A-share market closing review | The Shanghai Composite Index rose for the fourth consecutive day! The banking sector continued to rise in the afternoon, while the micro-cap index fell by nearly 3%.

Today, the market opened low and closed high, with the Shanghai Composite Index having four consecutive days of gains, and the trading volume breaking over one trillion for five consecutive days. Blue chip stocks such as banks continued to rise in the afternoon, with the Shanghai 50 Index up by over 1%. However, 4100 stocks still fell in the market, and the micro cap stock index fell by nearly 3%. Today, the trading volume of many Shanghai and Shenzhen 300 ETFs significantly increased, with Huatai Bairui Shanghai and Shenzhen 300 ETF reaching nearly 10 billion in trading volume, and Yifangda Shanghai and Shenzhen 300 ETF exceeding 9 billion in trading volume. In terms of thematic trends, the AI sector, including computing power and ChatGPT, remained active, with Chengdu Hi-Tech Development being the most popular stock for the 9th day. On the news front, the government work report was released, which mentioned that the main expected goal for this year is a GDP growth of around 5%. The government plans to issue special ultra-long term national bonds for consecutive years, with an initial issue of 1 trillion yuan this year, to strengthen the intrinsic stability of the capital market and maintain the RMB exchange rate at a reasonable and balanced level. In other hot spots, AI smartphone concept stocks continued to be active, with Sichuan Furong Technology having four consecutive days of gains. The military industry sector rebounded collectively, with Sichuan Discovery Dream Science & Technology and Baota Industry hitting the limit up. The automotive sector stocks surged in the afternoon, with Anhui Ankai Automobile and Dongfeng Automobile hitting limit up. On the downside, the hydrogen energy concept continued to adjust, with Zhejiang Kangsheng and Qingdao Copton Technology hitting limit down. In terms of individual stocks, there were 906 stocks rising and 4130 stocks falling in the two markets, with 71 stocks remaining unchanged. There were a total of 58 stocks hitting the limit up and 21 stocks hitting the limit down. At the close, the Shanghai Composite Index rose by 0.28% to 3047.79 points, with a turnover of 458.9 billion yuan; the Shenzhen Component Index fell by 0.23% to 9416.80 points, with a turnover of 608.2 billion yuan. The ChiNext Index fell by 0.06% to 1833.66 points. Funds Flow Northbound funds bought a net of 1.55 billion yuan all day. Main funds focused on the aviation equipment, commercial vehicle, and film industry sectors, with Zhejiang Dahua Technology, JCET Group Co., Ltd., and Guangdong Dongfang Precision Science & Technology being the top net inflow stocks. Key News Recap 1. Government Work Report: 2024 GDP Growth Expected to be Around 5% The government work report stated that the main expected goals for this year are a GDP growth of around 5%; urban new employment of over 12 million people, an urban survey unemployment rate of around 5.5%; a consumer price index increase of around 3%; an increase in residents' income in sync with economic growth; maintaining basic balance in international receipts and payments; a grain output of over 1.3 trillion catties; a reduction of around 2.5% in energy consumption per unit of GDP, and continuous improvement in ecological and environmental quality. 2. Morgan Asset Management Announces Second CSI A50 ETF Launch Today Morgan Asset Management announced today that its Morgan CSI A50 ETF has officially been launched. Wind data shows that Morgan CSI A50 ETF raised 2 billion yuan at the subscription limit, with a subscription rate of 87.8% and over 15,000 effective subscribers, leading among ETFs established so far this year. As the only foreign public offering participating in the first batch of issuances, Morgan Asset Management led in fundraising speed and was the first to announce an early termination of funding. 3. Minister of Water Resources Li Guoying: Speeding up Comprehensive Water Conservancy Construction in 2023 Minister of Water Resources Li Guoying introduced at the first "Ministerial Channel" of the 14th National People's Congress the comprehensive acceleration of water conservancy construction in 2023, with a national investment in water conservancy construction reaching 1.996 trillion yuan, an increase of 10.1% over 2022, setting a historical record. Focusing on four major water issues: water disasters, water resources, water ecology, and water environment, 41014 water conservancy projects were implemented, providing strong support and guarantee for national flood safety, water supply security, food security, and ecological security. Market Outlook 1. CICC: Market Upswing May Continue, Small-cap Growth Style Relatively Optimistic in March CICC research report indicates that overall, A-shares are currently at a relatively low level in terms of valuation, sentiment, and funds, with a positive trend in the future. However, any potential gains are likely to be more in the form of fluctuations. In terms of style rotation, small-cap growth style is relatively optimistic in March. 2. EB Securities: Repeated Chess at 3000 Points, Structural Market Remains Primary EB Securities stated that the market has accumulated significant profit-taking recently, with a decrease in bullish sentiment and a slowdown in the upward trend of the Shanghai Composite Index. However, with continuous positive industrial news and a shift in funds towards thematic speculation, the market remains primarily a structural market. The index may revolve around 3000 points in repeated chess; going forward, it may continue to be dominated by structural trends, with a possibility of sustained rotation of hot spots. This article was reprinted from "Tencent Stock Selection", GMTEight Editor: Xu Wenqiang.