A-share market closing review | Shanghai Composite Index rose by 0.24%, supported by three major logical factors! A-share market resilience is evident again.

Facing the "bloodbath" in the Asia-Pacific market today (Nikkei 225, KOSPI index fell more than 5%), the Shanghai Composite Index resisted the bottom and rebounded stubbornly, showing a rare "independent resilience" in A shares, with the ChiNext Index performing weaker. The total market turnover for the day was 1.9 trillion, with more stocks rising than falling in both markets. Upon analysis, it was found that the A-share market's resistance to decline is not accidental, but is supported by three major core logics. First, valuation advantage. Market analysis believes that compared with the high valuation of the Japanese and South Korean markets, A-shares are currently in a "bottom area" where they are difficult to fall. The core index such as the CSI 300 has a historically low price-earnings ratio (about 12-13 times), showing a distinct "valuation discount" compared to peripheral markets. Second, under geopolitical shocks, A-shares find opportunities in crises. The impact of high oil prices on global inflation is controllable in the overall A-share market profit, and the counter-trend surge of industries such as photovoltaics and wind power effectively offsets the index's decline. If geopolitical conflicts lead to disruptions in the global supply chain (such as shipping, aluminum production), it highlights the stability of China's manufacturing supply chain, and certain export-substitute industries (such as chemicals, machinery) may indirectly benefit. Third, amid geopolitical turmoil, China's safe haven status is highlighted. In the flow of funds in the Asia-Pacific and emerging markets, China (A-shares + H-shares) ranks among the top in terms of net inflows, surpassing India and some developed markets, highlighting China's safe haven status amid geopolitical turmoil. According to a recent report by 21st Century Business Herald, global funds, including Middle Eastern capital, are diversifying their allocations, connecting to China's growth (technology, consumption, new economy) as a core hub. In terms of the market, the high-speed rail concept surged in the afternoon, with China High Speed Railway Technology hitting the limit up. According to CCTV News, the landmark project of the "The 15th Five-Year Plan" - the Yangtze River high-speed railway project is currently under construction. It will extend from Shanghai to Chengdu, connecting three major city clusters, spanning about 2,000 kilometers. The total investment in the Yangtze River high-speed railway exceeds 500 billion yuan, and it is estimated to drive the added value of upstream and downstream industries by nearly 1.5 trillion yuan. In other hotspots, the pharmaceutical sector was active again, with Ningbo Menovo Pharmaceutical hitting the limit up for 6 consecutive days, and Tianjin Tianyao Pharmaceuticals and Jiangsu Lianhuan Pharmaceutical hitting the limit up for 2 consecutive days. The commercial aerospace concept rebounded from the bottom, with Anhui Shenjian New Materials hitting the limit up for 3 consecutive days, Chongqing Zaisheng Technology Corp. hitting the limit up for 3 out of 4 days, and Guanglian Aviation Industry, Shaanxi Aerospace Power Hi-tech, ARTS Group Co., Ltd hitting the limit up. Aluminum sector was strong all day, with Fujian Minfa Aluminium Inc., Jiang Su Alcha Aluminium Group, Tianshan Aluminum Group, China Aluminum International Engineering Corporation hitting the limit up. The optical fiber concept continued to rise during the day, with Yangtze Optical Fibre And Cable Joint Stock hitting the limit up for 3 out of 5 days, setting a new historical high, Hangzhou Cable hitting the limit up for 3 out of 4 days, Jiangsu Fasten hitting the limit up for 2 consecutive days. On the downside, power stocks plummeted, with Huadian Energy, Jinneng Holding Shanxi Electric Power, Henan Yuneng Holdings hitting the limit down. Looking at individual stocks, there were 2868 gainers and 2464 losers in the two markets, with 162 stocks remaining flat. A total of 77 stocks hit the limit up, and 20 stocks hit the limit down. At the close, the Shanghai Composite Index rose by 0.24% to 3923.29 points, with a turnover of 839.8 billion yuan; the Shenzhen Component Index fell by 0.25% to 13726.19 points, with a turnover of 107.61 billion yuan. The ChiNext Index fell by 0.68% to 3273.36 points. Funds Flow: Major funds today focused on the communication equipment, glass, military electronics, and other sectors, with stocks such as Zhongfu Straits, Hengtong Optic-Electric, Shaanxi Aerospace Power Hi-tech leading in net inflows. News Recap: 1. State Administration for Market Regulation: Focus on preventing "internally competitive" platforms, photovoltaics, lithium batteries, new energy vehicles, etc. The State Administration for Market Regulation issued a notice on further implementing the Anti-Unfair Competition Law of the People's Republic of China. The notice mentions comprehensive rectification of "internally competitive" practices. By using various measures against unfair competition, efforts will be made to prevent "internally competitive" practices in platform economy, photovoltaics, lithium batteries, new energy vehicles, and other key industries and areas. This includes identifying and lawfully dealing with platform companies that use tactics such as altering search rankings, business evaluations, algorithm controls, traffic limitations, product delisting, cost increases, payment delays, transaction suspensions, internal sanctions, or forcing platform operators to sell products below cost, disturbing the market competition order. 2. Trump: Iran has agreed to "most of the 15-point plan" U.S. President Trump stated on the 29th that Iran has agreed to "most of the items" in the ceasefire "15-point plan". Speaking on the presidential plane Air Force One, Trump said, "They have agreed to most of the terms. Why wouldn't they?" Trump stated that Iran will deliver oil to the U.S. to "prove their sincerity." "They have given us 20 oil tankers, and they will start shipping tomorrow." Trump stated that he is still considering seizing the strategic island of Kharg, a hub for Iranian oil exports, and the U.S. military may need to establish a long-term presence on the island. 3. Four Departments: Deepen smart port construction, accelerate smart navigation construction The Ministry of Transport, the Ministry of Industry and Information Technology, the State Council's State-owned Assets Supervision and Administration Commission, and the State Administration for Market Regulation jointly issued the "2030 Smart Shipping Action Plan." The action plan aims to deepen smart port construction, enhance monitoring and sensing capabilities for port infrastructure, port navigation environment, and vessel operation status, promote collaborative technologies and equipment development for smart mooring and berthing, smart loading and unloading, smart navigation, etc., and improve the efficiency and safety of ship-port operations. Market Outlook: 1. Huatai: Seeking certainty in a weak balance Geopolitical tensions interwoven with global liquidity tightening expectations, and extreme cautious trading sentiment prevails in the market. Looking ahead, with external geopolitical variables and the pressure of the "pre-holiday effect," there is pressure on trading activity. But from a cross-month perspective, as the A-share market enters the period of intensive financial report disclosures 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 advisable to pay moderate attention to coal, power chain, and chemical raw materials potentially benefiting from high oil prices and having pricing power, alongside low-valued essential consumption as a core position. 2. China Securities Co., Ltd.: Watching for Middle East changes, seizing China's advantageous assets The situation of the U.S.-Iran conflict has eased, and global market panic has eased. However, the latest U.S. military deployment plans targeting Iran still show a risk of escalation in the war, requiring attention to market sentiment fluctuations in the next month. Currently, A-shares have undergone a sufficient correction and can be held steady for long signals, waiting for the right time to position. Following this, A-shares will focus on energy security and industries benefiting from high inflation, high cash flow products, and economically cyclical industries with undervalued valuations such as coal chemical industry, new energy, energy storage, lithium battery materials, agrochemicals, fertilizers, coal, hydroelectric power, AI computing power, metals, innovative drugs, consumption, etc. 3. 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 catalysis 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 upward cycle, with profitability accumulation disrupted by disturbances, but only extending the consolidation time after the "first phase rise," the second phase rise of A-shares is still highly probable. During the fluctuation consolidation period between the two phases of upward movement, the extension of the technology mainline and macro narrative expansion remains the main source of high elasticity investment opportunities. In the short term, as the technology "reality overcomes" direction that was strong before the US-Iran conflict re-emerges, there is still an opportunity, focusing on CPO, energy storage, AI power. In the next phase, new energy and new energy vehicles may become new leading directions. This is a potential resonance with macro narratives, with upward elasticity and profitability spreading in the direction. This article is reprinted from "Tencent Stock Selection", GMTEight Editor: Liu Jiayin.