A-share opening quick report| Weak shock! High dividend style guards the market, automobile whole vehicle sector rises against the trend.

On March 31, the A-share market showed a weak trend in the morning session. As of 9:55, the Shanghai Composite Index fell by 0.12%, the Shenzhen Component Index fell by 0.44%, and the ChiNext Index fell by 0.72%. In terms of market performance, high dividend stocks supported the market, with sectors like electricity and banks leading the gains. Guangdong Shaoneng Group hit the limit up, the automobile sector bucked the trend with Anhui Ankai Automobile hitting the limit up, and the gold concept stocks strengthened with Henan Hengxing Science & Technology hitting the limit up. On the other hand, stocks related to Siasun Robot & Automation concept saw a sharp decline, Jiangsu NanFang Precision hit the limit down for three consecutive trading days, and chemical stocks continued to adjust with Guizhou Zhongyida and Hongbaoli Group Corporation hitting the limit down. Entertainment, gaming, computer equipment, military, and engineering machinery sectors were among the top decliners. In terms of individual stocks, Xiangcai Co., Ltd. and Shanghai DZH Limited both hit the limit up upon resumption of trading. Xiangcai Co., Ltd. announced its intention to absorb and merge Shanghai DZH Limited through a stock swap and raise matching funds of not more than 8 billion yuan. Shanghai DZH Limited, on the same day, announced its intention to be absorbed and merged by Xiangcai Co., Ltd. with a stock swap ratio of 1:1.27. Looking ahead, BOC International pointed out that in general, in the short term, the A-share market may enter a period of volatile adjustment, and the certainty of performance will be the main focus for excess returns in the market style in April. Hot sectors 1. Active automobile sector The automobile sector was active, with Anhui Ankai Automobile hitting the limit up, followed by Dongfeng Automobile, Zhongtong Bus Holding, FAW Jiefang Group, Chongqing Changan Automobile, and others. Comment: In terms of news, a person in charge of the State-owned Assets Supervision and Administration Commission of the State Council stated that the next step will involve strategic reorganization of central enterprises in the automobile industry to increase industrial concentration. Simultaneously, the commission has launched a new energy vehicle development action plan to renew the industry, focusing on electric vehicles, car chips, intelligent driving systems. 2. Power sector rally The power sector rallied against the trend, with Guangdong Shaoneng Group hitting the limit up, and Jiangsu New Energy Development, China Longyuan Power Group Corporation, Sichuan Mingxing Electric Power, Huadian Power International Corporation, Gepic Energy Development leading the gains. Comment: According to news, the National Energy Administration released data on the issuance and trading of renewable energy green power certificates nationwide in February 2025. In February 2025, the National Energy Administration issued 256 million green certificates, an increase of 5.44 times year-on-year. Guosen Securities pointed out that the power sector has already seen significant adjustments and suggested focusing on the resonance of market style switches and fundamental support in the power sector layout opportunities. 3. Gold sector strength The gold concept deviated from the market trend, with Henan Hengxing Science & Technology hitting the limit up. Western Region Gold, Chifeng Jilong Gold Mining, Sichuan Gold, Beijing Xiaocheng Technology Stock, Shandong Gold Mining followed suit. Comment: In terms of news, safe-haven sentiment has driven gold prices to reach new highs, with reports that the Trump administration is considering implementing broader and higher tariff plans. In early Asian trading on Monday, as the Trump administration prepares to roll out a new round of tariff policies, gold opened higher, breaking above $3093 per ounce, exceeding the historical high set last Friday. 4. Decline in Siasun Robot & Automation sector Siasun Robot & Automation concept stocks saw a significant decline, with Jiangsu NanFang Precision hitting the limit down for three consecutive trading days, Hanwei Electronics Group Corporation, Hengong Precision Equipment, Jiangsu Pacific Precision Forging falling by over 10%, and Tungkong Inc., Thinker Agricultural Machinery hitting the limit down. Comment: In terms of news, well-known investor Zhu Xiaohu of Qiming Venture Partners said in a media interview that he is in the process of exiting Siasun Robot & Automation company and expressed doubts about the commercial potential of humanoid Siasun Robot & Automation enterprises. Institutional views 1. CITIC SEC: Market interpretation after the tariff "storm" CITIC SEC pointed out that the tariff storm is expected to land in early April, with China likely to be most affected but also best prepared; controlling supply, ensuring demand, the direction of second-quarter domestic policy strength becoming clearer. After the tariff storm, it is expected that the A-share market will rebound, Hong Kong stocks will consolidate, and U.S. stocks will recover. From a performance perspective.From the perspective of the surface, the core assets have shown strong operational resilience, and the opportunities for left layout have matured; From the perspective of liquidity, active funds are significantly ebbing, and industry themes need catalysts and time to gather momentum. In terms of allocation, the idea of continuing to ignite technology, strengthen the supply side, and supplement consumer weaknesses will be implemented.2. BOC International: Focus on Performance Certainty in Financial Reports BOC International pointed out that at the beginning of 2025, industrial enterprise profits continued to improve, industrial inventories continued to rise, leading indicators such as revenue and PPI were in a weak recovery state, indicating that the active inventory replenishment 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 tariff implementation on A-shares will be limited. Overall, in the short term, A-shares may enter a period of volatile adjustment, with performance certainty becoming the main focus for excess returns in the market in April. The AI industry chain trend is still unfolding, with overall prosperity steadily improving. A moderate pullback may present a better opportunity to enter the market, with a focus on AI end applications in the short term. It is also recommended to focus on industries that have good valuation and strong economic performance, including emerging consumption, pork cycle, pharmaceuticals, and home appliances. 3. Guotai Junan: Volatility will further advance, it is important to stay cautious at present Guotai Junan pointed out that the lack of upward revision expectations for Xiong'an New Power Technology, combined with the previous trading signals being relatively clear and an increase in uncertainty factors, will lead the stock market into a phase of consolidation and volatility. It is important to stay cautious at present, as April is the month when the stock market pays the most attention to growth performance. With expanded policy efforts and high local enthusiasm for promotion, it is optimistic about sectors benefiting from the "two heavy, two new" themes. It is advisable to focus on technology growth in industries with clear trends and high order fulfillment rates. Opportunities are seen in cyclical industries where supply-side optimization or new demand drives price increases in low PB assets. The thematic focus in the short term will shift back to themes related to free and stable cash flow, while avoiding small and medium-sized market values. Themes to consider include autonomous control, silver economy, AI intelligence, and mergers and acquisitions.