The CSI 50 Index rises against the trend, with active performance in oil and gas stocks

Oil and Petrochemicals Sector Daily Chart (Zhang Dawei, charting)

On April 2, A-shares traded with choppy consolidation. The Northstar 50 Index was active against the trend, rising more than 2% at one point during the session. As of the close, the Shanghai Composite Index was at 3,919.29 points, down 0.74%; the Shenzhen Component Index was at 13,486.94 points, down 1.60%; the ChiNext Index was at 3,172.65 points, down 2.31%; the STAR Market Composite Index was at 1,631.32 points, down 2.56%; and the Northstar 50 Index was at 1,281.91 points, up 0.30%. Across the trading board, the three markets of Shanghai, Shenzhen, and Beijing together saw total turnover of 1.8577 trillion yuan for the full day. The pharmaceutical and biologicals sector continued to show strength. Tianjin Pharma’s stock advanced to a fifth consecutive daily limit-up, becoming the highest consecutive-limit target in the market. Sectors such as oil and natural gas, coal, and agriculture also performed actively.

Oil and gas stocks strengthen against the trend

Driven by a sharp rise in international oil prices, on April 2 the A-share oil and gas sector moved higher as well. As of the close, Boshi Co., Ltd. hit the daily limit-up with a 20% gain; and multiple other stocks including Heshun Petroleum, PetroChina Engineering, Bicon Energy, and Blue Flame Holdings also hit daily limit-ups.

Jerry Co., Ltd. (Jer r y) touched the daily limit-up during trading yesterday, then the limit-up order was opened in the afternoon. It closed at 108 yuan per share, up 7.56%, with a total market value of 110.6 billion yuan. On the evening of April 1, Jerry Co., Ltd. announced that its wholly owned subsidiary, GPS, signed a sales contract with a certain U.S. customer for the sale of gas turbine generator sets. The contract value was 301 million USD (about RMB 2.08 billion).

Meanwhile, the shipping sector also showed activity. China Merchants Energy Shipping (CMES) and China Merchants Nanhai Petroleum both touched the daily limit-up during trading. As of the close, China Merchants Energy Shipping was up more than 8%, China Merchants Nanhai Petroleum was up more than 6%, and others such as COSCO Shipping Special Transportation and COSCO Shipping Energy also followed higher.

At a recent earnings briefing, China Merchants Energy Shipping stated that in recent years the global oil trade and shipping landscape has evolved, and the “hard-asset” attributes of oil tankers may become increasingly prominent. Within the oil supply chain, they are increasingly becoming a bottleneck in the supply chain, and the expected returns may have the opportunity to rise significantly.

A research report from CICC (China Securities) said that ongoing geopolitical turmoil in the Middle East continues to disrupt matters and magnify the vulnerabilities on the oil shipping supply side. At the same time, it is reshaping the global energy shipping landscape, further widening the industry’s supply-demand gap. A disruption to oil supply from the Middle East forces Asian buyers to turn to purchases in the Atlantic basin. Switching short routes to long routes boosts fleet utilization rates several-fold. Most idle fleet capacity is taken up by long-haul demand. Combined with Asian countries making up for shortcomings in energy security, it is accelerating the expansion of strategic crude oil reserves, providing sustained support for rising incremental demand in oil shipping.

Fiber-optic concept repeatedly stays active

Yesterday, the fiber-optic concept strengthened again. Both TeFa Information and Hengtong Optic-Electric saw their share prices hit record highs during the trading day; and Huaiyuan Communications and Huawei-mai Technology both closed at daily limit-up.

Yesterday, Changfei Optic Fibre, a popular stock, also touched the daily limit-up during trading, showing an 8-day 4-board sequence. The share price continued to set record highs. As of the close, Changfei Optic Fibre was at 332.49 yuan per share, up 7.95%, with a total market value of 275.3 billion yuan.

Changfei Optic Fibre’s 2025 annual report shows that in 2025 the company realized operating revenue of 14.252 billion yuan, up 16.85% year over year; and net profit attributable to shareholders of listed companies was 814 million yuan, up 20.40% year over year.

A research report analysis by Huatai Securities said that as a global leading manufacturer, Changfei Optic Fibre has a leading share of upstream optical fiber preform rod capacity, and is expected to benefit from optical fiber price increases and improvements in product mix, thereby thickening profit margins. In terms of next-generation optical fiber technology, the company’s hollow-core fiber technology continues to iterate. The company has deployed commercial and pilot projects in regions including Asia, Europe, and the Americas. In 2026, it will work together with global mainstream telecom operators and cloud service providers to promote more than 50 commercial and pilot projects for hollow-core optical fibers.

A report released by Everbright Securities’ overseas research team said that optical fiber and cable prices have continued to rise sharply since the beginning of 2026. Telecom operators’ tender-gathered procurement prices for optical fiber cables have continued to climb. Behind it are three factors: first, AI data center high-speed transmission demand is driving growth in demand for high-end optical fibers; second, supply and demand for optical fiber preform rods is tight, with long production expansion cycles; third, demand related to fiber-based drones further increases optical fiber prices.

Institutions: April may bring a configuration (allocation) window

Looking ahead, a research report from Hualong Securities said that judging from the overall market performance in March, despite disturbances from external factors, A-shares still showed strong resilience. On one hand, policy-related factors are positive and market expectations are stable. On the other hand, the improvement in energy self-sufficiency rate and the leading advantages in green energy sectors have eased market concerns about related risks, making it likely that April will become a market allocation window.

A report released by the China International Capital Corporation (CICC) Li Qiusuo team said that it may currently be a relative mid-term low point for A-shares. Risk release and downward adjustment are expected to bring better opportunities for allocations. Although short-term price action still has some uncertainty, after experiencing the adjustment, the market’s risk in A-shares has been further released, and valuation is at a relatively reasonable level. From a mid-term perspective, the macro environment has not undergone fundamental changes, so the logic supporting A-shares to “stabilize and move forward” remains valid. Risk release and downward adjustments are expected to bring solid allocation opportunities.

The Li Qiusuo team said that April is the disclosure period for listed companies’ first-quarter reports of 2026. After years of capacity contraction, some areas—especially cyclical industries—have seen improvements in supply and demand. Since the start of this year, price increases in products such as lithium battery materials, chemical products, and AI-industry-chain hardware (such as optical fiber and cables, storage, targets/materials like sputtering targets, and MLCC, etc.) have driven prospects that related listed companies’ performance will improve.