Market Close: The Shanghai Composite Index shrank in volume and fluctuated, rising by 0.26%. The chemical industry sector continued to strengthen.

Originally from: Xinhua Finance

Xinhua Finance Beijing, April 7 (Hu Chenxi) The three major A-share indices fluctuated higher and then retreated throughout the day on April 7, closing with slight gains. The combined trading volume of the Shanghai and Shenzhen markets was 1.61 trillion yuan, shrinking by 42.1 billion yuan compared to the previous trading day. In the market, the chemical industry sector continued to strengthen, with over ten stocks including Qixiang Tengda, Shenma Shares, and Jinniu Chemical hitting the daily limit; pork stocks gained strength, with Huatong Shares and China Animal Husbandry & Food Holdings hitting the limit; PCB concept stocks oscillated and surged, with Tongyu New Material and Hongchang Electronics both hitting the limit; sports concept stocks were active, with Yue Media, China Sports Industry, and Guchuang Turf hitting the limit. On the downside, the large financial sector declined, led by insurance stocks, with China Pacific Insurance and China Life Insurance oscillating and retreating; innovative drug concept stocks weakened across the board, with Lianhuan Pharmaceutical hitting the limit down, and Laimei Pharmaceutical, Rundu Shares, and Guangsheng Tang falling sharply.

By the close, the Shanghai Composite Index was at 3,890.16 points, up 0.26%, with a trading volume of 723.9 billion yuan; the Shenzhen Component Index was at 13,400.41 points, up 0.36%, with a trading volume of 890.5 billion yuan; the ChiNext Index was at 3,160.82 points, up 0.36%, with a trading volume of 397.2 billion yuan.

Hot sectors

In the market, chemical raw materials, petroleum processing and trade, internet e-commerce, supply and marketing cooperatives, pork, and coal sectors and concept stocks led the gains; insurance, banking, precious metals, and innovative drugs sectors and concept stocks led the declines.

Institutional views

Jufeng Investment Advisory: The market oscillated on Tuesday, with chemical sector gains leading. From the current trend, the market has shown clear differentiation, entering a phase of stock-based competition. Currently, external black swan events have not yet subsided, and the trend of A-shares will continue to fluctuate. Investors can focus on buying the dips of previously popular industry leaders after corrections. From a long-term perspective, under policy stimulation, A-shares and the economy are expected to turn upward in sync. For specific investment directions, medium-term suggestions include focusing on incremental opportunities in high-growth areas such as semiconductors, consumer electronics, artificial intelligence, robotics, and commercial aerospace.

Bank of China Securities: Still optimistic about the medium- and long-term value of A-shares. Compared to other global markets, A-shares’ fundamental and capital advantages will gradually become apparent. Domestic fiscal policies are actively promoting fundamental recovery in supply and demand, and schemes involving public funds, insurance, and similar “stabilization funds” will provide market support. Caution is needed regarding the rapid rise in U.S. Treasury yields suppressing valuations. In the long run, a weakening U.S. dollar credit system will help reshape A-shares’ valuations. The current Middle East geopolitical conflicts may mark a turning point where asset prices enter a rising and more volatile phase during the Kondratiev depression period. In the short term, it is still recommended to focus on innovative drugs, which possess both offensive and defensive attributes, making them high-quality allocation targets.

Huatai Securities: Under the background of energy transition and energy security, the importance of nuclear power is highlighted. China’s leading nuclear industry chain provides long-term growth space for China National Nuclear Corporation (CNNC) and China General Nuclear Power Group (CGN). Starting from 2026, potential rebound in coal prices, continuous rise in carbon prices, and the implementation of mechanism-based electricity pricing pilot policies are likely to mark a phased end to concerns about nuclear power price reductions over the past three years. With the intensive commissioning of nuclear power projects during the 14th Five-Year Plan, the stock prices of nuclear power leaders are expected to benefit from profit recovery, accelerated growth, and valuation uplift.

News Highlights

Ministry of Commerce: Total service import and export volume was 1.143 trillion yuan in January-February 2026

On April 7, the Ministry of Commerce’s Service Trade Department head introduced the development of service trade in January-February 2026: In this period, China’s total service import and export volume was 1.143 trillion yuan (RMB), down 3.9% year-on-year. Exports were 442.49 billion yuan, up 4.7%; imports were 700.58 billion yuan, down 8.7%. The service trade deficit was 258.1 billion yuan, narrowing by 86.52 billion yuan compared to the same period last year.

On April 7, 2026, the country continued to implement regulation, with appropriate adjustments to refined oil prices

The National Development and Reform Commission announced on April 7 that since the last adjustment of domestic refined oil prices on March 23, international crude oil prices have experienced significant fluctuations. To mitigate the impact of rising international oil prices on the domestic market, the country continues to regulate refined oil prices. According to the refined oil pricing mechanism, effective from 24:00 on April 7, the domestic gasoline and diesel (standard grade) prices should be increased by 800 yuan and 770 yuan per ton respectively, with actual adjustments of 420 yuan and 400 yuan after regulation. This translates to an increase of 0.33 yuan per liter for 92-octane gasoline (less than the previous increase of 0.31 yuan) and 0.34 yuan per liter for No. 0 diesel (less than the previous increase of 0.32 yuan).

Editor: Luo Hao