May Starts with a Strong Performance! All Three Major Indices Rise by Over 1%, Nearly 5,000 Stocks Rise Across the Market [[Stock Market Review]]

The market opened higher and closed higher throughout the day, marking a strong start after the holiday. The ChiNext Index led the gains, with the Shanghai Composite Index closing above the 3,300-point mark. The total trading volume on the Shanghai and Shenzhen stock exchanges reached 1.34 trillion yuan, an increase of 166.8 billion yuan from the previous trading day. On the futures market, hot topics rotated in a healthy manner, with more stocks rising than falling. Nearly 5,000 stocks across the market advanced. In terms of sectors, stocks related to controlled nuclear fusion collectively surged, with multiple stocks such as Hailu Heavy Industry hitting the daily limit. Stocks related to HarmonyOS and computing power oscillated higher, with over 10 stocks including Nantian Information hitting the daily limit. Robot concept stocks remained active, with multiple stocks such as Nanshan Zhishang hitting the daily limit. By the close, the Shanghai Composite Index rose 1.13%, the Shenzhen Component Index rose 1.84%, and the ChiNext Index rose 1.97%.

Sector Analysis

Among sectors, stocks related to controlled nuclear fusion led the gains, with multiple stocks such as Zhongzhou Special Materials, Jiusheng Electric, Hailu Heavy Industry, Yurui Group, Yongding Corporation, and Hefei Forging Press Group hitting the daily limit.

On the news front, on May 1, the final assembly work for the Hefei Compact Fusion Energy Experimental Device (BEST) project officially commenced, two months ahead of the original schedule. Based on the first-generation Chinese artificial sun, the EAST device, this facility will achieve the first demonstration of fusion energy power generation, advancing research on burning plasma physics and providing pioneering support for China's fusion energy development.

Huatai Securities released a research report stating that controlled nuclear fusion is transitioning from short-term thematic investment to long-term industrial investment. It is expected that approximately 2-3 fusion energy devices will be constructed and commissioned globally each year in the coming years, accelerating the industry's progression from 0 to 1. Industry chain tenders and orders are expected to receive sustained catalysts, with the annual global investment scale for controlled nuclear fusion projected to reach 10-90 billion yuan in the future.

Robot concept stocks remained active, with multiple stocks such as Nanshan Zhishang, Rongtai Electric, Riying Electronics, and Longxi Corporation hitting the daily limit. Stocks such as Lixing Corporation, Zhaofeng Corporation, Demax, Hanyu Group, and Jinggong Technology also led the gains.

On the news front, during the "Labour Day holiday", the 2025 China Robot Competition and RoboCup China Open kicked off. Numerous robot teams gathered to compete in football, dance, rescue, and other events, showcasing the innovative vitality of the robotics field. From a market perspective, the robot concept sector exhibited a healthy rotation structure, with an increasing number of stocks reaching new highs through oscillatory upward movements. Against the backdrop of the sector's continued recovery, there are still opportunities to monitor the catch-up gains of some low-positioned stocks.

Stocks related to HarmonyOS oscillated higher, with Changshan Beiming achieving two consecutive daily limits. Stocks such as Jiulian Technology, Tianyuan Dico, Nantian Information, and Dianguang Technology also hit the daily limit. Additionally, large-cap stocks such as Towei Information, Chengmai Technology, iSoftStone, and Runhe Software also led the gains.

On the news front, according to media reports, the Huawei Developer Conference HDC·2025 is scheduled to take place from June 20-22. According to the invitation letter released by Huawei, attendees can deeply experience the latest design of HarmonyOS at this conference. Furthermore, the HarmonyOS PC version may also make its debut at this event.

As a highly popular market direction, the HarmonyOS concept successfully boosted market risk appetite. With accelerated capital inflows into technology and growth sectors, topics related to the HarmonyOS ecosystem, such as AI, the Internet of Things, and intelligent driving, remain key areas of focus. Additionally, the strength of the HarmonyOS concept will drive up the popularity of domestically developed and controllable concepts, offering opportunities to monitor extended speculative plays in areas such as information technology application innovation, chips, and software localisation.

Stock Analysis

At the individual stock level, market enthusiasm significantly increased today. With nearly 5,000 stocks advancing, over 100 stocks hit the daily limit or rose by more than 10%, with a 50% success rate for stocks advancing to the next trading day. Among them, Chongqing Three Gorges Paints A achieved five consecutive daily limits, while another stock that had previously achieved four consecutive daily limits, Hongbo Corporation, although failing to advance further, still rose by over 8%. Additionally, Jingjin Electric, which achieved three consecutive 20CM daily limits, successfully expanded the market's upside potential. Therefore, with the improvement in market risk appetite and the positive feedback effect of capital, core stocks in popular themes may have certain premium spaces.

Furthermore, from today's trading volume rankings, stocks such as Towei Information, Changshan Beiming, Runhe Software, Shenghong Technology, and Sichuan Changhong all ranked in the top ten, indicating that capital is accelerating its inflow into these popular large-cap stocks. These stocks can be regarded as important bellwethers. As long as their oscillatory upward trend structures remain intact, the growth style represented by technology stocks will continue.

Market Outlook

Today's market presented a broad-based rally, with all three major indices rising by over 1%. Nearly 5,000 stocks rose, and trading volume significantly increased. After experiencing consecutive days of shrinking volume consolidation before the holiday, capital once again chose to increase volume and attack today. From a technical perspective, the Shanghai Composite Index effectively stood above the 30-day moving average, and the daily KD indicator formed a golden cross again, suggesting that the short-term rebound structure may continue. Additionally, with the completion of earnings disclosures, market risk appetite has significantly improved, and capital is accelerating its inflow into small-cap growth stocks represented by technology, which may become the mainstream market style. However, it should be noted that without sustained incremental capital inflows, the current trading volume level of around 1.3 trillion yuan may not be enough to support the simultaneous activity of so many hot topics. It is expected that the market will likely continue in a rotational upward pattern in the future. Grasping the rhythm of rotation between hot topics may be the key to the market in the near term.

Market News Highlights

1. SZSE Revises Guidelines for Evaluating Members' Client Trading Behavior Management, Adding Evaluation of Algorithmic Trading and Margin Trading Management

Caijing.com.cn, May 6 - The Shenzhen Stock Exchange (SZSE) recently revised the "Guidelines for Evaluating Members' Client Trading Behavior Management" to further strengthen members' responsibilities in managing client trading behaviors and better leverage the supervisory and guiding role of the evaluation mechanism. It is understood that this revision adds upper-level regulatory bases, refines the content of member evaluations, and includes two new evaluation aspects: "members' management of algorithmic trading" and "members' management of margin financing and securities lending transactions". It also adds content to the existing evaluation of "members' collaborative self-regulatory supervision", such as the management of key monitored securities and strengthening client trading risk warnings. Additionally, the revision optimizes the provisions on the application of evaluation results, clarifying that for members with a two-star or lower evaluation rating and a score below 70, verbal inquiries and cautionary talks may be conducted, but no self-regulatory measures will be taken. For members with a two-star or lower evaluation rating and a score below 60, they will, in principle, be included in the scope of on-site inspections. (China Securities Jove)

2. Ministry of Foreign Affairs: China and the European Parliament Decide to Synchronously and Comprehensively Lift Restrictions on Mutual Exchanges

Caijing.com.cn, May 6 - Foreign Ministry spokesperson Lin Jian hosted a regular press conference on May 6. A reporter asked whether it was true that China and the European Parliament had mutually lifted exchange restrictions, as reported. Lin Jian stated that over the past few years, exchanges between Chinese and European legislative bodies had encountered some setbacks due to well-known reasons. Under the current circumstances, both sides believe that strengthening dialogue and cooperation between China and Europe is of great importance. After mutual consultations, China and the European Parliament have decided to synchronously and comprehensively lift restrictions on mutual exchanges. We believe and expect that with the full resumption of exchanges between legislative bodies of China and Europe, communication and understanding between the two sides will deepen, injecting new impetus into the sustained, healthy, and stable development of China-Europe relations.