A-share morning express | Weak shocks! Real estate stocks rise against the trend, semiconductor sector strengthens

On April 17th, the A-shares market opened weakly fluctuating, with over 3000 stocks trading in the green. As of 9:37, the Shanghai Composite Index was down 0.22%, the Shenzhen Component Index was down 0.20%, and the ChiNext Index was down 0.14%. In terms of the market, the precious metals sector was active against the trend, with Shenzhen Tellus Holding hitting a limit up for the second consecutive day. The real estate sector strengthened, with Chong Qing Yukaifa hitting the limit up. Semiconductor and chip stocks rose, with Wuxi Chipown Micro-electronics up over 8%. Stocks in the photosensitive resin concept were strong, with Xilong Scientific and Anhui Guofeng New Materials both hitting limit up. In addition, semiconductor, military, and real estate sectors were at the forefront of the gains. On the downside, the consumer sector pulled back, with e-commerce, tourism, and food leading the decline, while the automotive industry chain and pharmaceuticals were among the biggest decliners. Looking ahead, GF Securities believes that the current round of risk aversion sentiment has reached its limit, and the market is likely to enter a period of consolidation with narrower index fluctuations. Hot sectors 1. Active precious metals sector The precious metals sector was active, with Shenzhen Tellus Holding hitting a limit up for the second consecutive day, and stocks like Beijing Xiaocheng Technology, Western Region Gold, Mclon Jewellery, Chifeng Jilong Gold Mining, and Sichuan Gold following suit. Comment: In terms of news, spot gold broke through the $3350 mark for the first time. China Securities Co., Ltd. stated that the uncertainty of Trump's policies is supporting gold prices. In addition, with the Federal Reserve in an interest rate cutting cycle and long-term high inflation difficult to reduce, the downward trend in real interest rates is injecting new momentum into gold prices. Furthermore, the continued behavior of central banks globally buying gold to back their currencies is ongoing. With multiple factors driving gold prices higher, gold stocks are expected to recover soon. 2. Semiconductor sector rising The semiconductor and chip stocks were fluctuating and rising, with Wuxi Chipown Micro-electronics up over 8%, and JoulWatt Technology, Telink Semiconductor, Great Microwave Technology, Nations Technologies Inc., and Shenzhen Qingyi Photomask following suit. Comment: China Securities Co., Ltd. stated that the long-term trend towards "de-Americanization" in the semiconductor field and the increase in domestic production rates may continue. If in the future, finished packaging locations are still considered as the country of origin, the actual impact of additional tariffs may be relatively limited. Institutional Views 1. GF Securities: Market entering consolidation phase GF Securities believes that looking ahead, the short-term room for risk-off sentiment has reached its limit, and the market is likely to enter a consolidation phase with narrower index fluctuations. After the short-term global risk-off period, A-shares may gradually begin trading with increased expectations of domestic counter-cyclical adjustments and technological independence and control. In terms of allocation, it is recommended to focus on three clues: first, domestic demand fiscal hedging: service consumption, childbirth and elderly care, cost-effective consumption. Second, technology-driven nation-building: domestic cloud manufacturing industry chain, end-side industry chain, military electronics, semiconductors, and other segmented areas. Third, external demand breakthrough ("Belt and Road", Europe), such as motorcycles, inverters, buses, wind power, etc. 2. Guotai Haitong: Continue to maintain a bullish mindset Guotai Haitong believes that it is recommended to continue to maintain a bullish mindset towards the Chinese stock market. In terms of industries, first, the valuation of financial stocks is expected to improve, and brokerages/insurance/banks are recommended, as well as assets with low-risk characteristics represented by high dividends, such as power/utilities/highways; second, positive internal demand policies, some domestic cyclical supply-demand balance states are expected to be broken and bring about price recovery, recommending non-ferrous metals/real estate/building materials/steel/chemicals; third, the economy is transitioning towards technological innovation, recommending technology stocks with little short-term performance downside risk and considerable long-term growth potential, such as Hong Kong-listed Internet/games/semiconductors/military/AI power. 3. Orient: Structural market, hot spot rotation style may continue Orient believes that looking ahead, the market is still in the process of exploring bottom and rebound. With continuous shrinking trading volume in recent days, lack of momentum in the stock index's upward trajectory, and continuous shrinking to build a temporary bottom, structural market and hot spot rotation style may continue. The market trend characterized by speculation in domestic circulation thematic stocks will continue in the short term, especially for stocks with high certainty of good first-quarter performance and continuous validation of fundamental logic, may see good performance.