Morning Review: Shanghai Composite Index drops nearly 1% in half a day, CPO concept stocks rise against the trend

Source: Xinhua Finance

Xinhua Finance Beijing, April 3 (Hu Chenxi) The three major A-share indexes opened higher and then fell during the morning session on April 3. The Shanghai Composite Index dropped by nearly 1%, once again falling back below the 3,900-point threshold. The half-day trading value on the Shanghai and Shenzhen markets was 1.07 trillion yuan, down 115.7 billion yuan from the previous trading day. On the trading board, the CPO concept stocks rose against the trend, with multiple stocks such as Yitian Shares and Tongyu Communications hitting the daily limit. Photo lithography machine and photo lithography photoresist concept stocks were active, with Zhongrun Optics, CSSC (China Shipbuilding) Special Gas, and Meidikai all rising by more than 10%. The robotics concept was also active, with Huarui Shares and Rongtai Shares hitting the daily limit. On the downside, the coal sector adjusted, with Yunmei Energy nearly hitting the daily limit lower. The power sector weakened, with Mindong Power hitting the daily limit lower, and many other stocks such as Shenan Electric A, Guangxi Energy, and Leshan Electric seeing sharp declines.

By the midday close, the Shanghai Composite Index was at 3,882.69 points, down 0.93%, with trading of 458.1 billion yuan. The Shenzhen Component Index was at 13,387.92 points, down 0.73%, with trading of 613.0 billion yuan. The ChiNext Index was at 3,166.06 points, down 0.21%, with trading of 283.6 billion yuan.

Hot sectors

On the trading board, sectors and concept stocks such as communications equipment, medical commercial, semiconductors, photo lithography machines, copper cable high-speed connections, and CSSC-related (China Shipbuilding) sectors led in gains; sectors and concept stocks such as coal mining and processing, breeding industry, wind power equipment, chemical fertilizer, corn, and coal chemical industry led in declines.

Institutional views

CITIC Securities: In the AI application industry, we firmly look favorably on investment opportunities under the trend of industrial development. After the pullback, suitable entry points gradually began to appear. This week, OpenRouter token calls are expected to grow 11% month-over-month. Amid rapid growth, Agent’s task-delivery capability is becoming stronger and stronger. Besides improvements in model capability, Agent Harness (structuring model capability for application) is an important driver. We are optimistic about the rapid rollout of Agents in 2026, and will watch for Agent self-iteration and evolution.

Haitong Securities: In recent years, with the rise in global macro uncertainty and the growth in domestic residents’ demand for asset allocation, alongside a drop in the central level of broad-based investment returns for the whole society, dividend strategies have attracted increasing attention from capital. At present, dividend valuations relative to growth are at a low level. Disruptions from the situation in the Middle East have perturbed market risk appetite, but dividends still have the value of a core holding.

Central Plains Securities: The A-share market in April may mainly be characterized by consolidation. The key variable is still the uncertainty in the Middle East situation, which limits the upside room for the index. We continue to recommend adopting a prudent allocation strategy. While sticking to dividend assets (banks, transportation and logistics, public utilities) to withstand volatility, we should also position for energy security such as power equipment and new energy (lithium batteries, photovoltaics). Risk points that need attention include whether April’s geopolitical conflicts will unfold in an unexpectedly extreme way, whether an outflow-driven marginal tightening of overseas liquidity could trigger a synchronized downside move, and the concentrated period for earnings report disclosures—when stocks whose performance falls short of expectations may cause significant volatility.

News highlights

Seven departments: Coordinate the use of existing policy funding channels such as “two new initiatives” to support the renovation and upgrading of outdated equipment and facilities in eligible petrochemical and chemical industries

Seven departments including the Ministry of Industry and Information Technology issued the “Action Plan for Accelerating the Update and Renovation of Outdated Equipment and Facilities in the Petrochemical and Chemical Industry (2026–2029).” Among them, they propose coordinating the use of existing policy funding channels such as “two new initiatives,” science and technology innovation, and technical-renovation-related re-loans, to support eligible companies in updating and renovating outdated equipment and facilities. They will leverage the role of relevant government investment funds to provide investment support for enterprises. Financial institutions are encouraged to implement credit policies with both support and restraint in line with industrial layout and capacity-control directions, and to promote bank–enterprise matchmaking through platforms such as the credit market service platform and the national industry-finance cooperation platform, thereby improving the effectiveness and quality of financial services. During the update and renovation process, enterprises may enjoy the relevant support policies in accordance with regulations. In areas with conditions, support may be provided using existing funding channels to eligible outdated equipment and facilities for update and renovation. The annual assessment and evaluation of relevant central government-owned enterprises should appropriately consider the impact of outdated equipment update and renovation on operating performance.

New national standard for mobile power banks is introduced: requires indicating the recommended service life

A mandatory national standard GB 47372-2026 “Safety Technical Code for Mobile Power Sources,” organized and formulated by the Ministry of Industry and Information Technology, was officially released on April 3. Based on the two existing general mandatory national standards, the “Technical Code” clarifies multiple key requirements. Mobile power sources include portable mobile power banks and portable energy-storage power sources—commonly known as “power banks” and “outdoor power supplies.” The “Technical Code” requires strengthening battery inherent safety. It introduces a needle penetration test into the standard and specifies improving safety protection capabilities of mobile power sources in scenarios such as high-temperature conditions, overcharging, and crushing. To reduce the risk of internal short circuits after long-term use of mobile power sources, it adds specialized testing regarding cyclic aging, and it also requires indicating the recommended safe usage service life to remind consumers to promptly replace mobile power sources with poor safety.

Xiaomi’s Lu Weibing responds to price increases for some models: the memory price increase in this round far exceeds expectations

Xiaomi Group President Lu Weibing posted that, “The extent of the memory price increase in this round really far exceeds expectations. Compared with the memory price for the same-version configuration last year’s Q1, it has soared by nearly 4 times. The 12+512 went up by about 1,500 yuan, and the 16+1T has risen in a way that is even more outrageous—this has had a significant impact on REDMI, which has always priced at extreme value for money. Therefore, we have no choice but to make a small increase in the retail price of some models or restore the original price. We hope everyone can understand.”

Previously, Xiaomi issued an announcement stating that, due to the sustained and significant surge in the prices of key components such as global storage chips, after careful assessment, the company will adjust the suggested retail prices of certain products for sale starting from 00:00 on April 11, 2026. This adjustment involves three models: the REDMI K90 Pro Max will increase by 200 yuan; for Turbo 5 and Turbo 5 Max, the Spring Festival special offer will be canceled, and the 512G large-memory option will continue to receive a 200-yuan subsidy.

Editor: Luo Hao