A-share closing review | Market continues to rebound, ChiNext hits new high! Lithium battery, computing power and other sectors are strong

Today, the market continued to rebound, with strong performance in sectors such as lithium batteries and computing power. The ChiNext Index rose more than 3%, hitting a new high since 2015. The market's total turnover was 2.3 trillion RMB, with nearly 4300 stocks rising. According to publicly available information, this market surge is a result of the "cooling of external risks" and "better-than-expected internal data" resonating together. On one hand, tensions in the Middle East have substantially eased: the US and Iran are close to reaching a framework agreement to end the conflict, and the efficiency of navigation in the Strait of Hormuz has been restored. This directly led to a fall in international oil prices, a significant decrease in global risk aversion, and the Nasdaq hitting continuous all-time highs overnight. On the other hand, the macroeconomic data announced at 10 am today exceeded expectations across the board, serving as a core driver for the morning's strength. In the first quarter, China's GDP grew by 5.0% year-on-year, marking a strong start. Additionally, the housing prices for 70 cities in March were released, with 14 cities seeing a month-on-month increase, with Shanghai and Guangzhou leading with a 0.3% rise. Looking at the market, the computing power industry chain continued to strengthen, with the computing power leasing concept leading the market and over ten component stocks hitting limit up. Glory View Technology surged to a historical high again, and RunJian Co., Ltd. had three limit up days in a week. The battery industry chain also saw a breakout, with Contemporary Amperex Technology hitting a historical high, Dazhong Mining having two limit up days in four, and Jinyuan EP Co., Ltd., Jiangsu Lopal Tech. Group, and Xizang Mineral Development all hitting limit up. On the decline side, the pharmaceutical sector went through a volatile adjustment, with Shenzhen Salubris Pharmaceuticals hitting limit down, and Jiangsu Lianhuan Pharmaceutical, Tianjin Tianyao Pharmaceuticals, and Fujian Cosunter Pharmaceutical declining. In terms of key stocks, the billion-dollar chip leader Verisilicon Microelectronics (Shanghai) Co., Ltd. took a dive in the afternoon. The company's chairman, Dai Weimin, told reporters that the market rumors about competitors stealing orders were false. "Although the first-quarter results have not been announced yet, as of the end of 2025, the company's outstanding order amount reached 5.075 billion RMB, maintaining a historical high for nine consecutive quarters. The new order amounts for the second, third, and fourth quarters of 2025 were 1.182 billion RMB, 1.593 billion RMB, and 2.711 billion RMB respectively, all breaking historical highs for three consecutive quarters." Looking ahead, Founder stated that with the gradual accumulation of positive internal and external factors, the market will welcome an upward turn in April, suggesting investors position themselves in the market rebound, particularly in the technology and growth sectors. In terms of individual stocks, 4293 stocks rose, 1072 fell, and 140 remained unchanged across both markets. 86 stocks hit limit up, and 10 stocks hit limit down. At the close, the Shanghai Composite Index rose by 0.70% to 4055.55 points, with a turnover of 976.6 billion RMB; the Shenzhen Component Index rose by 2.05% to 14796.33 points, with a turnover of 136.51 billion RMB. The ChiNext Index rose by 3.17% to 3626.27 points. Capital trends Today, the main funds focused on communication equipment, IT services, and battery sectors for heavy buying, with the top stocks for net inflows including Suzhou TFC Optical Communication, Eoptolink Technology Inc., and China Tungsten and Hightech Materials. Key News Recap 1. Chairman of Verisilicon Microelectronics (Shanghai) Co., Ltd., Dai Weimin: Rumors of competitors stealing orders are false Chairman Dai Weimin stated that the market rumors about competitors stealing orders were false. Despite not announcing first-quarter results yet, the company's outstanding order amount reached 5.075 billion RMB as of the end of 2025, maintaining a historical high for nine consecutive quarters. The new order amounts for the second, third, and fourth quarters of 2025 were 1.182 billion RMB, 1.593 billion RMB, and 2.711 billion RMB respectively, breaking historical highs for three consecutive quarters. 2. A good start! China's GDP grew by 5.0% year-on-year in the first quarter The National Bureau of Statistics released the national economic operation situation for the first quarter of 2026. Preliminary calculations showed that China's GDP in the first quarter was 33.4193 trillion RMB, growing by 5.0% year-on-year, accelerating by 0.5 percentage points compared to the fourth quarter of the previous year. By sectors, the value added of the primary industry was 1.1941 trillion RMB, up by 3.8% year-on-year; the value added of the secondary industry was 11.6135 trillion RMB, up by 4.9%; and the value added of the tertiary industry was 20.6117 trillion RMB, up by 5.2%. Month-on-month, China's GDP grew by 1.3% in the first quarter. 3. National Bureau of Statistics: The daily usage of tokens exceeded 140 trillion, a 40% increase over the end of last year Deputy Director of the National Bureau of Statistics, Mao Shengyong, stated at a press conference on April 16 that the leading role of intelligent development is constantly strengthening, and China has made phased breakthroughs in the commercialization and large-scale operation of artificial intelligence. As of March this year, the daily usage of tokens exceeded 140 trillion, representing a 40% increase over the end of last year. The development of artificial intelligence empowers various industries, driving rapid growth in related fields. 4. National Bureau of Statistics: Energy and resource supply in China is adequate, stable, and orderly On April 16, Deputy Director of the National Bureau of Statistics Mao Shengyong stated at a press conference that due to the current geopolitical conflicts, international energy prices have surged, leading to oil price spikes and shortages in some countries, severely affecting production and livelihoods. In contrast, China's energy and resource supply is adequate, stable, and orderly. The timely implementation of temporary price controls has not had a significant impact on residents' lives or business production. This is thanks to China's forward-looking layout and development of the new energy industry over many years, establishing a diversified energy supply system. Market Forecast 1. Founder: Pay attention to new quality productivity and overflow of overseas security demand opportunities Founder stated that with the temporary ceasefire achieved between the US and Iran and negotiations in progress, although the easing of geopolitical tensions may take time and even have moments of setbacks, the opportunity for market adjustments has arrived. With the gradual accumulation of positive internal and external factors, the market will turn upward in April. Founder recommended that investors position themselves in the market rebound, focusing on the technology and growth sectors. Recommended areas of focus include: new quality productivity, areas benefiting from the expectation of a weaker US dollar, and areas where overseas security demand is overflowing. 2. Guotai Junan Securities: The US and Iran may see a "big deal" in April Currently, as market sentiment shifts from cautious optimism to a growing sense of optimism amid negotiations, both short-term and medium-term outlooks are turning positive. The conditions for negotiations are already in place: the essence of maximum pressure is mostly a bluff, highlighting negotiation demands, with Trump using military threats to push diplomatic talks. There may already be "hidden currents" at play, and a "big deal" may be seen in April. 3. CITIC SEC: Confident in the storage industry trend, core recommendation for storage manufacturers and design companies close to manufacturers According to a CITIC SEC research report, since March, there has been a slight decline in DRAM spot prices, but the mainstream DRAM grain spot price premium compared to contracts remains high, with contract prices continuing to rise. NAND March contract prices rose strongly, surpassing spot prices. TrendForce predicts a 58%-63% increase in contract prices for DRAM/NAND Flash in the second quarter, and a 70%-75% increase, showing a high level of industry prosperity. CITIC SEC predicts that supply shortages will continue until 2027, with price increases throughout 2026. They are confident in the storage industry trend and recommend focusing on storage manufacturers and design companies close to manufacturers. This article is reprinted from "Tencent Select Stock". Editor: Liu Jiayin.