Market Close: The three major indices closed slightly higher, with the chemical sector collectively strengthening. Nearly 4,000 stocks rose.

Topic: Market Waiting for Bottoming Focus on Energy, Growth, and Policy Three Layout Lines

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April 7 News, the index bottomed out and rebounded, with the three major stock indices all closing higher. In terms of sectors, the chemical sector was strong, with multiple stocks like Six Nations Chemical, Luxi Chemical, Jinchengda, and LuHua Technology (rights protection) hitting the daily limit; sports concepts continued to rise, Jinling Sports (rights protection) hit the 20cm limit, Shuhua Sports, Zhongti Industry, and Gongchuang Turf also hit the daily limit in the afternoon; coal stocks fluctuated and strengthened, with China Coal Energy and Shaanxi Black Cat leading the gains; on the downside, the insurance sector declined, with China Pacific Insurance leading the fall; the precious metals sector fluctuated throughout the day, with Chifeng Gold leading the decline; most liquor stocks fell, with Kweichow Moutai among the biggest losers. Overall, the two markets saw a broad increase, with nearly 4,000 stocks rising.

At the close, the Shanghai Composite Index was at 3,890.16 points, up 0.26%; the Shenzhen Component Index was at 13,400.41 points, up 0.36%; the ChiNext Index was at 3,160.82 points, up 0.36%.

In the market, glyphosate, acrylic acid, and chemical raw material sectors led the gains; insurance, Qinghai, and banking sectors declined.

Hot Sectors:

1. Chemical

Multiple stocks like Six Nations Chemical, Luxi Chemical, Jinchengda, and LuHua Technology hit the daily limit.

On the news front, according to Xinhua News Agency, on the 6th, Israeli media reported that Israeli Prime Minister Netanyahu spoke with U.S. President Trump on the 5th, requesting the U.S. not to agree to a ceasefire with Iran during the current war phase. The report quoted an Israeli official saying Netanyahu expressed concerns about a potential ceasefire agreement between the U.S. and Iran, even highlighting the risks of such a move. It was reported that Trump told Netanyahu during the call that if Iran agreed to U.S. demands, a ceasefire could be possible, but he would not give up demanding Iran surrender all enriched uranium and would not allow Iran to resume uranium enrichment activities.

2. Pork Concept

Huatong Co. hit the daily limit, with Juxing Agriculture and Daya Biological also rising.

On the news front, on April 1, the National Development and Reform Commission, Ministry of Commerce, and Ministry of Finance announced the launch of the second batch of central frozen pork reserves for 2026, requiring localities to implement simultaneously. This move is seen as a clear signal of government support to stabilize pork prices, aiming to ease the industry pressure caused by persistently low hog prices.

News Highlights:

【La Prairie Responds to Rumors of Price Hikes in China: Only Some Products Adjusted】 There are market rumors that several international beauty brands including La Prairie, Lancôme, Armani, and Shu Uemura will raise prices in the Chinese market in April. In response, La Prairie’s parent company Beiersdorf told Jiemian Fashion that only some products are being price-adjusted, with no uniform increase. Beiersdorf stated that La Prairie products are all imported, and setting suggested retail prices involves considering multiple factors globally, including raw material costs, supply chain changes, exchange rate fluctuations, and overall industry pricing systems. They also emphasized that price adjustments for luxury skincare are not brand-specific but are routine industry cycles. Jiemian Fashion also inquired with L’Oréal Group, parent company of Lancôme and Armani, about the rumors, but no response was received as of press time. Currently, La Prairie has only issued a unified price adjustment notice at Kansai International Airport in Japan, with the price increase starting April 1. There is no public information indicating that prices will rise in the Chinese market. (Jiemian News, Zhou Fangying)

【Industry Chain Insider: Apple’s First Foldable Screen Phone Project Progressing Normally, Product to Launch in H2】 Media reports say Foxconn is trial-producing Apple’s first foldable screen phone. In response, an industry insider told reporters on April 7 that Apple’s first foldable phone project plan has been finalized, and the project is progressing normally. Trial production is a necessary stage before mass production, involving engineering validation, design validation, and production trial validation, before the final mass production. According to the normal schedule, the product is expected to be released in the second half of this year. (Securities Times)

【US Official: Hope for US-Iran Ceasefire “Fading”】 On the 6th, U.S. mediators expressed pessimism about Iran’s capitulation before the deadline set by President Trump and the reopening of the Strait of Hormuz. The hope for a US-Iran ceasefire is “fading.” Some U.S. officials said that before the deadline of 8 p.m. Eastern Time on the 7th, the gap between the U.S. and Iran remains too large to bridge. Meanwhile, officials from Arab countries familiar with the situation said Iranian officials have told mediators that even if negotiations progress, the U.S. will continue attacking Iran, and Israel will also continue airstrikes to “eliminate” senior Iranian officials. Some U.S. officials said Trump privately is “less optimistic” about reaching an agreement with Iran and is expected to issue a final order for strikes on Iran later on the 7th, though his plans could change with the situation. Trump is eager to end the war, aware that U.S. public patience for further military actions is limited. (CCTV News)

【Qianwen “Deep Research” Upgrade: Access to 13k Stocks’ Real-Time Quotes】 Alibaba’s AI assistant Qianwen has upgraded its “Deep Research” capabilities, adding new modules such as financial analysis, and now accesses real-time quotes for 13k stocks and about a million listed company financial reports. (Reporter Huang Xinyi)

Institutional Views:

GF Securities: Expect the market to remain volatile and bottom out gradually

In the short term, compared to the “V-shaped reversal” bottom pattern seen during last April’s “tariff parity” period, there are still differences. The current war situation remains uncertain, and during the previous decline, volume was not significant, nor were there large-scale regulatory funds signaling stabilization. It is expected that the market will need some time to fluctuate and bottom out, allowing sentiment to digest and trading to turnover.

This year’s A-share trend hinges on a “April decision,” assuming the global risk-off does not intensify, meaning market risk appetite should not deteriorate too much. A key judgment is whether high oil prices will trigger a recession in the U.S. and lead to further global earnings downgrades. We believe that, currently, the basis for this concern is insufficient. Historically, war—high oil prices—QCOM inflation—rate hikes—do not always lead to a U.S. recession. If the U.S. does not experience a clear recession this year, and after recent liquidity expectations adjustment, the global assets are unlikely to collapse entirely, then the “April decision” for A-shares still holds structural opportunities.

CMB Securities: Conflict Unresolved, Hope in Desperation

Looking ahead to April, external risks faced by A-shares have not been substantially alleviated, with the US-IR conflict at risk of unexpected escalation. Under this scenario, further oil price increases could heighten concerns about stagflation. If the U.S. military launches a ground attack in late April, whether due to higher-than-expected casualties or soaring oil prices causing deep global stock declines, the Trump administration might be forced to shift toward easing policies, potentially leading to a typical turnaround rally.

Domestically, after the conclusion of the two sessions in March and the release of the “14th Five-Year Plan” outline, key investment projects will accelerate, becoming the core driver for domestic investment growth. If external shocks significantly increase economic uncertainty, the Politburo meeting at the end of April may further strengthen policies to stabilize growth. Overall, late April is expected to be a critical window for marginal improvement in both domestic and international environments. After external shocks subside, market focus in late April will shift to high-growth first-quarter earnings sectors. Based on current data, sectors like non-ferrous metals, oil and petrochemicals, as well as new energy, optical communications, and semiconductor supply chains, are likely to show the most impressive earnings growth.