A-share market close review | Shanghai Composite Index reclaimed 4100 points! The industry is booming, and the lithium battery sector surged with daily limit ups.

Today, the market showed strong upward momentum, with the Shanghai Composite Index reclaiming the 4100 point mark and the ChiNext Index rising over 2%. The market's total trading volume was nearly 2.6 trillion, with over 3900 stocks in both markets gaining and over a hundred stocks hitting their daily limit up. In terms of market performance, with the disclosure of first-quarter reports coming to an end, although some stocks experienced sharp declines due to poor performance, the overall market has entered a phase of "good news running out". Funds are beginning to flow back into leading stocks with high earnings certainty, such as rare earth stocks like China Northern Rare Earth (net profit doubled). However, several problematic stocks, such as Shanghai Supezet Engineering Technology Corp., Ltd., Zhejiang Zhongjian Technology, Beijing Caishikou Department Store Co., Ltd., and Dalian Bio-Chem, hit their daily limit down. The lithium battery sector once again saw a surge in limit up stocks, with both battery and upstream materials performing well. Guangzhou Great Power Energy and Technology saw a 20% limit up, while Shenzhen Dynanonic, Yongxing Special Materials Technology, and others also hit their limit. In terms of news, data showed that in the first quarter of 2026, China's shipments of energy storage lithium batteries reached 215GWh, a year-on-year increase of 139%. Top companies have orders booked up to the end of 2026 and the second quarter of 2027, with production capacity saturated and prioritizing high-profit orders. In other hot sectors, the computing power leasing concept saw renewed activity, with Xingyun Technology hitting the 20% limit up. The CPO concept saw a rebound in intraday trading, with Cig Shanghai and Raisecom Technology both hitting their limit up. The rare earth permanent magnet concept saw a rapid increase, with stocks like China Northern Rare Earth, China Rare Earth Resources And Technology, Jiangsu Huahong Technology, and Shenghe Resources Holding all hitting their limit up. The PCB industry chain continued to be strong, with Shandong Fiberglass Group Corp. hitting two consecutive daily limit ups, and Grace Fabric Technology hitting a historical high limit up. On the downside, semiconductor material stocks experienced a volatile adjustment, with Omat Advanced Materials, Guangdong Huate Gas Co., Ltd, and Anji Microelectronics Technology all dropping. As for the spotlight stock, the new stock king Yuanjie Semiconductor Technology has maintained its upward trend in recent days, closing at 1515 yuan per share, with its stock price increasing by over 10 times in the past year. Earlier, Yuanjie Semiconductor Technology announced that it achieved an operating income of 355 million yuan in the first quarter of 2026, a year-on-year increase of 320.94%; the net profit attributable to shareholders of the listed company was 179 million yuan, a year-on-year increase of 1153.07%. Looking at individual stocks, 3973 stocks in the two markets rose, while 1403 fell, and 135 remained unchanged. There were a total of 121 stocks hitting their daily limit up and 42 hitting their daily limit down. At the close, the Shanghai Composite Index rose by 0.71% to 4107.51 points, with a turnover of 1.1266 trillion yuan; the Shenzhen Component Index rose by 1.96% to 15120.92 points, with a turnover of 1.4635 trillion yuan. The ChiNext Index rose by 2.52% to 3687.17 points. Funds Trend Today, the main focus of funds was on small metals, batteries, glass fibers, and other sectors, with top stocks like China Northern Rare Earth, Victory Giant Technology, and Zhongji Innolight leading in net inflows. Top News Recap 1. China's call for tokens reached about 21 trillion in 2025, showing exponential growth The "National Data Resource Survey Report (2025)" was released at the 9th Digital China Construction Summit, showing that China's data resources are empowering artificial intelligence innovation with greater strength. "Tokens" (Token) is the smallest information unit into which data is split by large AI models for efficient data processing. In 2025, the daily average call for tokens in the country increased from over a trillion at the beginning of the year to 100 trillion at the end of the year, showing exponential growth; the total annual call for tokens reached around 21 trillion. 2. China Iron and Steel Industry Association: Recent coke, coke, and other raw material prices have remained high, increasing the cost pressure on steel companies Jiang Wei, Vice President and Secretary-General of the China Iron and Steel Industry Association, stated on the 29th that due to the impact of the situation in the Middle East, the rise in oil prices has led to increased mining costs and freight, as well as rising inflation expectations. Despite iron ore port stocks reaching a historical high of 170 million tons in April, imported iron ore prices are still fluctuating at high levels between $105/ton and $110/ton. Prices of coke, coke, ferroalloys, scrap steel, and other raw materials have been affected, maintaining high levels, increasing the cost pressure on steel companies. 3. China's mineral resources baseline released: 31 items rank first in the world, with a national mining output of about 32.7 trillion yuan in 2025 The Ministry of Natural Resources released China's latest mineral resources baseline on April 29. China ranks first in the world in reserves of 14 minerals, including rare earths, tungsten, tin, molybdenum, antimony, gallium, germanium, indium, fluorite, and graphite. In 2025, China was also the world leader in the production of 17 minerals, including coal, vanadium, titanium, zinc, rare earths, tungsten, tin, molybdenum, antimony, gallium, indium, gold, and tellurium. Currently, China's mineral production and processing scale ranks first globally, with the country's mining industry output reaching about 32.7 trillion yuan in 2025, accounting for over 23% of GDP. The significant growth in resource reserves has laid a solid foundation for resource autonomy and control. Future Market Analysis 1. Sinolink: Large-scale AI clusters driving CPO acceleration - optimistic about the industrial chain companies Sinolink's research report stated that AI development is driving the expansion of training cluster scale, with continued growth in token consumption of inference end computing power, driving demand for computing power and networks. Sinolink believes that CPO can effectively help large-scale clusters reduce power consumption, increase interconnection density, and improve transmission stability at high rates. The current urgent need for CPO due to AI development, coupled with the gradual maturity of the CPO supply side, is expected to lead to accelerated penetration of CPO, benefiting core supply chain companies of CPO. It is recommended to focus on core optoelectronic component companies, CPO manufacturers, and CPO solution providers. 2. CICC: Prospects for prosperity trading to return to dominance High prosperity is the key to growth styles against global macro uncertainty. What puzzles many investors is that the situation in the Middle East conflict continues to be uncertain, with passage through the strait still obstructed, keeping oil prices high and stagflation risk higher than before the conflict. However, major global and A-share growth indexes have risen to new highs in what appears to be an unfavorable global macro environment. The determining factors for the growth trend are often industry trends and profit realization in times of high prosperity, which can outweigh other factors such as macroeconomics, valuations, and funds. If the upward trend in prosperity is clear, the growth momentum at the numerator end is expected to counter the rising interest rates and risk premiums at the denominator end. The rise of this growth style is driven by AI making significant breakthroughs since March, although the situation in the Middle East has suppressed this prosperity trade. As the risk at the tail end of the conflict diminishes, the prosperity trade, which was suppressed by risk preference, is expected to return to dominance. This article is reprinted from "Tencent Stock Selection". Editor: Liu Jiayin.