002869, surged sharply at the end of the trading session to hit the daily limit! The communication sector experienced a counter-market inflow of major funds!

On April 3, China’s A-share market continued to consolidate with turbulence. The Shanghai Composite Index slipped below 3,900 points, the Beijing 50 index fell more than 2%, and the Shenzhen Component Index, the ChiNext Index, and others also edged lower. The STAR Market Composite Index became the market highlight, staying green for most of the day and ultimately closing up slightly. More than 4,800 individual stocks declined, trading volume shrank to 1.67 trillion yuan, setting another new intra-year low.

On the trading front, a handful of sectors were relatively active, including communications equipment, diversified financials, electronics, and lithography machines, while sectors such as coal, medical waste disposal, food concepts, and home decoration & finishing saw the largest declines.

According to Wind real-time monitoring data, the communications industry received net inflows of more than 13.2 billion yuan of main fund flows. Electronics saw net inflows of more than 6.0 billion yuan, mechanical equipment received net inflows of more than 3.9 billion yuan, non-bank financials received net inflows of more than 2.4 billion yuan, and computer stocks received net inflows of more than 1.8 billion yuan. Biopharmaceuticals and basic chemicals also received net inflows of over 16.7k yuan each. Meanwhile, power equipment recorded net outflows of more than 4.3 billion yuan, public utilities had net outflows of more than 3.3 billion yuan, and banks saw net outflows of more than 2.5 billion yuan.

On the individual stock front, China Oil & Capital received net inflows of more than 3.7 billion yuan of main fund flows. Hengtong Optoelectronics received net inflows of more than 2.3 billion yuan. Eight stocks including Fiberhome Technologies, Zhongji Aochuang, Fucen Technology, and Tongyu Communications all received net inflows of more than 1 billion yuan.

In terms of market hotspots, some electronics-related stocks attracted a rush for funds in the afternoon. China Satellite Special Gas quickly hit the 20% daily limit after the midday opening. Asya Optoelectronics and Moking Electronics also quickly hit the daily limit after the midday opening. Jinyi Technology (002869), however, saw heavy volume and a straight-line surge near the close, with the share price reaching the daily limit at one point. Phoenix Optics, Fuguang Co., and Uton Optics also showed unusual, heavy-volume moves in the afternoon.

According to Prismark data, the global electronic systems market size in 2025 is about $28.1k, up 10% year over year. Of that, the server/data storage segment grew more than expected, up 42% to $413B. In 2026, it is expected to exceed $30k, up 8% year over year; the server market remains the first growth engine (up 32% year over year). The core driving force is AI data center capital expenditure.

In addition, the global PCB market is expected to grow 15.8% year over year in 2025 to $85.2B; in 2026, it is expected to rise 12.5% to $95.8B. The compound annual growth rate from 2025 to 2030 is 7.7%. The growth core is driven by AI infrastructure, high-speed networking, and satellite communications.

The electronics industry is also a key sector for institutional research surveys in the first quarter. Wind statistics show that electronics were surveyed 1,848 times in the first quarter, ranking first among Shenwan’s 一级 industries. The number of surveyed stocks was 141. Dongxin Shares, Juchen Shares, AMEC Semiconductor, and Bdrive Storage were all surveyed no fewer than 40 times.

Looking ahead, HuLong Securities believes that the “money-losing effect” in the current market is still continuously being released, sector differentiation is clear, and while pharmaceuticals surged then pulled back, their overall performance is stronger than expected. Shipping and oil & gas are strengthening due to news-driven catalysts, while technology stocks are overall relatively weak. Whether the power sector can stop falling is especially key; if it continues to weaken, it will further intensify the market’s negative feedback. In the near term, the Shanghai Index is likely to maintain a range-bound, choppy pattern, with opportunities mainly focused on leading core products among the areas of divergence.

Yintai Securities stated that in the second quarter, the overseas situation involving the US and Iran will still be an important factor affecting the performance of both the Shanghai and Shenzhen markets. In the short term, the risk appetite pressure it brings and the repricing of the Federal Reserve’s policy path will still have a certain degree of negative impact on China’s A-share market. However, there are still favorable factors supporting the sustained improvement trend in A-shares, including continued optimization of China’s domestic economic fundamentals, the gradual realization of improved A-share earnings, and the continued release of dividends from capital market reforms—each of which will provide support to China’s A-share market in the long run.

Proofread by: Yao Yuan