The three major indices jumped initially and then pulled back, showing mixed performance. Over 3,800 stocks in the entire market rose. [Stock Market Closing Review]

The market jumped initially and then pulled back throughout the day, with the three major indices showing mixed changes. The total turnover of the Shanghai and Shenzhen markets reached 1.13 trillion yuan, shrinking by 89.3 billion yuan compared to the previous trading day. On the futures market, the hot topics were relatively scattered, with more stocks rising than falling, and over 3,800 stocks across the market gaining. Sector-wise, pharmaceutical stocks collectively strengthened, with innovative drugs leading the gains, and stocks like Harlsan and others hitting the limit-up. Controlled nuclear fusion concept stocks surged again, with Hefei Forging Intelligent and others hitting the limit-up. Power stocks were active, with Lixin New Energy and others hitting the limit-up. On the downside, fintech concept stocks declined in the afternoon, with Compass dropping over 8%. Sectors like controlled nuclear fusion, innovative drugs, traditional Chinese medicine, and power led the gains, while humanoid robots, computing power, software development, and fintech led the declines. At the close, the Shanghai Composite Index rose 0.38%, the Shenzhen Component Index fell 0.01%, and the ChiNext Index fell 0.09%.

Sector-wise

On the sector front, pharmaceutical stocks led the gains, with stocks like Duorui Pharmaceutical, Harlsan, Rendu Pharmaceutical, Lukang Pharmaceutical, Luoxin Pharmaceutical, and Hehua Pharmaceutical hitting the limit-up.

Recent policy news in the medical and pharmaceutical sectors has been continuous: 1) Yesterday, the State-owned Assets Supervision and Administration Commission encouraged state-owned enterprises to conduct mergers and acquisitions in fields like biopharmaceuticals; 2) The Comprehensive Department of the National Medical Products Administration recently solicited public opinions on measures to optimize life cycle regulation and support the innovative development of high-end medical devices; 3) The National Healthcare Security Administration held a seminar to optimize centralized drug procurement, with market expectations that the meeting may advance detailed rules for optimizing drug procurement.

Xiangcai Securities believes that the construction of a diversified payment mechanism for domestic innovative drugs is progressing steadily, and 2025 is expected to be a turning year for policy implementation. First, the first version of the Class C medical insurance catalog is expected to be released within the year, and second, new measures to improve drug pricing mechanisms and further support innovative drugs are expected to be implemented, deepening the full-chain support for innovative drug policies.

From a market perspective, pharmaceutical stocks are relatively low in their own hierarchy, with relatively sufficient chip accumulation. Combined with the aforementioned positive news catalysts, they have been repeatedly active in the recent futures market. However, it should be noted that today's strength in pharmaceutical stocks did not attract enough incremental funds, and the impact on market sentiment was relatively limited. Therefore, as of now, pharmaceutical stocks are still viewed as a hot topic rotation theme.

Controlled nuclear fusion concept stocks also strengthened, with stocks like Zhongzhou Special Materials, Hefei Forging Intelligent, Lanshi Heavy Equipment, and Hailu Heavy Industry hitting the limit-up. Stocks like Guoguang Electric, China Nuclear Engineering, Snowman, and Baoli Electric led the gains.

On the news front, reporters recently learned from China National Nuclear Corporation that the new-generation artificial sun "China Circulation III" has achieved a breakthrough in both nuclear and electron temperatures exceeding 100 million degrees for the first time, with a significant leap in comprehensive parameters, marking a major progress in China's controlled nuclear fusion technology. Additionally, it is reported that since the beginning of this year, the tender work for projects of companies like Fusion New Energy (Anhui) and the Institute of Plasma Physics of the Chinese Academy of Sciences has entered an accelerated phase, with cumulative tenders exceeding 46.

CITIC Securities pointed out in a recent research report that the controlled nuclear fusion industry still has a strong cognitive and expectation gap. The market generally believes that the industry's realization is relatively distant, but a large number of orders will enter a concentrated realization period, and there may be potential top-level industry design or support fund expectations. Additionally, the fusion industry has a high business overlap with third-generation nuclear power and military material companies, with clear performance growth and reasonable valuations in the nuclear power and military material industries. A large number of companies are expected to see a resonance of performance and valuation in the future. In the period of sentiment repair, the direction of active strengthening is expected to continue to receive short-term active funds' favor.

Stock-wise

From the stock level, short-term sentiment slightly warmed up today, with the number of limit-up and consecutive limit-up stocks slightly increasing compared to yesterday. Among them, the controlled nuclear fusion concept exploded across the board, with core target Hefei Forging Intelligent hitting 5 limit-ups in 7 days, and Lanshi Heavy Equipment hitting 3 limit-ups in 6 days, while relatively back-row stocks like China Nuclear Engineering and Guoguang Electric further strengthened during today's session. The biopharmaceutical direction was active again, with Huisheng Biological completing a reversal and recording 3 limit-ups in 5 days, and stocks like Hehua Pharmaceutical and Jinhe Biological also hitting the limit-up. However, pharmaceutical stocks mostly showed a trend-based upward pattern, and subsequent opportunities for low absorption of some highly active stocks can still be noted. Chemical stocks also saw some capital return, with Hongbaoli performing a "ground-to-sky limit-up," and stocks like Huarong Chemical and Huide Technology hitting the limit-up. However, as a previous high-profile target, Zhongyida failed to reverse the nuclear and still ended with a limit-down, indicating that the market still has significant divergence in this direction. The lithography machine concept also showed partial activity, with Kaimeite Gas advancing to 4 limit-ups (the highest consecutive limit-up stock), Xinlai Yingcai also rising over 10%, and Guofeng New Materials hitting the limit-up again.

Overall, in a market environment of存量博弈, the various hot topics are likely to continue the震荡轮动态势, so the market feedback of the core stocks of the aforementioned popular themes may to some extent reflect the strength of the theme on the day, and can also be regarded as an important reference for intraday response.

Post-market analysis

Today, the market jumped initially and then pulled back throughout the day, with the three major indices showing mixed changes, and the volume shrinking again compared to yesterday. Currently, the indices are still suppressed by the 5-day line, with the ChiNext Index even pulling back and ending slightly lower after rising over 1% during the session. This shows that the market's wait-and-see sentiment is still relatively strong, and the subsequent structure is likely to continue震荡筑底. From the perspective of the futures market, the problem of poor continuity of hot topics has not improved. The computing power direction, which rebounded in resonance with the indices yesterday afternoon, fell into differentiation and consolidation again today. Even the leading pharmaceutical and controlled nuclear fusion concepts today still saw many stocks炸板回落 in the afternoon. Therefore, to truly achieve a转强 in the post-market, in addition to the increase in volume, there is an urgent need for a hot topic that can continuously form positive feedback,重塑短线的做多信心.

Market news focus

1. Three departments: Promote the pilot of科技金融政策, support insurance companies to initiate the establishment of私募证券基金 to invest in the stock market and hold for the long term

Caixin, April 1st, the General Office of the National Financial Regulatory Administration, the General Office of the Ministry of Science and Technology, and the General Office of the National Development and Reform Commission issued the "Implementation Plan for High-Quality Development of科技金融 in the Banking and Insurance Industry," promoting the pilot of科技金融政策. The equity investment pilot of financial asset investment companies will be expanded in an orderly manner to regions with strong economic strength, a large number of科技企业, significant R&D investment, and active equity investment, supporting qualified commercial banks to initiate the establishment of financial asset investment companies. Deepen the pilot reform of long-term investment of insurance funds, support insurance companies to initiate the establishment of私募证券基金, invest in the stock market and hold for the long term. Carry out the pilot of科技企业并购贷款, study the expansion of pilot banks, regions, and enterprises, support科技企业, especially "chain leader" enterprises, to conduct industrial integration, and畅通资本循环. Carry out the comprehensive pilot of知识产权金融生态, develop知识产权金融业务, and study the expansion of the internal evaluation pilot of知识产权.

2. Three departments: In the next 5 years, the banking and insurance industry will accelerate the construction of financial service systems and mechanisms compatible with科技创新

Caixin, April 1st, the General Office of the National Financial Regulatory Administration, the General Office of the Ministry of Science and Technology, and the General Office of the National Development and Reform Commission issued the "Implementation Plan for High-Quality Development of科技金融 in the Banking and Insurance Industry." In the next 5 years, the banking and insurance industry will accelerate the construction of financial service systems and mechanisms compatible with科技创新, gradually健全科技金融制度, improve professional service mechanisms, product systems, professional capabilities, and risk control capabilities, continuously develop the external ecosystem, expand, improve, and enhance科技信贷 and科技保险, provide more precise, high-quality, and efficient financial guarantees for key areas and weak links of科技创新, and accelerate the realization of high-quality development of科技金融.