On March 25, the A-share market sustained a strong rebound, with all three major indices opening higher and moving upward. The total turnover on the Shanghai and Shenzhen stock exchanges surpassed 2.5 trillion yuan, hitting a recent volume high. More than 4,500 individual stocks rose across the market, and the profit-making effect fully warmed up. On the disk, sectors including semiconductors, new energy and military industry led the gains. Northbound capital posted a net inflow of over 10 billion yuan in a single day, as foreign investors continued to increase positions in A-share core assets, demonstrating optimism about the long-term prospects of China’s capital market.
This A-share rebound is no accident, driven by the resonance of multiple positive factors. On the one hand, the PBOC’s liquidity support is in place, keeping market funding conditions loose. Institutional capital such as public funds and insurance capital accelerated its entry, and the public fund issuance market continued to recover, with multiple equity funds raising over 1 billion yuan in a single day. On the other hand, intensive Q1 earnings forecasts of listed companies have been released, and enterprises in new energy and high-tech manufacturing generally posted pre-increases, with corporate profit recovery supporting valuation rebounds. In addition, the Boao Forum for Asia sent positive signals, with steady growth in Asia’s economic growth rate and prominent resilience in China’s economic recovery, further boosting market confidence.
In terms of sector performance, the domestic substitution mainline continued to gain traction. The semiconductor sector was catalyzed by industry exhibitions and positive news on technological breakthroughs, triggering a surge of limit-up gains for individual stocks. The new energy industrial chain saw improving performance expectations amid recovering downstream demand. Relying on the new quality productive forces plan, the military industry sector boasts strong defensive and growth potential. Insiders remind that the current market is in a structural行情 stage. Investors can focus on sectors with solid performance certainty, avoid blind chasing of highs, and seize investment opportunities brought by valuation restoration and industrial upgrading.
