A-shares closing review: Shanghai Composite Index approaches 4,000 points, ChiNext Index surges 5.91%, over 5,100 stocks in the entire market rise, with more than 100 stocks hitting the daily limit for two consecutive days.

Ask AI · How does easing Middle East tensions boost A-share market sentiment?

On April 8th, the tense situation in the Middle East rapidly cooled down, and Asia-Pacific stock markets rebounded across the board. The three major A-share indices opened higher and continued to rise throughout the day, maintaining a volatile upward trend. By the close, the Shanghai Composite rose 104.83 points, up 2.69%, to 3995 points; the Shenzhen Component increased 642.08 points, up 4.79%, to 14,042.5 points; the ChiNext Index gained 186.79 points, up 5.91%, to 3,347.61 points; and the STAR 50 Index rose 76.54 points, up 6.18%, to 1,352.69 points. Market trading volume significantly expanded, with the combined turnover of Shanghai and Shenzhen reaching 2.43 trillion yuan, an increase of 820.1 billion yuan compared to the previous trading day; over 5,100 stocks in the entire market rose, including 135 stocks hitting the daily limit, with more than 100 stocks hitting the limit for two consecutive days.

In terms of sectors, the AI industry chain collectively exploded, with the computing power leasing concept leading the rally. Major companies such as Dawi Technology, Xingyun Technology, Aoruid, Hanggang Shares, and Huafu Fashion all hit the daily limit. The hardware concept related to computing power surged rapidly, with Zhongji Xuchuang rising over 10%, hitting a new historical high, and Mingpu Optical Magnetic, Dongshan Precision, SH Electric, and Shen Nan Circuit also hitting the limit. AI application stocks were active, with more than a dozen constituent stocks hitting the limit, including Blue Cursor’s 20CM limit and Zhisheng Information’s 30CM limit. The precious metals concept also rose collectively, with Hunan Gold, Sichuan Gold, and Western Gold hitting the daily limit. On the downside, oil and gas concepts experienced a collective correction, with Zhongman Petroleum, Beiken Energy, and Lanyan Holdings hitting the limit down.

Hot Sectors

AI Industry Chain Collective Explosion

The AI industry chain collectively exploded, with the computing power leasing concept leading the rally. Major companies such as Dawi Technology, Xingyun Technology, Aoruid, Hanggang Shares, and Huafu Fashion all hit the daily limit.

On the news front, on April 8th, Zhipu officially released the GLM-5.1 model, becoming the world’s strongest open-source model, and announced a 10% price increase again. After the price hike, the cache hit token price of GLM-5.1 in coding scenarios approached that of Anthropic’s Claude Sonnet 4.6. This marks the first time a domestic large model has achieved price alignment with overseas top-tier vendors in core scenarios.

Precious Metals Concept Shows Active Performance

Gold, silver, and non-ferrous metals concepts collectively strengthened, with Western Gold, Industrial Silver & Tin, and Western Gold hitting the daily limit.

On the news front, spot gold rose above $4,850 per ounce, up 3.19% intraday. Additionally, data released by the People’s Bank of China showed that China’s gold reserves at the end of March stood at 74.38 million ounces, an increase of 160k ounces from the previous month, marking the 17th consecutive month of gold accumulation.

Continued Strength in Computing Hardware Concepts like CPO

Optical modules, PCBs, liquid cooling, fiber optics, and other computing hardware concepts continued to strengthen, with stocks like Juxingxing and Dongshan Precision hitting the limit.

On the news front, Western Securities pointed out that CPO (Chiplet Package Optimization) is accelerating commercialization driven by industry leaders, with ongoing innovations in technologies such as LPO, NPO, and XPO. Currently in the early stage of industrial acceleration, the next three years are expected to be a critical window for rapid penetration of the CPO industry, as well as the gradual formation of supply chain patterns and value chain divisions.

Oil and Gas Sector Corrects Collectively

Oil and gas concepts experienced a collective correction, with Zhongman Petroleum and Lanyan Holdings hitting the limit down, and stocks like Keli Co., Guanghui Energy, and Tongyuan Petroleum falling sharply.

On the news front, under Pakistan’s mediation, the US and Iran agreed to a two-week temporary ceasefire, triggering a sharp decline in international crude oil futures. WTI crude oil futures once fell nearly 20% in early trading.

Market Outlook

Huatai Securities: Middle East Tensions Easing, Short-term TACO Trading Window Opens

Huatai Securities stated that with the easing of Middle East tensions, on April 8th, Trump agreed to suspend bombing Iran for two weeks, and Iran accepted Pakistan’s ceasefire proposal. From last night’s asset performance, US stocks rebounded intraday, crude oil plummeted, and the VIX index spiked then retreated. We believe a TACO (Trade And Confirm Opportunity) trading window is opening in the short term. The positive sentiment has shifted from psychological to actual action. However, uncertainties remain, as the VIX remains high, indicating the market has not fully priced in the end of the conflict. Position management should be cautious. Regarding allocations, the A-share market on Wednesday, 4/1, can serve as a rehearsal for TACO trading. Focus on two directions: first, sectors that are oversold previously, including TMT, non-ferrous metals, steel, building materials, machinery, which are main themes of spring market cycles + tech, benefiting from easing rate cut expectations. Machinery is driven by external demand. Second, sectors related to low oil prices and independent prosperity cycles, such as AI chains and innovative pharmaceuticals.

Huijin Securities: A-shares May Have Bottomed in the Short Term

Currently, fundamentals may continue to improve, with sufficient release of overseas risks and sentiment adjustments, and policies leaning positive. A-shares may have bottomed in the short term. It is recommended to continue buying on dips: first, sectors with upward policy and industry trends, such as communications (AI hardware), electronics (semiconductors, AI hardware), new energy (AI power, energy storage), innovative drugs, non-ferrous metals, chemicals, and military industry (commercial aerospace); second, undervalued dividend sectors like coal, power, and banking.

CITIC Securities: Focus on Cloud Industry Chain and Computing Power Leasing Stocks

CITIC Securities pointed out that with the explosion of agent applications and multimodal ecosystems, capital expenditure and computing power demand mismatch, and global token usage is entering a new acceleration phase. Over the past two years, the cloud industry chain is expected to see a period of rising volume and prices. Demand-driven price increases are pushing the cloud industry chain into a cycle of volume and price growth. Regarding computing power leasing, high-quality chip supply remains tight, with leading leasing companies holding advantageous positions, and higher leverage boosting high growth certainty. It is recommended to focus on stocks related to the cloud industry chain and computing power leasing.