A-shares closing review: The Shanghai Composite Index fell below 3,900 points, the ChiNext Index dropped 0.73%, the computing hardware concept defied the trend and strengthened, the robotics concept was active, and the power and coal sectors weakened.

Ask AI · How will new regulations from the Ministry of Industry and Information Technology drive a countercyclical rise in the computing power concept?

On April 3rd, the three major A-share indices opened higher and then moved lower, maintaining a volatile downward trend throughout the day. By the close, the Shanghai Composite fell 1% to 3,880.1 points, the Shenzhen Component Index fell 0.99% to 13,352.9 points, the ChiNext Index fell 0.73% to 3,149.6 points, and the STAR 50 Index fell 0.47% to 1,256.21 points. Across the whole market, turnover was 1.67 trillion yuan, and over 4,700 stocks declined.

In terms of market performance, the computing power hardware concept rebounded against the trend. Huiyuan Communications hit two consecutive limit-ups, Neng Tai Shan achieved 7 limit-ups in 9 days, and Deke Li reached a 20cm limit-up. The computing power leasing concept saw a partial surge, with YunSai ZhiLian, Sittech, and ZhiZhen Technology hitting limit-ups. The robotics concept was active, with Huarei Shares and Rongtai Shares hitting limit-ups. The industrial gases concept fluctuated higher, with China Shipbuilding Special Gas hitting a 20cm limit-up. On the downside, the power sector weakened, and Shenzhen South Power A, Mindong Power, and Leshan Power hit limit-downs. The coal sector fell, with Yunmei Energy hitting the limit-down, and Shaanxi Black Cat, Zhengzhou Coal & Electric, and Antai Group plunging.

Hot Sectors

CPO concept reactivates

The CPO and other computing power hardware concepts rebounded against the trend, with Huiyuan Communications hitting two consecutive limit-ups, Neng Tai Shan achieving 7 limit-ups in 9 days, and Deke Li hitting a 20cm limit-up.

On the news front, on April 2nd, the Ministry of Industry and Information Technology issued a notice on launching a special campaign to empower small and medium-sized enterprises with inclusive computing power. It proposed promoting the deployment of technology applications such as all-optical switching, reducing network latency from computing application terminals to servers, and improving the experience of application interactions.

Computing power leasing concept sees localized movement

The computing power leasing concept saw localized movement; the computing scheduling direction led the gains, with Sittech and ZhiZhen Technology hitting limit-ups.

On the news front, on April 2nd, the General Office of the Ministry of Industry and Information Technology issued a notice on launching a special campaign to empower small and medium-sized enterprises with inclusive computing power. In this campaign, providing inclusive computing power services is a key focus. For the first time, the Ministry of Industry and Information Technology explicitly proposed exploring innovative businesses such as “computing power banks” and “computing power supermarkets,” supporting SMEs to deposit idle computing power resources and enabling flexible access and use through cross-regional and cross-cycle scheduling.

Power sector weakens

The power sector weakened, with Mindong Power hitting the limit-down, and Shenzhen South Power A, Guangxi Energy, and Leshan Power among multiple stocks falling sharply.

Although the power sector saw a pullback today, on April 2nd, the institutional view was published by the CIO of UBS Wealth Management’s Investment Director Office(CIO), which believes that, driven by policy support, structural demand growth, and overseas expansion, China’s power and resources sector is expected to enter a multi-year growth cycle.

Institutional Market Outlook

Guotai Haitong: Market correction is actually an opportunity; actively deploy

Guotai Haitong’s chief strategist Fang Yi believes that after the market adjusts, investors should not panic and scatter. China’s stock market is showing important bottoming and turning points. A market correction is actually an opportunity, and active deployment is recommended. From an industry comparison perspective, finance and stability remain the first choices, with optimism for China’s technology manufacturing and stable domestic demand.

Huatai Securities: Dividends still have value as a core holding

In recent years, with rising global macro uncertainties, growth in domestic residents’ asset allocation needs, and a drop in the broad social investment return rate’s central trend, dividend strategies have attracted increasing attention from funds. At present, dividend valuations for relatively mature dividend strategies are at a low level; geopolitical disturbances such as the situation in the Middle East have disrupted market risk appetite, so dividends still have value as a core holding.

CITIC Securities: Innovative drug industry enters a period of dense data-driven catalysts; focus recommended

CITIC Securities research reports state that since 2026, China’s innovative drug BD transaction value has grown beyond expectations, and the industry’s global competitiveness has been further enhanced. Domestically, the market has expanded rapidly; judging from the 2025 annual reports, leading innovative drug companies have seen rapid revenue growth driven by new products, and biopharma has gradually moved into profitability inflection points. In the near term, multiple international academic conferences are set to be held, and many innovative drug pipelines have entered a period of dense data-driven catalysts. The global value of the innovative drug industry stands out; next, it will enter a period of dense data-driven catalysts. It is recommended to pay attention to: ① leading innovative drug companies are expected to see performance releases; ② core pipelines are about to receive major data readouts catalysis; ③ pipeline assets with global potential’ internationalization is expected to accelerate realization. In summary, maintain a “better than the market” rating for the innovative drug industry.