GMT EIGHT - Market

A-share evening hot topics | Three departments deploy! Support insurance funds to set up private equity investment in the stock market and hold for the long term.

The following is the text of the evening news: 1. Three ministries: Support insurance companies to initiate the establishment of private equity funds to invest in the stock market and hold for the long term Importance: The General Office of the China Banking and Insurance Regulatory Commission, the General Office of the Ministry of Science and Technology, and the General Office of the National Development and Reform Commission issued the "Implementation Plan for High-Quality Development of Science and Technology Finance in the Banking and Insurance Industry". It mentioned the promotion of pilot policies for science and technology finance. Equity investment pilot of financial asset investment companies will be gradually expanded to regions with strong economic strength, a large number of technology companies, substantial R&D investments, and active equity investments. Deepen the pilot reform of long-term investment of insurance funds, support insurance companies to initiate the establishment of private equity funds, invest in stocks and hold for the long term. Launch pilot programs for technology company mergers and acquisitions loans, study the expansion of pilot banks, regions, and enterprises, and support technology companies, especially "chain-leading" enterprises, to carry out industrial integration and facilitate capital circulation. 2. Highest reward of 1.5 billion, Guangdong supports artificial intelligence and Siasun Robot&Automation industry on a large scale Importance: On April 1st, the press conference on the "Several Policy Measures to Promote Innovation and Development of Artificial Intelligence and Siasun Robot&Automation Industry in Guangdong Province" was held in Guangzhou. The key points of the meeting are as follows: 1. By 2024, the scale of the core artificial intelligence industry in Guangdong will exceed 220 billion yuan, firmly ranking first in the country, and the industrial output of Siasun Robot&Automation has ranked first in the country for five consecutive years since 2020. 2. Strive to achieve the goal of "one batch of six," accelerate the building of a global highland for artificial intelligence and Siasun Robot&Automation industries. 3. Promote the application of "Siasun Robot&Automation+" scenarios and continuously expand the application scenarios of Siasun Robot&Automation. 4. Continuously organize and implement flagship programs for "next-generation artificial intelligence" and major projects for "intelligent Siasun Robot&Automation", creating a national hub for general artificial intelligence innovation and a global highland for artificial intelligence and Siasun Robot&Automation industries. 5. Attract well-known global artificial intelligence and Siasun Robot&Automation multinational companies, with a maximum reward of 1.5 billion for individual foreign investment projects. 3. Insider: Trump will not announce any details about pharmaceutical tariffs on Wednesday Importance: According to sources familiar with the matter, pharmaceutical companies are lobbying U.S. President Trump to gradually impose tariffs on imported drugs in order to reduce the impact of tariffs and provide time for production relocation. Trump said that after imposing tariffs on other industries, he will soon announce tariffs on the pharmaceutical industry, which had previously been exempted. However, insiders understand that Trump will not announce any specific details about pharmaceutical tariffs on Wednesday. Nevertheless, major multinational pharmaceutical companies now expect that tariffs on medical products in the United States are inevitable and hope to ensure that tariffs gradually increase to 25%, rather than starting at 25% from the first day. 4. Market value shrinks by 80 billion, doubts remains about AEB intervention, Xiaomi SU7 faces "darkest moment" Importance: Xiaomi SU7, which has just completed its first year of delivery, is facing its "darkest moment". Affected by the Xiaomi SU7 incident, Xiaomi Group's Hong Kong stocks dropped sharply after the afternoon session, closing down by 5.59% on the day, with a market value shrinking by 80 billion yuan from the previous trading day. It is worth noting that although some details of the incident have been disclosed, Xiaomi's statement did not mention the AEB status of the accident vehicle, nor did it respond to the issue raised by the relatives of the accident driver about the inability to open the doors after the accident. 5. People's Bank of China: Establish a policy framework for integrated funds in both local and foreign currencies Importance: The People's Bank of China has publicly solicited opinions on the "Notice on the Management Regulations for Cross-Border Companies' Integrated Funds in Local and Foreign Currencies (Draft for Soliciting Opinions)". The "Notice" addresses the current issues with various versions of fund pools and separate management of local and foreign currencies. The "Notice" will integrate the operation of local and foreign currency fund pools into a unified policy framework, further facilitate fund transfer and utilization, and encourage the use of local currency for fund pool operations. Operationally, local foreign exchange bureaus at all levels will provide a "one-stop" service to accept enterprise records, change applications, etc., reducing the "hidden costs" for enterprises. 6. Performance report of new energy vehicle startups for March, Xiaopeng's delivery volume increased by 268% year on year Importance: On April 1st, several new energy vehicle companies successively announced their performance for March. Specifically, - Xpeng Motors delivered 36,674 new cars in March, a year-on-year increase of 26.5%; - Xiaopeng Motors delivered a total of 33,205 intelligent electric vehicles in March, a year-on-year increase of 268%, exceeding 30,000 units for the fifth consecutive month; - LEAPMOTOR delivered 37,095 units in March, a year-on-year increase of over 154%; - Xiaomi Automobile delivered over 29,000 vehicles in March; - NIO delivered 15,039 new vehicles in March, a year-on-year increase of 26.7%; - BYD Company Limited sold 377,420 new energy vehicles in March, compared to 302,459 in the same period last year. 7. Beijing Stock Exchange clarifies the regulatory orientation of refinancing, supports listed companies in raising funds through the issuance of convertible bonds Importance: The Beijing Stock Exchange recently issued the latest issue of the listing and issuance audit dynamics to the industry, clarifying the regulatory orientation of refinancing of listed companies in the Beijing Stock Exchange from eight dimensions: balance of refinancing varieties, "support, restrict, limit", lawful and standardized operation, sustainable operation capability, use of previous fundraising, use of this fundraising, investor protection measures, and pre-communication mechanism. Regarding the balance of refinancing varieties, the Beijing Stock Exchange stated that it supports listed companies in raising funds through the issuance of convertible bonds.The dilution effect of equity in listed companies is relatively mild. Investors have the guarantee of debt bottom as income protection. At the same time, under the influence of factors such as the mechanism for determining conversion prices, the adjustment of attributes, the lock-up period, and the method of transfer, the risk is relatively controllable, and the audit tolerance can be appropriately increased. Encouraging listed companies to set a certain premium rate for convertible bonds based on their financing situation, to prevent improper dilution of shareholders' equity.1. US stocks weaken: Dow Jones falls 0.58%, Johnson & Johnson drops over 3% US three major indices collectively opened lower, followed by weak fluctuations. As of 22:00, Dow Jones fell 0.58%, Nasdaq fell 0.21%, and S&P 500 Index fell 0.31%. Johnson & Johnson dropped over 3%. Earlier, a US judge rejected Johnson & Johnson's $100 billion offer to settle talcum powder cancer claims. Taiwan Semiconductor Manufacturing Company (TSMC) also dropped over 3%, with previous reports stating that SMIC is considering a merger with United Microelectronics Corporation (UMC). Conservative US media company Newsmax rose nearly 50%, with the stock surging over 700% the previous trading day. 2. Eurozone inflation cools, European Central Bank may continue to "stand still" On April 1st, Eurostat released preliminary data on inflation in the Eurozone for March, following the European Central Bank's announcement of a 25 basis point rate cut at its March meeting. The data showed that Eurozone CPI in March increased by 2.2% year-on-year, in line with market expectations and slightly lower than the previous value (2.3%). In terms of inflation composition, the service sector inflation continues to contribute the most, but the year-on-year growth rate has slowed from 3.7% in February to 3.4%. For the European Central Bank, despite inflation data for March moving further towards its 2% target rate, the Eurozone economy still faces significant uncertainty. After the data release, there were voices in the market suggesting that the European Central Bank may choose to continue to "stand still" at its April meeting. 3. Trump hints at Musk and Efficiency Department work ending, term may end in May While signing an executive order at the White House, Trump mentioned that Musk must return to full-time management of his company, and after dismissing tens of thousands of government employees, DOGE's mission will be complete. Trump stated, "I think he's great, but I also think he needs to run a big company, so eventually he will go back. He wants to go back. As long as I can keep him, I will keep him." Musk is classified as a special government employee and his service term at the White House does not exceed 130 days, with his term expected to end at the end of May. However, White House officials had previously stated in February that there were no signs of Musk's cooperation with Trump ending and that "he will always be here." 4. Is the dawn of a Russia-Ukraine ceasefire fading? Ukrainian bonds are being sold off Market data shows that Ukrainian GDP-linked GDP warrants plummeted nearly 4 cents in the middle of Monday's session, returning to levels before Trump's victory in last year's election, before narrowing part of the decline and closing at 72.34 cents. If not for the rebound in the late session, this could have been the largest single-day drop in this type of bond since the outbreak of the Russia-Ukraine conflict in 2022. Kaan Nazli, Emerging Market Investment Portfolio Manager at Neuberger Berman holding Ukrainian bonds, pointed out that since Trump's call with Putin last month, Ukrainian bond prices have been steadily declining. Nazli stated that the market has certainly begun to believe that the war will continue for a longer period. Additional topics: Self-selected brother summarizes the investment opportunities of market concern and finds that dexterity etc. are being paid attention to. 1. Unitree Technology releases Unitree Dex5 dexterity hand On April 1, Unitree Technology updated a video on its official Weibo account, releasing the Unitree Dex5 dexterity hand. In terms of performance, this dexterity hand has 20 degrees of freedom per hand (16 active + 4 passive), smooth reverse driving (direct body force control), and 94 sensitive touch points. Minmetals Securities released a research report stating that the core ability of humanoid Siasun Robot & Automation lies in generalization, and dexterity is the key to this feature. Currently, there is still room for significant improvement in dexterity technology, which is a bottleneck in the industry chain. From the perspective of AI data closed-loop, dexterity hand is an important bridge for humanoid Siasun Robot & Automation to interact with the outside world, and it is a crucial window for collecting data from the physical world. Classified by transmission method, dexterity hands include gear, rod, and rope drive types, each with its own advantages and disadvantages. In the current market, domestic companies tend to focus on rod solutions, while overseas companies are more inclined towards tendon rope solutions. Minmetals Securities is optimistic about five major directions: micro motors, drive control chips, micro lead screws, tendons, and sensors. In addition, the following sectors are worth paying attention to: 2. Photovoltaics | TCL Zhonghuan Renewable Energy Technology raises silicon wafer prices due to the impact of the earthquake in Myanmar. 3. Poultry farming | The price of white-feathered chicken has risen by about 40% compared to a month and a half ago. 4. Controlled nuclear fusion | Shanghai Future Industries Fund, worth hundreds of billions, aims at controlled nuclear fusion. 5. Sodium-ion batteries | China has made significant breakthroughs in sodium-ion battery technology, with experts stating that sodium-ion batteries may become lithium battery price stabilizers in the future. 6. Agricultural machinery | Shandong: will promote large-scale agricultural machinery updates, adding more than 150,000 high-end intelligent farming machines. In terms of positive announcements, the self-selected brother suggests paying attention to Zhejiang Guyuelongshan Shaoxing Wine's price increase for some products, etc.; in terms of negative announcements, be aware of the 6-day, 3-board Lanzhou LS Heavy Equipment Co., and suggest caution, etc. Positive announcements: 1. Zhejiang Guyuelongshan Shaoxing Wine: Price increase for some products 2. BYD Company Limited: March sales of new energy vehicles reach 377,400 units 3. Ningbo Shenglong Automotive Powertrain System: Received a project notification from a well-known flying car company in China, with an estimated total sales amount of 120 million yuan over 5 years. 4. Tianyang New Materials (Shanghai) Technology: Controlling shareholder planning control change matters, stock trading suspended. 5. Huadong Medicine: Sirumei Regulupeptide Injection market approval application accepted. 6. L&K Engineering: New Axel Xiang,etc.The Slope Branch intends to win the bid for a project worth about 3.163 billion yuan.7. Shanghai Sunglow Packaging Technology: Net profit in 2024 was 65,357,500 yuan, a year-on-year increase of 750.39%. Negative announcement 1. Lanzhou LS Heavy Equipment Co., Ltd.: The company failed to disclose significant information that should have been disclosed. 2. Taier Heavy Industry: Controlling shareholder and actual controller Tang Zhengbiao has been placed under investigation and filed a case. 3. Jiayu Holding: The Shenzhen Stock Exchange is planning to terminate the company's stock listing. 4. Shanghai Jiao Yun Group: Net loss in 2024 was 391 million yuan, a year-on-year reversal to a loss. 5. AECC Aviation Power: Net profit in 2024 was 860 million yuan, a year-on-year decrease of 39.48%. This article is reprinted from "Tencent Stock Picks", edited by GMTEight: Xu Ran.

01/04/2025

Selected A-share announcement: BYD Company Limited (002594.SZ) sold 377,400 new energy vehicles in March.

Huadong MedicineThe subsidiary Hangzhou Sino-American East China Pharmaceutical Jiangdong Co., Ltd. has received the "Acceptance Notice" issued by the National Medical Products Administration. The application for the market approval of Semaglutide Injection submitted by Jiangdong Company has been accepted. This medication is a long-acting glucagon-like peptide-1 (GLP-1) receptor agonist, with 94% sequence homology to human GLP-1. In clinical practice, it is mainly used for blood sugar control in type 2 diabetes patients, as well as long-term weight management in obese or overweight patients. The acceptance of the application for market approval of Semaglutide Injection is another important progress in the research and development process of this drug. It will not have a significant impact on the company's current performance, but will contribute to further enhancing the company's core competitiveness in the field of endocrine therapy in the long term.10. Taier Heavy Industry: The company's controlling shareholder and actual controller Tai Zhengbiao has been placed under detention and is being investigated. Taier Heavy Industry announced that the company has received a notice of detention and investigation issued by the Jianli City Supervision Committee regarding the company's controlling shareholder and actual controller, Tai Zhengbiao. Tai Zhengbiao currently serves as the company's honorary chairman, does not hold any director responsibilities, and does not hold any other positions in the company. The company's directors, supervisors, and senior management are all performing their duties normally, there has been no change in control, the board of directors is operating normally, and the production and operation situation is normal. The company will continue to monitor the progress of the above matters and fulfill its disclosure obligations in a timely manner. 11. Zhejiang Yilida Ventilator: No significant changes in business operations and internal and external operating environments. Zhejiang Yilida Ventilator issued a notice of abnormal stock trading fluctuations, the company's stock trading price has deviated by more than 20% over a period of three consecutive trading days (March 28, 2025, March 31, 2025, April 1, 2025). The company has disclosed that there have been no significant changes in its business operations and internal and external operating environments; there are no significant undisclosed matters related to the company, its controlling shareholder, or actual controller, nor are there any major planned matters. 12. Jiayu Holding: Shenzhen Stock Exchange intends to terminate the company's stock listing. Jiayu Holding announced that on April 1, 2025, it received a "Pre-notification Letter" issued by the Shenzhen Stock Exchange, stating that the Shenzhen Stock Exchange intends to terminate the company's stock listing. Financial Performance 1. SAIC Motor Corporation: New energy vehicle sales in March reached 125,700 units, a year-on-year increase of 48.22%. SAIC Motor Corporation announced that new energy vehicle sales in March 2025 reached 125,700 units, a year-on-year increase of 48.22%; cumulative sales for the year reached 273,000 units, a year-on-year increase of 29.89%. 2. Shanghai Sunglow Packaging Technology: Expected net profit for the first quarter of 2025 to increase by 713% to 917% year-on-year. Shanghai Sunglow Packaging Technology announced that it expects to achieve a net profit attributable to the parent company's owner of 40 to 50 million yuan in the first quarter of 2025, an increase of 3,508.19 to 4,508.19 million yuan compared to the same period last year, a year-on-year increase of 713.32% to 916.65%. The significant increase in performance is mainly due to the company's enhanced market development efforts, the good performance of packaging printing and packaging container businesses, a substantial increase in operating income compared to the same period, improved operational efficiency and product quality, strengthened cost control management, and benefiting from a significant increase in sales. 3. China Satellite Communications: Net profit reached 454 million yuan in 2024, up 30.31% year-on-year. China Satellite Communications released its 2024 annual report, achieving operating income of 2.541 billion yuan in 2024, a decrease of 2.85% year-on-year; net profit attributable to the company's shareholders reached 454 million yuan, an increase of 30.31% year-on-year. The company plans to distribute a cash dividend of 0.323 yuan (tax included) per 10 shares to all shareholders, totaling 136 million yuan (tax included). As of December 31, 2024, the company operated and managed 17 commercial communication broadcasting satellites. 4. Zhejiang Grandwall Electric Science & Technology: Net profit increased by 9.05% year-on-year in 2024, plans to distribute 15 yuan per 10 shares. Zhejiang Grandwall Electric Science & Technology released its 2024 annual report, achieving operating income of 12.985 billion yuan in 2024, an increase of 17.21% compared to the previous year; net profit attributable to the company's shareholders reached 236 million yuan, an increase of 9.05% compared to the previous year. The company plans to distribute a cash dividend of 15 yuan (tax included) per 10 shares. Significant Contracts China Energy Engineering Corporation: Subsidiary signs 9.6 billion yuan water supply project contract. Glory View Technology: Signs 312 million yuan computing power service procurement framework agreement.

01/04/2025

A-shares closing review | Index rises but then falls back! Chemical industry regains activity

Today, the three major stock indexes rose and then fell, with active trading in small and medium-cap stocks. The micro-cap stock index rose over 3% during the day. The market had a total turnover of 1.1 trillion, at a recent low level, with over 3800 stocks rising. Orient pointed out that looking forward to the market in April, the stock index will continue to explore the bottom trend, but the probability will not be too deep. The market's demand for earnings certainty is gradually increasing, and sector rotation continues to focus on performance. On the market, the biopharmaceutical sector surged, with innovative drugs, traditional Chinese medicine, and brain-machine interfaces leading the way. The chemical industry sector rose again in the afternoon, with multiple stocks like Huarong Chemical hitting the limit up. Military stocks were active, with Jianglong Shipbuilding leading the way. The steel and power sectors fluctuated upwards, with Xinjiang Ba Yi Iron & Steel leading the way. Stocks related to controllable nuclear fusion continued to strengthen, with Hefei Metalforming Intelligent Manufacturing hitting five consecutive limit up days. On the downside, internet e-commerce, precious metals, automobile, and film and television sectors fell the most. Specifically, the biopharmaceutical sector led the market, with stocks like Chengda Pharmaceuticals and Gansu Longshenrongfa Pharmaceutical Industry hitting the 20% limit up. In terms of news, the pharmaceutical industry recently had a series of positive news, with the State-owned Assets Supervision and Administration Commission encouraging state-owned enterprises to carry out mergers and acquisitions in biopharmaceuticals, among others. The National Medical Products Administration issued a consultation document on high-end medical device innovation development. There was also discussion on optimizing pharmaceutical group procurement policies. Investment in stocks related to controllable nuclear fusion continued to strengthen, with Hefei Metalforming Intelligent Manufacturing hitting five limit up days and Shanghai Zhongzhou Special Alloy Materials up 20%. According to CCTV News, China's controllable nuclear fusion technology has made significant progress, with the next generation artificial sun "Chinese artificial sun No. 3" achieving temperatures exceeding one billion degrees for both atomic nuclei and electrons. In terms of individual stocks, 3854 stocks rose in the market, while 1406 fell and 145 remained flat. There were 66 stocks hitting the limit up and 21 hitting the limit down. At the close, the Shanghai Composite Index rose 0.38% to 3348.44 points, with a turnover of 499.4 billion yuan; the Shenzhen Component Index fell 0.01% to 10503.66 points, with a turnover of 632.9 billion yuan. The ChiNext Index fell 0.09% to 2101.88 points. Funds Trends Today, the main capital focused on chemical pharmaceuticals, medical services, semiconductors, and other sectors. Stocks with the highest net inflows included Jiangsu Hengrui Pharmaceuticals, AVIC Industry-Finance Holdings, and Horizon Robotics. News Recap 1. China successfully launched satellite internet technology test satellite on April 1, 2025. 2. National Household Appliances Replacement for Energy-efficient Products teleconference held in Beijing on March 28. 3. Guangdong province actively promotes the construction of the Siasun Robot & Automation Industrial Park. 4. In March, Caixin China Manufacturing PMI reached 51.2, the highest in four months.Percentage point, hitting a new high since December 2024, shows that the production and business activities of the manufacturing industry continue to accelerate expansion. Analysis points out that, from the sub-item data of Caixin China Manufacturing PMI, the manufacturing industry maintains a trend of expansion in supply and demand. The production index in March slightly increased to the highest level in nearly four months in the expansion zone, and the new order index decreased slightly but remained above the critical point. In terms of categories, consumer goods new orders performed particularly strongly, while intermediate goods and capital goods also recorded moderate growth. Compared to the overall slowdown in demand expansion, exports accelerated expansion, with the new export order index for the month rising to the highest level since May 2024 in the expansion zone.1. Guotai Junan: Judging the Market Outlook Guotai Junan pointed out that the market is expected to continue to fluctuate, with a lack of new Xiong'an New Power Technology developments. The uncertainty has increased as trading has been relatively comprehensive, and the stock market is expected to enter a period of consolidation. It is important to remain cautious at this time, as April is a month when the stock market performance is closely watched. With policy expansion efforts and high local enthusiasm for development, it is optimistic about the potential benefits of two new sectors. It is recommended to focus on industries with clear trends and high order fulfillment rates in the technology growth sector. It is also optimistic about cyclical industries that benefit from supply optimization or price increases driven by new demand. The theme of stable and free cash flow is expected to return to focus in the short term, while small and medium-sized companies should be avoided. Themes to watch include autonomous control, aging economy, AI intelligence, and mergers and acquisitions. 2. Huatai: Preparing for the Two "Shoes" to Drop Huatai pointed out that looking ahead, before the two major "shoes" of tariffs and performance period are implemented, it is important to maintain the judgment that the index is in a "consolidation period". Overseas, concerns about stagflation have been exacerbated by US February PCE and consumption data, and it is necessary to pay attention to the uncertainty risks of policy before the implementation of "equivalent tariffs" on April 2nd and the possibility of stronger than expected measures after implementation. Domestically, there is significant pressure on the realization of annual and first quarter performance, with potentially greater pressure on small caps compared to large caps. In terms of allocation, it is recommended to continue to increase allocations in the direction of large caps, dividends, and sectors with high cost-effectiveness that are at low levels and have resilient prospects, such as white goods, aviation, batteries, and engineering machinery; Overall technology remains a mid-term focus, with opportunities to allocate to storage, edge-side AI, and attention on whether XinKailai can become a "DeepSeek" moment in semiconductor equipment. 3. Orient: Stock Indexes Still Maintain a Bottom-Exploring Trend, Sector Rotation Revolves Around Performance Orient pointed out that looking ahead to the market in April, stock indexes are expected to still maintain a trend of exploring the bottom, but it is unlikely to be too deep. Market demand for performance certainty is gradually increasing, and sector rotation still revolves around performance. From a gaming perspective, sectors that attract popularity are undoubtedly still the technology sector, such as TMT. The crowding ratio was as high as 45% previously and has now fallen to around 32%. Some funds bottomed out yesterday, so "technology + dividends" is currently a good investment strategy.

01/04/2025

A-share midday report | Shanghai Composite Index rises 0.59% in the morning, with over 4400 stocks in the market turning red, and pharmaceutical stocks are collectively strong.

On April 1, the A-share market rebounded in the morning, with over 4400 stocks trading higher. By midday, the Shanghai Composite Index rose by 0.59%, the Shenzhen Component Index rose by 0.57%, and the ChiNext Index rose by 0.67%. Market analysis believes that there are three main reasons for the index rebound: Firstly, last night, the People's Bank of China announced a fixed-rate bid for 800 billion yuan through reverse repurchase operations to maintain liquidity in the banking system until March 2025. Secondly, the March Caixin China Manufacturing Purchasing Managers' Index (PMI) recorded 51.2, a 0.4 percentage point increase from February, reaching a new high since December 2024, indicating continued rapid expansion in manufacturing production activities. Thirdly, in terms of industries, the pharmaceutical sector received multiple positive news, with the state-owned Assets Supervision and Administration Commission encouraging state-owned enterprises to carry out mergers and acquisitions in the biopharmaceutical field. In addition, the China Food and Drug Administration accelerated the revision of universal standards for medical robots and artificial intelligence medical devices. In terms of market performance, pharmaceutical stocks rallied, with leading subsectors like innovative drugs, traditional Chinese medicine, and brain-computer interfaces. Oil and gas and power stocks also rose, with Xinjiang Lixin Energy registering consecutive limit-up sessions. Photovoltaic concept stocks shook off, with EGing Photovoltaic Technology hitting the limit-up. Additionally, sectors like consumer goods and military industry performed well. On the downside, internet e-commerce, precious metals, automotive, and media sectors fell the most. Regarding individual stocks, Shandong Meichen Science & Technology and Royal Group Co., Ltd. both opened limit-down due to suspected violations of information disclosure regulations. Looking ahead, Huatai Securities maintains that the index is in a consolidation phase until the two major "boots" of tariffs and performance periods land. Popular Sectors: 1. Pharmaceutical sector strength Pharmaceutical stocks rallied, with innovative drugs and traditional Chinese medicine leading the way. Chengda Pharmaceuticals, Tibet Duo Rui Pharmaceutical, Gansu Longshenrongfa Pharmaceutical Industry, Zhuhai Rundu Pharmaceutical, Harbin Medisan Pharmaceutical, and other stocks hit the limit-up. 2. Photovoltaic sector rebound Photovoltaic concept stocks rebounded, with EGing Photovoltaic Technology hitting the limit-up. Ginlong Technologies, Jiangsu Goodwe Power Supply Technology Co., Ltd., Sungrow Power Supply, Wuhan DR Laser Technology Corp., Sineng Electric, Yuneng Technology, Jinko Solar, and others followed suit. 3. Oil and gas sector rise Oil and gas stocks surged, with Hunan Heshun Petroleum gaining 4 limit-up sessions in 5 days. Xinjiang Zhundong Petroleum Technology also hit the limit-up, along with Tong Petrotech Corp., Geo-Jade Petroleum Corporation, Zhongman Petroleum And Natural Gas Group Corp., Ltd. Institutional Views: 1. Guotai Junan: Consolidation will continue, staying put is crucial Guotai Junan believes that with limited upward potential, uncertainties have increased, and the stock market may enter a consolidation phase. Staying put is crucial, as April is a crucial month for stock market performance. They are optimistic about sectors benefiting from expanded policies and local initiatives. Investing in technology growth with clear industry trends and high order fulfillment rates is recommended. They are positive about cyclical industries benefiting from optimized supply-side or new demand-driven price hikes. Themes to watch for include autonomous control, aging economy, AI intelligence, and mergers and acquisitions. 2. Huatai: Preparing for the two major "boots" before they land Huatai points out that looking ahead, before the two major "boots" of tariffs and performance periods land, the index remains in a consolidation phase. Internationally, concerns about stagflation have increased due to the US's February PCE and consumer data. The uncertainty of policy risks before the implementation of "tariffs" on April 2 and the unexpected intensity afterward are key factors to consider.The risk still needs to be taken seriously. In terms of the domestic market, there is greater pressure on the realization of annual and first quarter performance, with small caps potentially facing even greater pressure than large caps. In terms of allocation, it is recommended to continue to increase allocation in large caps, dividends, and low-price+resilient or improving sectors with high cost-effectiveness, such as white goods, aviation, batteries, and construction machinery; broad technology is still the medium-term theme, consider low allocation of storage, edge AI, etc., and pay attention to whether XinKailai can become a "DeepSeek" moment in semiconductor equipment.Orient: The stock index continues to maintain a bottom-scanning trend, with sector rotation still focused on performance. Orient pointed out that looking ahead to the market in April, the stock index will still maintain a bottom-scanning trend, but the probability will not be too deep. The market's demand for certainty in performance is gradually increasing, and sector rotation still revolves around performance. However, from a game perspective, sectors that can attract popularity are undoubtedly technology stocks. Taking TMT as an example, the overcrowding rate was as high as 45% before, but has now dropped to around 32%. It is reasonable for some funds to bottom fish yesterday, so "technology + dividend" is a good investment strategy at present.

01/04/2025

A-share opening speedpost | A-share narrow fluctuations! Pharmaceutical stocks active again, oil and gas sectors rising

On April 1, A-shares fluctuated slightly in the morning session. As of 9:40, the Shanghai Composite Index rose by 0.21%, the Shenzhen Component Index fell by 0.03%, and the ChiNext Index fell by 0.01%. On the market, oil and gas stocks collectively rose, with Tong Petrotech Corp. rising by over 10%; the green energy concept became active again, with Xinjiang Lixin Energy hitting the limit up for two consecutive days; pharmaceutical stocks were active again, with Zhuhai Rundu Pharmaceutical hitting the limit up; medical, breeding and other sectors led the gains. On the downside, internet e-commerce, precious metals, automotive, and film and television sectors experienced the biggest declines. In terms of individual stocks, Shandong Meichen Science & Technology and Royal Group Co.,Ltd. were both suspended from trading as the China Securities Regulatory Commission initiated investigations. Shandong Meichen Science & Technology announced that the company is suspected of illegal information disclosure and is being investigated by the China Securities Regulatory Commission. Royal Group Co.,Ltd. is also being investigated for suspected illegal information disclosure by the China Securities Regulatory Commission. Looking ahead, Orient pointed out that in April, the stock market will continue to explore the bottoming trend, but the probability of a deep decline is unlikely. Market demand for earnings certainty is gradually increasing, and sector rotation still revolves around performance. Hot Sectors: 1. Oil and gas sector on the rise: Oil and gas stocks rose collectively, with Tong Petrotech Corp. rising by over 10%, and Xinjiang Zhundong Petroleum Technology, Sino Geophysical, China Oil Hbp Science & Technology, Geo-Jade Petroleum Corporation, Sino Prima Gas Technology, Zhongman Petroleum And Natural Gas Group Corp.,Ltd., and Beiken Energy Group following suit. 2. Active green energy concept: The power sector became active again, with green energy leading the way. Xinjiang Lixin Energy hit the limit up for two consecutive days, while Ning Xia Yin Xing Energy, Sichuan Guangan AAA Public, Henan Yuneng Holdings, Jiaze Renewables Corporation, and Guangdong Shaoneng Group also rose. In terms of institutional viewpoints: 1. Guotai Junan: Consolidation will continue, it is important to be cautious. Guotai Junan points out that the stock market is entering a phase of consolidation, with uncertainty factors increasing. It is important to be cautious, and April is a month to focus on market performance. Policies are expanding, and local initiatives are active. It is optimistic about the benefits of both the traditional and emerging sectors. Attention can be given to technology growth with clear industry trends and high order fulfillment. The short-term return of themes focused on stable and free cash flow should be considered, while avoiding small and medium sized stocks. Themes to focus on include autonomous control, silver economy, AI intelligence, and mergers and acquisitions. 2. Orient: Stock indices will continue to explore the bottoming trend, sector rotation will continue to revolve around performance. Orient points out that in April, stock indices will continue to explore the bottoming trend, but the decline is unlikely to be too deep. Market demand for earnings certainty is increasing, and sector rotation still revolves around performance. From a gaming perspective, technology stocks are still attracting attention. For example, the TMT sector, which previously had a high concentration of 45%, has now dropped to around 32%. Therefore, "technology + dividends" is a good investment strategy at the moment.

01/04/2025

GMTEight List of A-share restricted sales and lifting restrictions | April 1st

On April 1st, a total of 4 listed companies had their restricted shares lifted, with a total market value of about 739 million yuan. The specific details of the restricted shares lifted today are as follows: Stock Abbreviation Stock Code Restricted Share Type Number of Shares Unrestricted Shandong Hualu-Hengsheng Chemical600426Equity Incentive Restricted Shares Circulation3.5333 million Autek China Inc.300595Equity Incentive Restricted Shares Circulation276,000 Suzhou Everbright Photonics6880486.5845 million Jiangxi Guoke Defence Group688543700 million

01/04/2025

Brokerage Morning Meeting Highlights | April Industry Allocation Recommendations Focusing on Two Main Themes

The market underwent a volatile adjustment yesterday, with the ChiNext Index leading the decline. The total turnover of the Shanghai and Shenzhen stock markets was 1.22 trillion yuan for the whole day, an increase of 102.6 billion yuan from the previous trading day. In terms of sectors, precious metals, computing power, banks, and new stocks were among the top gainers, while photovoltaic, Hainan, breeding, and tourism sectors were among the top losers. At the close of trading yesterday, the Shanghai Composite Index fell by 0.46%, the Shenzhen Component Index fell by 0.97%, and the ChiNext Index fell by 1.15%. At today's brokerage morning meeting, Galaxy Securities stated that the characteristics of short-term economic structural recovery are still evident, with industries related to new quality productivity performing better. China Securities Co., Ltd. proposed industry allocation recommendations for April around two main themes. Galaxy Securities: The characteristics of short-term economic structural recovery are still evident, and industries related to new quality productivity perform better. In March, the manufacturing, construction, and service industries all had PMI figures in the expansion zone, demonstrating the resilience of China's economy. The push for new industries and exports to continue expanding production, with high growth in new order index due to expanded government spending in the first quarter, continuous implementation of policies for new industries, and increased external demand. However, the persistently low price index, especially the ex-factory price, has suppressed enterprise profits and indicates the presence of "internal competition" among enterprises. The deeper reasons may still be the enterprises' cautious outlook on the sustainability of the current demand, especially given potential future pressures on exports and the lack of temporary improvement in consumer spending. Reforms to address internal competition and internal demand in policies still require patience. On the 29th, relevant officials of the State-owned Assets Supervision and Administration Commission of the State Council stated at the China Electric Vehicle Hundred People Forum that efforts would be made to address issues such as disorderly competition in the automobile industry. Some demand policies still need further implementation, such as childcare subsidies, and urban village transformation plans. In terms of investment, the characteristics of short-term economic structural recovery are still evident, and industries related to new quality productivity perform better. Galaxy Securities still favors two directions: consumer and machinery sectors clearly supported by fiscal policies; and technology growth driven by risk appetite and improved liquidity. China Securities Co., Ltd.: Industry allocation recommendations for April focus on two main themes. China Securities Co., Ltd. stated that looking forward to April, the market is expected to remain volatile, with a focus on gradually expanding in the direction of good first-quarter reports. On a macro level, 1) Trump's tariffs are expected to take effect on April 2nd, requiring a reassessment of specific industry policies and their actual impact on the Chinese economy; 2) First-quarter macroeconomic data will gradually be revealed, with improvements in the economy starting from January-February data, although not significant, and industrial enterprise profits still under pressure. 3) The Central Political Bureau meeting at the end of the month is expected to continue to introduce policies to support the economy in the later period, especially after Trump's tariffs take effect, which may cause some fluctuations in China's exports. Industry allocation recommendations for April focus on two main themes, one being directions with good first-quarter reports, including electronics, AI, wind power, engineering machinery, non-ferrous metals, military industry, innovative medicine, etc., and the other considering overseas uncertainties and performance risks in the middle and late April, recommending defensive sectors such as high dividend stocks in the banking, home appliance, telecommunications, and electricity sectors. In the medium to long term, there is continuous optimism for undervalued performance directions such as HS Technology and HS Consumption. In addition, if the technology industry makes further breakthroughs, it may bring about a new round of significant investment opportunities in industry allocation. This article is a reprint from "Cai Lianshe", GMTEight editor: Jiang Yuanhua.

01/04/2025

A-share pre-market broadcast | New regulations from the Ministry of Housing and Urban-Rural Development raise residential standards, catalyzing the computing power industry again.

Pre-Market News 1. National standard "Residential Project Code" implemented! Industry insiders say "good houses" lead the leap in housing enterprise value Type: Industry Emotional impact: Positive The Ministry of Housing and Urban-Rural Development issued the national standard "Residential Project Code", which specifies that the minimum floor height for new residential buildings is not less than 3 meters, and residential buildings with 4 floors or more must have elevators. According to industry experts, the comprehensive implementation of the "good house" standard will reshape the competitive landscape of the real estate industry and accelerate the polarization of operating entities. 2. National Bureau of Statistics: More than 60% of new computing power to be concentrated in national hub nodes this year Type: Industry Emotional impact: Positive The National Bureau of Statistics held a press conference yesterday, where the Director of the National Bureau of Statistics, Liu Liehong, stated that the National Bureau of Statistics will continue to promote the construction of computing power infrastructure. By the end of this year, more than 60% of new computing power will be concentrated in national hub nodes, and new large data centers will use green electricity accounting for over 80%. 3. State-owned Assets Supervision and Administration Commission: Strengthen layout in fields such as artificial intelligence, create a number of "trump card" technologies Type: Industry Emotional impact: Positive The "Democracy and Law" magazine published an article authored by the State-owned Assets Supervision and Administration Commission of the State Council, which pointed out the need to strengthen layout in cutting-edge disruptive fields such as artificial intelligence and quantum technology, and accelerate the development of a number of asymmetric and "trump card" technologies. Encouraging state-owned enterprises to carry out mergers and reorganizations in fields such as biomedicine. 4. Chip manufacturing giants SMIC and UMC reported merger news, UMC's US stocks ADR briefly surged 20% Type: Industry Emotional impact: Positive American semiconductor wafer foundry manufacturer SMIC was reported to be considering a merger with UMC. Currently, SMIC and UMC each hold about 5% of the global wafer foundry market share. Analysts say that if the merger is successful, the new entity will surpass Samsung's foundry business and become the world's second-largest pure wafer foundry after TSMC.

01/04/2025

Selected A-share Announcements | Shanghai Rongtai Health Technology Corporation (603579.SH) has not failed to disclose any significant information that should be disclosed.

tical Co., Ltd.2Tical Investment Management Co., Ltd. intends to subscribe for 200 million yuan as a limited partner with its own or self-raised funds, accounting for 20% of the target fundraising scale of Zhaoying Fund. The fund will mainly focus on investments in the fields of biomedicine, traditional Chinese medicine, medical equipment, consumer healthcare, and medical services. This investment has been approved at the 27th meeting of the 7th Board of Directors and the 19th meeting of the 7th Supervisory Board, with related directors abstaining from voting.10. Shanghai Rongtai Health Technology Corporation: There is no significant information that should be disclosed but not disclosed Shanghai Rongtai Health Technology Corporation released a notice of abnormal fluctuations, stating that after self-examination and written consultation with the controlling shareholder and actual controller of the company, there is no significant information that should be disclosed but has not been disclosed in addition to the matters already disclosed by the company. The company is currently operating normally, with no significant adjustments in the market environment or industry policies, and there have been no significant fluctuations in production costs, sales, etc. The internal production and operation order is normal. The controlling shareholder and actual controller of the company do not have any other significant information that should be disclosed but has not been disclosed by the listed company, including but not limited to major asset restructurings, share issuances, major transaction-related matters, business restructurings, share repurchases, bankruptcy reorganizations, major business cooperation, introduction of strategic investors, and other significant matters. The company has not yet found any media reports or market rumors that may have an impact on the company's stock trading price. 11. TBEA Co., Ltd.: Investing 17.04 billion yuan in building a coal-to-gas project TBEA Co., Ltd. announced that its holding subsidiary Tianchi Energy Company, through its wholly-owned subsidiary Zhuneng Chemical Company, is investing in the construction of the Zhundong 20 billion m3/year coal-to-natural gas project, with a total investment of 17.04 billion yuan. The project is expected to convert 5.7974 million tons of raw coal annually and produce 20.5428 billion cubic meters of natural gas. The project capital accounts for 50% of the total investment, with Tianchi Energy Company turning to Zhuneng Chemical Company for capital increase and Zhuneng Chemical Company introducing strategic investors to solve. The project has a construction period of 3 years, and it is expected to start production in the fourth year with a production load of 80%, reaching full production in the fifth year. The project aligns with national and regional development strategies, is encouraged by the government, and will help enhance the country's self-sufficiency in oil and gas, reducing its dependence on foreign sources. However, the project faces risks such as product price fluctuations and market competition, environmental safety, technology, inadequate funding, project delays, and exceeding budgets. Financial Performance 1. Ningbo Shuanglin Auto Parts: Net profit for the first quarter of 2025 expected to increase by 93.35%-132.02% year-on-year Ningbo Shuanglin Auto Parts announced that it expects a net profit attributable to shareholders of the listed company of 150-180 million yuan for the first quarter of 2025, an increase of 93.35%-132.02% year-on-year. After deducting non-recurring gains and losses, the net profit is expected to be 120-150 million yuan, an increase of 65.21%-106.51% year-on-year. The growth in performance is mainly attributable to the continuous increase in the penetration rate of the domestic new energy vehicle market, strong growth in end consumer demand, driving a significant year-on-year increase in sales of the company's new energy vehicle-related products, and an improvement in profit levels compared to the same period last year. 2. Dongfang Electric Corporation: Net profit for the first quarter of 2025 expected to increase by 15%-25% year-on-year Dongfang Electric Corporation released its first quarter 2025 performance report, stating that it expects total operating income for the first quarter of 2025 to be 15.8-16.6 billion yuan, a 5%-10% increase compared to the same period last year. The estimated total profit for the first quarter of 2025 is 1.37-1.48 billion yuan, a 20%-30% increase year-on-year, with a projected net profit of 1.13-1.23 billion yuan, a 15%-25% increase year-on-year. Shareholding Increase Huakai Yibai Technology: Spouse of Chairman and General Manager Luo Chun plans to increase holdings of not less than 20 million yuan Other Beijing Jiuzhouyigui Environmental Technology: Signs strategic cooperation agreement with Metro Branch Company Beijing Jiuzhouyigui Environmental Technology announced that the company has signed a strategic cooperation agreement with the Metro Branch Company of China Railway Wuhan Electrification Bureau Group Co., Ltd. (referred to as "Metro Branch Company") to jointly promote the application of intelligent operation and maintenance management of track specialists and voiceprint online monitoring systems on the above-mentioned lines of Tianjin Rail Transit, jointly build a new mode of intelligent operation and maintenance for rail transit, and actively explore the creation of a digital, efficient, and intelligent rail transit service system. This article is reproduced from "Tencent self-selected stocks," edited by GMTEight: Xu Wenqiang.

31/03/2025

A-share market closing review | External negative factors attack, Chuang index falls by 1.15%, three main lines become the "safe haven" of A-shares

On March 31st, the "Trump storm" continued, following last Friday's sharp drop in US stocks, spreading market panic to the Asia-Pacific markets, with the Nikkei 225 index hitting a new low for the year. In A-shares, the index fluctuated and more than 4000 stocks were in the green. By the close, the Shanghai Composite fell 0.46%, the Shenzhen Component Index fell 0.97%, and the ChiNext Index fell 1.15%. According to the Securities Times, analysts said that although the market lacks a clear theme recently and sectors are rotating rapidly, from the perspective of performance relevance and style factors, there is actually a hidden "thread" as the market gradually focuses on the direction of excellence, dividends, and other certainty as the April performance season approaches. These three types of stocks have become a "safe haven" for funds: The first type is performance-oriented. ChengDu Sheng Nuo Biotec saw a "20CM" limit up. On the evening of the 30th, ChengDu Sheng Nuo Biotec announced that it is expected to increase its net profit by 137.97% to 190.85% year-on-year in the first quarter of 2025. The second type is new shares and new share sectors. Among them, C HuaYe surged 38%, reaching the daily limit at one point. On the 28th, the China Securities Regulatory Commission issued new rules prohibiting IPO strategic placement investors from lending shares during the lock-up period. The third type is high dividend assets. The power, banking, and other sectors rose, with Bank Of China, China Construction Bank Corporation, BANKCOMM, Postal Savings Bank Of China collectively rising. On the 30th, the four state-owned banks announced a plan to supplement core Tier 1 capital, receiving a 500 billion yuan injection from the Ministry of Finance. In terms of the market, the high dividend style supported the market, with power, banking, and other sectors leading the way, and China Construction Bank Corporation rising more than 3%; precious metals stocks rose against the trend, with Henan Hengxing Science & Technology hitting the limit up; new shares were strong, with Alnera Aluminium up 20%; the computing power sector rebounded in the afternoon, with Glory View Technology and Hang Zhou Iron & Steel hitting the limit up. On the downside, Siasun Robot & Automation concept stocks fell sharply, with Jiangsu NanFang Precision hitting the limit down for three consecutive trading days; the chemical sector continued to adjust, with Guizhou Zhongyida, Hongbaoli Group Corporation, and others hitting the limit down; photovoltaic, consumer goods, and other sectors were among the top decliners. As for individual stocks, Xiangcai Co., Ltd. and Shanghai DZH Limited both resumed trading limit up. In terms of news, Xiangcai Co., Ltd. announced a stock-for-stock absorption merger with Shanghai DZH Limited and plans to raise up to 8 billion yuan in matching funds, with the stock resuming trading on Monday; Shanghai DZH Limited announced on the same day that it would be absorbed and merged by Xiangcai Co., Ltd. at a ratio of 1:1.27 and also resumed trading on Monday. Looking ahead, BOC International pointed out that overall, A-shares may enter a phase of volatile adjustment in the short term, with performance certainty becoming the main driver of excess returns in the April market style. Popular Sectors 1. Banking sector rises The banking sector fluctuated higher, with China Construction Bank Corporation rising more than 3%, and Jiangsu Jiangyin Rural Commercial Bank, Bank of Shanghai, Agricultural Bank Of China, BANKCOMM, and others following suit. Commentary: On the news front, Bank Of China, China Construction Bank Corporation, BANKCOMM, Postal Savings Bank Of China and other state-owned banks announced plans to supplement core Tier 1 capital, receiving a 500 billion yuan injection from the Ministry of Finance. CITIC SEC's chief economist Ming Ming stated that the Ministry of Finance's capital injection into state-owned large commercial banks to supplement core Tier 1 capital is a proactive move by the government. Assuming an 8x multiplier effect, the injection of over 500 billion yuan can leverage approximately 4 trillion yuan in credit growth, helping to increase support for the real economy. 2. Precious metals sector strengthens The precious metals concept stocks fluctuated higher, with Henan Hengxing Science & Technology hitting the limit up, and Western Region Gold, Beijing Xiaocheng Technology Stock, Chifeng Jilong Gold Mining, Sichuan Gold, and others following suit. Commentary: On the news front, spot gold hit a new high again, surpassing $3100 per ounce, with prices up nearly 18% year-to-date. Some media reports suggest that the Trump administration is considering broader and higher tariff plans. CITIC SEC pointed out that the recent surge in gold prices is mainly due to trading in overseas markets amid recession and tariff panic trading. Considering various factors such as inflation, growth, tariffs, and geopolitics, the current gold market is unlikely to end. 3. Power sector rises The power sector fluctuated higher, with Guangdong Shaoneng Group hitting the limit up, and Jiangsu New Energy Development, China Longyuan Power Group Corporation, Sichuan MingRise of Xing Electric Power, Huadian Power International Corporation, etc.Review: On the news front, the National Energy Administration released the data on the issuance and trading of renewable energy green power certificates nationwide in February 2025. In February, the National Energy Administration issued 256 million green certificates, a year-on-year increase of 5.44 times. Guosheng Securities pointed out that the power sector has undergone significant adjustments, and it is recommended to pay attention to the market style switch and resonance of fundamentals, and to focus on opportunities in the power sector. 4. Siasun Robot & Automation sector declines. Stocks in the Siasun Robot & Automation concept sector have dropped significantly, with Jiangsu NanFang Precision hitting the limit-down for three consecutive trading days. Tungkong Inc., Thinker Agricultural Machinery, Hanwei Electronics Group Corporation, Hengong Precision Equipment, and Jiangsu Pacific Precision Forging all saw sharp declines. Review: On the news front, prominent investor Zhu Xiaohu of Jinsha River Venture Capital stated in a media interview that he is currently exiting humanoid Siasun Robot & Automation companies in bulk, and he does not see the commercial potential of intelligent or humanoid Siasun Robot & Automation companies at present. Institutional Views 1. CITIC SEC: Market inference after the tariff "storm". CITIC SEC pointed out that the tariff "storm" is set to land in early April, with China possibly being the most affected but also the best prepared. As the second quarter approaches, the direction of domestic policies to control supply and maintain demand becomes clearer. After the tariff "storm" lands, it is expected that A-shares will recover, Hong Kong stocks will consolidate, and US stocks will recover. From the perspective of performance, core assets have shown strong operational resilience, and the opportunity for left-side layout has matured. In terms of liquidity, active funds have clearly receded, and industry themes need catalysis and time to gather momentum. In terms of allocation, the focus is on continuing the ignition of technology, supply-side efforts, and addressing consumption deficiencies. 2. BOC International: Emphasis on earnings certainty during the financial reporting season. BOC International pointed out that industrial enterprise profits continued to improve at the beginning of 2025, with industrial enterprise inventories continuing to rise. Leading indicators such as revenue and PPI are in a weak recovery, indicating that the proactive inventory correction cycle is still ongoing. The market is waiting for the implementation of Trump's new tariff policy, and it is expected that the impact of this round of tariffs on A-shares will be limited. Overall, A-shares may enter a phase of volatile adjustment in the short term, with earnings certainty becoming the main focus for excess returns in the market in April. The AI industry chain trends are still evolving, with overall optimism and moderate corrections presenting better buying opportunities. The AI edge side is particularly worth paying attention to in the near term, and it is also suggested to focus on industries with improving prospects and strong valuation price ratios, including emerging consumption, hog cycle, pharmaceuticals, and home appliances. 3. Guotai Junan: Shocks will further push forward, and it is important to stay on course. Guotai Junan pointed out that expectations for upward revisions are lacking, and uncertainties have increased due to the relatively adequate expressions in previous trading. The stock market is expected to enter a phase of shock consolidation in the next stage. It is important to stay on course, as April is the month when the stock market pays the most attention to growth performance. Policy expansion efforts are in progress, with high local enthusiasm for progress, and it is favorable to focus on sectors benefiting from two new and two old trends. Industries with clear trends and high order fulfillment rates in technological growth are worth watching. The low PB asset end is optimistic about cyclical industries benefiting from supply optimization or price increases driven by new demand. The theme of free and stable cash flow will return to focus in the short term, while avoiding small and medium-sized market values. On the thematic side, it is advisable to focus on independent and controllable, silver-haired economy, AI intelligent body, and mergers and acquisitions restructuring. This article is reproduced from "Tencent Self-selection Stocks", edited by GMTEight: Liu Jiayin.

31/03/2025

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