Market Summary: The Sci-Tech Innovation Index rose nearly 1%, the chemical sector performed strongly, and sports concepts were active.

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On April 7, the three major stock indexes bottomed out and then rebounded during the trading session. The STAR Market Composite Index rose nearly 1%, and nearly 4,000 A-shares advanced in the market.

By the close, the Shanghai Composite Index rose 0.26% to 3,890.16 points. The Shenzhen Component Index rose 0.36%, the ChiNext Index also rose 0.36%, and the STAR Market Composite Index rose 0.85%. Combined turnover across the Shanghai, Shenzhen, and Beijing markets was about 1.62 trillion yuan.

On the market front, insurance and banking stocks declined. Meanwhile, chemical fibers, chemical industry, coal, and petroleum sectors collectively moved higher. Sectors such as retail, food and beverage, nonferrous metals, and semiconductors also rose, while pesticide, organosilicon concepts, and sports concepts were active.

China Securities Co., Ltd. (CITIC Securities) said that the situation in Iran has continued to escalate and is complex and changeable. The market has repeatedly fluctuated around negotiation signals. At the same time, U.S.-Israeli military actions have shifted from airstrikes to preparations for ground operations. The next 2–3 weeks are still a high-risk period when the situation could potentially deteriorate rapidly. The market is waiting for the right moment to buy the dip, with a strong sense of short-term caution. On the other hand, internal fundamental factors are also worth revisiting. A series of data jointly supports the trend of a strengthening economy. As March economic data are about to be released and the earnings season approaches, market focus will gradually shift toward substantive verification of the quality of economic recovery and improvements in corporate earnings. Along three threads, investors should patiently position themselves: energy security and the inflation mainline, certain-growth assets, policy beneficiaries, and the direction of strong seasonal demand and business sentiment.

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