A-share opening express | Three major stock indexes collectively opened higher, with strength in semiconductor, storage chip and other sectors.

On May 6, the three main A-share indexes opened higher, with the Shanghai Composite Index up by 0.57% and the ChiNext Index up by 2.27%. On the market, the semiconductor, storage chip, and optical module sectors led the gains, while the oil and gas exploration, liquor, and coal sectors were among the top losers. Wuliangye Yibin fell by over 6%, with the company's financial report showing a net profit of 8.954 billion yuan in 2025, a year-on-year decrease of 71.89%, and a net profit of 8.063 billion yuan in Q1 2026. Institutional Outlook CMSC: Profit growth, breakthrough in sight CMSC believes that looking ahead to May, with the prolonged US-Iran conflict having a diminishing marginal impact on A-shares, the current focus is mainly on the improvement of domestic corporate profitability and high business conditions. In terms of fund flows, macro liquidity remains relatively abundant, creating favorable liquidity conditions for fund inflows. Therefore, taking into account various factors such as recent fundamentals, policies, and liquidity, the market is expected to maintain a upward trend in May, with indexes expected to reach new highs for the year. External conflict may temporarily affect risk appetite, but will not change the overall direction of the market. According to our framework, A-shares entered the third stage of a bull market in April, and funds will continue to focus on accelerating and improving performance trends, related to government investments, sectors that benefit from rising prices in the cyclical sectors are likely to perform better. Sectors such as non-ferrous metallurgy, new energy, benefiting from the acceleration of domestic information infrastructure construction, semiconductors, benefiting from the construction of domestic new energy systems and global demand for new energy under high oil prices, are expected to achieve excess returns in May. On the sector selection level in May, we will focus on the five major sectors with marginal improvement: domestic computing power, lithium batteries, overseas computing power, commercial aerospace, and coal. Industry allocation recommendations should mainly revolve around the direction of verifying first-quarter performance and continuing business conditions. BOC International: External disturbances and internal support, focus on "dual main lines" after the holiday BOC International believes that after the holiday, A-shares may continue their upward trend in a volatile manner, focusing on two core main lines - AI technology and resource and energy security. The market is currently transitioning from geopolitical competition to self-profit and policy-driven logic. It is expected that A-shares will maintain a volatile upward trend after the holiday. On one hand, first-quarter A-share performance continues to recover, official PMI data continues to improve, providing profit support for A-shares. In addition, holiday performance of US stocks, Hong Kong stocks technology, and Chinese assets are positive; coupled with high pre-holiday trading volumes, it indicates a strong trading willingness in the market. However, attention should also be paid to possible impacts from overseas monetary and trade policies. In terms of allocation, technology and resources remain the two core main lines. 1) Technology AI industry chain: The AI sector in the US continued to be strong during the holiday period, with Apple's better-than-expected financial report and high growth in Intel's AI business adding strong catalysts. After the holiday, AI computing power and related targets in A-shares are expected to show significant emotional reactions. However, differentiation within the sector should be considered, shifting from crowded high points to low points, and transitioning to tech hardware with higher performance certainty and control over the chain; 2) Resources and energy security still have allocation value, serving as core means to hedge geopolitical and inflation risks in the short term and likely to lead to a re-evaluation of industrial and financial attributes in the medium term. The small metal sector performed well before the holiday, and with continued market attention to geopolitical changes and policy directions during the holiday, the resource sector will likely continue to attract high attention after the holiday. Industrial: How to view the market after the holiday? Industrial believes that for A-shares, as the US tech sector effectively mirrors global equity during the holiday period, coupled with ongoing verification of first-quarter performance trends, the domestic AI hardware industry chain (represented by optical communication and storage) deeply aligned with overseas tech giants and resonating highly with global AI trends is likely to continue as a structural highlight after the holiday. Looking at the entire month of May, with resonating global tech industry highlights, muted impacts from geopolitical conflicts, external favorable winds such as President Trump's visit to China, the conducive environment for tech growth allocations will continue. Despite the concerns about overcrowding in the market in the near term, we believe the current issue is mainly "structural overheating," rather than the main contradiction restricting the overall trend of the tech growth market. However, after certain strong directions have accumulated a considerable degree of consensus and structural overheating, overcrowding is likely to become the main contradiction affecting the internal structure of the sector. Looking ahead, with first-quarter reports providing clues to business conditions and industrial catalytic windows approaching, it is more important to explore areas with relatively low overcrowding and higher cost-effectiveness along the lines of business conditions and industry catalysts.