Market Close: Shanghai Composite Index falls 1% on lower volume; CPO concept stocks surge against the trend

Source: Xinhua Finance

Xinhua Finance Beijing, April 3 (Wang Yuanyuan) The three major A-share indexes opened higher and then fell on Friday. The Shanghai Composite Index again slipped below 3,900 points. As of the close, the Shanghai Composite Index fell 1.00% to 3,880.10 points; the Shenzhen Component Index fell 0.99% to 13,352.90 points; and the ChiNext Index fell 0.73% to 3,149.60 points. The combined trading value across the Shanghai, Shenzhen, and Beijing markets totaled only 1,669.1 billion yuan, which was 188.9 billion yuan lower than the previous day.

In terms of sectors, utilities, power, coal, advertising marketing, photovoltaic equipment, chemical materials, agriculture, forestry, animal husbandry and fishery, wind power equipment, and film and television cinema line segments led the declines. Only communications equipment, electronic chemicals, and rare earths rose against the trend.

Market highlights

On the market, the computing power hardware concept strengthened against the trend. Huiyuan Communications, Xinneng Taishan, and Deko all hit the daily limit. The computing power leasing concept saw a partial surge; Yunse Zhilian, Siteqi, and Zhenzheng Technology all hit the daily limit. The robotics concept was active; Huarui Co., Ltd. and Rongtai Co., Ltd. both hit the daily limit. On the downside, the power sector weakened; Shen Nan Electric A, Mindong Electric Power, and Leshan Electric Power all hit the daily limit down. The coal sector fell; Yunmei Energy hit the daily limit down, while Shaanxi Heimao, Zhengzhou Coal and Power, and An Tai Group dropped sharply.

Individual stocks

In terms of individual stocks, more than 4,700 stocks in the market fell.

Institutional views

Gu Feng Investment Advisory: On Friday, the market operated with volatility. The lithography machine sector led the gains. Judging from the current trend, the market has already shown clear divergence, and trading volume has only slightly contracted, with the market entering a stage of game among existing positions. At present, external “black swan” events have not yet fully subsided, so the A-share market’s performance is likely to keep fluctuating. Investors may focus on opportunities to buy on dips after pullbacks of leading stocks in previously popular sectors. From a long-term perspective, under policy stimulus, the A-share market and the economy are expected to move in sync toward an upward inflection point. Specifically, for medium-term investment directions, it is suggested to focus on incremental opportunities in areas that maintain high levels of optimism and activity—such as semiconductors, consumer electronics, artificial intelligence, robotics, commercial aerospace, and other fields.

Haitong Securities: In recent years, as global macro uncertainty has risen, and demand for asset allocation among domestic residents has grown while the central threshold for the broad-based all-society investment return rate has stepped down, the dividend strategy has increasingly attracted attention from capital. At present, the valuation of dividend strategies relative to growth strategies is at a low level. With disruptions from the Middle East situation affecting market risk appetite, dividends still retain value as a base position.

CITIC Securities: In March, the technology sector’s performance shows that computing power overall is still in short supply and price increases have been spreading continuously into links such as cloud services and CPUs. However, due to macro disruptions and geopolitical shocks, the technology sector’s valuation has suffered a significant hit. Looking ahead to April, on the one hand, historically after April enters the earnings season, the market often remains in a period of risk-preference contraction. On the other hand, given that the current geopolitical disruptions are still difficult to gauge in terms of how long they will last, it is recommended to focus on relatively steady stocks with good 2026 Q1 report performance and reasonable valuations. After reviewing A-share technology sector companies that have already disclosed 2025 earnings forecasts, it is found that among CITIC’s third-level industries, the AI computing infrastructure-related segments as a whole are in a high-optimism state; the year-over-year growth in profits is more than 50% for many including network equipment and optical interconnects and PCB, cables, semiconductor equipment, integrated circuits, and other segments. In addition, the motorcycle segment, as well as games and display-related components, are also in a relatively high-activity condition.

Market news

The Ministry of Public Security and the National Financial Regulatory Administration jointly deploy a new round of crackdowns on clusters of illegal and criminal activities in the financial sector involving “black and gray industries”

According to Xinhua News Agency, on April 3, reporters learned from the Ministry of Public Security that on April 2, the Ministry of Public Security’s Economic Crime Investigation Bureau and the National Financial Regulatory Administration’s Enforcement Bureau held a video meeting to jointly deploy a new round of crackdowns on clusters of illegal and criminal activities in the financial sector involving “black and gray industries.” The efforts aim to further rectify chaotic issues involving illegal financial intermediaries, firmly safeguard financial regulatory order, effectively protect the legitimate rights and interests of financial consumers, and strive to support high-quality development of finance with a high level of security.

A new national standard for mobile power banks has been issued, requiring it to state the recommended service life

A compulsory national standard, GB 47372-2026《Safety Technical Specifications for Mobile Power Sources》, organized and formulated by the Ministry of Industry and Information Technology, was officially released today (April 3). Based on the two existing general compulsory national standards, the《Technical Specifications》clarify multiple key requirements. Mobile power sources include portable mobile power banks and portable energy storage power supplies—i.e., the commonly known “power banks” and “outdoor power supplies.” The《Technical Specifications》require strengthening battery intrinsic safety. They introduce a needle puncture test into the standard and clarify improvements to the safety protection capability of mobile power sources in scenarios such as high temperatures, overcharging, and crushing. To reduce the risk of internal short circuits after long-term use of mobile power sources, professional testing for cycle aging has been added. It also requires stating the recommended safe usage life, reminding consumers to replace mobile power sources with poorer safety in a timely manner.

Seven ministries: Priority support for upgrading and improving old facilities for refining, ethylene, p-xylene, diphenylmethane diisocyanate (MDI), and coal-to-methanol

The Ministry of Industry and Information Technology and other seven departments have issued the《Action Plan to Accelerate the Renewal and Upgrading of Old Facilities in the Petrochemical and Chemical Industry (2026–2029)》. It proposes that when researching the layout of major petrochemical projects, priority should be given to upgrading and improving old facilities for refining, ethylene, p-xylene, diphenylmethane diisocyanate (MDI), and coal-to-methanol. The provincial-level departments responsible for industry and information technology, together with relevant provincial departments, should establish and improve green channels, strengthen factor保障, optimize project filing (approval), environmental impact assessment, land use, water intake, energy conservation review, and carbon emission evaluation, as well as safety permitting processes, to improve review and approval efficiency and speed up project implementation.

Editor: Luo Hao

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