Morning Review: The Shanghai Composite Index edged higher, with chemical, oil, and other sectors leading the gains; storage chip concepts and other themes remain active.

MetaMuskRat · 2026-04-08T02:03:47+00:00

On April 7th, the A-share market showed volatility, with the Sci-Tech Innovation Board Index rising. The Shanghai Composite Index slightly increased, while the Shenzhen Component Index and the ChiNext Index declined. Sectors such as insurance and banking fell, whereas chemical and semiconductor sectors remained active. The market should pay attention to changes in the situation and investment opportunities, especially high-quality assets that have been unfairly punished.

MetaMuskRat

2026-04-08 02:03:47

Abstract generation in progress

In the early trading session on April 7, the three major stock indexes fluctuated and declined during the day. The STAR Market Composite Index showed relative strength, and more than 3,600 A-share stocks were in the green.

As of the midday close, the Shanghai Composite Index was up marginally by 0.03% to 3,881.17 points; the Shenzhen Component Index fell 0.2%; the ChiNext Index fell 0.46%; and the STAR Market Composite Index rose 0.74%. Combined turnover across the three markets in Shanghai, Shenzhen, and Beijing was about 1.08 trillion yuan.

On the trading board, sectors such as insurance, banking, and brokerages moved lower, while sectors including textiles, agriculture, chemicals, oil, coal, retail, and semiconductors rallied. Areas such as pesticides, organosilicon concepts, memory chips, and lithium battery concepts were active.

Industrial Securities said that the market does not need to rethink whether this conflict will evolve into a long-term, broadened all-out war due to recent remarks by Trump and the sharp surge in oil prices. “In the short term there may be escalation, and in the medium term a downgrade” remains the baseline scenario. For April, the bigger focus should be the establishment of a “market bottom” driven by the possible escalation of the situation, and the opportunity for bottom-positioning. It should also consider the chance that, after both sides enter substantive negotiations, the market will gradually return to normal and “take the lead” to kick off a rebound. Therefore, identifying high-quality assets that were “wrongly sold off” in this round due to sentiment inertia, and gradually shifting positioning structures toward directions with certainty in fundamentals, is not only the core allocation thinking for the April earnings disclosure period, but also the logical change that the market will repeatedly need to strengthen its understanding of and pay more attention to after the year’s pricing environment turns.

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