A | A-shares see a strong start in April! Shanghai Composite Index rose by 1.46%, with a dominant technology style.

Trump warns that "the war will end in two to three weeks," and Iranian President simultaneously expresses willingness to negotiate, sparking a double positive impact on the market. Overnight, US stocks achieved their largest single-day gain in recent times, and Asia-Pacific stock markets rose across the board today. The A-share market launched a strong counterattack, achieving a strong start in April, with the Science and Technology Innovation 50 Index up by over 3%, and the technology sector, including chips and computing power, performing strongly. The market saw a total turnover of 2 trillion yuan, with nearly 4500 stocks rising in both markets. On the stock market, the pharmaceutical sector continued to be strong, with ChemPartner PharmaTech20cm hitting the limit up, Tianjin Tianyao Pharmaceuticals rising for the fourth consecutive day, and Zhuhai Rundu Pharmaceutical, Zhejiang Anglikang Pharmaceutical, and Shenzhen Neptunus Bioengineering hitting the limit up. In terms of news, the "Two Sessions" have clearly identified the pharmaceutical and biological industries as emerging pillar industries, alongside integrated circuits and aerospace, strengthening the industry's strategic positioning. The latest data from the National Medical Products Administration shows that in the first three months of this year, China's total innovative drug outbound licensing transaction amount exceeded 60 billion US dollars, nearly half of the 135.7 billion US dollars for the full year of 2025. In other hotspots, the computing power leasing concept was active again, with Aurora Optoelectronics hitting the limit for the sixth day. On the decline side, the power sector weakened, with Guangxi Energy and Shenyang Huitian Thermal Power hitting the limit down. The high-speed rail and rail transit sector collectively fell, with China High Speed Railway Technology plummeting after a board explosion, and Shenzhen Tongye Technology and CSRD suffering large drops. Looking ahead, Kaiyuan Macro stated in a research report that if the war ends "quickly," major stock indices may further rebound. Many stocks in the market are still below pre-war levels, and markets that have been hit hardest, such as Asian and European stock markets, may have more room for rebound. From the perspective of individual stocks, there were 4495 gainers and 887 decliners in both markets, with 65 stocks hitting the limit up and 15 hitting the limit down. At the close, the Shanghai Composite Index rose by 1.46% to 3948.55 points, with a turnover of 897.3 billion yuan; the Shenzhen Component Index rose by 1.70% to 13706.52 points, with a turnover of 111.52 billion yuan. The Growth Enterprise Index rose by 1.96% to 3247.52 points. Funds Behavior Today, the main capital focused on grabbing the chemical pharmaceutical, communications equipment, and industrial metal sectors, with top net inflows of individual stocks including Dongfang Electric Corporation, Zijin Mining Group, and Suzhou TFC Optical Communication. News Review 1. New York City, USA, announces revocation of government ban on using TikTok on government devices New York City Mayor Zuhiland Mamdani announced on March 31 that the use of the short video social media platform TikTok will be allowed on government electronic devices. Mamdani posted a message on the social media platform that day, saying, "TikTok, we're back." 2. Several provinces will accelerate the development of hydrogen energy on a large scale. Fujian plans to promote pilot applications of hydrogen energy in multiple fields. Recently, relevant national ministries and commissions jointly launched pilot projects for comprehensive applications of hydrogen energy. From a local perspective, it is reported that several provinces will promote the large-scale development of hydrogen energy this year and study related support policies and measures. In 2026, the Fujian Provincial People's Government work report proposed the implementation of future industrial incubation and development actions, vigorously developing key areas including green hydrogen energy, exploring multiple technological routes, typical application scenarios, and feasible business models. 3. Fuel surcharges for domestic flights to increase fivefold from April 5, with increases of one hundred yuan for flights of 800 kilometers and above It is reported that several ticket agents have received notifications from Xiamen Airlines and China Union Airlines that fuel surcharges for domestic flights are set to increase from April 5, with charges of 60 yuan for flights of 800 kilometers or less and 120 yuan for flights of 800 kilometers and above. Currently, fuel surcharges for flights of 800 kilometers or less are 10 yuan, and for flights of 800 kilometers or more, 20 yuan. This means that fuel surcharges for domestic flights will increase by 50 yuan and 100 yuan respectively in April, a fivefold increase. 4. Spring is here! Nearly 20,000 second-hand houses were sold in Beijing in March According to Beijing Business Daily, based on data from the Beijing Municipal Commission of Housing and Urban-Rural Development, in March this year, the number of second-hand housing transactions in Beijing reached 19,886, the highest monthly record since December 2024. Several days with over a thousand transactions also make this spring season quite lively. Compared to the previous month, the number of second-hand housing transactions in March increased by about 145%. However, considering that February only had 28 days and the Spring Festival holiday lasted 9 days, the month-on-month data is not very meaningful when looking at first-line businesses. But from a year-on-year perspective, the number of second-hand housing transactions in Beijing in March last year was 19,234, an increase of about 3.4% year-on-year in March this year, showing high activity for two consecutive years. Market Forecast 1. Huaxi: "Defense to offense" still needs time, patiently waiting for more stabilizing market policies to be introduced The progress of the US-Iran conflict is still a core variable in overseas markets and the primary external factor suppressing risk appetite in A-shares. Due to the significant differences in the core demands of both parties, the difficulty of "TACO" transactions has increased significantly. As of now, the US-Iran war has been ongoing for a month, and despite repeated signals of negotiations in the market this week, the significant differences between the US "15-point ceasefire plan" and Iran's "5 conditions for ceasefire" suggest that the two sides still have significant differences, and the uncertainty of negotiations is high. It is probable that negotiations will continue while the conflict persists. In terms of industry allocation, defensive strategies are currently favorable. Recommendations include: 1) defensive sectors such as banking, utilities, and essential consumer goods; 2) new energy, electric power, energy storage, and lithium-ion related to energy autonomy; 3) high growth sectors with strong performance certainty, such as AI computing power and innovative drugs. 2. CICC: Future industrial investment opportunities may lie in the "future" rather than the "present" Future industries are relatively important, with relatively certain industry and policy trends. The market for future industries may exhibit characteristics such as stage, thematic, and significant internal differentiation. In the medium to short term (about a year), it may be advisable to pay attention to the progress of future industries without necessarily seeking immediate deployment, and instead focus on the matching risk between asset prices and enterprise development; from a long-term perspective (a year or more), as industries develop and application routes become clearer, more excellent companies emerge, and competition patterns become clearer, it may be possible to further explore investment opportunities. 3. China Securities Co., Ltd.: Optimistic about the future performance of the commercial space sector According to a research report from China Securities Co., Ltd., the future of commercial space is vast, with both China and the US placing commercial space at a high strategic level. SpaceX is ahead in terms of constellation deployment progress, rocket capacity and cost, revenue volume, and valuation. With the strategic value of occupying frequency bands and the commercial value of operational services driving the industry, China's policies are jointly supporting the development of the commercial space industry in terms of industry and capital markets. Domestic development is showing an accelerated catch-up trend, with large reusable rockets beginning frequent first flights and gradually breaking through core industry bottlenecks, accelerating the closure of the commercial space industry. Optimism for the future performance of the commercial space sector, focusing on payloads overall, antennae and accessories, laser communication terminals and accessories, solar wings and energy systems, engines and their 3D printing, rocket body structural parts, civilian terminals and direct connections to mobile phones in ground equipment, and companies with scarce qualifications in operational services.