Sudden surge in the afternoon! 300651, 605299 hit the daily limit with strong gains

On April 7, China’s A-share major stock indexes traded in a narrow range with an upward bias, while the Science and Technology Innovation Board Composite Index performed relatively strongly.

More specifically, the three major indexes dipped and then rebounded intraday, with the Science and Technology Innovation Board Composite Index rising by nearly 2% at one point. By the close, the Shanghai Composite Index rose 0.26% to 3,890.16 points, the Shenzhen Component Index rose 0.36%, and the ChiNext Index also rose 0.36%. The Science and Technology Innovation Board Composite Index rose 0.85%. The combined trading volume of the Shanghai, Shenzhen, and Beijing markets totaled about 1.62 trillion yuan, down by roughly 45 billion yuan from the previous trading day.

Nearly 4,000 A-share stocks finished higher. The chemical sector surged across the board. Concepts related to pesticides, dispersed dyes, and organic silicon stood out. Among them, Tongyu Xin材, Lingwei Technology, Jiangtian Chemistry, and Dongyue Silicon Materials all hit their 20% daily limit. Sports-related concepts rose after midday: Nanjing Sports (300651) hit the 20% limit, Shuhua Sports (605299) also closed at the daily limit, and Longhua New Materials rose more than 10%. Sodium battery concepts also gained momentum: Boliview hit the 20% limit, and Shengquan Group and Gaole Co., Ltd. also hit the daily limit. Foldable screen concepts were active, with Furong Technology, Bai Cheng Shares, and others hitting daily limits. Notably, Cambricon surged sharply intraday and closed up more than 9%; its full-day turnover was 15.53 billion yuan, ranking first on the A-share market by trading value.

Chemical sector surges

The organic silicon concept rose strongly intraday. By the close, Dongyue Silicon Materials hit the 20% daily limit. Xin’an Shares, Hefeng Silicon Industry, and others also closed at daily limits, while Silibao Technology rose more than 8%.

On the evening of the 3rd, Dongyue Silicon Materials disclosed its performance forecast for the first quarter of 2026. It expects that the net profit attributable to shareholders of listed companies will increase by 397.02%—451.34% year over year in the first quarter. The company said that, since December 2025, due to improvements in the market environment and industry supply-and-demand dynamics, prices of key organic silicon products have risen and returned to a reasonable range, and the company’s product gross margin has improved significantly. In addition, the company has continued to advance refined management and tap internal potential, keeping production operating steadily, effectively controlling costs and expenses, and further strengthening its profitability.

Institutions said that organic silicon prices have long been hovering near the bottom of the cycle. Looking ahead, as supply and demand improve, prices are expected to enter an uptrend channel. They suggest focusing on companies that have organic silicon production capacity and have relatively comprehensive upstream and downstream industry chain layout.

Fertilizer-related concepts also rose. By the close, Chitianhua, Lutianhua, Liuguo Chemical, Luxi Chemical, and Jinzhengda all hit their daily limits, while Hualu Hengsheng rose more than 9%.

Pesticide-related concepts also showed strong performance. Xin’an Shares and China National Agricultural Joint Venture hit the daily limit; Jiangshan Shares, Runfeng Shares, Yangnong Chemical, and others rose more than 7%.

According to Xinhua News Agency, citing an unnamed source, on the early morning of the 7th the Iranian Fars News Agency reported that an explosion occurred that day in the Jubail industrial area in China’s northeast? (Saudi) that involved U.S. capital, which was hit broadly. The report said that the Jubail industrial area is one of the world’s important petrochemical production bases, with an annual output of about 60 million tons of petrochemical products, accounting for 6% to 8% of global total production. Many large petrochemical enterprises and projects are concentrated in the area. Among them, Saudi Basic Industries Corporation is one of the main investors in the industrial area. In addition, the Sadara project, involving participation by U.S. Dow Chemical Company, and the projects jointly invested by Saudi Aramco and French TotalEnergies, are also located within the industrial area.

Institutions said that in the short term, the intensification of regional conflicts may cause overseas orders to shift to the domestic market, which could drive demand for domestic chemical products, or at least help stabilize chemical product prices upward. In the medium to long term, if global crude oil supply returns to normal in the future, restarting impacted overseas facilities will also take time, and globally—or at least—there may be a new round of chemical product restocking demand. They remain firmly optimistic that China’s chemical assets will see a reassessment of value.

Sports-related concepts stay active

Sports-related concepts rose and swung upward intraday. By the close, Nanjing Sports hit the 20% daily limit, Longhua New Materials rose more than 10%, and Shuhua Sports, China T&I Industry, Chuangchuang Turf, Guangdong Media, and others all hit the daily limit.

On the news front, on the afternoon of April 6, the 2026 Zhejiang Provincial City Football League (“Wuyue Cup”) kicked off. In addition, multiple provinces’ city football leagues are about to launch: the first week of the 2026 Jiangsu Provincial City Football League (“Su Chao”) will begin on April 11. The opening match of the 2026 Hubei Provincial City Football League (“Chu Chao”) will be officially held on April 12.

CITIC Securities recently pointed out that the national “15th Five-Year Plan” and “15th Five-Year Plan” (for 2026-2030) key focus on strengthening both sports as a great power and tourism as a great power (first time). Culture, tourism, and sports naturally have a correlation. With the advancement of sports-related policies and the diversification of residents’ sports and entertainment activities, the soil for developing the sports events economy has gradually become complete. It is expected to become an important lever for boosting domestic demand consumption and enriching residents’ spiritual and cultural life. Drawing on the experience of F1 events’ huge commercial success, participants in the sports industry are expected to gradually move into stages of professionalized operation, industry-chain coordination, and the gradual realization of commercial value.

Proofread by: Yang Linlin