The ChiNext Index and the Shenzhen Component Index both fell by more than 1%. Stocks related to the go global concept collectively plummeted, with the two leading consumer electronics companies hitting the daily limit down. [Stock Market Closing Review]

The market experienced a downward trend throughout the day, with the ChiNext Index leading the decline. Consumer electronics and stocks with high export ratios collectively suffered heavy losses, with Luxshare Precision and Goertek among the stocks that hit the daily limit down. The total trading volume in the Shanghai and Shenzhen markets reached 1.14 trillion yuan, an increase of 163.1 billion yuan compared to the previous trading day. On the futures market, market hot topics were relatively scattered, with more stocks falling than rising, and over 3,100 stocks declining across the market. From a sector perspective, veterinary drug concept stocks surged against the trend, with Jinhe Biotechnology and others hitting the daily limit up. Logistics and unified market concept stocks showed strength, with Zhongchuang Logistics hitting the daily limit up. Consumer stocks were active, with Dalian Sunasia hitting the daily limit up. At the close, the Shanghai Composite Index fell 0.24%, the Shenzhen Component Index dropped 1.4%, and the ChiNext Index declined 1.86%. In terms of sectors, veterinary drugs led the gains, with core stock Huisheng Biotechnology rising over 10% again, up more than 170% in eight days. Additionally, Yongshun Biology, Haili Biology, Weilan Biology, and Jinhe Biology all hit the daily limit up. According to data from the China Veterinary Drug Association, in Q1 2025, the capacity of top-tier enterprise tylosin was reduced by over 40%, inventory turnover days dropped sharply from 45 days to 5 days, and the supply cycle extended to late June, directly leading to a significant reduction in the supply of tylosin tartrate. Recently, the price of tylosin tartrate reached 290 yuan/kg, hitting a two-year high. Additionally, it is worth noting that funds began to spread to other chemical directions in the afternoon, with Hongbaoli, Shandong Haihua, and Zhongyida all showing unusual movements in the late trading session. It is evident that the price increases in cyclical and chemical sectors remain a logic recognized by funds in the overall weak market environment, and opportunities for individual stock catch-ups can still be found along the "price increase line." Logistics and unified market concept stocks showed strength, with Zhongchuang Logistics, Wanlin Logistics, Tianshun Co., Changjiu Logistics, and Feilida all hitting the daily limit up. According to news, the General Office of the CPC Central Committee and the State Council issued the "Opinions on Improving the Price Governance Mechanism," which mentioned creating an orderly competitive market environment and abolishing price policies that hinder the construction of a unified national market and fair competition. China's logistics market has recently shown strong growth momentum. Data shows that in the first two months of this year, China's total social logistics reached 56.3 trillion yuan, up 5.3% YoY. Additionally, the number of supply chain contract orders from key logistics enterprises maintained rapid growth, indicating continuous optimization of logistics demand structure and accelerated collaborative transformation between producers and logistics enterprises. Overall, China's logistics market size is continuously expanding, showing a good development trend. Consumer stocks were also active, with tourism and retail sectors leading the gains. Dalian Sunasia, Lingnan Holdings, Yonghui Superstores, and Guofang Group all hit the daily limit up. According to news, the "Action Plan to Boost Consumption" issued by the General Office of the CPC Central Committee and the State Council, along with this year's more proactive fiscal policy, requires "leveraging the guiding role of fiscal policy," combining consumption promotion with improving people's livelihoods and addressing shortcomings. Institutions believe that the release of the "Action Plan to Boost Consumption" injects momentum into short-term consumption recovery from both supply and demand sides, laying the foundation for long-term structural upgrades and consolidating the main engine of economic growth. Additionally, the overall valuation level of consumer stocks remains relatively low, with their allocation value gradually becoming prominent. Subsequent attention can be prioritized on companies with better performance disclosures. From an individual stock perspective, stocks with high export ratios (going global) suffered heavy losses, with Jiangxin Home Furnishing, Sailun Tire, Great Star, CFMOTO, and Yinduo all hitting the daily limit down. The closely related consumer electronics sector also led the decline, with core stocks Luxshare Precision and Goertek both hitting the daily limit down. Additionally, core stocks with export logic such as PCB and CPO also saw significant declines. However, it is worth noting that today's sharp declines in related stocks more reflect the concentrated release of negative sentiment, and the substantive impact on their performance still requires further evaluation. Short-term theme speculation continues to be sluggish, with Kaimeite Gas's late-session plunge leaving Zhongqi New Materials as the only stock with more than two consecutive limit-ups. However, Huisheng Biotechnology's continuous positive feedback may indicate that the relatively independent price increase logic still holds high appeal for short-term active funds. Additionally, the unified market and consumer sectors also showed strength against the trend today. It is expected that with the continuous fermentation of public opinion during the holiday, market attention to these two directions may further increase, and there may be opportunities for individual stocks to stand out in the future. Affected by overseas news disturbances, the market continued to consolidate today, with all three major indices closing lower. However, the Shanghai Composite Index showed considerable resilience supported by consumer and dividend stocks, and the number of stocks hitting the daily limit up increased compared to yesterday. Although the overall market has not yet shown clear signs of stabilizing, after experiencing continuous low-volume consolidation, the downward momentum at the current level is relatively small, so there is no need to be overly pessimistic about the future. Patiently waiting for the full digestion of negative market sentiment, there may still be some recovery expectations. From a futures market perspective, as the market remains in a weak consolidation structure, overall risk appetite is still low, so low-position defensive sectors have received more attention from funds. Additionally, with the continuous disclosure of annual and Q1 reports, stocks or industries with performance exceeding expectations may also usher in structural opportunities. Market News Focus: 1. Ministry of Commerce: China is willing to exchange views with the US on important issues in the economic and trade fields. On April 3, the Ministry of Commerce held a regular press conference. When asked about the meeting plans of the China-US economic and trade teams, Ministry of Commerce spokesperson He Yadong stated that on March 26, He Lifeng, the Chinese lead of the China-US economic and trade team and Vice Premier of the State Council, had a video call with US Trade Representative Greer at the request. China has issued a press release. The economic and trade departments of China and the US have maintained communication. China is willing to exchange views with the US on important issues in the economic and trade fields and resolve respective concerns through equal dialogue and consultation. 2. Ministry of Commerce: Accelerating the implementation of foreign investment pilot projects in cloud computing, biotechnology, etc. On April 3, Ministry of Commerce spokesperson He Yadong stated that the Ministry of Commerce will further expand opening-up, accelerate the implementation of foreign investment pilot projects in cloud computing, biotechnology, and wholly foreign-owned hospitals, leverage the role of open platforms such as pilot free trade zones and national service industry opening-up pilots, promote the expansion of open pilots in telecommunications and medical fields, steadily and orderly expand independent opening-up in education and culture, promote the revision and reduction of the negative list for market access, and continue to clean up hidden barriers outside the negative list for foreign investment access, ensuring "both access and operation."

SMM

The ChiNext Index and the Shenzhen Component Index both fell by more than 1%. Stocks related to the go global concept collectively plummeted, with the two leading consumer electronics companies hitting the daily limit down. [Stock Market Closing Review]

On April 3, LME nickel inventory increased by 1,230 mt due to inventory growth in Kaohsiung and Guangyang.

Concerns over demand increased, SHFE copper continued to weaken [SHFE Market Closing Review on April 3]