20260403-07 ｜Daily Review

April 3 | The last trading day before the holiday | Light communications and computing hardware stay in the same camp; the market tightens and cautiously watches
On the last trading day before the holiday, right from the morning, you could feel that the market was a bit different from the previous few days. Everyone’s funds were tight, and trading was cautious—especially large capital, which didn’t dare to act recklessly. The market opened a bit higher, but not long after it gradually slipped again. The Shanghai Composite Index fell back below 3900 points once more. Trading volume shrank to 1.66 trillion, nearly 16.6k less than April 2. Small-cap stocks dropped even more sharply, with declines exceeding 3.5%. Across the whole market, more than 4700 individual stocks finished in the red. Indices opened higher and then slipped. On a time node like this, a contraction in volume will inevitably make everyone sufficiently panicked. From the sectors, light communications and computing hardware remain the core “grouping together” directions. Deko Li directly hit a 20CM limit-up; Feizheng Optic Fiber and Hengan Optoelectronics continued to set new highs. Against the backdrop of continuously increasing industry demand, stable earnings growth expectations for leading companies attracted capital to group together. Taishan New Energy had a 9-day 7-limit-up streak, and Huiyuan Communications had a 2-day consecutive limit-up. Even if the overall market was weak, core leaders still attracted capital. The industry sentiment and capital preferences are the “hard logic” behind these names. The computing power leasing sector also showed active performance: Cloud Sai Zhilian, Siterqi, and Zhenzhen Technology all hit limit-up; Dongfang Guoxin and Cnbei Communications led by gaining more; this indicates that short-term funds are rotating and probing within the sector, but overall they don’t dare chase highs. The industrial gases sector also showed strength: CSSC Teyy Gas sealed limit-up, and Huaqte Gas rose to nearly 10%. Perhaps this is because, amid geopolitical risk and tight raw materials, capital tends to buy safer leading companies or those with concentrated capacity and stronger pricing power first, to mitigate the risk of supply chain fluctuations. CPO concept stocks surged against the trend: Weiting Electric, Yitian Shares, Deko Li, CMC Electronics, and Tongyu Communications all hit limit-up; Tengjing Technology, Hygon Optics, and Robotech surged by over 10%. The clear “hardward-grouping” among core names is obvious.
Other sectors were clearly divided: the power sector was weak—Shennan Electric A, Mindong Electric, and Leshan Electric all hit limit-down. The coal sector also fell: Yunyme Energy hit limit-down. High oil prices failed to spark a rebound in the oil-and-gas sector, which shows that risk-avoidance sentiment remains. The “losing money effect” in micro-cap and high-momentum stocks continued to spill out. The rate of consecutive-limit-up promotions fell to 16.66%. High-upside Tianjin Yaoye still had a 6-day consecutive limit-up, but other high-tier names began to bleed, and the money-making effect declined.
The master’s midday commentary put it plainly: today is the last day before the holiday. Insufficient volume indicates that retail “damage” is still continuing. Feizheng Optic Fiber remains the communication main-line leader—like the elite guard in the imperial city—holding the market’s direction. Peripheral sectors like computing power, CPO, and liquid cooling are like the generals at the periphery. Although they score small wins, the true main fighting force is still not enough; it requires watching. Low-position “catch-up” stocks and news-driven names slowly connect, indicating that funds are selecting targets but will not fully enter. The market looks lively, but not crazy.
Before the close, U.S. stocks’ Thursday session showed mixed closes: the Dow fell 0.13%, the Nasdaq rose 0.18%, and the S&P 500 rose 0.11%. Tech stocks moved both ways. SpaceX’s IPO valuation was raised to $2 trillion, showing overseas optimism toward the technology and space computing race track. In China, the computing power sector is active, and it is related to a policy where the MIIT released “inclusive computing power to empower small and medium-sized enterprises,” proposing a computing power bank and a computing power supermarket to support SMEs in depositing idle computing power and enable flexible scheduling—this is positive for both computing hardware and leasing directions.
The pharma sector was also split today: Tianjin Yaoye reached 6 consecutive limit-ups; Shuanglu Pharmaceutical and Sansheng Guojian continued their rally. This shows that industry logic and earnings certainty are attracting capital.
Overseas, Trump’s plan to levy a 100% tariff on imported patent drugs has limited overall impact on A-share innovative drugs; it mainly affects products exported to the U.S. However, CXO and BD-model companies with global capacity layout may actually have opportunities.
On the last trading day before the holiday, the overall market showed a shrink-and-shake, drifting lower pattern. Short-term sentiment hit a bottom. Micro-cap stocks broke below the 6-month moving line, and the losing-money effect spread from micro-caps into growth tracks. The operating logic still remains: focus on core leader stocks (such as Feizheng Optic Fiber) and the internal “catch-up” opportunities within sectors with high industry sentiment and certain earnings. Uncertainty ahead of the holiday is not low; news and overseas developments will directly affect the direction of the market when trading resumes after the holiday.

April 7 | The first day after the holiday | Broad-based rebound and repair; chemicals, pork, and sports rotate; core directions continue
After the market opened post-holiday, you could immediately feel that funds were back. The three major indices closed slightly green: the Shanghai Composite rose 0.26%, the Shenzhen Component rose 0.36%, and the ChiNext Index rose 0.36%; the STAR 50 index rose more than 1%. The market saw wide intraday oscillations all day. Short-term sentiment clearly warmed up. The rate of consecutive-limit-up promotions rose to 75%. Tianjin Yaoye hit 7 consecutive limit-ups. High-momentum names at the top of the board—New Energy Taishan, Dashengda, and Shu’ a Sports—also all hit limit-up. Across the whole market, more than 100 stocks hit limit-up or rose more than 10%. The micro-cap stock index rose more than 2%, indicating that post-holiday short-term activity recovered. However, trading volume still remained on the low side: total turnover for both markets was only 1.61 trillion.
In terms of sectors, chemicals surged across the board. The refining-and-chemical (integrated refinery and chemical) segment, organosilicon, and fertilizers (phosphorus chemical) led gains. Dongyue Silicones, Genshang Silicones, Sanfangxiang, and Hengyi Petrochemical all hit limit-up. The main reason was that amid tension in the Middle East, an explosion occurred at the Saudi Jubail Industrial City involving U.S. capital. This tightened the global petrochemical supply chain, driving futures prices sharply higher and boosting the chemicals sector. In China, recent price increases in organosilicon and other products improved supply-demand conditions noticeably, and funds quickly flowed back into the sector.
The pork sector was also active. Huatuo Shares hit limit-up. Lihua Shares, Shennong Group, and Tiankang Biotech led in terms of gains. The National Development and Reform Commission, the Ministry of Commerce, and the Ministry of Finance announced they would carry out 2026’s second batch of central reserves procurement and storage of frozen pork. The policy clearly stated a price-stabilizing “floor” for pork prices to ease downward pressure on hog prices. This direction is defensive at low positions, and it draws high attention from capital.

Light communications and computing hardware sectors continued to group together. Cambricon surged by nearly 10%. New Energy Taishan, Feizheng Optic Fiber, Hengan Optoelectronics, and others were among the leading gainers. The master noted that although Feizheng Optic Fiber made a new high, it lacked momentum, mainly because the Hong Kong market was closed and there was no benchmark to compare against. The grouping logic before the holiday hasn’t changed. Going forward, the focus is still on the light communications main line. Secondary directions include computing power chips, fiber-optic cables and optical modules, and liquid cooling hardware, among others. STAR Market targets like Hygon Information and Cambricon continue to rotate, showing the main force’s real intent and capital strategy. Short-term hot spots rotate quickly, but the core logic remains: earnings certainty, a price-increase theme, and geopolitical impact. Chemicals, light communications, computing power, and pork are rotating and staying active, while sentiment in micro-caps and at high levels remains cautious. With this level of volume not expanding, it is hard to form a trend. The master also mentioned in the closing commentary before: in the past, communication leaders and PCB/CPO names had huge gains. In a market adjustment this year, certainty and industry-chain logic are the core defense. Communication and optical hardware directions are trending stronger. Combined with product price increases, technological breakthroughs, and industry-chain sentiment, this is the key to understanding how capital groups together and the future potential.

Today, pre-market U.S. stock news shows that Trump threatened Iran: “Tonight, the whole civilization will perish.” Oil prices continued rising: WTI 115.01 per barrel, Brent 110.44 per barrel. High oil prices are driving attention toward hydrogen energy, chemicals, and other sectors. China’s central bank has increased its gold holdings for 17 consecutive months, showing a shift in risk-avoidance asset allocation. Samsung’s 2nm wafer fab trial operation begins; EUV lithography machines test runs start. Domestic computing power, chips, and the semiconductor industry chain continue to be watched. Apple’s tests for a foldable iPhone were hindered, mass production is delayed, and the near-term impact on related supply chains is obvious. JPMorgan Chase continues to take a bearish stance on Tesla.
Combining the holiday-eve and post-holiday action, you can see that market funds are grouping together in core directions, while peripheral sectors rotate. Before the holiday, light communications and computing hardware were the main line. After the holiday, chemicals, pork, and sports rotated rapidly. Funds chased earnings certainty and price-increase logic, while also paying attention to geopolitical risk and overseas news catalysts. The master repeatedly emphasized that in a weak market, certainty is the most important indicator. There are many short-term hot themes, but only core leaders and names with strong industry sentiment are worth focusing on.
Quick summary: The leaders in light communications—Feizheng Optic Fiber and Hengan Optoelectronics—are unchanged. Breakthroughs in air transmission technology, plus product price increases + technological upgrades, support the trend. In computing hardware, domestic computing names like Cambricon, SMIC, and Hygon Information support an AI-chip and domestication computing ecosystem and Token consumption growth, with short-term funds rotating. In chemicals, the Middle East situation + domestic price increases + earnings improvement together cause strong fund inflows. In pork, government frozen pork reserve support provides a defensive low-position sector and structural opportunities. Sports and culture-tourism consumption: with more activities post-holiday, sports concept stocks are active in the short term, but the market size is relatively small; some “waiting-for-turn” holders may realize gains early. Still, move forward with lower positions!