Industry upgrading is a structural highlight in fundamental changes; the Fundamental 120 ETF rose by 1.19%.

As of 1:07 PM on April 1st, the Shanghai Composite Index increased by 1.42%, the Shenzhen Component Index rose by 1.37%, and the ChiNext Index gained 1.43%. Sectors such as cellular immunotherapy, CRO concepts, and medical services led the gains.

In terms of ETFs, the Fundamentals 120 ETF Jiashi (159910) increased by 1.19%, with constituent stocks such as China National Materials Co., Ltd. (002080.SZ), Weichai Power (000338.SZ), Sanqi Mutual Entertainment (002555.SZ), XCMG Machinery (000425.SZ), Hailiang Co., Ltd. (002203.SZ), Hengyi Petrochemical (000703.SZ), Zangge Mining (000408.SZ), Zoomlion (000157.SZ), Hua Feng Chemical (002064.SZ), and BOE Technology (BOE) also rising.

Guojin Securities stated that demand improvement outpaces production, with exports serving as an important support, and the trend of industrial structure upgrading is clear. The strength of exports may be influenced by several factors: first, the overseas AI capital expansion cycle has driven the export of related intermediate goods from China, as evidenced by the strong performance of China’s integrated circuit exports in January-February. Additionally, the continuous high growth of Korean semiconductor exports over the first 20 days of March suggests that March exports are likely to continue being driven by overseas AI narratives. Second, the blockade of the Strait of Hormuz causing supply chain disruptions and the “oil shortage” leading to price hikes may prompt overseas manufacturers to stockpile in advance to hedge against uncertainties. Recent export growth driven by the overseas AI industry cycle and soaring oil prices catalyzing demand for electric vehicles indicate that industry upgrading could be a structural highlight in this year’s fundamental changes.

Donghai Securities indicated that marginal improvements in catering supply chains have led to quarter-over-quarter profit growth. The catering supply chain has seen marginal improvements, with a strong performance at the start of Q1, and earnings are expected to grow rapidly overall. Retail catering sales increased by 4.8% year-over-year in January-February, with the takeaway wars “paused,” leading to demand recovery. Rising oil prices have increased costs, and leading companies may pass on these pressures through price hikes, easing competition. The fundamentals of catering supply companies are improving marginally, and profitability is expected to increase quarter-over-quarter, highlighting investment opportunities amid the recovery of catering consumption.

CICC stated that the prices along the photovoltaic main industry chain have loosened, and market logic has returned to fundamental validation. Last week, the photovoltaic industry index fell about 4%, with previously active space photovoltaics and energy security themes retreating. From a fundamental perspective, although component prices remain high, there is downward pressure following adjustments to export rebate policies. Moving forward, we believe that under the combined support of high silver prices and some leading companies proactively reducing production to “counter internal competition,” domestic and international component prices will remain resilient. Despite a slight 10% contraction in industry production scheduling in April, the overall trend for Q2 remains upward. As large-scale domestic tenders are gradually launched, demand replenishment is expected.