A-share market closing analysis | Shanghai Composite Index rose by 0.45% to record its 7th consecutive gain; total turnover in both markets exceeded 1 trillion; consumer stocks strengthened again.

On April 21, the A-share market opened low and rebounded after fluctuating throughout the day, with the ChiNext Index leading the gains and the Shanghai Composite Index recording its 7th consecutive day of gains. The total turnover of the Shanghai and Shenzhen markets was 1.04 trillion RMB, an increase of 126.7 billion RMB compared to the previous trading day. At the close, the Shanghai Composite Index rose by 0.45%, the Shenzhen Component Index rose by 1.27%, and the ChiNext Index rose by 1.59%. Over 4300 stocks in the market saw gains. Shenwan Hongyuan Group believes that with the increasing confidence in the stable capital market expectations (as evidenced by the rebound in A-shares after hitting new lows), the overall risk preference of A-shares is expected to stabilize and rise. The weight of technology themes in the market may gradually increase, and small-cap growth styles may regain prominence. In terms of sector performance, influenced by the continued rise in international gold prices, gold stocks surged, with over 10 stocks including Beijing Xiaocheng Technology Stock, Sichuan Gold, and Chifeng Jilong Gold Mining hitting the limit-up. Consumer stocks once again became active, with e-commerce and film leading the gains, and multiple stocks like Gansu Guofang Industry & Trade hitting the limit-up. Afternoon trading saw a rise in stocks related to computing power, AI applications, and Siasun Robot & Automation concepts, with stocks like Zhejiang Fulai New Material, Hunan Airbluer Environmental Protection Technology, and Dawei Technology (Guangdong) Group hitting the limit-up. The paper sector also saw a rise in the afternoon, with stocks like Xiamen Anne Co.,Ltd., Shandong Huatai Paper Industry Shareholding, and Yueyang Forest & Paper hitting the limit-up. On the downside, liquor, banking, and port sectors saw decreases. Looking ahead, Huaxi believes that Chinese equity assets have a valuation advantage relative to major global stock indices, making them a high-value long-term investment. With policy expectations for important meetings in April fermenting, market risk preference is expected to have favorable support, and A-shares are expected to gradually rise in the midst of fluctuations. If external factors impact market sentiment, investors should remain steadfast and not underestimate the determination of policies to "stabilize the stock market and expectations". Popular sectors: 1. Consumer stocks once again strengthen Consumer stocks once again strengthened, with e-commerce, film, pets, and retail sectors showing active performance. Gansu Guofang Industry & Trade achieved 11 limit-ups in 12 days, and stocks like VV Food & Beverage, YouYou Foods, Guangdong SACA Precision Manufacturing, Global Top E-Commerce, and Hengdian Entertainment hit the limit-up. Review: According to reports from recent National People's Congress meetings, efforts will be made to promote service consumption in areas such as elderly care, childbirth, culture, and tourism, expand effective investment, and boost the enthusiasm of private investment. Shenwan Hongyuan Group stated that with frequent consumption-promoting policies, the initial economy will lead to offline retail opportunities. 2. Gold concept stocks fluctuate upwards Pengxin International Mining, Sichuan Gold, Chifeng Jilong Gold Mining, Beijing Xiaocheng Technology Stock, and others hit the limit-up, while Shanjin International Gold, Shandong Gold Mining, Hunan Gold Corporation, and Zhongjin Gold Corp.,Ltd followed the uptrend. Review: In the morning, gold prices surged again, with the main contract for gold futures on the Shanghai Futures Exchange breaking through the 800 RMB/gram mark and reaching a historical high. The spot price of gold briefly exceeded $3380 per ounce, setting a new high. Looking ahead, multiple institutions believe that the price of gold still has room to rise, as investors' willingness to allocate to safe-haven assets continues to strengthen. 3. Aerospace concept stocks are active Aerospace concept stocks are once again active, with Tianjin Tianbao Infrastructure hitting 4 consecutive limit-ups, and stocks like Lubair Aviation Technology and Aecc Aero Science And Technology also hitting the limit-up. Review: Recently, China's domestically-produced large aircraft C919 has accelerated its commercial operations, with test flights in the northeast region and flights on Southeast Asian routes. Tianfeng stated that with external changes and strong national policies and funding support, as well as the strong industrialization capabilities of companies in the aerospace industry chain, China's commercial aircraft industry may be entering a historical period of development, suggesting that relevant investment opportunities should be given strategic attention. Institutional viewpoints: 1. Shenwan Hongyuan Group: Small-cap growth styles will regain prominence Shenwan Hongyuan Group believes that with the increasing confidence in stable capital market expectations (as evidenced by the rebound in A-shares after hitting new lows), the overall risk preference of A-shares is expected to stabilize and rise, and the weight of technology themes in the market may gradually increase, leading to small-cap growth styles regaining prominence. In the medium term, the next wave of attacks in the A-share market may still be structural in technology. In the medium term, they continue to recommend: domestic AI computing power and applications, intelligent body and low-altitude economy. 2. Industrial: Focus on internal certainties Industrial research reports state that since April, they have emphasized that the current market is in aIn a "eastern stability and western swinging" global macro environment, it is more important to have strong confidence, "follow my own path", and focus on internal certainty. This week, amidst ongoing chaos and volatility overseas, disturbances from external uncertainties continue. On one hand, domestic consumption and self-controlled factors are expected to become the market's focus as a combined point for promoting long-term economic momentum transition and short-term support policies. On the other hand, in the face of potential ongoing and repeated global trade negotiations, it is still necessary to prepare for uncertainties in the short term, and positions may need to shift towards low volatility, low position dividends, and low-position outperforming sectors.Huaxi: A-shares are expected to gradually rise at the bottom in the volatility. Huaxi stated that looking ahead, Chinese equity assets have a valuation advantage relative to major global stock indices, and the cost-effectiveness of medium- to long-term allocation is relatively high. With the policy expectations of the important April meetings fermenting, market risk preferences have favorable support. A-shares are expected to gradually rise at the bottom in the volatility. If external factors impact market sentiment during this period, confidence should be maintained and the determination of policy to "stabilize the stock market and expectations" should not be underestimated. In terms of industry allocation, it is recommended to focus on sectors with low valuation and expanding domestic demand. This article was reproduced from "Tencent Stock Picks", GMTEight Editor: Jiang Yuanhua.