The ChiNext Index fell by over 1%. Computing power stocks collectively rebounded in the afternoon. Can they lead the market to sound the counterattack horn? [Stock Market Closing Review]

The market experienced a volatile adjustment throughout the day, with the ChiNext Index leading the decline. The combined turnover of the Shanghai and Shenzhen markets reached 1.22 trillion yuan, an increase of 102.6 billion yuan compared to the previous trading day. On the futures market, market hotspots were relatively scattered, with more stocks falling than rising, and over 4,000 stocks declining across the market. In terms of sectors, computing power concept stocks rebounded, with Hangzhou Iron & Steel Co., Ltd. hitting the daily limit. Gold stocks remained active, with Hengxing Technology hitting the daily limit. Newly listed stocks strengthened against the trend, with C Huaye surging 36.96% at one point, triggering a temporary halt. On the downside, PV concept stocks performed weakly, with Junda Co., Ltd. hitting the daily limit. At the close, the Shanghai Composite Index fell 0.46%, the Shenzhen Component Index fell 0.97%, and the ChiNext Index fell 1.15%. In terms of sectors, gold stocks rose against the trend, with Western Gold hitting the daily limit again, and Chifeng Gold, Xiaocheng Technology, and ST Zhongrun leading the gains. On the news front, spot gold in London rose 0.94% to $3,084.33 per ounce last Friday, and COMEX gold futures rose 0.88% to $3,118, both continuing to hit record highs. Spot gold continued to rise on Monday, refreshing the record high to $3,120 per ounce. CITIC Securities' research report pointed out that the recent record high in gold prices was mainly driven by overseas market recession trading and tariff panic trading. Considering factors such as inflation, growth, tariffs, and geopolitics, the current gold market is far from over. From a market perspective, with other hotspots weakening, gold has gained favor due to its relatively independent logic and certain defensive attributes. Before the overall weak environment reverses, related stocks may still have opportunities for repeated activity. Computing power stocks rebounded in the afternoon, with Hongjing Technology hitting the 20CM daily limit to set a new record high. Hangzhou Iron & Steel Co., Ltd., Hengrun Co., Ltd., and Dawei Technology hit the daily limit, while Zheda Wangxin, Hainan Huatie, and Yunsai Zhilian led the gains. On the news front, Shenzhen issued the first batch of "Training Vouchers" on March 29, which will promote the doubling and expansion of existing intelligent computing power centers and build a batch of domestic intelligent computing power centers. Xingye Securities' strategy team believes that most directions in the AI industry chain have seen a significant easing of congestion, but in April, which focuses more on performance, it is important to find directions with strong internal performance certainty and cost-effectiveness. From a market perspective, the AI computing power direction has experienced a long period of consolidation, with relatively sufficient chip sedimentation. After the market collectively fell in the morning, short-term sentiment had reached a freezing point, so some began to try low absorption and return in the afternoon. In this context, the market feedback of computing power stocks tomorrow is crucial. If they can strengthen further, the overall market sentiment is expected to gradually warm up. At the individual stock level, short-term sentiment remained relatively weak today. On one hand, over 4,000 stocks across the market closed in the red, with more than 60 stocks falling over 9%. On the other hand, the number of stocks hitting the daily limit was still only over 30, with only Rongtai Health and Kaimeite Gas remaining above the 3-board level. However, the collective rebound of AI computing power stocks in the afternoon could be seen as a positive signal of sentiment warming. Among them, Hongjing Technology hit the 20CM daily limit to set a new record high, Hangzhou Iron & Steel Co., Ltd. and Dawei Technology hit the daily limit, and the diesel generator concept also saw a recovery, with Weichai Heavy Machinery leading the daily limit and Ketai Power Supply rising over 10%. In addition, the end-side direction also performed well, with Espressif Systems, Rockchip, and Quectel Communications showing strong performance. If AI, as a high-popularity market direction, can strengthen first, the market may sound the counterattack horn. It is also worth noting that the once-popular bull stock Huijin Technology hit the daily limit today. The company released a revised earnings forecast, expecting the lowest of total profit, net profit, and net profit after deducting non-recurring gains and losses for 2024 to be negative, and revenue after deduction to be less than 100 million yuan. With the arrival of the April earnings season, the risk of listed companies' earnings bombs is also a key point to guard against recently. Today, the market continued its weak adjustment, with all three major indices closing lower, and the trading volume of the two markets remained around 1.2 trillion yuan. However, in the short term, after the previous continuous volume shrinkage adjustment, the short-term risks of previous thematic hotspots have been relatively fully released. Therefore, when short-term sentiment reached a freezing point, the market still showed some momentum in the afternoon driven by computing power stocks, which could be seen as a positive signal. However, for the market to truly strengthen, it still needs to quickly stand above the 5-day line with volume. In addition, the direction of AI computing power tomorrow is also crucial. If it can form positive feedback, it will naturally help attract more funds to enter the market for recovery, and short-term sentiment will gradually warm up. On the contrary, if it weakens again, it will undoubtedly deal another blow to market confidence. At that time, it is advisable to remain cautious and patiently wait for a direction that can resonate with the index before following. 1. Hubei Sets Prices for Brain-Computer Interface Medical Services, a National First Caixin, March 31 - The Hubei Provincial Medical Insurance Bureau released the national first price for brain-computer interface medical services on March 31, marking the entry of this cutting-edge technology into the field of people's livelihood. Among them, the cost of invasive brain-computer interface implantation is 6,552 yuan per time, the cost of invasive brain-computer interface removal is 3,139 yuan per time, and the cost of non-invasive brain-computer interface adaptation is 966 yuan per time. 2. MIIT: Focus on Key Areas Such as Artificial Intelligence and Key Software to Cultivate a Batch of Innovation Achievement Transformation Platforms Caixin, March 31 - The State Council Information Office held a press conference today on the 8th Digital China Construction Summit. Wang Yanqing, Director of the Information Technology Development Department of the Ministry of Industry and Information Technology, stated that they will promote original digital technology research, focus on key areas such as artificial intelligence, key software, and industrial internet, deepen the integration of technological innovation and industrial innovation, cultivate a batch of innovation achievement transformation platforms, help the industrialization of scientific and technological achievements, and continuously improve the independent innovation capability of digital technology. They will implement the digital industry high-quality enterprise cultivation project, establish a multi-level, phased, and progressive enterprise cultivation system, cultivate a batch of ecologically dominant enterprises with industrial chain control, carry out digital industry cluster gradient cultivation actions, further leverage industrial agglomeration advantages, and create a batch of internationally competitive digital industry clusters.