The three major A-share stock indices opened higher collectively, with over 5,100 stocks rising at the open.

April 1, the three major A-share stock market indexes opened significantly higher. Among them, the Shanghai Composite Index rose 1.23% to 3,939.57 points; the Shenzhen Component Index rose 1.88% to 13,731.39 points; and the ChiNext Index rose 2.21% to 3,255.26 points.

From the trading board, semiconductors and computing power hardware-themed stocks rebounded, while memory and the CPO direction led the gains; gold, AI computing power, industrial metals, network security, commercial aerospace, consumer electronics, and other concept stocks were active. Oil and gas and coal sectors fell back.

According to Wind statistics, a total of 5,156 stocks on both markets and the National Equities Exchange and Quotations (NEEQ) rose, 235 stocks fell, and 97 stocks were flat.

In terms of funds, the People’s Bank of China conducted a 500 million yuan seven-day reverse repo operation in the open market, with the operation interest rate at 1.40%. Wind data shows that 78.5 billion yuan in reverse repo matured today, with a net cash withdrawal of 78.0 billion yuan for the day.

Regarding margin trading and financing, the financing balance across both markets decreased by 8.16B yuan, with a combined total of 2.58T yuan across both markets.

In terms of the exchange rate, the RMB-to-US dollar midpoint rate was set at 6.9025, up by 169 basis points.

Regarding the April market that is about to kick off, Yang Chao, Chief Analyst for Strategy at China Galaxy Securities, believes that with the launch of ceasefire talks between the U.S. and Iran and the gradual elimination of uncertainty factors in the earnings season, the market is likely to enter a stage of range-bound base building and structural rotation. The three major logics—policy support, funds entering the market, and re-pricing of Chinese assets—have not changed. The downside room for A-shares is relatively limited, so it is recommended to adopt a strategy centered on performance and to position for opportunities.

Meng Lei, a China Stocks Strategy Analyst at UBS Securities, believes that from a macro perspective, China’s reliance on oil and natural gas is lower than in the global major economies. Considering the emergence of incremental macro policies, the spark of technological innovation, and the ongoing reforms in capital markets and market value management, the valuation of the A-share market is expected to be repaired over the medium term.

Tian Xuan, a Peking University Boya Distinguished Professor, said that Chinese assets, including A-shares, will showcase distinct advantages through their relatively independent supply-chain resilience, continuously expanding domestic demand market, and policy-led advancement of technological innovation. “In particular, our country has ample room for macro policy. Monetary policy is more flexible than that of other major global economies. Fiscal policy continues to step up support for technological innovation and industrial upgrading, providing A-share tech sectors with valuation support that is more certain and long-term growth space.” He said.

A China Securities Research report from CITIC Jianjiang (CITIC Jiantou) states that the spillover effects of the Middle East conflict continue to become increasingly evident, and global asset pricing logic faces re-evaluation. On March 27, the European Federation for Transport and Environment released a report stating that, affected by the U.S.-Iran conflict, since February 28, cumulative additional fuel costs in global shipping have exceeded 4.6 billion euros. Ship fuel prices have risen significantly. At the same time, foreign financial institutions pointed out that the impact of the Middle East conflict on the market is entering a new stage, and investors’ focus is shifting from inflation shock to suppression of global economic growth and supply-chain resilience. In the short term, an escalation of geopolitical tensions will raise costs for crude oil and shipping logistics, increasing global market volatility and demand for hedging. This is favorable for crude oil, shipping, and certain inflation-hedging assets, while also creating disturbances for global equity risk assets. In the medium to long term, if the conflict continues to intensify, the global supply-chain repair process may be hindered, the energy and transportation cost midpoints may remain at high levels, and it will further increase global asset pricing uncertainty.