A-shares closing review: Shanghai Composite Index rose slightly by 0.26%, ChiNext Index increased by 0.36%, the chemical raw materials sector advanced, and over 100 stocks hit the daily limit across the market.

Ask AI · Will the Chemical Sector Lead the Charge and Start a Long-Term Earnings Cycle?

On April 7, the three major A-share stock indexes opened higher and rose strongly in the morning before peaking and then pulling back. After the afternoon session, they traded in a narrow range at lower levels. By the close, the Shanghai Composite was up 0.26% to 3890.16, the Shenzhen Component was up 0.36% to 13400.41, the ChiNext Index was up 0.36% to 3160.82, and the STAR 50 Index was up 1.42% to 1274.01. Trading value on the Shanghai and Shenzhen exchanges totaled 1.61 trillion yuan. More than 3900 stocks across the market rose, including 101 stocks that hit the daily limit.

Market themes rotated quickly. The chemical sector continued to strengthen, with multiple constituent stocks hitting the daily limit. Major performers included large-scale refining and petrochemicals, and organic silicon. Qixiang Tengda notched 2 straight limit-ups over 4 trading days. Jiangnan Hi-Fiber, Hesheng Silicon Industry, and Sanfangxiang all hit the daily limit. The PCB concept saw a volatile surge, with Tongyu New Materials and Hongchang Electronics both hitting the daily limit. The sports concept repeatedly turned active; Nanjing Sports hit the 20CM daily limit, while Shuhua Sports, China TMT Sports, and Concord Turf also hit the daily limit. On the downside, the big financial sector weakened, with insurance leading the declines; China Taiping and China Life fluctuated lower. The innovative drug concept saw weakness across many stocks; Lianhuan Pharmaceuticals touched the daily limit on the downside, while LaiMei Pharmaceuticals, Runfu Shares, and Guangsheng Tang fell sharply.

Hot Sectors

The chemical sector continues to climb

The chemical sector continues to rise, with multiple constituent stocks hitting the daily limit. Sectors such as large-scale refining and petrochemicals, and organic silicon led the gains. Qixiang Tengda hit 2 limit-ups over 4 trading days, while Jiangnan Hi-Fiber, Hesheng Silicon Industry, and Sanfangxiang all hit the daily limit.

Guohai Securities research report says that, from a global perspective, China’s chemical advantage companies’ cost and efficiency advantages are already very solid, and leading enterprises have entered a stage where performance is moving into a long-term upward cycle. At the same time, for some industries with supply-side constraints, as demand rebounds, the industry conditions of these sectors are expected to continue improving, and they are worth key attention.

PCB concept stocks collectively strengthen

PCB concept stocks rose amid volatility. Tongyu New Materials and Hongchang Electronics both hit the daily limit.

On the news front, on April 3, CCL, a leading PCB laminate manufacturer, issued a letter to raise prices for board materials and pp semi-cured sheets by 10% in a unified manner. The reason was “a surge in prices and tight supply” for core upstream raw materials such as resin and electronic glass fiber cloth. In addition, on April 3, Shenghong Technology, during an investor site visit, said that as global general-purpose AI technology accelerates its evolution, demand for AI training and inference continues to expand. Demand for AI computing power and AI servers has grown rapidly, resulting in large and high requirements for PCB demand. This provides strong support for the sector’s sustained growth in the future, and in the future, AI PCBs are the most certain growth segment within the overall PCB industry.

Breeding industry concept rebounds

Breeding concepts such as pork and chicken saw a rebound, with China Animal Husbandry, Huatuan Shares, and other stocks hitting the daily limit.

On the news front, on April 1, the National Development and Reform Commission, the Ministry of Commerce, and the Ministry of Finance announced the launch of the 2026 second batch of central government reserves for frozen pork purchases and storage, and required localities to implement it in parallel. This move is seen as a clear signal that the government is stepping in to stabilize pork prices, aiming to ease industry pressure caused by persistently weak hog prices.

What Institutions Are Watching

Everbright Securities: The A-share market has likely already established the bottom in the near term; the next phase may mainly be about volatile repairs

The A-share market has likely already established the bottom in the near term, and the next phase may mainly be about volatile repair. In terms of allocation, layout can be built around the “two main lines: benefiting from high oil prices + earnings certainty.” First, a broad energy theme, including coal, coal chemical, oil and gas, shipping and ports, and other industries that directly benefit from rising oil prices, as well as new energy sectors such as solar, energy storage, wind power, and nuclear power that have an energy-substitution logic; second, an outstanding-quality technology theme, focusing on areas such as electronics (semiconductors, AI hardware), communications, and power equipment (AI power, energy storage)—fields that have strong industry trends and strong ability to deliver earnings.

Huajin Securities: The A-share market may have already hit a bottom in the short term

Judging from the current situation, fundamentals may continue to rebound, overseas risks may continue to be released, and pessimism in sentiment may already be fairly sufficient; policy is also relatively positive. Therefore, the A-share market may have already hit a bottom in the short term. Industry allocation: In the short term, continue to allocate at lower levels to outstanding-quality technology and some cyclical sectors.

China Merchants Securities: Market focus in mid-to-late April will shift to areas with strong first-quarter report performance growth

Looking ahead to April, external risks facing A-shares have not been fundamentally resolved. Currently, the United States is accelerating military mobilization. As the “Bush” aircraft carrier battle group completes deployment in mid-April, the likelihood of carrying out ground operations will rise significantly. There is a risk that the conflict between the U.S. and Iran may escalate beyond expectations. Against this backdrop, further upward pressure on oil prices will intensify market concerns about global economic stagflation. If, in mid-to-late April, the U.S. military launches ground attacks—whether due to combat casualties exceeding expectations or due to oil prices soaring triggering a deep pullback across global stock markets—the Trump administration may be forced to shift toward a de-escalation strategy, and the market may play out a typical scenario of a turnaround from a difficult situation.