A-shares closing review | A-shares opened lower and closed higher, independently setting their own trend. The BSE 50 Index closed up more than 10%.

On April 9, after the United States implemented new tariffs, Asian stock markets collectively fell, with the Nikkei falling more than 5% at one point and the Korean composite index falling more than 1%. In the Chinese stock market, A-shares opened low and closed high, with over 4500 stocks in the market gaining. At the closing, the Shanghai Composite Index rose by 1.31%, the Shenzhen Component Index rose by 1.22%, the ChiNext Index rose by 0.98%, the Sci-tech 50 Index rose by over 4%, and the BSE 50 Index rose by over 10%. Hong Kong stocks rose in the late trading session, with the Hang Seng Tech Index rising by 3%, after previously dropping nearly 6%; the Hang Seng Index rose by 1%. In terms of news, significant policies were introduced, quasi-stabilization funds exerted efforts, "national team" actions were taken, local state-owned assets were involved, insurance funds voiced their support, listed companies initiated a wave of buybacks, and at a critical moment, various forces are coming together to firmly maintain the stable operation of the Chinese capital market. Looking ahead, brokerage institutions believe that Chinese assets are more resilient compared to global stock markets. On the market, stocks starting with "China" showed strength again, with China Greatwall Technology Group rising limit up for two consecutive days, and CSSC Offshore & Marine Engineering and others also hitting the limit up; the military industry sector also saw a limit up trend, with nearly 20 stocks such as North Industries Group Red Arrow and North Long Dragon New Materials Tech hitting the limit up; the semiconductor sector was strong, with multiple stocks like Unigroup Guoxin Microelectronics hitting the limit up; tax-free concepts rose in the afternoon, with China Tourism Group Duty Free Corporation hitting the limit up; agricultural stocks continued to be active, with Xinjiang Sayram Modern Agriculture hitting a four-day limit up; in addition, engineering machinery and real estate sectors led the gains. On the downside, only banking and insurance sectors showed a slight decline, and some pharmaceutical stocks, such as Zhuhai Rundu Pharmaceutical, hit the limit down. Of note is that the stability of the A-share market is inseparable from the support of incremental funds. Data shows that on April 8, the total net inflow of ETFs reached 111.78 billion yuan, hitting a historic high. Among them, six broad-based ETFs including Huatai Bairui CSI 300 ETF, Nanhua CSI 500 ETF, E Fund CSI 300 ETF, Huaxia CSI 300 ETF, Nanhua CSI 1000 ETF, and Jiashi CSI 300 ETF each saw a daily net inflow of over 10 billion yuan. In just two trading days, stock ETFs have already attracted over 178 billion yuan. Popular Sectors 1. Military industry sector sees a limit up trend Military stocks continue to rise, with nearly 20 stocks like China Marine Information Electronics, China Harzone Industry Corp., Chengdu ALD Aviation Manufacturing Corporation, Beijing Yuanliu Hongyuan Electronic Technology, North Industries Group Red Arrow, Anhui Greatwall Military Industry hitting the limit up. Commentary: On the news front, on the evening of April 8, the military industry sector showed good performance, with CSSC Offshore & Marine Engineering expecting a 10-12 times increase in net profit in the first quarter, and China Marine Information Electronics expecting nearly a 7-fold increase. China Securities Co., Ltd. pointed out that the current military industry sector is at a historical midpoint in terms of valuation, with bottoming out in terms of performance growth and capital allocation. Factors stimulating the sector both domestically and internationally may continue into the fourth quarter, injecting growth potential into the sector. Xiong'an New Power Technology is leading the way in new sector catalysts, recommending actively seizing structural rebound opportunities and waiting for the next market cycle. 2. Semiconductor sector surges The semiconductor sector rebounds, with multiple stocks such as SINO IC, Nations Technologies Inc., Unigroup Guoxin Microelectronics hitting the limit up, and companies like Harrun Technologies, SG Micro Corp, Loongson Technology Corporation following suit. Commentary: CITIC SEC research report states that leading domestic semiconductor equipment and material manufacturers are making rapid progress, with various new companies, technologies, and products bringing new vitality to the industry, gradually filling the gaps in the domestic semiconductor industry chain. Domestic substitution and mergers and acquisitions are expected to accelerate. At the same time, more domestic market participants are getting involved, with various companies accelerating platform-based layouts. The industry is entering a "Warring States" era, where future mergers and acquisitions are a trend. Institutional Views 1. Industrial: Revaluation of Chinese assets is far from over, the continuous technological wave is the key Industrial's chief global strategist Zhang Yidong pointed out that in the face of Trump's tariff war, global stock markets are like encountering thunderstorms in the summer, intense and uncomfortable but not continuous, like a paper tiger. It is a systemic risk, but ultimately depends on the impact of the trade war on the global economy and the existing trade order. The sustainability of the technological wave is the key to whether Hong Kong and A-shares will continue to reach new highs in the second half of this year and next year. In the medium term, we remain bullish on Chinese assets because the revaluation of Chinese assets, especially in technology and new consumption, has only just begun. 2. HuaxIncreasing domestic demand will become the main focus of future policies.Huaxi pointed out that the US tariff policy has triggered global risk aversion sentiment to rise. The current VIX panic index is only behind the period of the yen carry trade unwinding in August 2024 and the liquidity shock caused by the global pandemic in March 2020, indicating that risk assets have entered a high volatility phase. Looking ahead, the US tariff negotiations still have high uncertainty. With the emergence of stagflation pressure in the US, the implementation of Trump's tariff policy will face resistance, while domestic counter-cyclical incremental policies focusing on "expanding domestic demand" still have significant room for implementation. From a valuation perspective, the current A-shares and Hong Kong stocks are in a "valuation bargain" position among global equity assets, with their short-term volatility potentially lower than overseas markets, making them a safe haven for risk assets. 3. Zhongjin Securities: China's stocks are temporarily over-allocated to high dividend and policy beneficiaries, focusing on the rebound of oversold technology stocks A CICC research report stated that under the impact of tariffs, the US may be heading towards recession or stagflation, while China may continue its W-shaped recovery. Countries with large trade deficits are facing economic headwinds. They recommend overallocating to gold and Chinese bonds, underallocating to US stocks and commodities, temporarily overallocating to Chinese stocks with high dividends and policy beneficiaries, and focusing on the rebound of oversold technology stocks, as there is more uncertainty in US bonds. This article is reprinted from "Tencent Self-selected Stocks", GMTEight editor: Huang Xiaodong.