Ceasefire for two weeks! Asia-Pacific stock markets surged, the Shanghai Composite Index pushed up to 3,950 points, and market structure has changed.

Ask AI · Why is the focus on mispriced sectors amid changes in market structure?

On April 8, the “last-ditch deadline” saw a turning point as Asia-Pacific stock markets surged in early trading. South Korea’s composite index opened up more than 5%, Japan’s Nikkei 225 rose more than 4%, and China’s SSE Composite Index was up more than 1.5%, with the intraday trading climbing above the 3,950 level. On the trading boards, sectors such as nonferrous metals, machinery and equipment, and TMT led the gains. The market’s repair efforts have been concentrated on cyclical sectors that were previously overlooked and mispriced.

In the news, U.S. President Donald Trump announced that he would pause a military strike on Iran for two weeks. Iran, in turn, said it would ensure safe passage through the Strait of Hormuz during the two-week ceasefire.

A strategy team at Industrial Securities had previously judged that: after both sides move into substantive negotiations, once the phase driven solely by pricing panic and risk-appetite shocks passes, the market would gradually return to normal and the opportunity to kick off a “from my perspective” repair rally would emerge.

Industrial Securities also noted: Taking the April earnings disclosure period into account, the market has already undergone structural changes quietly. Pricing is increasingly focusing on the earlier “wrongly punished” areas of high certainty in the cyclical space. Sectors benefiting from high oil prices and defensive sectors are no longer “the only standout.” More standout areas—such as communications, pharmaceuticals, nonferrous metals, and building materials—are showing stronger performance.

A-share investors can use broad-market funds (broad indices) to capture the rebound and repair opportunity in a balanced way. For example, the CSI 300 Index: it balances sectors such as nonferrous metals, technology manufacturing, power equipment, and financial consumption, with strong earnings certainty, steady operations, and high dividend payout rates. At present, there are 30 ETFs tracking the CSI 300 Index. Among them, the CSI 300 ETF Huaxia (510330.SH) has a large fund size and relatively better liquidity, with a management fee of 0.15% per year (the lowest bracket across the whole market). The off-exchange index-linked fund is the Huaxia CSI 300 ETF Link C (005658.OF), which offers no redemption fee after holding for more than 7 days.

The Daily Economic News