A-share market opens quickly | Improvement in risk sentiment, all three major indices rise! Coal and precious metals soar and dance in brilliant colors.

The US-Iran agreement is expected to heat up, improve global market risk sentiment, put pressure on oil prices, and drive stock market futures and gold prices higher. On May 25th, the three major A-share indexes opened higher collectively. As of 9:42, the Shanghai Composite Index rose by 0.66%, the Shenzhen Component Index rose by 0.76%, and the ChiNext Index rose by 0.56%. In terms of market performance, the coal sector led the gains at the opening. Zhengzhou Coal Industry & Electric Power approached the daily limit; the MLCC concept continued to be strong, with Guangdong Fenghua Advanced Technology and Hunan Aihua Group both hitting the daily limit for two consecutive days, and Suzhou Gyz Electronic Technology rising by more than 10%; PCB concept stocks were active again, with Avary Holding hitting the daily limit for two consecutive days, and Guangdong Zhengye Technology rising by more than 10%; the power grid equipment sector was strong in the early trading session, with Acrel Co., Ltd. surging by 15%, and Jinlihua Electric rising by more than 10%. Looking ahead, Huaxi believes that the market's bottom range has solid support from the perspectives of micro liquidity, global industrial trends, and stable policy expectations. Hot sectors: 1. Active coal sector The coal sector was active at the opening, with Huaibei Mining Holdings hitting the daily limit, Zhengzhou Coal Industry & Electric Power approaching the daily limit, and Shanxi Coking Coal Energy Group, Guanghui Energy, Baotailong New Materials, Shanxi Lu'an Environmental Energy Dev. Co., Ltd., and Pingdingshan Tianan Coal. Mining Co., Ltd. following the upward trend. Comment: On the news front, coking coal and coke futures hit the daily limit in early trading today. Tony Knutson, head of the coal market at consulting firm Wood Mackenzie, said that coal has become an energy buffer material that is less affected by geopolitical influences compared to liquefied natural gas, and can serve as a hedge against risks. As long as the conflict continues and shipping through the strait is blocked, coal will fill the energy supply gap. 2. MLCC concept sees widespread gains The MLCC concept continued to see widespread gains, with Guangdong Fenghua Advanced Technology hitting the daily limit for three days, setting a new historical high, Suzhou Gyz Electronic Technology rising by more than 10%, and Fujian Torch Electron Technology, Jiangsu Shuangxing Color Plastic New Materials, Zhuzhou Hongda Electronics Corp., Ltd., and Shandong Sinocera Functional Material leading in gains. Comment: CITIC SEC predicts that by 2030, the proportion of MLCC shipments in the global server market will increase from 2% in 2026 to 5%-10%, and the market share will reach 20%-30%. The annual compound growth rate is about 40%, indicating a vast growth space for the industry. Institutional views: Huaxi: The market's bottom range has solid support Since mid-May, the resistance faced by the A-share market mainly comes from two factors: overseas liquidity suppression and the persistent crowding of the micro trading structure in the technology sector. Although non-tech sectors have attempted to attract funds several times, they have been unable to become the direction of combined forces due to the weak domestic fundamentals. Huaxi believes that the current adjustment belongs to a phase of consolidation in a strong structural market, coupled with the regulatory authorities' continuous promotion of risk prevention and strong regulatory work, which helps digest overheated sentiment and solidify the foundation for healthy and sustainable upward movement in the future. From the perspectives of micro liquidity, global industrial trends, and stable policy expectations, the market's bottom range has solid support. Kaiyuan Securities: Digestion of micro structural crowding, but the bull market is not over The recent continuous market correction is mainly due to concerns about micro structural crowding. Reviewing several typical high-crowding phases in history, the deterioration of micro structure often corresponds to an increase in short-term market volatility, but does not necessarily mean the end of the bull market. Kaiyuan Securities believes that the greater probability is not "tech recession," but rather internal shifts in technology, as well as the diffusion of growth styles to more "secondary ignition" assets. The current micro structure is approaching a sensitive zone, essentially acting as a catalyst for the third stage of the bull market. Bull phase one: repair, bull phase two: revaluation, bull phase three: ignition. After entering the third phase of the bull market, the market will no longer reward elastic assets indiscriminately, but will begin to select directions that truly have profit realization capabilities and accelerating business conditions. The core of "secondary ignition" assets is the combination of high business levels and continued improvement in business conditions: both have a high business level and a slope for further improvement. In other words, the market is transitioning from "buying repair" to gradually focusing on "buying growth, buying growth rate change." China Securities Co., Ltd.: Optimistic about AI industry chain and computing power network construction In its research report, China Securities Co., Ltd. pointed out that NVIDIA released its FY27Q1 results, which exceeded market expectations, and customer demand has gradually shifted from simply purchasing GPUs to encompassing the entire stack, including switching and interconnection. It is expected that the Vera Rubin cabinet product will be mass delivered from the third quarter, with value added in CPUs, interconnections, and switches increasing simultaneously. Future upgrades in AI infrastructure will revolve around the entire stack. The computing power network is positioned as a national-level infrastructure, with an expected annual construction investment scale exceeding trillions, covering multiple aspects such as algorithm development, management, scheduling, and operation. Telecom operators, as the main force behind the construction of the computing power network, have introduced token packages and are exploring token operations to the consumer end. Google I/O 2026 shows that Google's AI industry layout has entered the full-stack stage of "computing power infrastructure + models + application entry points + end devices" TPU 8t/8i verification training and inference have a long-term upward demand for computing power, Gemini 3.5 Flash and Gemini Omni enhance model speed, cost, and multi-modal capabilities. This article is reprinted from "Tencent Self-Select Stocks" and edited by GMTEight: Jiang Yuanhua.