Market Overview - The A-share market opened weakly with over 4500 stocks in the red, as of 9:43 AM, the Shanghai Composite Index fell by 0.41%, the Shenzhen Component Index dropped by 0.67%, and the ChiNext Index decreased by 0.86% [1] - The market was impacted by news of tariffs, with President Trump signing an executive order imposing a 25% tariff on all imported cars, leading to a significant drop in the Nasdaq by over 2% [1] Sector Performance Chemical Sector - The chemical sector remained active, with Huatai hitting the daily limit, and Hengguang shares rising over 10%. Other companies like Dir Chemical, Jiangtian Chemical, and others also saw gains [2] - Sulfuric acid prices increased to 596.96 RMB/ton, up 66% from 359.01 RMB/ton on February 7, and up 290% year-on-year. Analysts predict a potential inventory replenishment cycle in the chemical sector due to expected fiscal policy boosts in 2025 [2] Dairy Sector - The dairy sector showed strength, with Huangshi Group hitting the daily limit and other companies like Sunshine Dairy and Knight Dairy also rising [3] - A recent announcement from the State Administration for Market Regulation encourages the use of raw cow or sheep milk in infant formula production, which is expected to benefit the dairy sector as demand is anticipated to rise due to supportive policies [3] Institutional Insights Dongwu Securities - Dongwu Securities suggests focusing on sectors with strong first-quarter performance, including upstream non-ferrous metals, organic silicon, and certain chemicals, as well as the photovoltaic industry and consumer sectors [4] Huaan Securities - Huaan Securities indicates that market rotation remains the main theme, with a focus on undervalued sectors such as banks, insurance, and policy-driven industries like pharmaceuticals and automobiles [5] Dongfang Securities - Dongfang Securities notes that while stock indices may experience limited downward and upward movement, the medium-term outlook remains positive despite current challenges in the banking sector due to falling interest rates [6]

Core Viewpoint - The "April Decision" is seen as a significant market change, marking a transition from a data vacuum period in February and March to a time when companies begin to disclose earnings reports, influencing stock prices based on micro and macroeconomic factors [2][5] Group 1: Market Dynamics - In the 2-3 month period, the market experiences a lack of fundamental pricing anchors due to the sparse disclosure of earnings reports, leading to a focus on thematic trading with an 80% success rate, while April sees only a 20% success rate for such trades [2] - April is identified as the month with the strongest correlation between earnings performance and stock price movements throughout the year [3] Group 2: Investment Guidance - The "April Decision" is considered to provide guidance for the entire year's investment landscape, with historical data indicating that key economic indicators often become clear around this time, influencing market trends [5] - Analysts suggest focusing on industry trends and sectors showing marginal improvements in fundamentals, as well as those expected to see upward revisions in earnings forecasts [5] Group 3: Key Factors for April - The core focus for the "April Decision" includes the sustainability of the profit cycle in technology-related sectors and the potential for dividend yields to reach historical highs [6] - Financial data indicates that sectors such as semiconductors, consumer electronics, and software development are showing signs of a profit recovery, which is crucial for future market trends [6] Group 4: Risks and Cautions - Potential risks that could trigger market corrections include economic slowdown, second dips in corporate earnings, liquidity risks, and seasonal effects, leading to a cautious market outlook as earnings reports are released [8] - The emphasis remains on fundamental analysis, with the challenge of identifying unexpected earnings growth and changes in economic conditions being a primary focus for investors [8]