Shanghai Composite Index drops 1%, falls below 3,900 points, CPO concept stocks defy the market and rise.

China News Network Jingwei, April 3—On April 3, China’s A-share market opened higher and then moved lower. The SSE Composite Index failed to hold the 3,900-point level. As of the close, the Shanghai Composite Index fell 1.00% to 3,880.10 points; the Shenzhen Component Index fell 0.99% to 13,352.90 points; and the ChiNext Index fell 0.73% to 3,149.60 points.

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In terms of market performance, sectors such as laser equipment, optical components, and lithography machines led the gains across both markets; sectors including coking coal processing, forestry, and nitrogen fertilizer saw the largest declines.

The CPO (co-packaged optics) concept strengthened, and multiple stocks including Deko Li and Cationic Electronics hit the daily trading limit. On the news front, on April 2, the Ministry of Industry and Information Technology issued a notice on carrying out a special campaign to empower small and medium-sized enterprises with inclusive computing power. It proposed promoting deployment of technology applications such as all-optical switching, reducing network latency from computing-power application terminals to servers, and improving the quality of interactive experiences for applications.

Innovation drug concept stocks were active in part; China National Pharmaceutical and Tianjin Tasly Pharmaceutical, among others, hit the daily trading limit.

As of the close, among all individual stocks traded across the two markets, the ratio of gainers to decliners was 716:4746. There were 38 stocks that hit the daily limit, and 41 stocks that hit the daily floor.

In terms of individual stocks, some of today’s daily-limit gainers were: Yunsai Zhilians (10.01%), Far East Holding (10.01%), Tianjin Tasly Pharmaceutical (9.94%), Xinneng Taishan (10.00%), and Tongyu Communications (10.00%). Some daily-limit losers were: Tianshun Co., Ltd. (-10.00%), Yunmei Energy (-9.93%), Fuyun Yungye (-9.99%), Anyang High-Tech (-10.00%), and Guangxi Energy (-9.92%).

The top five stocks by turnover rate were: Huilu New Materials, Tongda Co., Ltd., Zhongli Group, Menovo Pharmaceuticals, and Beiken Energy, with turnover rates of 47.491%, 45.730%, 42.690%, 41.474%, and 41.399%, respectively.

Galaxy Securities believes that, as negotiations for a ceasefire between the U.S. and Iran begin and uncertainties in the earnings season are gradually removed, the market is likely to enter a stage of range-bound base-building and structural rotation. The three major logics—policy support, capital entering the market, and the revaluation of China’s assets—remain unchanged. The downside space for A-shares is relatively limited, and the U.S.-Iran conflict has not shaken the foundation of A-shares’ long-term slow bull market. It suggests adopting a performance-led strategy and making deployments when opportunities arise.

In addition, Galaxy Securities analyzed that, because the current situation between the U.S. and Iran is at a stage of “dynamic equilibrium but with relatively high risks,” the likelihood of further upgrading is relatively high. This will also increase concerns about global energy, supply chains, and inflation, and asset pricing will focus even more on the two core logics: strategic resource revaluation and geopolitical security risk premium.

Galaxy Securities also mentioned that the dense schedule of technology summits expected to impact A-shares in China—especially in relevant industry chains such as semiconductors, AI computing power infrastructure, and humanoid robots—includes the 2026 Shenzhen International Electronic Components and Chip Innovation Technology Expo on April 9-11; the Greater Bay Area International Liquid Cooling Industry Conference; the 2026 China Humanoid Robot Ecosystem Conference on April 17-19; and the Shanghai Second Global Low-Altitude Economy Exhibition on April 23-25. Such events are expected to form a coordinated catalyst effect for A-shares. (China News Network Jingwei APP)

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