The entire market surged! The Shanghai Composite Index is approaching the 4,000-point mark, and institutions say: The trend of A-shares returning to their own narrative is strengthening.

Question to AI · What are the different views institutions have on the market returning to its own narrative?

Red Star Capital Bureau, April 8 — Today, A-shares surged across the board, closing with the Shanghai Composite up 2.69%, approaching the 4,000-point mark; the Shenzhen Component Index rose 4.79%, and the ChiNext Index increased 5.91%; the Sci-Tech Innovation Board Index gained 5.64%. The total market turnover reached 2.45 trillion yuan, an increase of 827.1 billion yuan from the previous trading day, with over 5,100 stocks rising.

In terms of hot sectors, the AI industry chain exploded across the board, with applications, computing hardware, and computing power leasing sectors leading the gains.

Market analysis generally believes that today’s market was influenced by the news of a temporary ceasefire between the U.S. and Iran. On April 8, Xinhua News Agency reported that the U.S. and Iran reached a two-week ceasefire agreement, with negotiations set to begin on April 10 in Islamabad, Pakistan. Iranian Foreign Minister Amir Abdollahian issued a statement announcing that the Strait of Hormuz will achieve safe navigation within two weeks.

Hongde Fund believes that the conflict between the U.S. and Iran has temporarily eased, significantly boosting market risk appetite, leading to an upward trend in A-shares. Industry-wise, except for coal and petroleum petrochemical indices which declined, other sector indices rose, with TMT and non-ferrous metals sectors leading the gains. Looking ahead, as the intensity of the U.S.-Iran conflict gradually subsides, the trend of A-shares returning to their own narrative is strengthening. In the short term, the most severely damaged sectors like technology growth may have greater repair resilience.

China Europe Fund believes that, based on recent market reactions to new developments in geopolitical conflicts, the market is gradually becoming desensitized to geopolitical and military conflict progress. However, considering that U.S. and Israeli military actions are still ongoing, there is a possibility that further military conflicts could trigger panic sentiment in the market.

China Europe Fund also states that if oil prices remain at a relatively high level, global assets may further reduce risk appetite amid concerns about stagflation. Although the AI wave continues, the trend of growth themes may weaken. This means that market rebounds are unlikely to be swift, and a sustained trend requires resonance between capital flows and fundamental expectations. Therefore, it is advisable to opportunistically increase portfolio aggressiveness during subsequent fluctuations.

Qianhai Open Source Fund Chief Economist and Fund Manager Yang Delong said that the Middle East conflict causes short-term shocks to A-shares, not long-term trend changes. As the situation in the Middle East gradually clarifies, market risk appetite is expected to improve, and the market may recover the 4,000-point level, initiating a new wave of upward movement. Investors are advised to adhere to value investing principles, maintain long-term and rational investment strategies, and seize opportunities by allocating quality stocks or funds to benefit from this slow and steady bull market.

Red Star News Reporter Jiang Ziwen

Editor: Xiao Shiqing

Reviewer: Feng Lingling