Opportunities in the Growth Enterprise Market!

On Monday’s sharp decline, the support levels and trading response measures were discussed. The support levels are at 3822 and 3761 points. The market dropped 3.63% that day, closing at 3813.28. In terms of trading, a rapid rebound is expected after a sharp decline. When the price approaches the bottom of the range, staying flat and not acting is a good choice. [Taogu Ba]

Yesterday and today, the market experienced two consecutive days of rebound. Yesterday closed with a bullish engulfing pattern, up 1.78%, and today the Shanghai Composite Index rose another 1.3%. After two days of gains, the gap left on the daily chart between 3955.71 and 3906.62 has now been more than half filled.
Compared to yesterday and the day before, trading volume has also increased. The combined turnover of Shanghai, Shenzhen, and Beijing markets was 2.19 trillion yuan, an increase of 968 billion yuan from the previous trading day. Individual stocks continued to rise broadly, with over 4,800 stocks up across the market, including 105 stocks hitting the daily limit. This marks two consecutive trading days with a hundred stocks hitting the limit. The median of gains and losses is 1.63%.
The Shenzhen Component Index rose 1.95% today, and the ChiNext Index increased by 2.01%. The trends of the Shenzhen and ChiNext indices remain stronger than the Shanghai Composite, especially the ChiNext, which had a long lower shadow yesterday and a small positive candle today, now above all moving averages. Therefore, short-term opportunities still favor the ChiNext, particularly leading stocks in the sector.
The market’s direction yesterday mentioned green energy, energy storage, energy metals, and photovoltaics. Coupled with the redefinition of tokens as “lexemes” by the National Data Bureau, these are sectors with potential for performance growth and fundamental improvement. Similar to previous hype around price increase concepts, lexemes now represent a new type of business logic acceleration. For example, in March this year, the daily token call volume exceeded 140 trillion, a two-year increase of over a thousand times. Now, in the AI era, tokens are like water, electricity, coal—essential resources. Kimi, for instance, has achieved a revenue record in 20 days surpassing the total annual revenue of 2025.

The core of the hype around green energy, energy storage, and photovoltaics is policy-driven constraints, new demand from computing power collaboration, profit recovery, and low valuation resonance. The photovoltaic industry is expected to face deep internal competition and price drops by 2025, with anti-inflation policies and price stabilization expected in 2026, leading to strong profit turnaround expectations for leading companies. Energy storage is a necessity for the new power system, with mandatory storage for computing power collaboration. The bidding prices in Q1 have risen, and the supporting energy storage continues to be catalyzed. Green energy is driven by the 14th Five-Year Plan, increasing demand for data centers, and rising valuations due to higher prices. Currently, these are solid logical supports.
Today’s top traded stocks include New Easy-Sense, Zhongji Xuchuang, Zijin Mining, Baiwei Storage, Lixun Precision, Tianfu Communications, Huagong Tech, Sunshine Power, CATL, Cloud Network, Demingli, and Hudian Shares. Aside from non-ferrous metals, it’s clear that these leading ChiNext stocks are outperforming the broader market against the trend.
Currently, there are two main concerns: one is quantitative trading issues, and the other is the progress of the Iran situation. Iran is generally retreating, while the US is constantly seeking an exit. Iran still needs a tough stance. Recently, some liquidity providers have surrendered, and some economists have pointed out issues with quantitative trading. For example, quantitative strategies can also analyze liquidity providers and quickly beat them, which is why some liquidity providers have recently surrendered.
The key point is that during market declines, quantitative strategies also suffer performance losses. For instance, a well-known billion-yuan quantitative private fund, Ming Sun Investment, saw a net value decline of 14.69% over about two weeks in some macro strategies, while the CSI 300 index only fell 4.28% in the same period.
The market still requires everyone’s joint effort. The result of everyone trying to “harvest the chives” is that eventually there are no chives left to harvest!