some cash allocation. From a probability-of-win perspective, gold’s short-term allocation value is relatively superior to other non-cash assets.

Haitai Securities: The turn point is approaching as the interest spread stabilizes—grasp structural opportunities in high-quality banks

In a research report, Haitai Securities stated that in 2025, the listed banks’ earnings growth rate is expected to improve. Revenue and net profit attributable to shareholders are projected to rise year over year by +1.4% and +1.6%, respectively; the growth rates are +0.6 percentage points and +0.3 percentage points higher than 9M25, respectively, mainly benefiting from the marginal stabilization of the interest spread plus an upswing in fee and other non-interest income. Key focus areas: 1) In 2025 Q4, the marginal stabilization of net interest margins for the sample listed banks will drive an improvement in the growth rate of net interest income; 2) middle-income (fee) income recovery supports growth, with non-interest income growth diverging; 3) the marginal acceleration in growth of listed banks’ scale and the continuation of the trend toward term deposits; 4) improvement in non-performing loans on the books. Stock-level focus: 1) high-quality banks that combine dividend and growth characteristics; 2) banks with standout value attributes for dividends.

Guolian Minsheng: Sustainable price increases are the configuration anchor

Because once a war continues to affect the global supply chain, the ripple effects of price increases are difficult to avoid and will gradually spread as supply-chain efficiency declines. Although from a mid-to-short-term allocation perspective the investment anchor should revert to common sense—focusing on industry chains that have “a clearly identified payer”—and extracting certainty-driven opportunities, it is also necessary to recognize that this phase of the price-increase cycle may eventually come to an end. That is because the negative feedback effect of rising prices on total demand has already begun to appear quietly and is gradually building up. This is an important milestone to observe going forward.