A-share market closing review: Forcing shorts! The ChiNext Index hits a historical high, Shanghai Composite Index rebounds above 4100 points! Computing power hardware surges across the board.

On April 22nd, A-shares opened lower and went higher, with one-sided fluctuation and volume surge. The Shanghai Composite Index returned to 4100 points, the Growth Enterprise Market Index hit a new high in 11 years, and the Growth Enterprise Market Composite Index refreshed its historical high, with the Shenzhen Component Index continuing to hit a new high! By the close, the Shanghai Composite Index rose by 0.52%, returning to 4100 points, the Shenzhen Component Index rose by 1.30%, the Growth Enterprise Market Index rose by 1.73%, and the Growth Enterprise Market Composite Index rose by 1.43%. The turnover of the Shanghai and Shenzhen stock markets reached 2.6 trillion, an increase of 151.2 billion from the previous trading day. In terms of individual stocks, the number of rising stocks exceeded 2900, with over 60 stocks hitting the daily limit. Looking at the market, A-shares staged a "chasing light" rally on Wednesday, with netizens exclaiming, "Buy stocks with 'light' in their names!" The CPO, optical fiber, and optical communication sectors all surged, with stocks such as Suzhou Everbright Photonics, WG Tech(JiangXi) Group, Henan Shijia Photons Technology, East Point Communication Technology, Hengtong Optic-Electric, and Yangtze Optical Fibre And Cable Joint Stock all with "light" in their names rising significantly to new highs. Institutions indicate that the optical module industry chain will enter a period of simultaneous rise in quantity and price by 2026, marking the "first year of high-speed commercialization of optical modules". In this industry wave, domestic manufacturers will usher in a new round of opportunities, focusing on three main directions: optical module manufacturers represented by Zhongji Innolight, core upstream components manufacturers such as Yuanjie Semiconductor Technology, and high-barrier sectors such as testing and coupling equipment. In addition, the concept of computing power leasing continued to strengthen, with Sharetronic Data Technology hitting the daily limit, Glory View Technology rising by over 15%, both reaching new highs, and Hang Zhou Iron & Steel hitting the daily limit. The semiconductor sector showed strength, with stocks like Shenzhen Newway Photomask Making and Shanghai Vital Deeptech hitting the daily limit, and Maxone Semiconductor and Verisilicon Microelectronics (Shanghai) Co., Ltd. following suit. On the downside, the film and television chain concept collectively adjusted, with Beijing Enlight Media, Bona Film Group, and Omnijoi Media Corporation all falling. Additionally, the travel and banking sectors led the decline. Looking ahead, Guotai Haitong stated that the upward momentum of the Chinese stock market is far from over, with the possibility of reaching new highs in the future. In terms of allocation, emerging technologies are the main theme, and value will also have its day. Hot Sectors: 1. The CPO concept strengthens again, with companies like Suzhou Everbright Photonics, Sanan Optoelectronics, Hengtong Optic-Electric, and Suzhou Dongshan Precision Manufacturing all hitting the daily limit. Analysis: According to the latest research from TrendForce, the global market for AI-specific optical transceivers is entering a period of rapid growth, with the market size estimated to expand from $16.5 billion in 2025 to $26 billion in 2026, an annual increase of over 57%. 2. The optical fiber and optical communication concept is active again, with companies like Jiangsu Etern hitting the daily limit and continuing to reach historical highs. Analysis: Since the beginning of this year, the optical fiber industry has shown a trend of "simultaneous rise in product quantity and price". The head of an optical fiber production company in Jiangsu recently told CCTV that in the first quarter of this year, the sales volume of optical fibers increased nearly five times compared to the same period last year, and product prices also rose significantly. The price of G.657.A2 optical fiber increased from 32 yuan per core kilometer last year to 240 yuan this year, a 650% increase. According to CRU's forecast, global demand for optical fibers is expected to rise to 880 million core kilometers by 2027. 3. Semiconductor stocks lead the gains, with companies like Shenzhen Newway Photomask Making, Shanghai Vital Deeptech hitting the daily limit, and Maxone Semiconductor, Verisilicon Microelectronics (Shanghai) Co., Ltd. following suit. Analysis: According to SEMI (International Semiconductor Industry Association), under the drive of AI computing power and the global digital economy, the global semiconductor industry has entered a historic moment, with the trillion-dollar semiconductor era originally planned for 2030 expected to arrive early by the end of 2026. Institutional Views: Guotai Haitong: The upward trend of the Chinese stock market is far from over Looking ahead, the upward trend of the Chinese stock market is far from over, with the possibility of reaching new highs in the future. Firstly, after "924" in 2024, concerns about "internal matters" have decreased; the disturbances overseas in 2026 are also an important turning point, reflecting the advantages of China's industries. Whether in technological progress or the global manufacturing industry, the international community will reevaluate and reassess Chinese assets. Secondly, with the appearance of risk boundaries and constraints, the market's lingering concerns have been alleviated, the expectation of downward revisions is coming to an end, and the market is returning to internal development logic. Recently, a new round of capital market reforms has accelerated, reflecting a policy attitude that reinforces the stable and positive situation of the capital market. As the bottom becomes clearer, the increasing demand for social asset management and the entry of incremental funds may strengthen the background of current risk-free returns. Furthermore, with fiscal strength and rising inflation in 2026, traditional industries are gradually stabilizing; facing huge market demands and a significant gap in AI computing power between China and the US, investments in emerging industries in China will also accelerate; in addition, competitive Chinese manufacturing is going global, leading to the emergence of multinational companies and an increase in ROE, with the expectation of an upward revision of China's growth in 2026. The Chinese stock market will not stop here, so keep the faith. In terms of allocation, emerging technologies are the main theme, and value will also have its day. Director Huang Yanming of the Orient Research Institute: The "dumbbell" rally is over, future opportunities in A-shares lie in mid-cap blue chips Huang Yanming stated that the "dumbbell" rally that started in November and December last year has come to an end, with the low volatility and high dividend phase ending. The future investment opportunities in A-shares are not at the two extremes, but in mid-cap blue chips. Huang Yanming said that "this year is a big year for mid-cap blue chips," focusing on cyclical and manufacturing industries, with a rhythm of "cyclical before manufacturing" - the cyclical rally has mostly completed, and now we are in the process of transitioning from cyclicals to manufacturing. Therefore, the focus in the next step will be on manufacturing, including new energy, military industry, machinery and equipment, and exports, among others. In the new energy sector, he particularly recommended solar power generation and power transmission. Regarding AI, Huang Yanming believes that there is no obvious bubble so far, as there is no severe leverage situation on either the corporate or investment side; the next step is to see the realization of performance and gradually separate the true from the false. Zhongtai: In the medium term, there is no systemic risk of a significant decline in the A-share market Zhongtai's research report states that the global equity market continues its risk-on trend, with the likelihood of a "rapid bull" trend in the A-share market still low. Market risk appetite continues to recover, mainly due to the crowding out of geopolitical risk premiums, the high prosperity of the AI industry chain, and the resilience of Chinese and American economic data. Looking ahead, the environment of extremely abundant liquidity is not stable, with low short-term interest rates domestically and limited room for US dollar depreciation. In the medium term, there is no systemic risk of a significant decline in the A-share market, but the probability of a "rapid bull" trend is low. Therefore, the recommendation is to "control positions and prioritize structure". This article is reproduced from "Tencent Self-selected Stocks", edited by GMTEight: Chen Xiaoyi.