A-share market midday report | ChiNext Index rises by 0.61% in the morning, with over 4300 stocks in the market turning red. The consumer sector remains hot.

On April 17th, the A-shares opened lower and then rose, with all three major indexes turning red during the midday session. By the end of the afternoon session, the Shanghai Composite Index rose by 0.21%, the Shenzhen Component Index rose by 0.42%, and the ChiNext Index rose by 0.61%, with over 4300 stocks in the market showing gains. Of note, with large-scale capital buying into broad-based index ETFs, the size of the Shanghai and Shenzhen 300 ETFs has continued to grow, surpassing a total scale of over one trillion yuan. According to Wind statistical data, as of April 15th, the total size of the 27 ETFs tracking the Shanghai and Shenzhen 300 indexes reached 1.0068 trillion yuan. On the market, real estate stocks showed strength, with multiple stocks like Chong Qing Yukaifa hitting the daily limit up; the chemical industry sector rose, with stocks like Hongbaoli Group Corporation and Tian Jin Bohai Chemical hitting the daily limit up; consumer stocks strengthened again, with tourism, hotels, food, and retail leading the way; the concept of large aircraft rallied, with Aecc Aero Science And Technology hitting the daily limit up; the semiconductor industry chain was strong, with lithography machines and photoresists leading the way, and stocks like Xilong Scientific and Anhui Guofeng New Materials hitting the daily limit. On the downside, logistics, ports, shipping sectors saw declines, with automotive industry chains, banks, and power companies leading the way. Looking ahead, GF SEC believes that the space for hedge sentiment has already been reached, and the market is expected to enter a period of volatility, with index volatility narrowing. Hot Sectors: 1. Real estate sector strengthens The real estate sector fluctuated and rose, with multiple stocks like Chong Qing Yukaifa, Tianjin Tianbao Infrastructure, RongFeng Holding Group, Beijing Urban Construction Investment & Development, Shanghai Chengtou Holding, Seazen Holdings hitting the daily limit up. Analysis: According to data from the National Bureau of Statistics, the number of cities with rising residential sales prices increased month-on-month among 70 large and medium-sized cities; the sales price of residential properties in first-tier cities rose month-on-month. In addition, Qingdao issued 12 new real estate policies, with subsidies of up to 100,000 yuan for families with multiple children buying houses. GLMS SEC stated that real estate is an important support for domestic demand, and relevant policies may focus on measures such as reserve requirement cuts, interest rate cuts, accelerating land acquisitions, and implementation of urban transformation projects, as well as loosening local government regulation. 2. Consumer stocks remain active Consumer stocks strengthened again during the session, with food, retail, and tourism leading the way. Multiple stocks like Tianjin Guifaxiang 18th Street Mahua Food, Anji Foodstuff, Zhejiang Wufangzhai Industry, Shandong Huifa Foodstuff, Gansu Guofang Industry & Trade, Jiangxi Guoguang Commercial Chains, Ningbo Zhongbai, Jiangsu Times Textile Technology hitting the daily limit up. Analysis: Commerce Minister Wang Wentao stated in the "Seeking Truth" magazine that a combination of measures will be taken to expand service consumption and promote orderly opening in various areas. EB SECURITIES believes that in the medium term, based on historical experience, a series of policies to boost domestic demand will eventually lead to an improvement in demand, opening up space for sector valuation growth. In the short term, starting from the second quarter, sectors such as dairy products, frozen foods, snacks, and liquor are entering a stage of low base in reporting. 3. Strong performance of the semiconductor industry chain The semiconductor industry chain strengthened, with photoresists leading the way, and multiple stocks like Xilong Scientific and Anhui Guofeng New Materials hitting the daily limit up, together with companies like Wuxi Chipown Micro-electronics, JoulWatt Technology, Telink Semiconductor (Shanghai) Co., Ltd. following suit. Analysis: Recently, companies within the industry such as Wuxi Chipown Micro-electronics, Rockchip Electronics, Will Semiconductor, NAURA Technology Group, Sprint Precision Technologies, Hwatsing Technology, Beijing Huafeng Test & Control Technology have disclosed performance data, all showing significant growth. China Securities Co., Ltd. stated that in the long run, the trend of "de-Americanization" in the semiconductor sector and the increase in domestic production rates may continue. If finished packaging is still used as the basis for origin in the future, the actual impact of additional tariffs may be relatively limited. 4. Strong performance of the large aircraft concept The concept of large aircraft fluctuated and rose, with Aecc Aero Science And Technology and Fujian Longxi Bearing (Group) Co., Ltd. hitting the daily limit up, while Wuxi Hyatech, Chengdu ALD Aviation Manufacturing Corporation, Kede Numerical Control, Guizhou Aviation Technical Development, continued to rise.AECC Aero-Engine Control and the like are rising.Review: On the news front, according to the Tianfeng research report, China's commercial aircraft and engine industry may be on the verge of a historic development opportunity. In the next 20 years (2023-2042), China's demand for new commercial engines may exceed 600 billion US dollars, with an average annual demand of over 200 billion yuan, creating a vast market space. Institutional perspectives: 1. GF SEC: Market entering a volatile range GF SEC believes that looking ahead, the short-term risk-off phase has reached its peak, and the market is now entering a volatile range with index volatility narrowing. After the short-term global risk-off, A-shares may gradually start trading on domestic expectations of increased countercyclical adjustments, technological independence and controllability. In terms of allocation, they recommend focusing on three clues: internal demand hedging: service consumption, child care and elderly care, cost-effective consumption. Technological prosperity: domestic cloud giants industry chain, end-side industry chain, military electronics, semiconductors and other sub-sectors. External demand breakthrough ("Belt and Road", Europe), motorcycles, inverters, buses, wind power, etc. 2. Guotai Haitong: Continue to maintain a bullish mindset Guotai Haitong believes that it is advisable to continue to maintain a bullish mindset towards the Chinese stock market. In terms of industries, firstly, financial stocks are expected to see improved valuations, recommending securities firms/insurers/banks, as well as low-risk assets with high dividends such as power/utilities/highways. Secondly, active internal demand policy hedging, the supply-demand balance of some domestic cyclical products is expected to be broken, leading to price recovery, recommending non-ferrous metals/real estate/building materials/steel/chemicals. Thirdly, the economy is transitioning towards technological innovation, recommending technology stocks with little short-term downside risk and considerable long-term growth potential, such as Hong Kong-listed internet/games/semiconductors/military/AI computing power, etc. 3. Orient: Structural market, hot spot rotation style may continue Orient believes that looking ahead, the market is still in the bottoming rebound process, with consecutive shrinking trading volumes in recent days and weak upward movement in stock indexes. Continuing to build a phase bottom with shrinking volumes is still the most likely scenario. The structural market and hot spot rotation style may continue. The market pattern dominated by speculation in domestic circulation theme stocks is expected to be maintained in the short term, especially as stocks with good certainty of first-quarter performance and continued validation of fundamentals are likely to perform well. This article is reproduced from "Tencent Stock Selection", GMTEight Editor: Wang Qiujia.