A-share market update: A-shares are facing another adjustment as the ChiNext Index falls by over 1%! Non-ferrous aluminum sector rises against the market trend.

With Iran's rejection of the "ceasefire agreement" proposed by the United States, and the continuous strengthening of US military deployments in the Persian Gulf region, market concerns about the escalating conflict in the Middle East have intensified. Affected by the geopolitical situation, the three major A-share indices collectively opened lower today. As of 9:40, the Shanghai Composite Index fell by 0.36%, the Shenzhen Component Index fell by 0.68%, and the Growth Enterprise Index fell by 1.01%. In terms of the market, the non-ferrous aluminum sector opened with a sharp rise, with Fujian Minfa Aluminium Inc., YeChiu Metal Recycling, Jiang Su Alcha Aluminium Group, and Tianshan Aluminum Group all hitting the limit of increased bidding; the coal mining and processing sector showed short-term strength, with Zhengzhou Coal Industry & Electric Power hitting the limit; the chemical stocks were active, with Inner Mongolia Jinmei Chemical Technology rising for three consecutive days, Lihuayi Weiyuan Chemical up more than 8%; the innovative pharmaceutical concept was active, with Ningbo Menovo Pharmaceutical showing a 6-day rise, Wanbangde Pharmaceutical Holding Group, Beijing Sl Pharmaceutical, and Yantai Dongcheng Biochemicals hitting the limit; the CNC tool concept was active against the trend, with OKE Precision Cutting Tools and Huarui Precision both rising sharply. Looking ahead, China Securities Co., Ltd. stated that the current A-share adjustment is relatively sufficient, and investors can wait for long signals and choose the right timing for layout. Shenwan Hongyuan Group also believes that A-shares are still in a medium- to long-term uptrend cycle, and despite disturbances, this is just a lengthening of the "first phase of rise," with a high probability of a "second phase of rise" still to come. Hot sectors 1. The coal mining and processing sector showed strength, in which Zhengzhou Coal Industry & Electric Power hit the limit, and other companies like Yunnan Coal & Energy, Shaanxi Heimao Coking, Gansu Energy Chemical, Henan Dayou Energy, and Shanxi Antai Group saw gains. 2. The innovative pharmaceutical concept was active, with Ningbo Menovo Pharmaceutical on a 6-day rise, and companies like Wanbangde Pharmaceutical Holding Group, Beijing Sl Pharmaceutical, and Yantai Dongcheng Biochemicals hitting the limit, while others like Jiangsu Lianhuan Pharmaceutical, Wuhan Hiteck Biological Pharma, Staidson, and PharmaResources also followed suit. 3. The non-ferrous aluminum sector saw a big rise, with companies like Fujian Minfa Aluminium Inc., YeChiu Metal Recycling, Jiang Su Alcha Aluminium Group, and Tianshan Aluminum Group hitting the limit, and others like Yunnan Aluminium, Shandong Nanshan Aluminium, Jilin Liyuan Precision Manufacturing, and Shanghai Huafon Aluminium Corporation rising by more than 5%. Institutional Views: Huatai: Seek certainty in a weak balance The market is extremely cautious due to the intertwined global liquidity tightening expectations caused by geopolitical tensions. Looking ahead, with external geopolitical variables and internal "pre-holiday effects" suppressing trading activity, there is pressure on active trading. However, from a cross-month perspective, with A-shares entering a period of intensive financial report disclosure in April, the market's pricing anchor is expected to gradually penetrate through emotional disturbances and return to fundamental validation. In terms of allocation, it is appropriate to focus on coal, electricity chains, and chemical raw materials that have the potential to benefit from high oil prices and have pricing power, as well as low-demand consumer goods as a core holding. China Securities Co., Ltd.: Focus on Middle East changes, grasp Chinese advantage assets Although the tensions between the US and Iran have eased, there is still a risk of war escalation with the latest US military deployment plan against Iran, so it is necessary to pay attention to market sentiment fluctuations in the coming month. The current A-share adjustment is relatively sufficient, and investors can wait for long signals and choose the right timing for layout. In the future, A-shares will focus on energy security and industries benefiting from high inflation, high cash flow products, and undervalued cyclical sectors, such as coal and chemical industry, new energy, energy storage, lithium battery materials, agrochemicals, fertilizers, coal, hydropower, AI computing power, metals, innovative pharmaceuticals, and consumer goods. Shenwan Hongyuan Group: Discussing the stability of China's capital market again In the short term, global capital markets are still pricing around the episodic catalyst of the US-Iran conflict, and it is not yet the time to heavily invest. A-shares are still in a medium- to long-term uptrend cycle, and despite disturbances in the accumulation of earnings, it is likely just an extended period of consolidation after the "first phase of rise," with the "second phase of rise" still highly probable. The short-term resurgence of the strong technology "realistic" direction before the US-Iran conflict is still possible, with a focus on CPO, energy storage, and AI power in the short term. In the next stage, new energy and new energy vehicles may become new leading sectors. This is a direction that may resonate with macro narratives, with upward elasticity and the diffusion of profit-making effects.