[Focus Review] The ChiNext Index rose nearly 6%, ending a five-day losing streak, with over 300 stocks in the entire market up more than 9%, and the two markets saw a trading volume exceeding 800 billion.

Ask AI · Why have AI applications and the precious metals sector become the main drivers of today’s rally?

Cailian Press, April 8 — Today, 123 stocks hit the daily limit, 17 stocks hit the limit-up halt, with an overall limit-up rate of 88%. Huiruan Communication hit four consecutive limit-ups, Zhong’an Technology three, Minohua achieved 7 limit-ups in 13 days, Xinzhonggang 5 in 6 days, Shenjian Shares 5 in 9 days, China International Construction 3 in 4 days, Jiuzhou One Track 20cm 2 in 3 days. The market rebounded collectively, with the Shanghai Composite Index rising by hundreds of points, the ChiNext Index up nearly 6%, and the STAR Market 50 Index up over 6%. Trading volume significantly increased, with the combined turnover of the Shanghai and Shenzhen markets reaching 2.43 trillion yuan, an increase of 820.1 billion yuan compared to the previous trading day. On the sector front, hot spots rotated rapidly, with over 5,100 stocks rising across the market, and more than 100 stocks hitting the limit-up for two consecutive days. In terms of sectors, precious metals, AI applications, computing power leasing, and hardware related to computing power led the gains; oil and gas, coal sectors weakened against the trend. By the close, the Shanghai Composite rose 2.7%, Shenzhen Component Index up 4.79%, and the ChiNext Index up 5.91%.

Analysis of Popularity and Continuous Limit Stocks

The rate of upgrade for consecutive limit-up stocks dropped to 28.57%, indicating that short-term market sentiment and the index continue to be a seesaw. While the index generally rose, the number of stocks with three or more consecutive limit-ups fell to just 2. Previously, high-flyer stocks with seven consecutive limit-ups, like Jinyao Pharmaceutical, saw their limit-up halted early in the session and closed with a long upper shadow, reducing their consecutive limit-up count to four. Huiruan Communication, which recently hit three limit-ups, maintained all three with straight-line limit-ups. Boosted by the temporary cooling of Middle East tensions, short-term funds withdrew from energy sectors like oil and gas and coal, while the technology growth track strengthened across the board. As AI hardware and software, semiconductors, and gas turbines warmed up, the non-ferrous metals sector, represented by precious metals, also saw a comprehensive rebound. With today’s broad rally and recovery, the key to tomorrow’s first-limit-up stocks is the sector they belong to, which may determine the further development of short-term hot spots.

Main Sector Hotspots

On April 7, the AI video evaluation platform Artificial Analysis revealed a mysterious model called “Happy Horse,” which surged past Seedance 2.0 to top the charts! It is reported that this model leads comprehensively in image consistency, natural motion, and audio synchronization, while costing only half of the competing Seedance. The concept of AI applications was boosted by this, sparking a long-lost upward trend during the session. Zhisheng Information hit a 30-cent limit-up, while Blue Focus, Lio Holdings, Shengguang Group, Huanyu Century, and Decai Holdings, which previously promoted Seedance 2.0 concepts, all closed with limit-ups. The emergence of “Happy Horse” undoubtedly adds fuel to the previously hot Token economy, making the computing power leasing concept even more popular than application-side sectors. Aside from Hanggang Shares, which hit a straight limit-up all day, Hangyun Technology soon after opening hit a 20-cent limit-up, driving stocks like Aorui De, Litong Electronics, and Lianhua Holdings to also hit the limit. Although there is still controversy over which company developed this model, the fact that Wen Sheng Video consumes more tokens than general large models highlights the core position of the cloud computing industry chain. Watch for the premium performance of several trending stocks within this sector tomorrow.

Overnight, U.S. stocks’ optical communication concept continued its strong rise, with Lumentum up about 11.3% during and after trading, and total gains in applied optoelectronics exceeding 17%. Several stocks like Coherent rose over 5%, with most optical module-related manufacturers reaching new highs. Under the strong external reflection, the CPO concept surged again, with Dongshan Precision, which beat expectations significantly in its Q1 report, hitting a straight limit-up all day. Zhongji Xuchuang, Xin Yisheng, Changxin Bochuang, and Luobotech all rose over 9% and hit new highs. As demand for 800G optical modules continues to grow beyond expectations, with 1.6T modules entering large-scale delivery and MPO modules starting from zero to one, core production equipment for optical modules is expected to benefit first from the expansion wave. Meanwhile, the PCB industry chain, which led the rally yesterday, continued to expand into large-cap stocks like Shudi Co., Shen Nan Di Lu, and Dazhu Laser, all hitting the limit-up. Given the exponential increase in requirements for PCB layers, density, and signal transmission performance in AI servers, upstream electronic resins, copper foils, and electronic fabrics remain the most benefited sectors with high performance elasticity.

As the U.S. and Iran temporarily cease fire, WTI crude futures once plunged nearly 20%. Amid this, metals like gold and silver rebounded sharply, with the non-ferrous sector warming up across the board. Precious metals led the gains, with Western Gold, which announced a net profit increase of nearly 18 times in Q1, hitting a straight limit-up all day. This also drove other precious metals stocks like Xingye Silver & Tin, Sichuan Gold, Zhaojin Gold, and Huaxi Nonferrous to hit the limit. Copper mining stocks like Luoyang Molybdenum, Western Mining, and Zijin Mining all rose over 6%. Thanks to the low base of last year’s Q1 earnings, the overall high growth in the non-ferrous sector this quarter is not surprising. Similar to yesterday’s chemical sector, some companies’ better-than-expected results continue to significantly restore sector sentiment. Even if future metal futures prices face tests, the previous deep adjustments make valuation recovery in the entire non-ferrous sector still promising.

With several leading tech companies accelerating their IPO processes, SpaceX is expected to break the global record for the largest IPO. Last night, the Long March 8 rocket launched the seventh batch of Tianfan satellites into orbit with a “one rocket, eighteen stars” deployment. The commercial aerospace concept again received positive resonance domestically and internationally, with Shenjian Shares, China National Machinery Industry Corporation, and Julli Squeeze hitting the limit-up, and stocks like Zhenlei Technology, Aerospace Hongtu, CETC Lantian, and Guanglian Aerospace rising over 10%. Compared to the still overseas-dependent computing hardware industry chain and the impact of Middle East tensions on energy and chemical sectors, the entire commercial aerospace sector is relatively less affected by external factors. Domestically, attention should be paid to recent launches of the Long March 820.1B rocket and other updates.

Market Outlook

As the Middle East conflict temporarily subsides, today’s market saw a broad rally, with the Shanghai Index surging over 100 points to approach the 4,000-point mark, and the ChiNext Index ending its five-day losing streak. All three major indices recorded their largest single-day gains of the year, with 5,174 stocks rising, reaching a new high for the number of advancing stocks this year. However, among the over 300 stocks that rose more than 9%, many sectors such as technology growth and non-ferrous metals, which had previously experienced sharp declines, were prominent. Therefore, today’s long bullish day does not yet confirm a market turning point. Although the Shanghai Index’s daily MACD and KDJ both showed bullish crossovers from low levels, the rapid rebound suggests a potential pullback to the 20-day moving average support. If this support is broken again, attention should be paid to the possibility of the upward gap created today being filled in the future.

Today’s Limit-up Analysis Chart

(Cailian Press, Jin Haoming)