Violent rebound, this scene looks familiar! Shanghai Composite Index surges by hundreds of points, the number of A-shares rising hits a new high for the year.

Ask AI · What key factors influence the sustainability of the market rebound?

Everyday Business News reporter: Xiao Ruidong    Everyday Business News editor: Zhao Yun

On April 8, the market collectively rebounded. The Shanghai Composite Index saw a 100-point rally on a long bullish day, the ChiNext Index rose nearly 6%, and the STAR Market 50 Index rose more than 6%. By the close, the Shanghai Composite rose 2.7%, the Shenzhen Component rose 4.79%, and the ChiNext Index rose 5.91%.

Looking at sectors, the AI industry chain surged across the board. Computing power hardware concepts quickly jumped, AI application segments performed actively, and precious metals concepts all climbed. On the downside, oil and gas concepts were adjusted collectively.

Across the entire market, more than 5,100 stocks rose, including 135 stocks that hit the daily limit, with more than 100 stocks hitting the limit for two consecutive days. The combined trading value of the Shanghai and Shenzhen markets was 2.43 trillion yuan, up by 820.1 billion yuan versus the prior trading day.

From yesterday to today, it seems the A-share market has intentionally “paid tribute” to last year’s trend: first probing the bottom, then broad-based gains.

The pace feels familiar, but the difference is this: yesterday did not create the deep pit of last year’s “4·7,” and today even launched a direct “violent repair,” with the rally magnitude far exceeding last year’s “4·8,” accelerating the pace of the advance.

Wind data shows that by the close, the Shanghai Composite Index delivered the long-lost “hundred-point long bullish day,” approaching 4,000 points.

In terms of individual stocks, a total of 5,174 stocks in the whole market closed higher, exceeding the 5,136 stocks on March 24, making it the best-performing day of the year.

This is obviously because:

The earlier drawdowns have been largely absorbed, today’s optimism is in place, and incremental capital has also arrived.

Wind data shows that since the market peaked at the end of February, the average price of all A-shares saw its largest drawdown on March 23, at 13.8%. From March 23 onward, the indicator has generally rebounded slowly; adding today’s 4.87% gain, the maximum rebound exceeds 9%. And to return to the year’s peak, it still needs to rebound by about 6% more.

As mentioned earlier, today is once again a day that is favorable to the rebound on multiple fronts.

According to early media reports, U.S. President Trump said on Tuesday that he has agreed to a two-week ceasefire agreement with Iran. And less than 12 hours earlier, he had issued an ultimatum to Tehran in the style of a “destroy civilization” warning.

Iran’s foreign minister Araghchi stated that if attacks stop, ships can pass safely through the Strait of Hormuz over the next two weeks.

The mainstream market view is that even if there is still “noise” in the news, the ceasefire in the short term brings a welcome signal of easing tensions to global markets. For A-shares, it’s not impossible to see a repair rally similar to the same period last year.

However, some analysts point out that whether the market rebound can continue depends on when shipping through the Strait of Hormuz can return to normal. High oil prices remain a major downside risk facing the global economy, especially in Asia, because many economies are highly dependent on Middle Eastern crude oil imports. Meanwhile, it may still be too early to start believing the story of “permanent peace.”

With Northbound capital stepping in, the first large-volume bullish daily candlestick has already appeared. For retail investors, being able to “get back a big chunk of blood” is undoubtedly good news; after the initial broad-based rally rebound, which directions can stand out and become the market’s new core is the focus for subsequent attention.

Generally speaking, choosing areas that are “healthy in terms of trend” or “previously severely oversold and seeing bottoming-out volume recovery” are both viable approaches.

As for today’s market, we believe there are several directions worth paying attention to. Of course, they are all familiar faces.

(1) Technology

The AI application segment saw the largest gains, but the computing power industry chain should not be underestimated either.

Looking ahead to 2026, market participants say that multimodal will remain the core development mainline for AI. On the one hand, it will continue to push beyond modality boundaries to enhance capabilities in complex reasoning and content creation; on the other hand, it will penetrate vertical industries with lightweight solutions. Combined with improvements in copyright compliance and security systems, this will lay a more certain environment for large-scale commercial deployment.

Western Securities said that driven by industry leaders, CPO is accelerating commercialization. The industry is innovating with multiple technical routes such as LPO, NPO, and XPO. At this stage in the early phase of industrial acceleration, the next three years are the core observation window for the rapid improvement of CPO industry penetration and for the gradual formation of supply-chain patterns and the value allocation across the industry chain.

(2) Precious Metals

A sharp drop in oil prices also provides liquidity to the precious metals market, triggering a rebound in gold and silver prices.

The latest data released by the People’s Bank of China shows that as of the end of March 2026, gold reserves totaled 74.38 million ounces, up 160,000 ounces from the end of the previous month. This is the first time since March 2025 that monthly net purchases exceeded 100,000 ounces. It is also the central bank’s 17th consecutive month of gold accumulation.

Data from the World Gold Council also shows that in the first quarter of 2026, global central banks’ net gold purchases reached 215 tons, continuing the long-term trend of net buying.

Minsheng Securities believes that under the macro narrative of global monetary oversupply, weakening U.S. dollar credit, rising geopolitical tensions, and increasing risks of a second round of U.S. inflation, central banks’ continued gold purchases further strengthen gold’s safe-haven and value-preservation functions. There is still considerable room for gold prices to rise in the future.

(3) Large Financials Such as Brokerages and Insurance

In terms of valuation, Wind data shows that the non-bank financial sector had fallen for 8 straight weeks previously. As of April 7, the price-to-book ratio of brokerages was about 1.2 times, showing a clear profile of high profitability and low valuation.

On the news front, the latest data from the Shanghai Stock Exchange shows that this year’s March saw more than 4.6 million new A-share accounts opened in Shanghai. This represented an 82.38% month-on-month increase and a 50.10% year-on-year increase. In the first quarter, the total number of new A-share accounts in Shanghai reached 12.0402 million, up 61.15% year-on-year.

Some institutions believe that, affected by trading-related factors and others, the valuation center of brokerages has been adjusting downward continuously. Compared horizontally with international investment banks and vertically with various industries within A-shares, the valuation of the brokerage sector has already been adjusted to a fair level. The sector’s valuation adjustment is close to its end, and they are optimistic about the brokerage sector’s subsequent opportunities for catch-up gains.

Daily Economic News