A-share market opening express | A-share trading range narrow! AI applications strong, computing power sector rebounds

On April 2nd, the A-share market opened with narrow fluctuations, with over 3000 stocks in the market trading higher. As of 9:43, the Shanghai Composite Index fell by 0.13%, the Shenzhen Component Index fell by 0.04%, and the Growth Enterprise Market Index rose by 0.14%. In terms of market performance, the AI application sector strengthened, with the media and cultural video sectors leading the gains. Stocks such as Sichuan Newsnet Media, Sunyard Technology, and Dasheng Times Cultural Investment hit the daily limit. The computing power sector experienced a rebound, with Jiangyin Hengrun Heavy Industries hitting its third consecutive limit up. The tourism, wind power, and banking sectors led the gains, while stocks in the electricity and oil & gas sectors saw a pullback, along with the automobile and liquor sectors leading the declines. Looking ahead, EB SECURITIES believes that the index is likely to experience a rebound, with continued structural market trends and rotating hotspots. Popular sectors: 1. Computing power sector rebounds The computing power sector saw a rebound, with Jiangyin Hengrun Heavy Industries hitting its third consecutive limit up. Stocks such as Zhejiang Haikong Nanke Huatie Digital Intelligence & Technology, JiangSu Jinji Industrial, Hang Zhou Iron & Steel, Sinodata Co., Ltd., and Dawei Technology(Guangdong) Group followed suit. 2. Strong performance in the AI application sector The AI application sector showed strength, with the media and cultural video sectors leading the gains. Stocks like Sichuan Newsnet Media, Sunyard Technology, Dasheng Times Cultural Investment hit the daily limit, while Guomai Culture & Media, Beijing Baination Pictures, Dook Media, and Beijing Enlight Media also followed suit. Institutional viewpoints: 1. Shenwan Hongyuan Group: Second quarter may see weak fluctuations, technology could still see independent trends Shenwan Hongyuan Group pointed out that the direct cause of the short-term market adjustment is the approaching "April Decisive Month" (A-share annual report first-quarter verification period, Chinese economic data verification period, U.S. tariff realization period), leading to a decrease in market risk appetite. After the short-term adjustment is realized, the pressure of the "April Decisive Month" has been mostly released. The growth in internet capital expenditures is positively correlated with domestic A-share computing-related sector revenue growth, and domestic computing power orders are expected to see an upward turning point in the first quarter. During the earnings season, the technology market trend is not one of "falsification" but one of "focus". A-shares in the cyclical sector are already expecting improvements, so even if the April economy does not continue to show strength, the additional downward adjustment space is limited. 2. Haitong: April is an important time node for A-shares, three dimensions look ahead for first-quarter clues Haitong pointed out that April is an important time node for the A-share market, with increased focus on fundamentals. In the A-share market, April is often an important window for performance verification because there is less fundamental data disclosed in January to March, with the market often influenced by policy or events. After April, the fundamental trend gradually becomes clearer, and the focus shifts back to fundamentals. The historical A-share market trend in April is greatly influenced by fundamentals: when fundamentals significantly improve, the market continues to rise, as seen in 2013; if fundamental data weakens, short-term trends may shift to adjustments, like in 2019. While the number of companies disclosing first-quarter forecasts is still relatively small, we can perhaps look ahead at first-quarter clues from three dimensions: macro high-frequency data, industrial enterprise profits, and analyst performance expectations to provide investors with some reference. 3. EB SECURITIES: Index expected to see a rebound, structural market trends and rotating hotspots to continue EB SECURITIES stated that looking ahead, market sentiment continues to recover, but trading volume remains relatively low, with hotspots rapidly rotating. The index is expected to see a rebound, with continued structural market trends and rotating hotspots likely to persist. Direction: AI-related concepts on the terminal side. On April 2nd, Volcano Engine will hold the "AIoT Intelligent Transformation Wave" event, inviting top players in the intelligent hardware industry (including several A-share listed companies) to discuss the latest trends in conversational AI intelligent hardware, focusing on AI toys and other terminal AI hardware products, which may stimulate speculation in related concepts. This article is republished from Tencent stocks, GMTEight editor: Chen Xiaoyi