Boosted by the positive news from the China-US economic and trade talks, the three major indices of Hong Kong stocks strengthened across the board. At the close, the Hang Seng Index rose by 2.98% to close at 23,549.46 points; the Hang Seng Tech Index rose by 5.16% to close at 5,447.35 points; and the HSCEI rose by 3.01% to close at 8,559.23 points. Note: Performance of the Hang Seng Index and the Hang Seng Tech Index Joint statement on China-US economic and trade talks in Geneva boosts market confidence The joint statement on China-US economic and trade talks in Geneva was released on the website of the Ministry of Commerce. According to the statement, China will reduce tariffs on US goods from 125% to 10% within 90 days, while the US will reduce tariffs on Chinese goods from 145% to 30% within the same period. Spurred by this news, the Hang Seng Tech Index once surged over 6% in the final trading session today, while the Hang Seng Index also rose over 3% during the same period. Short-selling data in the market Today's market In terms of market performance, stocks in the technology, consumer electronics, military, automotive, and shipping sectors led the gains, while pharmaceutical and gold stocks declined. Technology stocks boosted by positive news At the close, Alibaba-W (09988.HK), Baidu Group-SW (09888.HK), and Tencent Holdings (00700.HK) rose by 6.15%, 5.03%, and 4.63%, respectively. Note: Performance of technology stocks In terms of news, technology stocks were boosted by the positive news from the China-US meeting. Similarly, consumer electronics stocks also strengthened due to this news. At the close, Cowell E Holdings (01415.HK), AAC Technologies Holdings (02018.HK), and Sunny Optical Technology (Group) (02382.HK) rose by 18.45%, 15.37%, and 14.83%, respectively. Note: Performance of consumer electronics stocks Military stocks continue to rise At the close, AVIC Aero-Engine Controls (02357.HK), CSSC Offshore & Marine Engineering (Group) (00317.HK), and Continental Aviation Technology Holdings (00232.HK) rose by 7.75%, 4.21%, and 2.68%, respectively. Note: Performance of military stocks In terms of news, the ceasefire agreement between India and Pakistan officially took effect on the afternoon of May 10 (local time). During the conflict, the Pakistan Air Force achieved significant success. It is reported that Pakistan is a major exporter of weapons and equipment to China. In a previous research report, Kaiyuan Securities stated that the rebalancing of global military power will bring more uncertainties to the capital market, and the "geopolitical risk premium" of assets may lead to a revaluation of the risk-averse attributes of military stocks. Most auto stocks strengthened By the close, XPeng Motors-W (09868.HK), NIO-SW (09866.HK), and Li Auto-W (02015.HK) rose by 10.64%, 7.69%, and 7.23%, respectively. Note: Performance of auto stocks In terms of news, in addition to the positive impact of the China-US talks mentioned at the beginning, data released by the China Association of Automobile Manufacturers (CAAM) showed that for the first four months of this year, domestic automobile production and sales both exceeded 10 million units for the first time in history. During this period, automobile production and sales reached 10.175 million units and 10.06 million units, respectively, representing year-on-year increases of 12.9% and 10.8%. For new energy vehicles (NEVs), production and sales reached 4.429 million units and 4.3 million units, respectively, in the first four months, with year-on-year increases of 48.3% and 46.2%. NEV sales accounted for 42.7% of total new vehicle sales. COSCO Shipping Holdings led gains in shipping stocks By the close, COSCO Shipping Holdings (01919.HK), COSCO Shipping Development (02866.HK), and Orient Overseas International (00316.HK) rose by 8.52%, 5.43%, and 4.78%, respectively. Note: Performance of shipping stocks In terms of news, the main contract of SCFIS(Europe) futures experienced abnormal movements in the final trading session today, surging rapidly and hitting the daily limit, closing up 16%. Pharmaceutical stocks faced downward pressure due to negative news By the close, Alphamab Oncology-B (09966.HK), BeiGene (06160.HK), and Harbour BioMed-B (02142.HK) fell by 12.81%, 8.97%, and 8.79%, respectively. Note: Performance of pharmaceutical stocks In terms of news, US President Trump stated that he would sign an executive order on Monday to immediately reduce prescription drug and medicine prices in the US by 30% to 80%. Gold stocks extended recent losses By the close, Lingbao Gold (03330.HK), Chifeng Jilong Gold Mining (06693.HK), and Zhaojin Mining (01818.HK) fell by 11.23%, 11.07%, and 7.55%, respectively. Note: Performance of gold stocks In terms of news, this morning, after China announced that the China-US meeting had reached "important consensus," international gold prices continued to pull back. As of press time, international gold prices fell 3.44% to $3,228.8 per ounce. Individual stock movements Melco International Development rose nearly 7%; subsidiary Melco Resorts' adjusted EBITDA increased 14% in Q1 Melco International Development (00200.HK) rose 6.89% to close at HK$4.03.In terms of news, the company announced recently that its subsidiary, Melco Resorts & Entertainment, reported Q1 results with total operating revenue of US$1.23 billion, up 11% YoY, mainly due to improved performance in all gaming and non-gaming operations. JD.com Inc. rises over 6%, set to release Q1 results tomorrow JD.com Inc.-SW (09618.HK) rose 6.39% to close at HK$139.9. In terms of news, the company will release its Q1 results after the Hong Kong stock market closes on the 13th. Tianfeng Securities expects revenue in Q1 to increase 11.9% YoY to RMB291 billion.

The market opened lower and closed higher throughout the day, with the ChiNext Index leading the gains. The total trading volume on the Shanghai and Shenzhen stock exchanges reached RMB 1.29 trillion, a decrease of RMB 174.9 billion from the previous trading day. On the futures market, hot topics rotated rapidly, with more stocks rising than falling. Over 3,800 stocks across the market advanced. In terms of sectors, military stocks continued to surge, with over 20 stocks, including AVIC Chengfei, hitting the daily limit. AI hardware stocks rebounded, with Walvax Biotech hitting the daily limit. The ST sector was active, with nearly 40 stocks, including ST Ruihe, hitting the daily limit. On the downside, PEEK material concept stocks adjusted, with Xinhan New Materials falling over 10%. By the close, the Shanghai Composite Index rose 0.28%, the Shenzhen Component Index rose 0.93%, and the ChiNext Index rose 1.65%. Sector Analysis In the sector, military stocks remained strong, with stocks such as AVIC Chengfei, Huawu Corporation, Haoneng Corporation, Lijun Corporation, Chengfei Integration, and Tongda Cable hitting the daily limit. Huatai Securities believes that the fundamentals of the military industry in 25Q1 may already be in a recovery trend. On one hand, starting from 2025, multiple countries have increased their defense budgets, leading to a significant increase in global military spending and a more active global arms trade market. On the other hand, 2025 marks the final year of the "14th Five-Year Plan," and previously pent-up demand is expected to be released rapidly. Since February 2025, the fundamentals of some enterprises have shown significant improvement, particularly in the aerospace and missile segments. Some upstream enterprises have seen notable improvements in their order volumes both year-over-year (YoY) and month-over-month (MoM), reflecting an increase in downstream demand on the balance sheet. Additionally, order data disclosed by some enterprises also indicate that the downstream sector is gradually entering a high-growth phase. Therefore, from a medium and long-term perspective, military stocks still hold allocation value. However, it should be noted that the military sector has surged with increased trading volume for two consecutive days amid event-driven catalysts, and short-term sentiment may be approaching a peak. Internal disagreements among individual stocks within the sector may intensify going forward, so it is advisable to focus on core front-runner stocks. AI hardware sectors, including CPO and high-speed copper cable connections, rebounded. New Flyoff and InnoLight Technology both rose over 10%, while Walvax Biotech and Cambridge Industries Group hit the daily limit. Other stocks, such as TFC Communication, Linktel Technologies, Zhaolong Interconnection, and Tera Photonics, also led the gains. On the news front, a spokesperson for the US Department of Commerce stated on Wednesday that President Trump plans to lift restrictions imposed during the Biden administration on the export of advanced artificial intelligence (AI) chips. From a market perspective, the AI hardware sector, represented by CPO, includes some technology heavyweights with relatively high earnings certainty. The previous adjustments were more driven by sentiment expectations. Today, under the aforementioned event-driven catalysts, the traces of capital inflow and allocation are evident. Therefore, the subsequent trend is worth monitoring. If the rebound can continue, it will have a strong driving effect on both the index and short-term sentiment. The concept of magnetic levitation compressors is gradually gaining traction, with individual stocks such as Shandong Zhanggu, United Precision, Baida Seiko, Xinlei Co., Ltd., Hanbell Precise Machinery, Jintongling, and Moon Environment hitting the daily limit up. On the news front, recently, the President of Danfoss's magnetic levitation compressor business stated, "In the next three years, the demand for magnetic levitation compressors in China's data centers is expected to at least double." In 2024, Danfoss Turbocor's data center-related business in China tripled, and it is expected to grow by around 50% this year. As a relatively new topic concept in the current futures market, it is more likely to gain favour from short-term active funds. If it is further strengthened in the future, attention could also be paid to whether it extends and diffuses towards data centers and computing power directions. Individual Stocks At the individual stock level, although the number of stocks that fell sharply today was not large, most high-priced stocks fell into adjustment. The number of consecutive daily limit-up stocks in the market dropped to 4 today. Chongqing Three Gorges Paints Co., Ltd., which previously had 6 consecutive daily limit-ups, eventually fell by more than 4%, while Jingjin Electric, which previously had 4 consecutive 20CM daily limit-ups, fell by more than 10%. In addition, popular high-priced stocks such as QuanZhu Technology, Hongbo Co., Ltd., Hongbaoli, Zhongxin Fluorine Material, Xinhan Advanced Materials, and Hongbaoli also suffered heavy losses. It can be seen that in an environment with a lack of incremental funds, the market's willingness to chase high prices is low. On the other hand, nearly 100 stocks in the market still rose by more than 9% today, and the overall short-term heat was not low, but it was mainly centered around two lower-tier topics: military industry and compressors. Overall, compared to clustering in high-priced stocks, funds currently prefer to tap into potential in low-priced stocks. Therefore, it is still more appropriate to look for low-absorption opportunities amidst the rotation of hot topics in subsequent responses. Outlook Analysis Today's market opened low and closed high throughout the day, with all three major indices closing in the red, basically reversing the bearish candlesticks left yesterday. Most individual stocks rose, with fewer falling. However, it should be noted that trading volume contracted again today, and hot topics in the futures market remained relatively scattered, lacking an absolute core leading the gains. Therefore, for the future market outlook, if there is no continuous influx of incremental funds, it is still expected to maintain a structure of oscillating higher. CITIC Securities stated in a recent research report that with the end of the earnings reporting season and the release of favorable policies, there is still room for risk appetite to rebound in May. It is recommended to focus on two major directions: first, the AI technological revolution and China's self-reliance in technology (new quality productive forces, advanced manufacturing, national defense and military industry, etc.); second, high-quality domestic circulation consumer assets that benefit from policy support for expanding domestic demand, with expected fundamental improvements and cost-effective valuations. Market News Focus 1. CPCA: National passenger vehicle market retail sales reached 1.791 million units from April 1-30, up 17% YoY Caijing.com.cn, May 8 - According to data released by the China Passenger Car Association (CPCA), from April 1-30, retail sales in the national passenger vehicle market reached 1.791 million units, up 17% YoY and down 8% MoM. Cumulative retail sales since the beginning of the year reached 6.918 million units, up 9% YoY. From April 1-30, retail sales in the national new energy passenger vehicle market reached 922,000 units, up 37% YoY and down 7% MoM. The retail penetration rate of the new energy vehicle market was 52.3%. Cumulative retail sales since the beginning of the year reached 3.342 million units, up 37% YoY. 2. Ministry of Commerce: China is willing to strengthen cooperation with all countries to promote the healthy and sustainable development of cross-border e-commerce Cailian Press, May 8: Starting from May 2, the US officially canceled the tax exemption policy for small-value parcels from China, prompting some retailers in certain countries to adjust or even suspend their business operations in the US. In response, the spokesperson of the Ministry of Commerce stated that cross-border e-commerce directly meets the personalized needs of consumers in various countries, boasting unique advantages such as high efficiency, fast delivery, and cost savings. The recent cancellation of the tax exemption policy for small-value parcels from China by the US will harm the interests of enterprises and consumers in both countries, and we firmly oppose this move. I would like to emphasize that the cancellation of the tax exemption policy for small-value parcels from China by the US cannot change the momentum of the rapid development of cross-border e-commerce. We are willing to strengthen cooperation with all countries to jointly create a fair and predictable policy environment and promote the healthy and sustainable development of cross-border e-commerce.

The market bottomed out and rebounded throughout the day, with the Shanghai Composite Index leading the gains, and the BSE 50 Index surged over 10%. The total turnover of the Shanghai and Shenzhen markets reached 170 billion yuan, an increase of 74 billion yuan compared to the previous trading day. In the futures market, stocks generally rose, with over 4,500 stocks advancing across the market, and nearly 300 stocks hitting the daily limit or rising over 10%. By sector, military stocks collectively surged, with over 20 stocks such as Northern Long Dragon hitting the daily limit. Consumer stocks rebounded, with the duty-free sector leading the gains, and over 10 stocks including China Tourism Group Duty Free hitting the daily limit. Port and unified market concept stocks were active, with Chongqing Port and others hitting the daily limit. By sector, military, duty-free, port, and semiconductor sectors led the gains, while banking and insurance sectors were among the few decliners. At the close, the Shanghai Composite Index rose 1.31%, the Shenzhen Component Index rose 1.22%, and the ChiNext Index rose 0.98%. By sector, military stocks led the gains, with stocks such as Aero Engine Corporation of China, Excelsior Nickel Cobalt, Northern Long Dragon, China Shipbuilding Industry Corporation Emergency Equipment, China North Industries Group Corporation Limited, Inner Mongolia First Machinery Group, and AECC Aviation Power hitting the daily limit. AVIC Securities pointed out that 2025 is the final year of the 14th Five-Year Plan, and demand in some areas, such as aerospace, is being released intensively, especially in sectors like aerospace defense. With downstream manufacturers taking orders, demand is gradually being released upstream in the industry chain. Most military electronics companies are in the upstream of the military industry and will benefit first as the industry reaches a turning point. It is expected that the new era military industry will have better asset quality, newer growth tracks, larger business scale, and higher market ceilings, and the valuation system of the military industry will also be reshaped, enjoying newer and higher premiums. The consumer sector remained active, with the duty-free concept experiencing a full-line surge in the afternoon, and stocks such as China Tourism Group Duty Free, Zhongbai Group, Wangfujing Group, Eurasia Group, Hainan Development, and Caissa Tosun hitting the daily limit. On the news front, the State Taxation Administration issued an announcement on promoting the "buy and refund" service for overseas tourists, clarifying that the service will be promoted nationwide starting from the 8th. Port and unified market concept stocks also strengthened during the session, with Chongqing Port, Lianyungang, Xiamen Port, Jinjiang Shipping, and Zhuhai Port hitting the daily limit. On the news front, according to Hangzhou Customs statistics, in Q1, the Zhejiang China-Europe Railway transported a total of 63,000 TEUs of import and export goods, up 4% YoY. The Zhejiang China-Europe Railway currently operates 25 routes, covering about 50 countries and regions in Asia and Europe and over 160 cities. From a market perspective, it is widely expected that the tariff policy game may accelerate the implementation of domestic demand policies, and the consumer sector, after a long period of consolidation, has a relatively obvious valuation advantage. It is expected that the domestic circulation direction represented by consumption will continue to attract capital inflows, and subsequent attention should be paid to the low-level catch-up opportunities emerging from the rotation of hot topics. At the individual stock level, short-term sentiment further improved today, with over 4,500 stocks advancing across the market, and nearly 300 stocks hitting the daily limit or rising over 10%. Among the stocks that rose more than three boards yesterday, only Xiangjia Co., Ltd. showed negative feedback, while almost all others advanced, with Hasense, Fuda Alloy, and Tairui Co., Ltd. performing dramatic intraday reversals. From the distribution of stocks hitting the daily limit, the domestic circulation direction represented by consumption and agriculture remains the core hot spot in the market. Among them, Xinsai Co., Ltd., Lianyungang, Guofang Group, and Aili Home Furnishing all achieved four consecutive daily limits, while the duty-free leader China Tourism Group Duty Free also hit the daily limit in the afternoon. On the other hand, the self-controllable direction represented by military and semiconductor chips also performed actively, with core popular stocks such as Unigroup Guoxin, China Great Wall hitting the daily limit, and Cambricon, Zhenhua Technology, and Jingjia Micro also leading the gains. If there is no sustained incremental capital in the future, it is expected that these two directions will continue in the form of rotational fluctuations, so mastering the rhythm remains key. Today, the market bottomed out and rebounded, eventually showing a broad-based rally with increased volume, with all three major indices closing in the green, and the BSE 50 surging over 10%, with turnover also rising to 170 billion yuan. Another positive phenomenon is that the number of stocks hitting the daily limit or falling over 10% has decreased to less than 10 today, and the continuous repair of the loss effect can also be seen as an important signal of stabilization. However, it should be noted that after two consecutive days of volume repair, the short-term market is once again facing a critical period. If it can effectively stand above the high of Monday's solid bearish line near 3,218 tomorrow, with the gradual filling of the gap, the market is still expected to continue the current strong rebound. On the contrary, if it encounters pressure and pulls back again, it should still be viewed as a structure of consolidation, but with the bearish sentiment being fully released earlier, even if the short-term market falls into adjustment again, there is still expected to be strong momentum to take over, and some structural opportunities can still be found in the rotation of hot topics. Market News Focus: 1. In the past three days, 111 A-share listed companies have announced share buybacks, involving a maximum amount of 67.1 billion yuan. Caixin, April 8th - This week, the A-share market experienced a significant adjustment. Based on the recognition of the long-term development prospects of China's capital market and the investment value of the companies themselves, many A-share listed companies have announced share buybacks or repurchases. According to Caixin statistics, since April 7th, 111 listed companies have announced share buybacks, of which 86 companies have disclosed specific buyback amounts, involving funds of 37.44-67.137 billion yuan. Specifically, CATL plans to repurchase 4-8 billion yuan, Kweichow Moutai plans to repurchase 3-6 billion yuan, PetroChina plans to increase holdings by 2.8-5.6 billion yuan, Sinopec plans to increase holdings by 2-3 billion yuan, XCMG plans to repurchase 1.8-3.6 billion yuan, Luxshare Precision plans to repurchase 1-2 billion yuan, and Midea Group plans to repurchase 1.5-3 billion yuan. 2. Xiao Lu from the Ministry of Commerce: China will work with more trading partners to inject stable forces into global trade growth. Caixin, April 9th - Xiao Lu, Deputy Director of the Foreign Trade Department of the Ministry of Commerce, stated at a press conference on April 9th that China's foreign trade has the confidence and strength to face various risks and challenges. Xiao Lu said that the confidence mainly comes from the solid foundation of foreign trade, the abundant new momentum, and the important "magic weapon" of "opening up". Xiao Lu pointed out that in 2024, China's goods import and export crossed two trillion-level steps, reaching 4.3 trillion yuan, and the international export market share remained stable and advanced, expected to reach around 14.7%. The vast number of foreign trade enterprises are the most solid foundation of China's foreign trade. Xiao Lu said that China's door will only open wider, and China will firmly practice true multilateralism, firmly maintain the global trade order, and work with more trading partners to achieve win-win results and inject more stability into global trade growth.