A-shares midday review | The Science and Technology Innovation 50 Index stands out, with a significant increase of 4.71% in half a day! Cambricon rises by 17%, reclaiming the "stock king" throne.

On April 30th, the three major indexes fluctuated and fell, while the Science and Technology Innovation 50 Index rose more than 5% during trading hours. Cambricon surged 17%, reaching a historical high in stock price and reclaiming the "stock king" throne. By midday closing, the Shanghai Composite Index slightly rose by 0.09%, the Shenzhen Component Index fell by 0.06%, and the ChiNext Index dropped by 0.13%, while the Science and Technology Innovation 50 Index rose by 4.71%. The total turnover of the Shanghai and Shenzhen stock markets in the morning session was 1.81 trillion yuan, an increase of 184.8 billion yuan from the previous trading day. Today is the last trading day before the May Day holiday. Should investors choose to hold positions or stocks during the holiday? Bi Mengwei, a researcher at Ges Fund, advises investors to follow the trend: if the market opens with strength, they should firmly hold stocks for a rise; if it opens slightly lower, there is no need to panic as the core sectors such as metals, power equipment, and technology have strong resilience, so there is no need to panic sell. In terms of choosing between holding stocks and holding cash, investors should make a rational layout: heavy-weight investors can choose to hold stocks during the holiday, patiently holding onto high-quality assets; while light-weight investors can consider holding cash for now to avoid the uncertainty of the holiday. Li Mingluo, an investment manager at Doudu Fund, predicts that the pre-holiday market will maintain a typical pattern of fluctuation and shrinking volume, and investors should avoid chasing high prices. They can consider buying in batches during corrections and avoid stocks with speculative themes, lack of performance support, or financial report risks, while sticking to fundamentally safe margins. The main uncertainties during this holiday come from two factors: the Federal Reserve meeting and negotiations on the US-Iran conflict, which are also the main reasons for the increase in cautious sentiment among investors. Zi Ruixing, a senior researcher at China Investment, leans towards holding stocks during the holiday but emphasizes the need to control positions reasonably, stick to core themes, and avoid chasing price hikes and themes blindly. He predicts that on April 30th, the market will likely continue to show a pattern of shrinking volume and fluctuations, as risk-averse funds are unlikely to enter the market en masse before the holiday. However, the main themes today (power, metals, and AI applications) have already attracted funds, and the selling pressure before the holiday is not strong. He suggests maintaining a six to seven percent position, keeping sufficient cash reserves, and waiting for a clearer direction in the market after the holiday before making further positions adjustments. Liu Youhua, the director of Rongpai Wealth Research, believes that the post-holiday market may face short-term profit-taking pressure, and maintaining a moderate position can balance market opportunities with potential risks. In terms of portfolio structure, investors can focus on sectors with strong earnings certainty that align with policy support directions, and through balanced allocation, effectively respond to market sector rotation rhythms. Looking at the market, there was a rotation in themes at the end of the month, with gains and losses in various concept stocks. The Science and Technology Innovation 50 Index components skyrocketed, with Verisilicon Microelectronics (Shanghai) Co., Ltd. hitting the limit up, and Cambricon nearly reaching the limit up, becoming the new "stock king" in the A-share market. CPU and semiconductor concepts surged collectively, with stocks like Shenzhen Sunmoon Microelectronics Co., Ltd and China Greatwall Technology Group hitting the limit up. Concepts related to direct satellite phones, satellite internet, and commercial aerospace were all strong, with many stocks hitting the limit up. Local Hainan stocks rose, with Hainan Haide Capital Management hitting the limit up at one point. The Siasun Robot & Automation concept rebounded, with Zhejiang Rongtai Electric Material hitting the limit up. Sports and football revitalization concepts continued to be strong, with multiple stocks hitting the limit up. Real estate concepts continued to be strong, with Tianjin Jintou State-owned Urban Development hitting the limit up. Military equipment and military electronics concepts rebounded, with Lubair Aviation Technology hitting the limit up. Concepts related to duty-free shops, dairy products, and retail consumption remained active, with Xiangpiaopiao Food hitting the limit up. Brokerage firms, consumer electronics, lithium resources, and storage chips concepts performed strongly. On the downside, a group of Xinduoduo concept stocks fell, with Delong Composite Energy Group and Jiangsu Fasten nearing the limit down. Electronic cloth, PCB, and composite copper foil concepts declined collectively, with China Jushi Co., Ltd falling by over 6%. Concepts related to sodium-ion batteries, electrolytes, lithium battery separators, and solid-state batteries all dropped, with Tianneng Battery Group Co., Ltd and Jiangsu HSC New Energy Materials falling by over 10%. Green electricity, power, and electricity grid equipment concepts declined, with Henan Yuneng Holdings hitting the limit down. Chemical concepts like titanium dioxide, caustic soda, dyes, and fertilizers all weakened. Cyclical concepts such as coal, steel, and port shipping all declined collectively. Fiber optic cables, liquid cooling, and data center concepts saw a pullback, with Yangtze Optical Fibre And Cable Joint Stock falling by over 5%. New energy concepts like photovoltaics, energy storage, and wind power all declined collectively. Weak performance was seen in small metals, gold, the oil and gas industry chain, banks, and computing power leasing concepts. Looking ahead, Dong Zhongyun, chief economist at China Securities, believes that the impact of international geopolitics on the domestic capital market may diminish, and the market focus will gradually return to fundamentals. The steady recovery of A-share earnings is the strongest support for Chinese assets at the moment. Hot sectors in the market 1. Surge in computing power chip concept There was a surge in the computing power chip concept, with Verisilicon Microelectronics (Shanghai) Co., Ltd. hitting the limit up, Cambricon rising by over 17%, and China Greatwall Technology Group and Vantone Neo Development Group both hitting the limit up. 2. Resurgence in the lithium mining concept There was a resurgence in the lithium mining concept, with YOUNGY Co., Ltd. hitting the limit for the third time in five days and Chengxin Lithium Group also hitting the limit. 3. Real estate sector shows abnormal rise The real estate sector showed abnormal rise, with Financial Street Holdings hitting the limit for two consecutive days and Tianjin Jintou State-owned Urban Development hitting the limit. 4. Rebound in the Siasun Robot & Automation concept There was a rebound in the Siasun Robot & Automation concept, with Zhejiang Rongtai Electric Material hitting the limit, and follow-up increases in Ningbo Tuopu Group, Zhejiang Sanhua Intelligent Controls, Swancor Advanced Materials Co., Ltd., Fujian Raynen Technology, and Jinhua Chunguang Technology. Institutional perspectives China Securities: The impact of international geopolitics on the domestic capital market may diminish, and the market focus will gradually return to fundamentals Dong Zhongyun, chief economist at China Securities, believes that the impact of international geopolitics on the domestic capital market may diminish, and the market focus will gradually return to fundamentals. The steady recovery of A-share earnings is the most powerful support for Chinese assets at the moment. As domestic market supply and demand further balance, and price transmission becomes smoother, A-share company profits are expected to further recover. Huatai: Fiber optic cable enters a historical cycle The market believes that the rise in fiber optic prices will trigger large-scale production by enterprises. The industry is expected to see a lengthening of the boom cycle in the next two years: 1. The expansion cycle of optical rods is long, and after rational expansion following the last round of clearance in the industry, it is unlikely to see large-scale new production capacity in the short term; 2. High-end fiber optics structurally squeeze supply: mainstream manufacturers are tilting production towards high-end products like A1 communication and A2 drones, squeezing the supply of regular fiber optic cables. China Securities Co., Ltd.: CPUs may face a new round of price hikes in the second half of 2026 According to a report from China Securities Co., Ltd., Taiwanese media reported that due to the surge in demand for AI computing power, consumer CPU prices for AMD and Intel increased by 5% to 10% in March this year, and server CPU prices rose by 10% to 20%. This wave of price increases is not a short-term fluctuation. Supply chain news indicates that shortages will persist until 2027, with the third quarter of 2026 possibly seeing a new round of price adjustments. AMD, to cope with the cost pressures of transitioning to the 2nm process, plans to raise server CPU prices twice in the second and third quarters of 2026, with an estimated cumulative increase of 16% to 17%. Intel already adjusted PC CPU prices in March and server CPU prices on April 1, leading to a rebound in second-quarter gross margins. The market expects there to be about 8% to 10% room for price hikes in the second half of the year. This article is a repost from "Tencent Stock Selection," GMT8 Editor: Wang Qiujia.