A-share midday review | GEM index rises more than 1% in half a day, with over 4000 stocks rising, gold and consumer stocks showing strength.

On April 21st, the three major A-share indexes opened low and rose high, reversing the trend strongly and turning positive. The ChiNext Index expanded its increase to 1%. By the close, the Shanghai Composite Index rose by 0.3%, the Shenzhen Component Index rose by 0.72%, and the ChiNext Index rose by 1.05%. Over 4000 individual stocks in the market rose. Of note, last Friday, four Shanghai and Shenzhen 300 ETFs once again saw significant volume in the final trading session. Among them, Huaxia Shanghai and Shenzhen 300 ETF had a trading volume of over 3.6 billion yuan, compared to 600 million yuan in the previous day; Huatai Bairui Shanghai and Shenzhen 300 ETF had a trading volume of over 5.1 billion yuan. In terms of market performance, consumer stocks surged again, with sectors like food, e-commerce, film and television, and dairy performing actively. Stocks like VV Food & Beverage, YouYou Foods, Guangdong SACA Precision Manufacturing, Global Top E-Commerce, Hengdian Entertainment, Baida Group Co.,Ltd, and Gansu Guofang Industry & Trade hit the daily limit up. Gold concept stocks showed volatile gains, with Beijing Xiaocheng Technology Stock rising by over 8%. The aerospace concept was active, with Tianjin Tianbao Infrastructure hitting the daily limit up for the fourth consecutive session. Cross-border payment concept stocks remained strong, with Sunyard Technology and Beijing Shiji Information Technology both hitting the daily limit up. On the downside, tourism and liquor sectors were among the top decliners. Shenwan Hongyuan Group believes that with the increasing confidence in expectations for a stable capital market (taking the rebound after A-shares retested the low as an opportunity), the overall risk appetite for A-shares is expected to stabilize and rise, and the weight of technology themes in the market may gradually increase, with small-cap growth styles regaining dominance. The next wave of A-share offense in the medium term may still be a structural market in technology. Key Sector Performance: 1. Consumer stocks surged again, with food, e-commerce, film, and dairy sectors performing actively. 2. The aerospace concept was active, with Tianjin Tianbao Infrastructure hitting the daily limit up for the fourth consecutive session. 3. Gold concept stocks showed volatile gains, with Pengxin International Mining hitting the daily limit up. Institutional Views: 1. Shenwan Hongyuan Group: Small-cap growth styles will regain dominance. 2. Industrial: Focus on internal certainty.The IAL research report stated that since April, it has emphasized that the current market is in a "stable east and volatile west" global macro environment, and it is important to remain confident, focus on internal certainty, and take control. This week, amidst continued chaos and volatility overseas, disturbances from external uncertainties continue. On one hand, domestic consumption and autonomous controllability as a combination of long-term drivers for economic momentum switching and short-term policy support are expected to become the market's focus. On the other hand, facing potential continued and repeated global trade negotiations, it is still necessary to be prepared for uncertainty in the short term, and holdings may temporarily shift towards low-volatility dividends and low-performance positions.Huatai: Defensive assets and policy hedging remain the short-term focus of A-shares Huatai indicates that A-shares may be in a period of consolidation: With the expected volatility in the second quarter economic trends, investors are strengthening their expectations for policy hedging. In addition, the counter-trend funds continue to provide support, with a bottom position still in place. However, upward momentum still needs to gather, and the breaking point may lie in the important conference at the end of April and the catalysis of the technology industry cycle. In terms of allocation, defensive assets and policy hedging remain the short-term focus. Among dividend assets, transportation, insurance, and communication services have the potential to increase their dividend rates by 2024 with relatively low overcrowding. In terms of policy hedging, focus on the direction of improving prosperity in the domestic demand and self-controllable sectors. Additionally, the current technology correction is relatively sufficient, and with the restoration of risk appetite in the future, it is advisable to appropriately allocate towards oversold directions with certain industrial catalysts. This article is reprinted from "Tencent Stock Selection", GMTEight editor: Wang Qiujia.