The easing of Middle East tensions ignites A-shares! The Shanghai Composite Index approaches 4,000 points, and the ChiNext Index rises over 5%.

Why did the AI and Middle East situation easing trigger a big surge in A-shares technology stocks?

On April 8th, against the backdrop of easing geopolitical tensions and a significant increase in market risk appetite, the A-share market experienced a strong rebound. By the close of trading, the Shanghai Composite Index rose 2.69% to 3,995 points; the Shenzhen Component Index increased 4.79% to 14,042.5 points; and the ChiNext Index gained 5.91% to 3,347.61 points.

Wind statistics show that a total of 5,164 stocks across the two markets and the Beijing Stock Exchange rose, 301 declined, and 24 remained unchanged.

The total trading volume was 2,434.5 billion yuan, up 820.1 billion yuan from the previous trading day’s 1,614.4 billion yuan. Among them, the Shanghai market’s turnover was 1,074.2 billion yuan, an increase of 350.3 billion yuan from 723.9 billion yuan the day before; the Shenzhen market’s turnover was 1,360.3 billion yuan.

In terms of market sectors, the AI industry chain collectively exploded, with the computing power leasing concept leading the way. Dawei Technology, Xingyun Technology, Aorui De, Hanggang Shares, and Huafu Fashion all hit the daily limit. The hardware computing power concept surged rapidly, with Zhongji Xuchuang rising over 10%, hitting a new all-time high, and Mingpu Optical Magnetic, Dongshan Precision, Huidian Shares, and Shennan Circuit also hitting the limit.

AI application stocks performed actively, with more than ten constituent stocks hitting the daily limit. BlueFocus 20CM hit the limit, and Zhisheng Information 30CM also hit the limit. The precious metals concept collectively rose, with Hunan Gold, Sichuan Gold, and Western Gold hitting the daily limit. On the downside, oil and gas concepts collectively adjusted, with Zhongman Petroleum, Beken Energy, and Lanyan Holdings hitting the limit down.

On the news front, U.S. President Trump announced a two-week pause on military strikes against Iran, while Iran stated it would ensure the safe passage through the Strait of Hormuz during the two-week ceasefire.

Qianhai Open Source Fund Chief Economist Yang Delong told Jiemian News: “Both the U.S. and Iran have shown willingness to cease fire due to domestic pressure. Trump announced a two-week ceasefire, leading to increased global risk appetite, a sharp drop in oil prices, and a surge in Asia-Pacific and Hong Kong stocks. The Middle East conflict does not change the long-term slow bull trend of the A-shares market; the previous decline is a ‘bull turnaround.’ As the Middle East situation clarifies, the market is expected to recover the 4,000-point level and start a new round of gains.”

He suggested that this year’s investments could adopt a “New Dumbbell Strategy”: “One end of the ‘dumbbell’ represents leading tech stocks focused on innovation, especially those emphasized in the ‘14th Five-Year Plan,’ such as robotics, chips and semiconductors, computing algorithms, commercial aerospace, solid-state batteries, and controlled nuclear fusion; the other end consists of traditional blue-chip stocks with heavy assets and low volatility, known as ‘HALO assets,’ such as power grid equipment, non-ferrous metals, coal, oil and gas, and other resource and energy sectors. These remain key focus areas for the market.”

Regarding the future trend, many market institutions remain optimistic. Huatai Securities stated that the Middle East situation has eased, with Trump agreeing to suspend strikes on Iran for two weeks on April 8th, and Iran accepting a ceasefire proposal from Pakistan. From last night’s asset performance, U.S. stocks rebounded intraday, crude oil plummeted, and the VIX (fear index) spiked then retreated. The positive sentiment has shifted from psychological to actual action. However, uncertainties remain, as the VIX remains high, indicating the market has not fully priced in the end of the conflict, so position management is necessary.

Earlier, West China Securities analyst Li Lifeng said that 2026 marks the start of the “14th Five-Year Plan,” with multiple departments expected to introduce more industry support policies and investment plans. Fiscal and monetary policies will also work together to create a friendly environment for the market. As corporate profits enter a moderate recovery phase, 2026 is a “big year” with multiple positive factors stacking up, providing a solid foundation for market upward movement.

In terms of allocation, two main directions are recommended: the first group is previously oversold sectors. Analyzing the top sectors in decline in March, including TMT, non-ferrous metals, steel, building materials, machinery, all of which are aligned with the spring market cycle and the main theme of technology, benefiting from the easing of rate cut expectations. Machinery is driven by external demand. The second group relates to sectors with low oil prices and independent prosperity cycles, such as AI chains and innovative medicines. From a medium-term perspective, the energy security issues exposed by the war suggest continued focus on the power supply chain; if short-term adjustments occur, they could present opportunities for deployment.