A-share Opening Express | Shanghai index opens 1.32% lower, oil and gas sector active, semiconductor sector leading the decline.

The three main stock indexes of A shares collectively opened lower, with the Shanghai Composite Index falling by 1.32% and the Growth Enterprise Index falling by 1.54%. On the market, the coal and oil and gas sectors were active, with Liaoning Energy Industry rising by nearly 5%; the precious metals and semiconductor sectors were among the top decliners, with Chifeng Jilong Gold Mining hitting the limit. Institutional outlook CITIC SEC: Some core disputes regarding the impact of the Middle East conflict will have answers after April CITIC SEC believes that some core disputes regarding the impact of the Middle East conflict will have answers after April. The answers to the aforementioned core market issues will gradually be revealed in April. Before that, the market will still be in a narrative game stage, reflecting the characteristics of liquidity withdrawal. The US bond yields are currently rising rapidly, with the 10-year yield increasing from 3.97% at the end of February to the current 4.39%, reaching the highest level since August of last year. From the current global market situation, after the waning of global risk aversion sentiment, various countries strengthening energy security layout and accelerating the electrification process has become a new trend. The competitiveness of China's advantageous manufacturing industry is just beginning to transition to pricing power and profit margins. In terms of market logic, rising prices and the PPI rebound are ongoing clues. The only concern now is that upstream prices are difficult to transmit downward. Currently, the upper and middle stream areas have initiated a price increase process, but the downstream is still in a wait-and-see mode and is digesting inventory. Only with the passage of time and the decrease in commodity price volatility will downstream purchasing return to normal pace. The key questions are whether the related areas can maintain pricing power, maintain profit margin expansion, and whether the advantage in market share can truly be converted into pricing power. Investors need to remain patient and calmly handle stock price fluctuations. April and May will be the decisive period, with the first three months this year dominated by narrative-driven sector rotations and fluctuations. Even if profits cannot be maintained through trading, it is not a big deal. In fact, the median return of active equity funds this year has returned to 0.7%. Huaxi: Allocate to sectors such as banks and await more "market-stabilizing" policies Huaxi believes that most global stock markets fell this week, with A shares and European stock markets leading the declines. On one hand, the geopolitical situation between the US and Iran is still uncertain, and there is significant uncertainty in the future trends of oil prices and inflation, increasing the tail risks of stagflation. On the other hand, the Federal Reserve's March interest rate meeting maintained interest rates but had a hawkish statement, not ruling out the possibility of a rate hike, causing concerns about a tightening US dollar. Under the suppression of risk appetite, the A-share market as a whole retreated, with market turnover continuously shrinking, reflecting a cooling of investor sentiment in the environment of rapid sector rotation. Structurally, defensive sectors such as food and beverage, banks, as well as high-growth areas such as storage and AI computing are relatively advantageous. Market outlook: Allocate to sectors such as banks and await more "market-stabilizing" policies. The continued escalation of US-Iran conflict intertwining with overseas rate cut expectations continues to suppress global markets in the short term. In comparison, the domestic policy environment is more certain, with regulatory authorities clearly sending signals to "stabilize the capital market". Subsequent policies such as "stabilization funds", supporting the optimization of structural tools in the capital market, the entry of medium to long-term funds into the market, and counter-cyclical regulatory policies are worth looking forward to. In addition, the limited impact of imported inflation on domestic monetary policy, the continuation of loose liquidity conditions, and active fiscal policies will help to improve residents' expectations. Orient: Structural market opportunities still exist Orient states that in the current macroeconomic environment, the market may be concerned about global economic downturn, with "stagflation" trading heating up. A-share market will also be affected by uncertainty, presenting a pattern of continued adjustment in the short term. This week, the Shanghai Composite Index is expected to bottom out and experience a weak rebound, with support in the 3880-3900 range. Structural opportunities still exist, and industries such as algorithm and electricity synergy, semiconductor storage, and "dual-beam light" will continue to be local hotspots. This article is reproduced from "Tencent Stock Selection". GMTEight Editor: Feng Qiuyi.