Shouchuang Futures: IC and IM have a pullback demand, currently at a critical point testing the lower support.

K-LinePoet · 2026-04-05T18:25:51+00:00

On March 18, the A-share market showed divergence, with the ChiNext Index rising nearly 1%, while the Shanghai Composite Index fell 0.4%. Elevated international oil prices triggered concerns about imported inflation, putting pressure on corporate profits and leading to cautious market sentiment. Funds flowed out of high-valuation technology sectors. In the short term, stock indices are affected by geopolitical risks, and the market remains cautious.

K-LinePoet

2026-04-05 18:25:51

Abstract generation in progress

On March 18, China’s A-share large- and small-cap indices diverged. The ChiNext index rose nearly 1%, while cyclical stocks generally weakened, and computing-power hardware themes were active. The Shanghai Composite index was down 0.4% at midday, to 4033.62 points, with the decline widening. International oil prices continued to trade at high levels, intensifying concerns about imported inflation. As crude oil—the “mother of industry”—rises in price, it will gradually filter through to the midstream and downstream manufacturing sectors, squeezing corporate profits. This is the core reason behind the market’s recently cautious sentiment and the outflow of funds from overvalued technology growth sectors. In the short term, stock indexes are still influenced by geopolitical risk. In addition, the previously high IC and IM have a need for consolidation and pullbacks, and the market is currently at a key juncture for testing support below. Expectation is mainly to wait and watch.

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