The Shanghai Composite Index fell 0.74%, the ChiNext Index dropped 2.31%, and the oil and petrochemical sector defied the market trend to strengthen.

A-shares’ three major indices all pulled back today. As of the close, the Shanghai Composite Index fell 0.74% to 3,919.29 points; the Shenzhen Component Index fell 1.60% to 13,486.94 points; and the ChiNext Index fell 2.31% to 3,172.65 points. The combined trading value across the three markets of Shanghai, Shenzhen, and Beijing was 1.858 trillion yuan, down 167.1 billion yuan from the previous day.

Most industry sectors closed lower. Oil & Petrochemicals, pharmaceutical distribution, and energy metals led the gains. Meanwhile, precious metals, components, telecom services, small metals, semiconductors, advertising and marketing, and glass fiber led the declines.

In individual stocks, the number of stocks that rose exceeded 1,000, and more than 30 stocks hit the daily limit. The oil & petrochemicals sector strengthened against the trend; BoHui Co., Ltd. (20cm) hit the daily limit, while China National Oil and Gas Engineering, Heshun Petroleum, Compton, Blue Flame Holdings, and Beken Energy also hit the daily limit.

Today’s Headlines

Claiming victory in the Iran conflict and urging countries to “抢石油” quickly — a quick roundup of a nationwide speech by Trump

U.S. President Donald Trump delivered a speech, claiming on his own that he achieved “rapid, decisive, overwhelming victory” in the Iran conflict. U.S. President Donald Trump said in a speech on April 1 that all military objectives in the Iran conflict could be completed “within a very short time.” “In the next two to three weeks, we will launch extremely fierce attacks on them… and negotiations are also underway,” he said.

The biggest IPO in history is coming! SpaceX, Musk’s company, is reportedly already filed for listing

SpaceX, Musk’s company, is reportedly that it has secretly submitted the initial public offering (IPO) application materials to the U.S. Securities and Exchange Commission (SEC), taking an important step toward what could become the largest IPO in history. According to people familiar with the matter, the satellite manufacturing and rocket launch company has filed for listing in a confidential manner. Previously, it was reported that SpaceX plans to raise approximately 40 to 80 billion U.S. dollars through an IPO, with the company’s target valuation possibly reaching 1.75 trillion U.S. dollars.

The U.S. conducts a crewed mission to fly around the Moon

On the evening of the 1st, U.S. Eastern Time, NASA’s new-generation lunar rocket “Space Launch System” launched from Kennedy Space Center in Florida to carry out the crewed lunar flyby mission “Artemis 2.” This is the first time the U.S. has sent humans to the Moon since 1972.

Top-level remarks with major impact! Green power demand and value are expected to keep rising

Premier Li Qiang of the State Council conducted research in Sichuan from March 30 to April 1. He emphasized the need to implement a new energy security strategy, adhere to innovation-driven leadership, leverage advantages in resource endowment, continuously expand the supply of green electricity, focus on advancing the construction of new-type power grids, and accelerate optimization and adjustment of the energy structure, to provide strong support for high-quality economic and social development.

**　　Institutional Views**

**　　CITIC Securities: With overseas rate cuts + improved domestic financing, we continue to favor an all-around recovery in demand for the pharmaceutical supply chain**

In a CITIC Securities research report, it said that with domestic innovative drug BD (business development) heating up, downstream demand has rebounded. In sources of corporate funding, the share of equity financing has dropped significantly, and the proportion of BD transactions has risen to nearly 40%. In the first quarter of 2026, total BD overseas deal value exceeded 60 billion U.S. dollars, reaching nearly half of 2025’s full-year figure. By sector, for small-molecule CDMO, the global share of China’s supply chain advantages is increasing; combined with stable domestic supply amid the Middle East conflict, it may see more orders. For preclinical and clinical CRO, as financing improves and demand for early-stage R&D is transmitted, both volume and price could rise. For scientific research services and upstream sectors, while performance in the fourth quarter of 2025 was impacted in the short term by currency exchange rate fluctuations, expectations for early-stage R&D demand in 2026 continue, and revenue for leading companies is expected to grow by more than 20%. The current valuations are reasonable. Recommendations include: ① CXO leaders; ② key companies in the preclinical and clinical CRO segments; ③ companies in research services and upstream areas with relatively reasonable valuations.

CITIC Construction and Investment Securities (China Galaxy?): Recommend focusing on growth industries like nonferrous metals and AI that saw larger pullbacks earlier

In a CITIC Construction and Investment Securities research report, it stated that overall, the impact of the Iran situation on the domestic environment is limited. It also believes that the adverse impact of the war and conflict in April on the convertible bond market may likewise gradually diminish at the margin. Convertible bond assets have moved away from the high-valuation condition seen in March to February, and the allocation value has begun to show itself. It suggests maintaining a dumbbell-style allocation: on one hand, focus on steady, defensive individual securities in financials and public utilities; on the other hand, focus on growth sectors such as nonferrous metals and AI that have pulled back more earlier. At the same time, the valuation of newly issued convertible bonds from the “next new” category has also fallen noticeably. Meanwhile, the issuance pace for convertibles in the recent period has been relatively good, so it is recommended to continue paying attention to investment opportunities in the early stage after new bonds list.

Haitai Securities: Recommending undervalued, high-quality renewable energy targets

In a Haitai Securities research report, it said that since 2025, “direct connection of green electricity” policies have been frequently introduced, and in 2026 “computing-and-electricity coordination” was even included for the first time in the Government Work Report, rising to the strategic level of national new infrastructure. The market generally believes that computing-and-electricity coordination is concept-driven trading. Haitai Securities, however, believes this is an opportunity in the AI era for green electricity to be revalued after being detached from the traditional concept of “junk electricity.” Although the share of direct green power connection may not be very high in the short term, user demand fundamentally reflects the market value of renewable energy. In the AI inference era, joint scheduling of computing power and electricity—after breaking through chip bottlenecks—is expected to become an important proposition. Haitai Securities believes that proactively exploring “renewables +” is an important approach to solving curtailment and a creative breakthrough to add value to wind and solar power stations. Power can empower China’s AI competitiveness not only through integration at the infrastructure level, but also through bidirectional adjustment of “computing-and-electricity” coordination optimization. It recommends undervalued, high-quality renewable energy targets, including wind/solar and waste incineration.

Goldman? (Guojin) Securities: The recession trade is getting closer and closer

A recession trade means that equities and commodities still face the possibility of being sold off on fundamentals, but bonds could be an asset that hits the bottom first. Oil prices moving above the whole-number level (115–120 U.S. dollars) may become a spark that pushes the comprehensive recession trade; beyond that, deterioration in any dimension—such as talks being halted, a Strait interruption, bombing escalation, or Gulf countries taking the stage—could all serve as potential triggers for a comprehensive recession trade. In short, the signal that ends the war is to see when the strait is made “semi-open” to whom at what kind of cost, but any form of “semi-open” cannot avoid the occurrence of a slowdown in the global economy (relative to before the war). The recession trade is not just “the boy who cried wolf.” Stocks, bonds, and businesses are gradually pricing in the probability of a recession, and too many (unilateral) uncontrollable factors are still accumulating step by step.