The easing of Middle East tensions ignites the A-shares! The Shanghai Composite Index approaches 4,000 points, and the ChiNext Index rises over 5%.

On April 8th, against the backdrop of easing geopolitical tensions and a significant increase in market risk appetite, the A-share market experienced a strong rebound. By the close of trading, the Shanghai Composite Index rose by 2.69%, closing at 3,995 points; the Shenzhen Component Index increased by 4.79%, closing at 14,042.5 points; and the ChiNext Index gained 5.91%, closing at 3,347.61 points.

Wind statistics show that a total of 5,164 stocks across the two markets and the Beijing Stock Exchange rose, 301 declined, and 24 remained unchanged.

The total trading volume was 2.4345 trillion yuan, an increase of 820.1 billion yuan from the previous trading day’s 1.6144 trillion yuan. Among them, the Shanghai market’s turnover was 1.0742 trillion yuan, up 350.3 billion yuan from 723.9 billion yuan the day before; the Shenzhen market’s turnover was 1.3603 trillion yuan.

In terms of market sectors, the AI industry chain collectively surged, with the computing power leasing concept leading the gains. Major stocks such as Dawei Technology, Xingyun Technology, Aoruid, Hanggang Shares, and Huafu Fashion hit the daily limit-up. The hardware computing power concept also rose rapidly, with Zhongji Xuchuang up over 10%, hitting a new all-time high, and Mingpu Optical Magnetic, Dongshan Precision, Huatian Shares, and Shennan Circuit also reaching the daily limit.

AI application stocks performed actively, with more than ten constituent stocks hitting the limit-up, including BlueFocus 20CM and Zhisheng Information 30CM. The precious metals concept also advanced collectively, with Hunan Gold, Sichuan Gold, and Western Gold hitting the daily limit-up. On the downside, oil and gas concepts experienced a collective correction, with Zhongman Petroleum, Beken Energy, and Lanyan Holdings hitting the limit-down.

On the news front, U.S. President Trump announced a two-week pause on military strikes against Iran, while Iran stated it would ensure the safe passage through the Strait of Hormuz during the two-week ceasefire.

Qianhai Open Source Fund Chief Economist Yang Delong told Jiami News: “Both the U.S. and Iran are showing willingness to cease fire due to domestic pressures. Trump’s announcement of a two-week ceasefire has led to increased global risk appetite, a sharp drop in oil prices, and a surge in Asia-Pacific and Hong Kong stocks. The Middle East conflict does not change the long-term slow bull trend of the A-shares market; the recent decline is a ‘bull’s head-turning’ correction. As the Middle East situation clarifies, the market is expected to recover the 4,000-point level and start a new round of gains.”

He recommends adopting a “New Dumbbell Strategy” for investments this year: “One end of the ‘dumbbell’ represents leading tech stocks focused on innovation, especially those highlighted in the ‘14th Five-Year Plan,’ such as robotics, chips and semiconductors, computing algorithms, commercial aerospace, solid-state batteries, and controlled nuclear fusion; the other end consists of traditional blue-chip stocks with heavy assets and low volatility, known as ‘HALO assets,’ such as power grid equipment, non-ferrous metals, coal, oil and gas, and other resource and energy sectors. These remain key focus areas for the market.”

Regarding the future trend, many market institutions remain optimistic. Huatai Securities stated that the situation in the Middle East has eased, with Trump agreeing to a two-week pause on strikes against Iran, and Iran accepting a ceasefire proposal from Pakistan. From last night’s asset performance, U.S. stocks rebounded intraday, crude oil plummeted, and the VIX (volatility index) spiked then retreated. The positive sentiment has shifted from psychological to practical actions. However, uncertainties remain, as the VIX remains high, indicating the market has not fully priced in the end of the conflict, so position management is advised.

Huaxi Securities analyst Li Lifeng previously said that 2026 marks the beginning of the “15th Five-Year Plan,” with multiple departments expected to introduce more industry support policies and investment plans. Fiscal and monetary policies will also work together to create a friendly environment for the market. As corporate profits enter a moderate recovery phase, 2026 is expected to be a “big year” with multiple positive factors stacking up, providing a solid foundation for market upward movement.

For allocation, two main directions are recommended: the first group includes previously oversold sectors. Analyzing the top sectors in decline in March, such as TMT, non-ferrous metals, steel, building materials, machinery, these are aligned with the spring market cycle and the main themes of technology, benefiting from the easing of rate cut expectations. Machinery is driven by external demand. The second group involves sectors related to low oil prices and independent cyclical growth, such as AI chains and innovative drugs. From a medium-term perspective, ongoing conflicts have exposed energy security issues, so continue to monitor the power supply chain, as short-term adjustments may present opportunities for deployment.