In the first week of April, the stocks continued to differentiate, leading to a seesaw effect with heightened risk aversion in the market.
The holiday effect and the escalating trade war between China and the U.S. were both driving the defensive market in consumption industry. At the same time, technology and internet-related stocks targeted high on Monday and then gradually pulled back in the rest of the week.
However, with the return of “unicorn” companies and promotion from favorable policies, these stocks still retain a strong potential.
The main benchmarks each finished with a certain level of losses.
The Shanghai Composite Index fell 37.79 points, or 1.19%, to end at 3131.11. The Shenzhen Composite Index declined 184.09 points, or 1.69%, to close at 10684.56. The Growth Enterprise Index dropped 63.67 points to 1836.81, leaving it with a 3.35% weekly fall. The Small and Medium-Sized Index was down 64.97 points, or 0.88%, to finish at 7280.35.
On Wednesday, the anti-tariff stocks showed strong performance with its index up 3.25%. About 5 stocks in the agriculture industry climbed by the 10% daily limit.
On April 3rd, the U.S. Trade Representative Office, based on the result of Section 301 Action, released a list that suggests imposing tariffs on the goods imported from China. The list contains about 1300 independent products worth about $50 Billion.
Industries affected by the list include aerospace, information and communications technology, and robotics and machinery. In response, the spokesman of China’s commerce ministry made a statement indicating that the China side is firmly opposed to such measures and will respond with countermeasures if needed.
Looking at the domestic environment, technology and internet-related stocks are still the biggest gainers, continuing their recent strong momentum.
On March 30th, the state council promulgated a file regarding domestic CDR-issuing or stock-issuing process of innovative enterprises. According to the ideas in this file, the domestic issuing process of innovative enterprises is expected to be accelerated, which will continuously raise the attention of technology stocks.
For the computer industry, investors can continue to be optimistic about the opportunities brought to the industry by new economy and new technology.
Those leading new-technology companies and high-quality enterprises characterized by industrial internet, cloud computing, big data, artificial intelligence, and information security localization will become the hot spots.
With the approaching of April, the A-share market has been busy with concentrated information disclosure of annual and first-quarter reports. Therefore, investors in the market will be more cautious.
After the large swings in the first quarter of this year, the Shanghai composite index has dropped from 3500 points to 3100 points, so the risk has been greatly released.
The A-share market may remain fluctuated in the second quarter, but more structural investment opportunities are expected to emerge after the adjustment in the past few months.
Regarding the future market, in short term, it will experience some fluctuations due to the effect of risk appetite. Especially driven by the risk aversion under the trade battle, the gold, agriculture, and medicine industries are more likely to become the haven of money.
In long term, the U.S. trade sanctions actually highlights the necessity and urgency for the support of high-tech industries from the national level. The strong demand in China’s domestic market is the fundamental environment that will sustain the development of innovative enterprises.
The related innovative industries are expected to gain support from national level, thus, investors can choose from the leading stocks based on their cost performances.
The holiday effect and the escalating trade war between China and the U.S. were both driving the defensive market in consumption industry. At the same time, technology and internet-related stocks targeted high on Monday and then gradually pulled back in the rest of the week.
However, with the return of “unicorn” companies and promotion from favorable policies, these stocks still retain a strong potential.
The main benchmarks each finished with a certain level of losses.
The Shanghai Composite Index fell 37.79 points, or 1.19%, to end at 3131.11. The Shenzhen Composite Index declined 184.09 points, or 1.69%, to close at 10684.56. The Growth Enterprise Index dropped 63.67 points to 1836.81, leaving it with a 3.35% weekly fall. The Small and Medium-Sized Index was down 64.97 points, or 0.88%, to finish at 7280.35.
On Wednesday, the anti-tariff stocks showed strong performance with its index up 3.25%. About 5 stocks in the agriculture industry climbed by the 10% daily limit.
On April 3rd, the U.S. Trade Representative Office, based on the result of Section 301 Action, released a list that suggests imposing tariffs on the goods imported from China. The list contains about 1300 independent products worth about $50 Billion.
Industries affected by the list include aerospace, information and communications technology, and robotics and machinery. In response, the spokesman of China’s commerce ministry made a statement indicating that the China side is firmly opposed to such measures and will respond with countermeasures if needed.
Looking at the domestic environment, technology and internet-related stocks are still the biggest gainers, continuing their recent strong momentum.
On March 30th, the state council promulgated a file regarding domestic CDR-issuing or stock-issuing process of innovative enterprises. According to the ideas in this file, the domestic issuing process of innovative enterprises is expected to be accelerated, which will continuously raise the attention of technology stocks.
For the computer industry, investors can continue to be optimistic about the opportunities brought to the industry by new economy and new technology.
Those leading new-technology companies and high-quality enterprises characterized by industrial internet, cloud computing, big data, artificial intelligence, and information security localization will become the hot spots.
With the approaching of April, the A-share market has been busy with concentrated information disclosure of annual and first-quarter reports. Therefore, investors in the market will be more cautious.
After the large swings in the first quarter of this year, the Shanghai composite index has dropped from 3500 points to 3100 points, so the risk has been greatly released.
The A-share market may remain fluctuated in the second quarter, but more structural investment opportunities are expected to emerge after the adjustment in the past few months.
Regarding the future market, in short term, it will experience some fluctuations due to the effect of risk appetite. Especially driven by the risk aversion under the trade battle, the gold, agriculture, and medicine industries are more likely to become the haven of money.
In long term, the U.S. trade sanctions actually highlights the necessity and urgency for the support of high-tech industries from the national level. The strong demand in China’s domestic market is the fundamental environment that will sustain the development of innovative enterprises.
The related innovative industries are expected to gain support from national level, thus, investors can choose from the leading stocks based on their cost performances.
Latest comments