The Shanghai Composite Index retraced the upper gap and then fell back, paying attention to "eliminating the inferior and retaining the better" within the fluctuation range.

GateUser-bd883c58 · 2026-04-07T20:21:04+00:00

Last week, the Shanghai Composite Index retreated to 3,880 points, indicating insufficient market rebound momentum. Although A-shares are relatively resilient, they are still in a consolidation phase in the short term due to external liquidity and risk appetite influences. It is recommended to focus on the CSI 300 Index, whose constituent stocks have steady performance, making it suitable for selective investment amid high volatility.

GateUser-bd883c58

2026-04-07 20:21:04

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Ask AI · How do external shocks affect the rebound momentum of the SSE Composite Index?

Last week, the Shanghai Composite Index rose to 3,955 points, filled the gap above it, and then reversed course to retreat, closing at 3,880 points—indicating that after the gap was filled, the market lacked sufficient upside momentum.

Looking back at the past month since this round of conflict began, although A-shares have shown greater resilience than other Asia-Pacific markets, they have also been hit by external liquidity and shifts in risk appetite, playing out a range-bound, high-volatility trading pattern. Shen Zhengyang, a senior investment adviser at Northeast Securities, said: In the short term, the market is still operating within the new consolidation range (3,800–4,000 points), moving around and self-rescuing; by monitoring the progress of the conflict between the U.S. and Iran, maintain flexibility in positioning. In a high-volatility environment, continue to screen and select based on business fundamentals, using the relative quality of fundamentals, profitability, and valuation to eliminate weaker options and preserve better ones, waiting to realize gains after improvements in the domestic and international environment.

Focus on broad-based indices that are anti-volatility and have better constituent-stock performance: the CSI 300. The CSI 300 Index includes 300 of the most representative securities from the Shanghai and Shenzhen markets, covering China’s advantaged industries such as technology manufacturing and power equipment. It has strong earnings certainty, stable operations, and a high dividend yield. Among the 30 ETFs that track the CSI 300 Index, the Huaxia CSI 300 ETF (510330.SH) has a management fee rate as low as 0.15% per year, the lowest tier in the entire market, delivering substantial benefits to investors.

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