Pre-market report on A-shares | Trump demands Israel to reduce strikes CITIC SEC's net profit attributable to shareholders in the first quarter exceeds 10 billion.

Pre-market headlines 1. Critical to the Middle East! Trump makes two moves: asks Israel to reduce strikes, warns Iran against collecting fees for passing through the Strait of Hormuz Type: Market Sentiment impact: Positive Overnight, all three major U.S. indexes closed higher, with the Nasdaq and S&P 500 recording seven consecutive gains. There are reports that U.S. President Trump asked Israel to reduce strikes on Lebanon during a call, and Israeli Prime Minister Netanyahu stated that he has ordered immediate direct negotiations with Lebanon. In addition, Trump warned Iran not to collect fees from oil tankers passing through the Strait of Hormuz. 2. Four major departments interviewed! Involving the storage energy industry to prevent internal inversion, institutions optimistic about these areas Type: Industry Sentiment impact: Positive The Ministry of Industry and Information Technology, National Development and Reform Commission, and four other departments jointly held a meeting with enterprises in the power and energy storage battery industry, emphasizing the need to resist unreasonable and unfair competition and maintain a healthy and orderly market environment. The meeting also discussed a list of negative behaviors related to irrational competition in the power and energy storage battery industry. CITIC Securities believes that the energy storage industry is shifting from cost competition to value creation and is optimistic about top companies in the industry chain: energy storage system integrators, battery cell suppliers, and PCS suppliers. 3. State Council issues documents! China extends the pilot free trade zone to 23, adding Inner Mongolia Type: Macro Sentiment impact: Positive The State Council recently released the General Plan for the China (Inner Mongolia) Free Trade Pilot Zone on April 9. With this, China's pilot free trade zones expanded to 23. The overall plan gives Inner Mongolia's free trade pilot zone more autonomy for reforms, encouraging pioneering, integrated, and differentiated explorations in broader areas and deeper levels. It outlines 19 innovative reform measures, including innovation and development of border trade, strengthening international logistics service functions, improving the efficiency of technology transfer and application, and expanding multi-domain foreign exchanges. 4. Zimbabwe clearly outlines the conditions for lifting the ban on lithium ore exports. Chinese lithium companies: in negotiations Type: Industry Sentiment impact: Positive According to reports from local Zimbabwean media, the Zimbabwean government recently outlined a set of prerequisite conditions for lifting the ban on lithium ore exports, including government allocation of export quotas to each producer and levying a 10% export tax on concentrates. Executives of several Chinese lithium companies in Zimbabwe stated that the specific quota scheme has not been officially issued, and negotiations are still in progress, but negotiations with leading companies will progress quickly. Investment Calendar China's CPI and PPI data for March released Investment Tips The market is like a pendulum, always swinging between short-lived optimism and unreasonable pessimism. Benjamin Graham, "The Intelligent Investor" Institutional Views 1. BOC International: The market has not yet emerged from the geopolitical storm period. Short-term positions still require patience, and long-term positions remain strong. 2. Guosen: The big bullish background is still there, positive signals are brewing, and the market is expected to continue its bullish trend in the second quarter. 3. Orient: The risk of war has not been completely resolved, the market still faces uncertainty, but there is still room for index rebound. Positive and Negative Expectations 1. AI Computing Power Major Deal! Cloud computing service provider CoreWeave signs a $21 billion agreement with Meta Type: Hotly discussed in the market CITIC Securities: With the outbreak of Agent applications and multimodal ecology, capital expenditure and computing power demand are mismatched. The global token usage is entering a new phase of accelerated growth. In the next two years, the entire cloud industry chain is expected to enter a year of simultaneous quantity and price increase, entering a simultaneous quantity and price increase cycle. 2. State Council announces "Several Measures to Accelerate the Construction of a Tiered Diagnosis and Treatment System" Type: Policy focus CITIC Securities: Policy implementation exceeds expectations, grassroots medical new infrastructure opens up a billion-dollar space. The tiered diagnosis and treatment system is the "bull nose" of healthcare reform. This time, the document transitions from trials to comprehensive mandatory implementation. Medical informationization, grassroots equipment, and third-party inspection are the three main beneficiaries. 3. "Leader in the Securities Industry" reports good news first! CITIC Securities' net profit for the first quarter exceeded 10 billion Type: Institutional hot commentary Western: With the upward trend in the capital market and the gradual increase in risk appetite, the investment value of brokerage stocks is gradually being confirmed. The industry's upward trend remains unchanged and is a rare opportunity in 2022 for assets in a niche sector with relatively low valuation and high growth in the same period. Announcements Positive announcements 1. New Hope Liuhe: In March, sales revenue from pork reached 1.547 billion, an increase of 16.62% month-on-month. 2. CITIC Securities: Net profit for the first quarter was 10.216 billion, an increase of 54.6% year-on-year. 3. Allwinner Technology: Net profit for the first quarter is expected to increase by 113%-140% year-on-year. Negative announcements 1. Sichuan Huiyuan Optical Communications: Not related to fiber optic cables, optical modules, or data center-related businesses. 2. Hang Zhou Iron & Steel: Shareholder Chengtong Jinkong plans to reduce its share by no more than 2% of the company's shares. 3. China Kings Resources Group: A controlling subsidiary has been transferred for investigation and prosecution in an environmental pollution case. Overseas Market Market hopes for continued ceasefire between the US and Iran. U.S. stocks closed higher on Thursday, with the S&P and Nasdaq rising for seven consecutive days. In the market, the semiconductor index set a new high again, with SanDisk rising over 9% to a historic high; most popular Chinese concept stocks showed a decline, with Nio falling by 4.86%. This article is reprinted from "Tencent Stock Selection", GMTEight editor: Xu Wenqiang.