A-share lunch break | Not fighting anymore? Global safe haven turned into strong buying, A-shares started April with a bang! Trillions in transactions support the "hard technology" counterattack.

Not going to fight anymore? Trump has released a statement saying "the war will end in two to three weeks," and Iranian President has expressed willingness to negotiate at the same time, instantly igniting the market with double positive news. On Wednesday, global stock markets, which had suffered heavy losses previously, rebounded strongly, with overnight US stocks achieving the largest single-day increase in recent times, and Asia-Pacific stock markets all rising today. A shares started April with a bang! All three major indexes rose by over 1%, with the Sci-Tech Innovation 50 Index rising by nearly 3%. By the midday closing, the Shanghai Composite Index rose by 1.36%, the Shenzhen Component Index rose by 1.20%, and the ChiNext Index rose by 1.18%. The total trading volume in Shanghai and Shenzhen markets was 1.33 trillion yuan in the morning, decreasing by 30 billion yuan compared to the previous trading day. On the market front, concepts related to cellular immunotherapy, CRO, innovative drugs, and weight loss drugs in the medical sector all surged, with multiple stocks such as Tianjin Tianyao Pharmaceuticals and Fujian Cosunter Pharmaceutical hitting the limit up; photovoltaic equipment, space photovoltaics, and perovskite batteries in the photovoltaic concept surged, with LAPLACE Renewable Energy Technology and Beijing Qianjing Landscape hitting the limit up; there was a rebound in concepts related to computing hardware such as light modules, PCB, liquid cooling, and electronic fabrics, with multiple stocks such as Shandong Fiberglass Group Corp. and Dongguan Mentech Optical & Magnetic hitting the limit up; concepts related to computing power leasing, inference computing power, and domestic computing power strengthened, with Nanjing Canatal Data-Centre Environmental Tech and Ningbo Construction hitting the limit up; concepts related to domestic hard technology such as semiconductors, lithography machines, advanced packaging, and storage chips rebounded, with Huizhou CEE Technology Inc. hitting the limit up; the concept of humanoid Siasun Robot & Automation rebounded, with Reach Machinery rising by over 10%; concepts related to gas turbines, consumer electronics, AI applications, transformers, insurance, and banks all strengthened. In terms of decline, photovoltaic leader Sungrow Power Supply plummeted by over 10%; concepts related to shield tunnel machines, rail transit equipment, railway construction, and high-speed rail experienced a pullback; concepts related to thermal power, hydropower, and electricity continued to be weak, with Guangxi Energy hitting the limit down; concepts related to direct satellite-to-mobile phones, satellite internet, and sea-based rocket retrieval in commercial aerospace weakened; a few concepts such as lithium resources, chemicals, and football revival performed poorly. Looking ahead, Huaxi stated that the direction of the US-Iran conflict remains the core variable in overseas markets and is also the primary external factor suppressing the risk appetite of A shares. Due to the significant gap in core demands between the two parties, the difficulty of the "TACO" transaction has significantly increased. In terms of opportunities, a research report by China Securities Co., Ltd. stated that the future of commercial aerospace is vast, and both China and the US hold commercial aerospace in high strategic regard. Hot sectors 1. Medical sector continues to be strong The medical sector continues to be strong, with over a dozen constituent stocks hitting the limit up, including ChemPartner PharmaTech, Tianjin Tianyao Pharmaceuticals, Zhuhai Rundu Pharmaceutical, Zhejiang Anglikang Pharmaceutical, and Shenzhen Neptunus Bioengineering. Huayuan Securities' research report believes that China Meheco Group's industry has completed the transition from imitation to innovation, with innovative drugs becoming the new growth engine of the industry. Investment in 2026 should focus on "technological innovation leading" and "performance and valuation recovery," with a focus on globally competitive leading companies in innovative drugs and enterprises with strong outbound capabilities, while actively deploying in cutting-edge technology directions such as AI healthcare and brain-machine interfaces. 2. Rebound in concepts related to domestic hard technology Concepts related to domestic hard technology such as semiconductors, lithography machines, advanced packaging, and storage chips rebounded, with Huizhou CEE Technology Inc. hitting the limit up. On the news front, storage chip stocks in the US surged overnight, with SanDisk rising by over 10%, and Western Digital and Micron Technology rising by over 7%. In addition, Shenzhen Techwinsemi Technology announced an estimated net profit of 3.15 to 3.65 billion yuan in the first quarter. 3. Active performance in the shipping sector The shipping concept is active, with China Merchants Energy Shipping, Shanghai Jinjiang Shipping (Group) Co., Ltd. hitting the limit up, and COSCO Shipping Energy Transportation, GH SHIPPING, and Cosco Shipping Specialized Carriers following suit. On the news front, China Merchants Energy Shipping stated in response to a researcher's question that in recent years, the evolution of the global oil trade and shipping landscape may increasingly highlight the hard asset attributes of tankers, which are becoming bottlenecks in the oil chain, and expected returns may have the opportunity to increase significantly. The investment value of the shipping industry is worth continuous monitoring and research. 4. Rapid rise in the space photovoltaic concept The space photovoltaic concept rapidly surged, with LAPLACE Renewable Energy Technology hitting the limit up, and Beijing Qianjing Landscape hitting the limit up for the second time in three days. On the news front, according to media reports, LAPLACE Renewable Energy Technology, a core technology equipment and solutions provider for domestic photovoltaic cells, recently won the bid for the second phase of the Tesla photovoltaic project, with an order size of nearly tens of billions of yuan. Institutional views Huaxi: "Defense turning to offense" still requires time, waiting for more stable market policies to be implemented The direction of the US-Iran conflict remains the core variable in overseas markets and is also the primary external factor suppressing the risk appetite of A shares. Due to the significant gap in core demands between the two parties, the difficulty of the "TACO" transaction has significantly increased. As of now, the US-Iran war has been ongoing for 1 month, and although negotiation signals have been heard multiple times this week, the significant differences between the US "15-point ceasefire plan" and Iran's "5 conditions for ceasefire" indicate that the two sides still have major differences, and the uncertainty of negotiations is high, with the most probable event being negotiation while fighting. In terms of industry configuration, defense strategies are currently advantageous. Recommendations include: 1) defensive sectors such as banks, utilities, essential consumer goods, etc.; 2) new energy, electric power, energy storage, lithium batteries related to energy self-sufficiency and control; 3) sectors with strong growth in high prosperity with assured performance, such as AI computing power, innovative drugs, etc. CICC: Future industrial investment opportunities may lie in the "future" rather than the "present" The importance of future industries is strong, and the trends in industries and policies are relatively certain, and the market may exhibit characteristics such as being more stage-oriented, thematic, and internally differentiated. In the medium to short term (about a year), it is recommended to keep an eye on the progress of future industries, but most areas are not seeking an "immediate layout" at the moment. Rather, it is important to focus on the matching risks between asset prices and enterprise development. In the long term (over a year or more), as industries develop, application routes become clearer, more excellent companies emerge, and the competition landscape becomes clearer, further investment opportunities can be explored. China Securities Co., Ltd.: Bullish on the future performance of the commercial aerospace sector China Securities Co., Ltd. stated in their research report that the future of commercial aerospace is vast, and both China and the US hold commercial aerospace in high strategic regard. SpaceX leads in terms of constellation deployment progress, rocket capacity and cost, revenue volume, and valuation. Under the strategic value in frequency protection and the commercial value in operational services, China's policies support commercial aerospace from both the industrial and capital market, showing an accelerating catch-up trend in the domestic development, with large reusable rockets starting intensive first flights, gradually breaking through industrial core bottlenecks, and accelerating the closure of the commercial aerospace industry. Bullish on the future performance of the commercial aerospace sector, the key areas to focus on in the satellite segment are overall payload, antennas and associated equipment, laser communication terminals and accessories, solar wings and energy systems; in the rocket segment, the focus is on engines and their 3D printing, arrow body structural components; in the ground equipment segment, the focus is on civilian terminals and direct satellite-to-mobile phones; in the operational services segment, the focus is on companies with scarce qualifications. This article is reprinted from "Tencent's self-selected stocks," GMTEight Edit: Wang Qiujia.