More than 4,400 stocks declined, while bank stocks defied the trend and strengthened! What is the outlook for the future?

Today, China A-shares saw choppy consolidation and a sizable pullback in technology growth stocks. Both the ChiNext Index and the STAR Market Composite Index fell by more than 2%, and the Shanghai Composite Index again slipped below the 3,900-point mark. More than 4,400 individual stocks declined, and trading value rose moderately to 2 trillion yuan.

On the market board, sectors such as sports, forestry, rail transit equipment, and banks were relatively active, while sectors including coal, planting industries, wind power equipment, and industrial gases led the declines.

According to real-time monitoring by Wind, the healthcare and life sciences sector received a net inflow of more than 3.4 billion yuan of main fund flows; the machinery and equipment sector received a net inflow of more than 2.4 billion yuan; the banking sector received a net inflow of more than 2.1 billion yuan; automobiles saw net inflows of more than 1.3 billion yuan. Light industry manufacturing and agriculture, forestry, animal husbandry, and fishery sectors also received net inflows of more than 100 million yuan each, and building materials and beauty and personal care have both received net inflows for six consecutive trading days. The electronics industry saw main fund net outflows of more than 14 billion yuan, power equipment saw net outflows of more than 8.4 billion yuan, and non-ferrous metals saw net outflows of more than 4.5 billion yuan.

In terms of individual stocks, Pingtan Development received a net inflow of more than 2.1 billion yuan of main fund flows; Shen Jian Co., Ltd. received a net inflow of more than 2.0 billion yuan; Jooli Spindles & Hardware received a net inflow of more than 1.1 billion yuan; and Zengsheng Technology received a net inflow of more than 1.0 billion yuan.

On market hot topics, bank stocks strengthened against the trend today, with all four major state-owned banks increasing volume to defend the market. Bank of China rose 3.53%, marking its largest gain within the year, and its share price also hit a new intra-year high; trading volume surged by more than 1 times versus yesterday. Agricultural Bank of China opened higher and kept rising, gaining 3.24%. Construction Bank, meanwhile, moved to near its all-time high (restated).

Since March, it has risen by more than 12%, while Industrial and Commercial Bank of China also rose by more than 10% in March.

Agricultural Bank of China released its 2025 annual report and a dividend distribution plan: it achieved net profit of 291 billion yuan, and plans to distribute 1.3 yuan per 10 shares (including tax). Combined with the interim dividend distribution of 1.195 yuan per 10 shares, its dividend yield is as high as 3.72%, far higher than the interest rate on 1-year bank deposits. Bank of China also announced its performance and dividend distribution plan, with a dividend yield of 3.86%.

Looking ahead, Yangtze Securities said that the April earnings-report disclosure season is approaching, and earnings-driven factors may become the core force dominating market differentiation. Strategically, it focuses on three main themes: first, energy security—watch for traditional energy price centers such as coal and petrochemicals shifting upward under potential restocking demand, and for new energy directions driven by substitution demand; second, technology—continue to track the cyclical main theme of AI infrastructure, including power, storage capacity, and computing power, such as optical modules, storage, and semiconductor equipment; third, focus on rebounds in previously oversold names, such as precious metals and commercial aerospace.

Guosen Securities believes that in April more real-world issues are expected to gradually surface, and the actual impact of high oil prices on supply chains and demand will also need further data verification. Asset pricing may face a shift from expectations to reality, and production-capacity constraints caused by tight energy supply may be priced even further. It expects the market to remain mainly in a consolidation phase, in a window where volatility expands; it will still need to wait for the trading effect of conflicting expectations to dull and for volatility to gradually converge. Give priority to banks and power companies that have relatively more certainty in terms of earnings models and dividend returns.