Morning Review: Shanghai Composite Index surges then pulls back, up 0.03%; chemical sector collectively strengthens

Originally: Xinhua Finance

Xinhua Finance Beijing, April 7 (Wang Yuanyuan) — The three major indices all surged then pulled back in the morning session, with the ChiNext Index turning red after initially rising over 1%. The yellow-white line divergence was obvious, and small-cap stocks performed relatively strongly. At midday, the Shanghai Composite rose 0.03% to 3,881.17 points; the Shenzhen Component fell 0.20% to 13,325.83 points; the ChiNext Index declined 0.46% to 3,135.18 points; the total half-day turnover of the two markets was 10.721 trillion yuan.

In terms of sectors, animal health, glyphosate, organic silicon concepts, chemical raw materials, chemical fibers, agrochemical products, and chicken concepts led the gains; insurance, white appliances, aviation airports, PLC concepts, recombinant proteins, and aerospace performed poorly, leading the market decline.

Market Hotspots

On the market, the chemical sector continued to rise, with more than ten constituent stocks hitting the daily limit, led by refining and chemicals, organic silicon, etc., with Qixiang Tengda, Jiangnan High Fiber, Hesong Silicon, and Sanfangxiang hitting the limit. The PCB concept fluctuated upward, with Tongyu New Materials and Hongchang Electronics both hitting the limit. The computing power chip concept continued to rebound during the session, with Cambrian rising over 10%. On the downside, the insurance sector collectively declined, with China Pacific Insurance and China Life oscillating lower.

In individual stocks, over 4,500 stocks in the market rose.

Institutional Views

CITIC Securities: By 2025, China’s AI acceleration card market is expected to ship about 4 million units, with domestic AI acceleration cards accounting for over 40%, mainly promoted through differentiation such as non-GPU chips to catch up. Domestic model acceleration breakthroughs are evident, with API call volumes for the top five models from March 30 to April 5 all being domestic; in Q1 2026, Zhipu API prices surged by 83%, still showing a supply shortage; Alibaba released three heavyweight models consecutively, likely further boosting domestic computing power demand. A nationwide unified data property registration system has officially been implemented, and the data element industry is expected to enter a period of accelerated development.

Huatai Securities: Last week, the Middle East situation fluctuated repeatedly, and before the Qingming holiday, funds sought risk aversion, causing the A-share sentiment index tracked to remain in the “panic” zone. Structurally, benefiting from geopolitics and high oil prices, power, new energy, and coal stocks, which are highly crowded, saw funds cash out, while communication and innovative drug stocks with low correlation performed well. Earnings season’s better-than-expected results also became new trading cues.

China Merchants Securities: Looking ahead to April, external risks faced by A-shares have not been substantially alleviated, with the US-Iran conflict risking unexpected escalation. Under this background, further upward pressure on oil prices will intensify concerns about global stagflation. If the US military launches a ground attack in mid to late April, whether due to unexpected casualties or a sharp rise in oil prices triggering a deep correction in global stock markets, the Trump administration may be forced to shift to a détente strategy, potentially leading to a typical turnaround market.

Market News

China Securities Regulatory Commission enforces new short-term trading regulations starting today

The China Securities Regulatory Commission’s “Several Regulations on Short-term Trading Supervision” take effect today. The new rules further clarify supervision arrangements for major shareholders holding over 5% and senior management (directors, supervisors, senior executives) engaging in short-term trading, mainly to prevent insiders from exploiting informational advantages for quick profits and to maintain market fairness.

Samsung Electronics’ Q1 operating profit exceeds 7 times the previous high

On April 7, local time, Samsung Electronics announced its Q1 2026 performance guidance on its official website, significantly surpassing market expectations. The guidance shows Samsung Electronics achieved a consolidated sales of about 133 trillion won (approximately 606.48 billion RMB) in Q1 2026, up 68.1% year-on-year, and increased 41.7% from 93.84 trillion won in Q4 2025. The market previously expected Q1 sales of 116.8 trillion won. The company’s consolidated operating profit in Q1 was about 57.2 trillion won (roughly 2,608.32 billion RMB), soaring 755% compared to 6.69 trillion won in Q1 2025, setting a recent year-over-year growth record; it also increased 185% from 20.07 trillion won in Q4 2025, with profit scale continuing to rise rapidly for two consecutive quarters.

Editor: Luo Hao