A-share midday review | The resonance of internal and external factors has caused a sharp rise! A-shares are soaring again, with the ChiNext Index up 2.62% at midday, hitting a new high for this stage.

On April 10th, the three major A-share indexes opened higher in the morning, with thematic concepts all rising and over 4,400 individual stocks seeing gains. By midday, the Shanghai Composite Index was up by 0.63%, the Shenzhen Component Index was up by 1.74%, and the ChiNext Index was up by 2.62%. The total trading volume in Shanghai and Shenzhen reached 1.5 trillion yuan in the first half of the day, compared to 771 billion yuan on the previous trading day. Based on the morning performance of A-shares and public information, the main reasons for the market's strength are as follows: Firstly, investors are focusing on whether the ceasefire agreement in the Middle East can be sustained. Israel's agreement to engage in direct talks with Lebanon boosted market optimism. Secondly, market speculation has shifted focus to first-quarter earnings. In particular, leading brokerage firm CITIC SEC released its financial report for the first quarter of 2026, showing a significant increase in revenue and net profit compared to the same period last year, surpassing market expectations. This positive report not only led to a nearly 10% surge in the company's stock price but also activated the entire brokerage sector, seen as a leader in the bull market, and led to a significant contribution to the index. Additionally, impressive first-quarter earnings forecasts from companies like Canmax Technologies and ORG Technology stimulated a sharp rise in related stocks, strengthening the logic of performance-driven investment. Looking ahead, Hongde Fund believes that with the temporary easing of tensions in the Middle East, A-shares are returning to their own narrative trend. In the short term, technology growth stocks that were most severely impacted earlier may have greater room for recovery. Dongxing also believes that the intensity of war-related disturbances will gradually decrease, and the best time to establish positions in growth stocks for the whole year is likely to appear. Regarding the market performance, solid-state batteries, lithium batteries, and Contemporary Amperex Technology concepts saw explosive growth across the board. Stocks like Shenzhen Xinyuren Technology and China Shipbuilding Industry Group Power hit their daily limit up. On the other hand, sectors like brokerage, futures, and internet finance concepts experienced a violent surge followed by a pullback. Nanhua Futures hit the limit up, while CITIC SEC almost hit the limit up. The gas turbine concept saw another increase, with stocks like Allied Machinery and Wedge Industrial hitting the limit up. Concepts like liquid cooling and storage chips continued to show strength, with stocks like Hangzhou Zhonhen Electric hitting their limit up. Healthcare concepts like weight loss drugs, innovative drugs, and CROs all showed strength, with stocks like Suzhou Nanomicro Technology and Nanjing Pharmaceutical Group hitting the limit up. New energy concepts like photovoltaics, energy storage, and wind power all rose together, with stocks like Inner Mongolia OJing Science & Technology and Ningbo Deye Technology hitting their limit up. Consumer goods, logistics, humanoid robotics like Siasun Robot & Automation, and semiconductor concepts were all strong across the board. In terms of declines, concepts like fiber optic cables, optical chips, and OCS switches saw corrections, with stocks like Sichuan Huiyuan Optical Communications hitting the limit down and others close to hitting the limit down. Few concepts like minor metals, urea, communication equipment, and oil and gas pipelines showed weak performance. Popular sectors: 1. Lithium battery industry chain sees volatile rise 2. Storage chip concept rapidly rises 3. Major financial sector sees an uptrend 4. Photovoltaic and energy storage concepts continue to rise Institutional views: - CICC: Safety premium is likely to continue - Hongde Fund: With the temporary easing of Middle East tensions, A-shares are returning to their own narrative trend - Caitong Fund: Risks from the US-Iran conflict have not been completely resolved, and the long-term agreement still needs to be observed and tracked.