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.