A-shares fluctuated narrowly throughout the day, the communications sector strengthened in the afternoon, the stock prices of the four major banks hit new highs, and most of the Treasury bond futures rose

Source: Wall Street News

On Friday, April 18, the A-share market fluctuated narrowly throughout the day. In the afternoon, the three major stock indexes once turned positive, and the Shenzhen Component Index and the ChiNext Index closed higher. As of the close, the Shanghai Composite Index fell 0.11%, ending an eight-day winning streak. The Shenzhen Component Index rose 0.23%, and the ChiNext Index rose 0.27%.

On the market surface, individual stocks were mixed in terms of gains and losses. The total turnover of the Shanghai and Shenzhen stock markets today was only 914.6 billion yuan, hitting a new low since the "924" market outbreak last year. Bank stocks strengthened. The stock prices of the four major banks, namely Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China (ABC), Bank of China (BOC), and China Construction Bank (CCB), reached record highs. In the afternoon, brokerage stocks showed abnormal rises, and Tianfeng Securities once approached the daily limit.

Near the end of the trading session, the CSI 300 Index continued to rise. Four CSI 300 Exchange-Traded Funds (ETFs) once again saw a significant increase in trading volume at the end of the session. Among them, the trading volume of Huaxia CSI 300 ETF exceeded 3.6 billion yuan, compared with 600 million yuan for the whole day of the previous day; the trading volume of Huatai-PB CSI 300 ETF exceeded 5.1 billion yuan.

According to Shanghai Securities News, a person from a fund company in South China said that recently, the trading volume of ETFs has frequently increased at the end of the session, and the signal of large funds entering the market to buy is obvious. Especially when the market is fluctuating, the signal of capital inflows is even more significant, which will inject confidence into the market.

In terms of sectors, real estate and urbanization concept stocks collectively strengthened. Many stocks such as Yukaifa Co., Ltd. hit the daily limit. The communication sector was active in the afternoon, and 5G concept stocks rose. Many stocks such as Tongyu Communication Co., Ltd. hit the daily limit. Large consumer stocks in sectors such as tourism, dairy products, food, and retail adjusted collectively.

In the closing of treasury bond futures, the main contract of the 30-year treasury bond rose 0.16%, the main contract of the 10-year treasury bond rose 0.02%, the main contract of the 5-year treasury bond fell 0.02%, and the main contract of the 2-year treasury bond fell 0.05%.

Bank Stocks Strengthened, and the Stock Prices of the Four Major Banks Reached Record Highs

Today, bank stocks continued to strengthen, and the stock prices of the four major banks, ICBC, ABC, BOC, and CCB, reached record highs. The market value of ICBC reached 2.55 trillion yuan, ranking first in the A-share market.

China Merchants Bank, Postal Savings Bank of China, Bank of Communications, Industrial Bank Co., Ltd., Shanghai Pudong Development Bank, and other banks also rose one after another. Since the beginning of this year, Shanghai Pudong Development Bank has risen by more than 16%, ranking first. Qilu Bank, Chongqing Bank, Chongqing Rural Commercial Bank, and Industrial Bank Co., Ltd. have all risen by more than 10%.

In terms of news, according to incomplete statistics, since the beginning of this year, many listed banks such as Agricultural Bank of China, Postal Savings Bank of China, China Merchants Bank, China CITIC Bank, and Hangzhou Bank have been listed as major shareholders by insurance funds.

Galaxy Securities stated that government bonds continue to play a supporting role in the social financing scale, the expectations of reserve requirement ratio cuts and interest rate cuts have increased, the low-interest-rate environment continues, and coupled with the uncertainties in the global political and economic environment, the risk aversion of funds has increased, and the cost-effectiveness of bank dividend yields has become more prominent.

The Communication Equipment Sector Rose in the Afternoon, and 5G Concept Stocks Were Active

The communication equipment sector rose in the afternoon. As of the close, the Wind communication sector index closed up by more than 2%.

5G concept stocks were active. Chuangyuanxin Technology Co., Ltd. rose by 30% and hit the daily limit, Suobete Technology Co., Ltd. rose by 20% and hit the daily limit. Dafu Technology Co., Ltd., Shenglu Communication Co., Ltd., Wuhan Fingu Electronics Co., Ltd., and other stocks were among the top gainers.

In terms of news, according to Securities Times, it was reported that the new German government coalition agreement has removed the "trusted country" restriction clause targeting Huawei and instead adopted "trusted technology standards". Brokerage research institutions believe that if this policy shift is true, it will be a significant positive for the domestic communication industry chain. Although this news has not been confirmed by relevant authoritative channels, the market's reaction to it is quite enthusiastic.

In addition, the Ministry of Industry and Information Technology stated that China has established the IMT-2030 (6G) Promotion Group, actively promoted the innovative research and development of 6G, and released a number of research achievements. At the same time, it deepened international cooperation in the 6G field.

Hualong Securities pointed out that the 2025 government work report mentioned expanding the large-scale application of 5G and cultivating future industries such as biological manufacturing, quantum technology, embodied intelligence, and 6G. In addition, the country is promoting the establishment of a "super-large" national venture capital guiding fund, which will drive one trillion yuan of capital to focus on cutting-edge fields such as artificial intelligence, quantum technology, hydrogen energy storage, etc., and is expected to drive the accelerated development of the relevant communication industry chain.

The Large Consumer Sector Adjusted Collectively

The large consumer sector adjusted collectively. Dairy products, food, retail, catering, tourism, and other sectors were among the top decliners. Beingmate (China) Co., Ltd., a popular stock related to the three-child concept, hit the daily limit down. In the past nine trading days, due to the three-child concept, Beingmate had soared with four daily limit-up sessions, and its stock price also increased by nearly 50%.

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