A-share market closing report | Index volume surges! Shanghai Composite Index breaks through 4200 points, leading the bull market in a strange move.

Today, the market is strong and advancing, with the Shanghai Composite Index breaking through the 4200 points mark and the ChiNext Index rising over 3%, both hitting new highs since 2015. The Sci-Tech Innovation 50 Index temporarily rose over 5%, reaching a historical high, igniting a surge in chip-related stocks and leading brokerage stocks to surge in the afternoon. The market traded 3.5 trillion RMB throughout the day, with an increase of nearly 500 billion RMB compared to the previous trading day, and more stocks rising than falling. In terms of market performance, the AI industry chain, including storage chips, computational chips, and optical modules, exploded, with JCET Group Co., Ltd. hitting the limit up and reaching a historical high, with a total market value approaching 100 billion RMB. Stocks like Toyou Feiji Electronics and Puya Semiconductor (Shanghai) Co., Ltd. also hit the limit up. In terms of news, South Korean semiconductor concept stocks soared, with SK Hynix and Samsung Electronics also hitting record highs. In other hot spots, large financial sectors such as securities firms saw movements in the afternoon, with Guangdong Golden Dragon Development Inc. hitting the limit up and stocks like Changjiang following suit. Liquid-cooled server concepts rose mid-day, with stocks like Moon Environment Technology, Zhejiang Dayuan Pumps Industry, Shenzhen Invt Electric, Zhuhai Bojay Electronics, and Jiangsu Seagull Cooling Tower hitting the limit up. PCB concepts were active, with stocks like Han's Laser Technology Industry Group and DELTON hitting the limit. On the downside, the port and shipping concepts collectively adjusted, with stocks like GH SHIPPING and China Merchants Energy Shipping falling. Looking ahead, foreign institutions continue to be optimistic about the Chinese capital market. Goldman Sachs believes that A-shares will create excess returns for investors in areas such as artificial intelligence and the "15th Five-Year Plan." In the short term, stock prices may fluctuate, but in the long run, investing real money in research and development will definitely yield high-quality results. The tech narrative is reshaping the foundation of the capital market, and in the next five years, it is believed that more hard-tech companies will take the center stage in the A-share market. Looking at individual stocks, 3121 stocks rose in both markets, while 2239 declined and 155 remained flat. A total of 134 stocks hit the limit up, while 30 hit the limit down. At the close, the Shanghai Composite Index rose by 1.08% to 4225.02 points, with a turnover of 1584 billion RMB; the Shenzhen Component Index rose by 2.16% to 15899.30 points, with a turnover of 19545 billion RMB. The ChiNext Index rose by 3.50% to 3928.97 points. Funds Trends Today, the main funds focused on semiconductor, component, and photovoltaic equipment sectors, with top-net inflow stocks including Shanghai Electric Group, JCET Group Co., Ltd., and Zhongji Innolight. News Recap 1. CAAM: In April, the export of new energy vehicles reached 430,000, an increase of 1.1 times year-on-year According to the China Association of Automobile Manufacturers, in April, the production and sales of new energy vehicles in China increased steadily. The latest data shows that in April, the production and sales of new energy vehicles were 1.32 million and 1.344 million, an increase of 5.5% and 9.7% year-on-year respectively. The sales of new energy vehicles reached 53.2% of the total vehicle sales. In terms of exports, the export of new energy vehicles reached 430,000, an increase of 1.1 times year-on-year. Moreover, from January to April, China's new energy vehicle exports reached 1.384 million, an increase of 1.2 times year-on-year. 2. New Flexible Monocrystalline Silicon Cells to support Commercial Spaceflight and Space Photovoltaic Development The Tianzhou-10 spacecraft will carry samples of flexible packaging monocrystalline silicon solar cells into space, conducting in-orbit space environment experiments. This experiment will provide technical support for China's commercial space internet networking, space computing power, and future space photovoltaic industry development. The flexible monocrystalline silicon solar cells carried by Tianzhou-10 were independently developed by a Chinese research team over three years. After the cells were encapsulated by researchers, they were sent into space using a specialized experimental unit and will be placed on an exposed experimental platform outside the Chinese space station to conduct exposure testing under extreme space conditions such as space particle radiation, ultraviolet radiation, and atomic oxygen erosion. Researchers will compare the performance data before and after in-orbit testing with ground simulation experiments to verify the match between ground experimental models and real space environments, and understand the degradation patterns of cell performance. Compared to the current mainstream gallium arsenide solar cells in space, these flexible monocrystalline silicon cells are lightweight, flexible, and can be rolled up, weighing less than one kilogram per square meter with lower transportation costs, making them only one-tenth the cost of gallium arsenide cells. 3. National Bureau of Statistics: In April, China's Consumer Price Index rose by 1.2% year-on-year and 0.3% month-on-month The National Bureau of Statistics released data on May 11 showing that in April 2026, China's Consumer Price Index rose by 1.2% year-on-year. In cities, it rose by 1.2%, while in rural areas, it rose by 1.0%; food prices fell by 1.6%, while non-food prices rose by 1.8%; consumer goods prices rose by 1.4% and service prices rose by 0.9%. On average from January to April, China's Consumer Price Index increased by 0.9% year-on-year. In April, China's Consumer Price Index rose by 0.3% month-on-month. In cities, it rose by 0.3%, while in rural areas, it rose by 0.1%; food prices fell by 1.6%, while non-food prices rose by 0.7%; consumer goods prices rose by 0.1% and service prices rose by 0.5%. Market Outlook 1. China Galaxy: In the short term, the market may face a pattern of consolidation and increased differentiation In the short term, the US-Iran conflict remains a source of repeated disturbances, but the market's sensitivity to external conflict events has weakened, with the impact gradually converging on the margin. Future events such as Trump's visit to China and the change of the chairman of the Federal Reserve have become external focus points of the market. The structural highlights in China's domestic fundamentals are prominent, providing for a market with upward potential supported by business performance. With the Shanghai Composite Index approaching 4200 points, the market may face a pattern of consolidation and increased differentiation in the short term. The overall trend of upward movement remains unchanged, with a focus on sector rotation and structural market movement. The emphasis continues to be on focusing on main line opportunities and grasping structural positioning directions. 2. CITIC Securities: Given the continually strengthening trend of existing market structures, actively reducing volatility is the better choice Recently, the momentum of the tech stock market in China, the US, Japan, and South Korea has been continuously strengthening. However, no matter how strong the industry trend is, excessively steep short-term slopes may lead to significant volatility. The ChiNext Index currently has a Momentum Strength Index (MSI) reading of 64.4, which is still within a historically reasonable range. It is worth noting that on May 7th, the reading was 71.9, very close to the critical value of 75 in the strong acceleration zone, before a pullback occurred on May 8th. Even though the industry trend related to artificial intelligence is strong, an unusually strong momentum and steep upward slope in the short term may indicate increased volatility ahead. In this context, for existing funds, actively reducing portfolio volatility may be a better choice. 3. East Money Information Securities: The trend of the AI industry is primary, market sentiment and fund speculation are derivatives of the trend In the three trading days after the May Day holiday, the communication and electronics sectors led the market, confirming that the diffusion of AI prosperity has become the core clue for the market's post-"April Decision." The observation priority of the main theme is: US AI capital spending > Chinese computational hardware domestic substitution > Chinese AI commercialization. The primary reason is that the trend of the AI industry is primary, and market sentiment and fund speculation are derivatives of the industry trend. Only when AI Capex is high, can the continuity of the main theme be financially guaranteed, and other aspects such as domestic substitution and application catching up are extensions and extensions of the main theme. The capital expenditures forecasts collectively increasing among the four major cloud companies in North America in 2026 and the expectation of high increases in 2027 have dispelled market concerns about the "peak of AI capital expenditures", and signals such as token volumes, self-developed chips by large factories, continued commercialization, and year-over-year restoration of ROIC further strengthen the sustainability of prosperity. This article is republished from "Tencent Self-selected Stocks", edited by Liu Jiayin.