[Daily Market Summary] The three major indices all rose over 1%, the pharmaceutical sector continued to explode, and tech stocks collectively rebounded

Ask AI · Behind the explosion of the pharmaceutical sector, how does innovative drug R&D drive market enthusiasm?

Cailian Press, April 1 — The market opened higher with volatility, with all three major indices rising over 1%, and the Sci-Tech Innovation Board 50 Index up over 3%. The combined trading volume of the Shanghai and Shenzhen markets reached 2.01 trillion yuan, an increase of 19.9 billion yuan compared to the previous trading day. On the market, hot spots rotated quickly, with nearly 4,500 stocks rising across the board. From the sector perspective, the pharmaceutical sector continued its strong momentum, with more than ten constituent stocks hitting the daily limit, Ruizhiyao Medicine’s 20cm limit-up, Jinyao Pharmaceutical’s four consecutive limit-ups, and Rundu Shares, AngliKang, and Kingmed Biological all hitting the limit. The concept of computing hardware surged rapidly, with ZhiliFang’s 20cm limit-up, setting a new historical high, and Reisconda, Mingpu Optoelectronics, and Yongding Shares also hitting the limit. The concept of computing power leasing fluctuated actively, with Aoruite hitting 6 limit-ups in 11 days. On the downside, the power sector weakened, with Guangxi Energy and Huitian Thermal Power hitting the limit down. High-speed rail and subway stocks collectively declined, with China Shenzhou High-Speed Rail falling back after hitting the limit, and Tongye Technology and Jiao Da Iron and Steel falling sharply. By the close, the Shanghai Composite rose 1.46%, the Shenzhen Component Index up 1.7%, and the ChiNext Index up 1.96%.

Sector Highlights

Pharmaceutical stocks continued to erupt, with Jinyao Pharmaceutical, Guangshengtang, Ruizhiyao Medicine, Kelai Ying, AngliKang, and Kingmed Biological hitting the limit, while Huiyu Pharmaceutical, Chengda Pharmaceutical, Yipinhong, Baili Tianheng, and Rejing Biological rose over 10%.

On the news front, the American Association for Cancer Research (AACR) annual meeting will be held in San Diego, USA, from April 17-22, 2026. Reports indicate that over 100 Chinese pharmaceutical companies will participate in AACR this year, presenting nearly 400 research results.

Recently, innovative drugs have shown good continuity, partly related to the continued hot trading of China’s innovative drug BD transactions. According to statistics, by the end of March, the total value of China’s innovative drug BD transactions since 2026 has exceeded $60 billion. Additionally, performance-driven factors are at play, with significant growth in annual report performances disclosed by key companies such as WuXi AppTec, Fosun Pharma, and 3S Health. Moreover, high-standard feedback from companies like Wanbangde and Jinyao Pharmaceutical has attracted accelerated inflows of active funds. However, after continuous volume expansion and rally, short-term sentiment may reach a climax. Without sufficient follow-up capital, some divergence within the sector is expected, so pay attention to short-term rhythm.

The computing power leasing sector also strengthened, with Meili Cloud, Aoruite, Hengrun Shares, and Electric Light Technology hitting the limit, and Hongjing Technology rising over 16%, with Shunwang Technology, Century Huatong, and UCloud Technology also leading gains.

On the news front, Zhizhu released its first annual report after listing, with 2025 performance exceeding expectations. Zhizhu’s MaaS API platform achieved an ARR of 1.7 billion yuan (about $250 million), a 60-fold year-over-year increase. In Q1 2026, Zhizhu’s API call pricing increased by 83%. Despite this, market demand remains strong, with a 400% growth in call volume. Currently, Zhizhu has become one of the domestic vendors with the highest paid token consumption.

Guojin Securities pointed out that the full-chain prosperity of domestic computing power is accelerating, with prospects for both volume and price increases. Under the strong logic of supply and demand, it is expected that in 2026, the computing power industry chain will enter a “full-chain inflation” cycle, with industry prosperity spilling over from core chips to AIDC, cloud and computing services, supporting power equipment, servers, and other segments.

Individual Stocks

On the individual stock level, short-term sentiment rebounded overall today, with nearly 4,500 stocks rising across the market. Among them, pharmaceutical stocks continued their strength, with Jinyao Pharmaceutical upgrading to 4 consecutive limit-ups. Wanbangde, although ultimately not hitting the limit, rose over 80% in the past 7 trading days. Additionally, heavyweight stocks like WuXi AppTec and Hengrui Medicine have also recently experienced continuous abnormal volume increases, with obvious signs of accelerated capital inflow, potentially forming a trend of oscillating upward. Furthermore, the hardware sector also rebounded, with ZhiliFang, Mingpu Optoelectronics, Zhongjing Electronics, and Yongding Shares hitting the limit, while Zhongji Xuchuang, Nanye Sheng, Tianfu Communications, and Dongshan Precision also performed well. From today’s market, hardware related to computing power remains the most resonant theme with the current indices, so related heavyweight capital feedback may significantly influence the overall market strength.

However, it should be noted that the performance of stocks hitting the limit today was still uneven. Of the 8 limit-up stocks yesterday, only Jinyao Pharmaceutical managed to hit the limit. This indicates that in a low-risk sentiment environment, short-term chasing high remains weak, and most sectors are likely to rotate. Pay close attention to low-entry opportunities during the adjustment of previously hot tracks.

Market Outlook

Today’s market saw a broad rally, with all three major indices rising over 1%. The Shanghai Composite filled the gap left on March 23, and the ChiNext Index rebounded near the 5-day moving average. However, it is important to note that the trading volume of both markets today was only 2.01 trillion yuan, with limited increase. Without sustained growth, the broad rally in individual stocks may not continue, and future indices are likely to experience oscillation and fluctuations. Focus on hot spot rotation to find structural opportunities.

Huaxi Securities believes that, given the ongoing geopolitical conflicts and their lingering impact on the market, cautious waiting remains the main approach, and a shift from defense to offense will take time. In terms of industry allocation, a defensive strategy is temporarily favored. Suggested sectors include: 1) banks, utilities, and essential consumer goods; 2) energy independence-related sectors such as new energy, electricity, energy storage, and lithium batteries; 3) high-growth sectors with solid performance, such as AI computing power and innovative drugs.

Market Highlights

1. South Korea’s March semiconductor exports surged 151.4% year-over-year, surpassing $30 billion for the first time

According to the “March Import and Export Trends” released by South Korea’s Ministry of Trade, Industry and Energy on April 1, South Korea’s export value in March increased by 48.3% year-over-year to $86.13 billion, setting a monthly record. Monthly exports have consecutively hit new highs for 10 months since June last year. The strong performance in March is mainly attributed to semiconductors. Semiconductor exports surged 151.4% year-over-year, surpassing $30 billion for the first time, reaching $32.83 billion.

2. New York City announces the reversal of the TikTok ban on government devices

On March 31, New York City Mayor Eric Adams announced that the city would allow the use of TikTok on government electronic devices again. He posted on the platform: “TikTok, we’re back.” According to the Associated Press, a memo from the New York City Mayor’s Office states that city departments are permitted to post content on TikTok, aiming to expand the city’s communication channels. The memo said, “We hope to open new channels for public engagement and help deliver information residents need.” It also requires official accounts to follow security measures, including using dedicated devices without sensitive data and appointing specific personnel to manage accounts. Since late 2022, the U.S. federal government and several states have banned TikTok on government devices citing “data security” concerns. Then-Mayor Eric Adams issued a similar ban in 2023.

(Cailian Press, Fenglin)