Huajin Strategy: A-shares may have bottomed out in the short term; consider buying on dips in high-quality technology and certain cyclical industries.

Investment Highlights

After reviewing history, the core drivers for A-shares to hit bottom after a rapid adjustment due to external events are a rebound in economic fundamentals, the reduction of negative factors, a repair following pessimistic sentiment, and constructive policies. (1) Since 2003, A-shares have reached a bottom after short-term rapid adjustments triggered by external events a total of 9 times, with an average duration of 33 trading days and an average decline of 12.2%. (2) The core drivers for hitting bottom after rapid adjustments include a rebound in economic fundamentals, the reduction of negative factors, and capital returning after pessimistic sentiment is released. One is that the rebound in economic fundamentals is the core factor leading the market to bottom: for example, among the 7 rapid adjustments since 2010, 6 reached a bottom alongside rebounds in export year-over-year growth rates, industrial enterprise profit growth rates, and the like. Two is that the reduction of negative factors also plays an important role in bottoming: after the 9 external-event shocks since 2003, A-shares all bottomed at the time when the event impact was most severe, with subsequent shocks diminishing at the margin. For example, after the 2008 U.S. establishment of the Federal Housing Finance Agency to take over the “two GSEs,” and in 2020 when the domestic COVID-19 situation was effectively brought under control. Three is that the release of pessimistic sentiment and inflows of stock-market funds are also drivers of bottoming: first, when the market bottoms after rapid adjustments, sentiment indicators and valuations are both at low levels or have fallen sharply. The Shanghai Composite Index’s PE percentile on average fell to 26.5%, and trading value on average fell 57.8%. Second, during rapid adjustments, financing and foreign capital often see large outflows, followed by some inflow; for example, within 30 trading days after A-shares hit bottom, among 3 instances of foreign capital, 2 saw daily average inflows rise, and among 6 instances of financing, 4 saw daily average inflows rise. Four is that the introduction of proactive policies also has a positive role in helping the market reach bottom—for example: in April 2003, the Central Government set up a 2 billion yuan “SARS” prevention and treatment fund; in November 2008, the “Four Trillion” plan was proposed; in 2011, structural tax cuts were implemented; in 2018, the central bank reduced reserve requirements multiple times, accelerated the issuance of local government special bonds, and introduced employment-stabilization policies; in April 2020, the central bank carried out targeted RRR cuts and established 1 trillion yuan in anti-epidemic special treasury bonds; by late May 2022, the State Council issued 33 measures across 6 areas to stabilize the economy; in January 2025, 13 trillion yuan of ultra-long special treasury bonds supported “two major categories” and “two new initiatives.”

Looking at the current situation, fundamentals may continue to rebound, overseas risks have already been released, pessimistic sentiment has been relatively fully priced in, and policies are leaning positive—so A-shares may have likely already bottomed in the short term. (1) In the short term, the economy and corporate earnings may continue to be on a rebound trend. First, the economy may continue to rebound in the short term: (i) manufacturing activity may move further upward; (ii) property sales have stabilized somewhat in the short term, and as construction becomes seasonally robust, infrastructure investment may maintain relatively high growth rates. Second, in the short term, corporate earnings may continue to rise: (i) the PPI year-over-year growth rate may keep rebounding and industrial enterprise profit growth may continue its upward trend; (ii) with commodity prices staying elevated and tech hardware sentiment remaining strong, A-shares’ Q1 earnings growth may remain in a rebound cycle. (2) In the short term, overseas risk release and pessimistic sentiment may already have been relatively sufficient, and policies may still lean positive. First, short-term overseas risk release is relatively sufficient: (i) the capital market’s expectations for further escalation of the U.S.-Iran conflict are relatively low; (ii) the likelihood of a deal being reached through U.S.-Iran talks and the conflict ending in the near term still remains. Second, valuation and sentiment adjustments have been relatively sufficient, but they have not reached historical extreme lows. Third, short-term policies may still be somewhat positive. (3) In the short term, liquidity may continue to be relatively loose, and capital in the stock market may see some return.

Sector allocation: In the short term, continue to allocate at low levels to top-performing technology sectors and some cyclical sectors. (1) During the bottoming consolidation period, top-performing technology and cyclical sectors may have relatively better performance. First, reviewing history: during bottoming consolidation, sectors with policy support, upward industry trends, and leading rankings in earnings growth tend to perform relatively better. Second, from the current perspective, in the short term, sectors such as electronics, communications, non-ferrous metals, and power equipment may have relatively better performance. (2) Earnings growth in Q1 may be relatively strong for sectors such as transportation, non-ferrous metals, electronics, computers, and defense. First, sectors including steel, computers, media, and defense have relatively strong Q1 earnings growth according to Wind consensus forecasts. Second, sectors such as transportation, non-ferrous metals, TMT, and utilities have relatively strong cumulative year-over-year growth in industrial enterprise profits for January–February 2026. Third, sectors such as real estate, coal, and defense and military industries may benefit this year’s Q1 earnings growth from the low base. Fourth, in upstream sectors such as petroleum and petrochemicals, non-ferrous metals, and chemicals, Q1 industry sentiment may improve, while midstream sectors such as electronics and communications may see some improvement in Q1 sentiment. (3) In the short term, the recommendation is to continue allocating at low levels: first, communications (AI hardware), electronics (semiconductors, AI hardware), electric power & new energy (AI power, energy storage), innovative drugs, non-ferrous metals, chemicals, and defense (commercial aerospace) with policy support and upward industry trends; second, low-valuation value dividend sectors such as coal, power, and banks.

Risk warning: Past experience may not necessarily apply in the future; changes in policies beyond expectations; and economic recovery that falls short of expectations.

Main content

I. Have A-shares bottomed out in the short term?

(I) Reviewing history: Fundamentals rebound and negative factors diminish, leading to the market bottoming in the short term

After reviewing history, the core drivers for A-shares to hit bottom after a rapid adjustment due to external events are a rebound in economic fundamentals, the reduction of negative factors, a repair following pessimistic sentiment, and constructive policies. (1) Since 2003, A-shares have reached a bottom after short-term rapid adjustments triggered by external events a total of 9 times, with an average duration of 33 trading days and an average decline of 12.2%. (2) The core drivers for hitting bottom after rapid adjustments include a rebound in economic fundamentals, the reduction of negative factors, and capital returning after pessimistic sentiment is released. One is that the rebound in economic fundamentals is the core factor leading the market to bottom: for example, among the 7 rapid adjustments since 2010, 6 reached a bottom alongside rebounds in export year-over-year growth rates or industrial enterprise profit growth rates. Two is that the reduction of negative factors also plays an important role in bottoming: after the 9 external-event shocks since 2003, A-shares all bottomed at the time when the event impact was most severe, with subsequent shocks diminishing at the margin, such as after the 2008 U.S. Federal Housing Finance Agency took over the “two GSEs,” and in 2020 when the domestic COVID-19 situation was effectively controlled. Three is that the release of pessimistic sentiment and inflows of stock-market funds are also drivers of bottoming: first, when the market bottoms after rapid adjustments, sentiment indicators and valuations are both at low levels or have fallen sharply. The Shanghai Composite Index’s PE percentile on average fell to 26.5%, and trading value on average fell 57.8%; second, during rapid adjustments, financing and foreign capital often see large outflows, followed by some inflow—such as within 30 trading days after A-shares hit bottom, among 3 instances of foreign capital, 2 saw daily average inflows rise, and among 6 instances of financing, 4 saw daily average inflows rise. Four is that the introduction of proactive policies also has a positive role in helping the market reach bottom: for example, in April 2003, the Central Government set up a 2 billion yuan “SARS” prevention and treatment fund; in November 2008, the “Four Trillion” plan was proposed; in 2011, structural tax cuts were implemented; in 2018, the central bank reduced reserve requirements multiple times, accelerated the issuance of local government special bonds, and introduced employment-stabilization policies; in April 2020, the central bank carried out targeted RRR cuts, and established 1 trillion yuan in anti-epidemic special treasury bonds; by late May 2022, the State Council issued 33 measures across 6 areas to stabilize the economy; in January 2025, 13 trillion yuan of ultra-long special treasury bonds supported “two major categories” and “two new initiatives.”

(II) From the current perspective, A-shares may have already bottomed in the short term

From the current perspective, fundamentals may continue to rebound, overseas risks have been relatively well released, pessimistic sentiment has been relatively sufficient, and policies lean positive—so A-shares may have likely already bottomed in the short term. Specifically:

In the short term, the economy and earnings may continue to be on a rebound trend. (1) The short-term economy may continue to rebound. One is that the domestic manufacturing PMI improved in March: March manufacturing PMI rose from 49.5 in February to 50.5, already in the expansion zone. Among the subcomponents, the input prices for raw materials and new export orders rebounded significantly (up 9.1 and 4.1 percentage points, respectively). This indicates external demand is relatively strong and manufacturing sentiment improves due to rising raw material prices. In the short term, with continued factors such as high export growth and elevated commodity prices, manufacturing sentiment may move further upward. Second, external demand may remain strong in the short term: March U.S. manufacturing PMI rose to 52.7 (from 52.4 previously); and February retail sales year-over-year growth rose to 3.7% (from 3.2% previously). Both continue to rebound, showing external demand is still strong in the near term. In addition, the U.S.-Iran conflict has led to higher global energy costs, further highlighting China’s cost advantage, meaning short-term exports may maintain a relatively high growth rate. Third, high-frequency data show the economy continues to rebound in the short term: first, the year-over-year decline in weekly transactions of commodity housing in Tier-1, Tier-2, and Tier-3 cities has recently narrowed noticeably. The data on March 29 show weekly transaction year-over-year growth rates for commodity housing in Tier-1, Tier-2, and Tier-3 cities were -15.5%, -16.2%, and 9.1%, respectively (previously -23.0%, -0.8%, and -16.3%, respectively). Also, in March, the year-over-year declines in second-hand home transactions in Beijing, Shenzhen, Chengdu, and Hangzhou narrowed sharply versus February (in March: 0.1%, -12.3%, -9.1%, and -38.1%; in February: -32.4%, -33.5%, -33.6%, and -52.2%). This shows that with policy easing, property sales may stabilize somewhat in the short term. Second, recently the utilization rates of rebar steel and electric furnaces have rebounded significantly: the latest rebar blast furnace/rebar utilization rate recorded 39.0%, and the latest electric furnace utilization rate recorded 62.8%. Compared with the low level in February, this is a clear rebound. With the arrival of the construction peak season, infrastructure investment may maintain relatively high growth rates. (2) In the short term, corporate earnings may continue to rise. First, the cumulative year-over-year growth rate of industrial enterprise profits in January–February is as high as 15.2%, showing a significant rebound. This mainly comes from the rebound in PPI driving the rebound in industrial enterprise profits. Going forward, commodity prices may remain strong, PPI year-over-year growth may continue to rebound, and industrial enterprise profit growth may continue its upward trend. Second, among A-shares companies whose 2025 annual reports have already been disclosed, the proportion of companies with positive year-over-year earnings growth is 58.0%. Among them, cyclical and technology sectors such as steel, non-ferrous metals, and electronics have already disclosed relatively high annual report earnings growth rates: 124.5%, 66.0%, and 44.8%, respectively. Looking ahead, with commodity prices staying elevated and tech hardware sentiment remaining high, A-shares’ Q1 earnings growth may continue to be in a rebound cycle.

In the short term, overseas risk release and pessimistic sentiment may already be relatively sufficient, and policies may still lean positive. (1) Overseas risk release in the short term is already relatively sufficient. One is that Trump’s statement suggests he will deliver a more forceful strike on Iran within the next two or three weeks; crude oil prices have risen to $110 per barrel, but major global stock markets such as the U.S. stock market have been relatively strong overall. This indicates the capital market’s expectations for further escalation of the U.S.-Iran conflict are relatively low, while expectations for ending the conflict within two months are stronger. Second, Iran allows some oil tankers to pass through the Strait of Hormuz, showing there is still a possibility that U.S.-Iran negotiations may reach an agreement and the conflict may end in the short term. (2) Valuation and sentiment adjustments have been relatively sufficient, but they have not reached historical extremely low levels. One is that on April 3, the Shanghai Composite Index PE percentile was 54.3% (historical average 26.6%). Second, since February 28, the maximum decline in trading value is 47.1% (historical average 57.8%). (3) In the short term, policies may still lean positive. One is on total policy measures: the central bank emphasized continuing to implement an appropriately loose monetary policy and to increase efforts in counter-cyclical and cross-cycle adjustments. The Ministry of Finance proposed continuing to implement a more proactive fiscal policy, focusing on expanding the fiscal expenditure envelope, optimizing the tool mix for government bonds, and improving the effectiveness of transfer payment funds. Second, on sectoral policy measures: the State Council clearly stated it will increase support for the service sector through fiscal and tax, financial, and factor guarantees. The “Special Action Plan for Boosting Consumption” was released, featuring eight major actions. It also arranged ultra-long special treasury bonds to support the “trade-in of old for new” for consumer goods, and promoted cross-border VAT refund for “buy now and get a refund immediately.”

In the short term, liquidity may still remain loose, and stock-market capital may see some return. (1) Short-term macro liquidity may remain loose. One is that as oil prices rise, market expectations for Fed rate cuts within the year have dropped significantly. According to CME, the Fed is basically not expected to cut rates in the remaining months this year (CME estimates the probability of a rate cut in December is 23.2%). However, given that economic and employment conditions remain relatively weak, the likelihood of the Fed raising rates within the year is also low (CME estimates the probability of a rate hike in December is 2.1%). Second, the maturing size of 4月 MLF is large (600 billion yuan), so the central bank may still increase funding injections in the short term. (2) Stock-market capital may return in the short term. One is that historical experience shows that during periods of rapid adjustments, A-shares financing and foreign capital tend to flow out more (financing flowed out 4 times out of 6; foreign capital flowed out 2 times out of 3). In contrast, during bottoming consolidation periods, foreign capital typically flows in significantly (average 76.73 billion yuan). Second, since the U.S.-Iran conflict began on February 28, financing has cumulatively flowed out by 71.6 billion yuan. As near-term sentiment may stabilize, foreign capital and financing may see some return in the short term.

II. Sector allocation: In the short term, continue to allocate at low levels to top-performing technology, some cyclical sectors, and low-valuation value dividend sectors

(I) Top-performing technology and cyclical sectors tend to outperform during bottoming consolidation periods

Top-performing technology and cyclical sectors may be relatively stronger during bottoming consolidation periods. (1) Reviewing history: during bottoming consolidation periods, sectors supported by policies, with upward industry trends, and with leading rankings in earnings growth tend to be relatively stronger. One is that sectors supported by policy during bottoming consolidation periods are relatively stronger. For example, from 2008/11/5 to 2008/12/31, power equipment, building materials, real estate, and other sectors that benefited from the Four Trillion policy stimulus and supported infrastructure investment demand were relatively stronger; from 2020/3/24 to 2020/5/22, food & beverage and beauty & personal care were relatively stronger, benefiting from the “Implementation Opinions on Expanding Consumption and Improving Quality to Accelerate the Formation of a Strong Domestic Market” and consumption coupon issuance in many parts of the country. Two is that sectors with upward industry trends are relatively stronger—for example, from 2003/4/28 to 2003/7/1, media surged in demand for online entertainment due to the SARS epidemic, and industries such as internet media had an upward trend and thus were relatively stronger. Three is that sectors with leading earnings growth rankings are relatively stronger—for example, from 2003/4/28 to 2003/7/1, automobiles, steel, and the like had earnings growth rankings of 1st, 2nd, and 4th, corresponding to rebound ranking of 3rd, 4th, and 5th; from 2020/3/24 to 2020/5/22, beauty & personal care had an earnings growth ranking of 1st and the corresponding rebound ranking also of 1st; from 2025/4/8 to 2025/4/30, beauty & personal care and media had earnings growth rankings of 2nd and 3rd, with corresponding rebound rankings of 1st and 3rd. (2) From the current perspective, in the short term, sectors such as electronics, communications, non-ferrous metals, and power equipment may be relatively stronger. One is that sectors such as power and electric power & new energy are supported by policies in the short term—for example, this year’s Two Sessions emphasized “power computing coordination,” proposed establishing a national low-carbon transition fund, and supported green fuels. The “Implementation Opinions on Improving the Unified National Power Market System” further deepened power-sector reforms; and the “Basic Rules for the Power Medium- and Long-Term Market” abolished fixed time-of-use electricity pricing, among other changes. Second, AI demand-driven AI hardware sentiment may continue to rise. Rising commodity prices for related items such as petrochemicals, non-ferrous metals, and chemicals could also keep cyclical sectors’ sentiment moving upward. Third, based on disclosed performance data from 2025 annual reports, in tech growth sectors, electronics, computers, and power equipment have relatively higher annual report earnings growth rates: 44.5%, 30.9%, and 27.1%, respectively. In cyclical sectors, steel, non-ferrous metals, and chemicals also have relatively higher annual report earnings growth rates: 124.5%, 66.1%, and 14.3%, respectively.

(II) Q1 earnings growth may be relatively high for transportation, non-ferrous metals, electronics, computers, and similar sectors

1. Wind consensus forecasts indicate Q1 earnings growth is relatively high for steel, computers, media, defense, and others

Wind consensus forecasts indicate Q1 earnings growth is relatively high for steel, computers, media, defense, and others. Wind consensus forecasts for Q1 earnings growth are relatively high for steel, computers, media, and defense, at 315.7%, 104.0%, 95.0%, and 81.6%, respectively.

2. January–February industrial enterprise profit growth may be relatively high for transportation, non-ferrous metals, TMT, utilities, and others

For January–February 2026, cumulative year-over-year growth in industrial enterprise profits may be relatively high for transportation, non-ferrous metals, TMT, utilities, and others. (1) Cumulative year-over-year growth in industrial enterprise profits for January–February 2026 is relatively high for transportation, non-ferrous metals, TMT, and utilities, at 31.2%, 22.6%, 19.5%, and 13.9%, respectively. (2) Compared with full-year 2025, cumulative year-over-year growth in industrial enterprise profits for January–February 2026 improved notably for automobiles, transportation, pharma, and utilities, increasing by 30.8pp, 19.8pp, 14.7pp, and 10.5pp, respectively.

3. This year’s Q1 earnings growth for real estate, coal, defense and military industries, and others may benefit from a low base

This year’s Q1 earnings growth for real estate, coal, defense and military industries, and others may benefit from a low base. (1) This year’s Q1 earnings growth for real estate, coal, defense and military industries, and others may benefit from a low base: first, Q1 2025 earnings growth rates were relatively low for real estate, coal, defense and military industries, and others, at -804.8%, -28.2%, and -25.0%, respectively. Second, net profit year-over-year growth rates in 2025 annual reports (disclosed comparable basis) were low for light industry manufacturing, commercial retail, real estate, and others, at -431.2%, -325.4%, and -125.2%, respectively—so there may be relatively more room for performance growth in this year’s Q1. (2) This year’s Q1 earnings growth faces high-base pressure for computers, agriculture/forestry/animal husbandry/fishery, steel, and others: first, Q1 2025 earnings growth rates were high for computers, agriculture/forestry/animal husbandry/fishery, steel, and others, at 2309.9%, 925.6%, and 539.3%, respectively, facing high-base pressure. Second, net profit year-over-year growth rates in 2025 annual reports (disclosed comparable basis) were high for steel, non-ferrous metals, and electronics, at 124.5%, 66.0%, and 44.8%, respectively, so Q1 performance growth this year may also face some pressure.

4. Upstream: petrochemicals, non-ferrous metals, chemicals, electronics, and communications see improved Q1 industry sentiment this year

Upstream: Q1 industry sentiment may improve for sectors such as petrochemicals, non-ferrous metals, and chemicals. (1) Petrochemicals: first, the U.S.-Iran conflict led to a dramatic contraction in global crude oil supply, and Brent crude prices continued to rise. In Q1, the futures closing price rose 94.6%, and petrochemicals sector profits are expected to improve significantly. Second, the surge in crude oil prices also drives higher refined product prices. As of March 20, the price of diesel (0#国VI)价格较1月31日低点上涨26.7%，汽油(95#国VI) rose 28.1% from the low point of January 31. (2) Chemicals: first, the U.S.-Iran conflict caused shipping through the Strait of Hormuz to be blocked, leading to shortages and price increases for chemical products such as phosphoric acid, sulfur, and bromine. Second, under centralized domestic maintenance schedules, supply contractions for items such as butadiene and acrylic acid drove price increases. Third, the explosion in demand for new energy and energy storage further pushed up prices for lithium salts and phosphate chemicals, among others. (3) Non-ferrous metals: first, small metal products such as indium, tungsten, and rare earths generally saw price increases due to policy tightening and contraction. Second, the explosion of AI + and new energy drove price increases for indium, tungsten, lithium, and others.

Midstream: Q1 sentiment may improve somewhat for electronics, communications, and other sectors. (1) Electronics: first, benefiting from a surge in storage demand, in Q1 storage chips saw sharp price increases—for example, the spot average prices in Q1 for DRAM:DDR4 16Gb(2Gx8)3200 and DRAM:DDR4 8Gb(1Gx8)3200 rose by 13.2% and 38.8%, respectively. Second, the surge in AI demand pushed both quantity and price higher for GPU/AI chips, AI servers, PCB, and other components. (2) Communications: benefiting from the surge in AI computing demand, sentiment is expected to improve for optical modules, fiber optic cables, and other items. In addition, export value growth remains strong for laser transceiver modules of optical communication equipment, with February同比 up 26.6%.

(III) In the short term, continue to allocate evenly among top-performing technology, some cyclical sectors, and low-valuation value dividend sectors

In the short term, the recommendation is to allocate at low levels to communications (AI hardware), electronics (semiconductors, AI hardware), electric power & new energy (AI power, energy storage), innovative drugs, non-ferrous metals, chemicals, defense (commercial aerospace), and other sectors with supportive policies and upward industry trends. (1) Communications: first, December’s optical cable output rose for two consecutive months, up 8.73% month-over-month, up 27.24% versus October, and up 6.20% year-over-year. Second, the 2026 China On-Device AI Chips and Smart Terminal Innovation Conference will be held in Shenzhen from April 9–11, 2026. The conference focuses on breakthroughs in on-device AI chip technology, ecosystem integration, and innovation in smart terminals. It gathers industry strength to explore technical paths and application scenarios, injecting strong momentum into industry chain upgrades. (2) Electronics: first, the 14th China Electronics Information Expo (CITE2026) will be held in Shenzhen on April 9–11 at the Shenzhen Convention and Exhibition Center (Futian). The expo is themed “New Technologies, New Products, New Scenarios,” and sets up eight exhibition areas: consumer electronics, embodied intelligence, AI big models/intelligent computing centers, AI+ application scenarios, integrated circuits, low-altitude economy, electronic components, special electronics, and dual-use electronics technologies. It systematically showcases innovation across the entire industrial chain. Second, the 2026 (5th) Semiconductor Ecological Innovation Conference will be held in Shanghai on April 22–23. This conference is themed “Ecosystem Deep Integration and Innovation-Driven Breakthrough,” bringing together efforts from government, industry, academia, research, and application stakeholders to help China’s semiconductor industry strengthen its core competitiveness and promote efficient global integration and coordinated development of the semiconductor industry. (3) Electric power & new energy: the 2026 (6th) Forum on Technology Development and Industry Development of Solid Oxide Batteries will be held in Chengdu, Sichuan on April 15–17, 2026. The forum is themed “Stepping into the SOC-scale Net-Zero Carbon Era,” accelerating the connection across the industrial chain and contributing to the energy-structure transition under the dual-carbon goals. (4) Healthcare/pharmaceuticals: first, the 8th World Healthy Life Expo will be held in Wuhan at the Optics Valley of China Science & Technology Exhibition Center on April 8–10. The expo will gather global wisdom through innovative formats, injecting new momentum into high-quality development of the industry. Second, the 2026 CMEF 93rd China International Medical Devices Exhibition will be held at the National Exhibition and Convention Center from April 9–12. (5) Non-ferrous metals: first, the Non-ferrous Metals Industry Intelligent Manufacturing, Low-Carbon Standards Conference and Standards Dissemination Meeting will be held in Quzhou, Zhejiang Province on April 7–10, 2026. It focuses on key hot directions for intelligent manufacturing and digital transformation standards and low-carbon standards during the “15th Five-Year Plan” period, accelerating the development, implementation, and application of standards. Second, the SMM AICE (21st) Aluminum Industry Conference and Aluminum Industry Expo will be held in Suzhou, Jiangsu, from April 8–10. This expo brings together high-quality resources from global aluminum industry chains and downstream terminal application fields, building an ecosystem platform for coordinated upstream and downstream development in the aluminum industry. (6) Chemicals: first, the acetic acid operating rate rose for multiple consecutive days in March; by mid-March, the acetic acid operating rate reached the highest level in nearly half a year and fluctuated near that peak. Second, the 2026 International Chemical New Materials Cooperation and Overseas Expansion Summit will be held in Suzhou on April 14. The conference will conduct in-depth exchanges around topics such as “overseas chemical park investment promotion policies,” “overseas investment regulations,” and “overseas-funded enterprise briefings.” Third, the 4th COC/COP Technology and Market Conference will be held in Shenzhen on April 8–10. The conference will provide an exchange platform to improve the trial-production qualification rate for COC/COP, accelerate application verification and optimization, and improve effective production capacity of installations. (7) Defense: first, the 2026 Defense Industry Surface Engineering Technology Conference will be held in Chengdu, Sichuan on April 22–24, 2026. The meeting is themed “Low-Carbon Leading the Way, Digital Intelligence Empowering, and Integration-Driven Development,” helping advance high-quality development of China’s defense science and technology industry and equipment manufacturing. Second, the 2026 China Aerospace Conference (China Space Conference 2026) will be held in April 2026, strengthening aerospace systems engineering construction, promoting scientific development in the aerospace industry, and facilitating cooperation and exchanges at home and abroad.

In the short term, the recommendation is to allocate at low levels to low-valuation value dividend sectors such as coal, power, and banks. (1) Coal: first, market prices for high-quality coal in Shanxi have risen. As of March 20, Shanxi premium coal market prices were up 6.04% versus January 10, and up 6.71% year-over-year versus the same period last year. Second, the 2026 Intelligent Mine Development Conference will be held in Changji International Convention and Exhibition Center, Xinjiang, on April 18–20, 2026. The conference will summarize phased experience from intelligent mine construction in Xinjiang and other areas, promote intelligent upgrades for non-coal mines, and push toward normalized operations of intelligent coal mines. (2) Power: first, the completed investment amount for grid projects increased. In February, the completed amount was up 5.88% versus December of last year, and up 92.10% year-over-year versus the same period last year. Second, the 2026 Electric Power Market Innovative Development Forum will be held in Nanjing, Jiangsu on April 14–15, 2026. It focuses on interpretations of industry policies and market-based trading practices, deeply explores frontier trends and response strategies, and jointly promotes healthy and orderly development of the power market. (3) Banks: “GoGlobal Connect” service is expected to officially launch in mid-April 2026. This is not only Hong Kong’s Trade Development Council’s strategic move to connect with the “15th Five-Year Plan” of the country, but also a “super accelerator” for mainland enterprises to reach the global market via Hong Kong.

III. Risk warning

1. Historical experience may not necessarily apply in the future: the relevant reviews in the text have historical limitations. Changes in market conditions across different periods, industry trends, and global economic environments can have different impacts on investments. Past performance is for reference only.

2. Policies changing beyond expectations: economic policies influenced by the macro environment, sudden events, and international relations may change beyond expectations or fall short of expectations, thereby affecting investment decisions under the current analysis framework.

3. Economic recovery falls short of expectations: affected by external disruptions, trade disputes, natural disasters, or other unpredictable factors, the economic recovery process may experience fluctuations, thereby affecting investment decisions under the current analysis framework.

(Source: Huajin Securities)