The three major A-share stock indexes collectively opened lower on March 4. In early trading, the two markets fluctuated and warmed up, and the Shanghai Composite Index once turned red. The afternoon continued to pick up, and the Shanghai and Shenzhen stock indexes successfully closed higher.

From the perspective of the disk, the semiconductor industry chain rose in the afternoon, and the military industry, AI medical, robotics, computing power, network security, and AI wearable concept stocks were active. The theme of lithium batteries has pulled back across the board, and solid-state batteries have led the decline.

At the close, the Shanghai Composite Index rose 0.22% to 3,324.21 points, the STAR 50 Index rose 1.72% to 1,080.66 points, the Shenzhen Component Index rose 0.28% to 10,679.44 points, and the ChiNext Index fell 0.29% to 2,190.08 points.

Wind statistics show that a total of 4,048 stocks rose in the two cities and the Beijing Stock Exchange, 1,171 stocks declined, and 176 stocks were flat.

The total turnover of the Shanghai and Shenzhen stock exchanges was 1,435.5 billion yuan, a decrease of 189.2 billion yuan from 1,624.7 billion yuan on the previous trading day. Among them, the Shanghai market turnover was 568.7 billion yuan, a decrease of 75.3 billion yuan from the previous trading day's 644 billion yuan, and the Shenzhen market turnover was 866.8 billion yuan.

A total of 135 stocks in the two cities and the Beijing Stock Exchange rose by more than 9%, and 21 stocks fell by more than 9%.

Semiconductors rose sharply in the afternoon, and liquor stocks fell

In terms of sectors, semiconductors rose sharply, with more than 10 stocks such as VeriSilicon (688521), Anlu Technology (688107), Neusoft Carrier (300183), Allwinner Technology (300458), Guoxin Technology (688262), and Aojie Technology (688220) rising by more than 10%.

The national defense and military industry led the two cities sharply, with North Changlong (301357), Jingpin Special Equipment (688084), Guanxiang Technology (301213), Hongdu Aviation (600316), Lihang Technology (603261), and Xinxing Equipment (002933) rising by more than 10%.

Machinery and equipment rose sharply, and more than 10 stocks such as SINBON Intelligent (301112), Zhongya (300512), Genesis (300083), Yuluoka (300099), Rongzhi Rixin (688768), and Ningshui Group (603700) rose by more than 10%.

Lithium batteries fell sharply, Xinyu people (688573), Xianhui Technology (688155), Ruitai New Materials (301238), Guanghua Technology (002741), Penghui Energy (300438), Li Yuanheng (688499), Zhongke Electric (300035), etc. fell more than 5%.

Alcohol stocks fell, food and beverage fell first, Manor Ranch (002910), Jiahe Food (605300) and other falling limits, Yiming Food (605179) once fell to the limit, Wanchen Group (300972), Panda Dairy (300898), Laiyifen (603777) and so on fell more than 6%.

Coal stocks performed poorly, with Huaibei Mining (600985), China Coal Energy (601898), Yankuang Energy (600188), Anyuan Coal (600397), Jinkong Coal (601001), and Shanmei International (600546) falling more than 1%.

The policy expectations of the two sessions may give better support to A-shares

Caitong Securities pointed out that since the Spring Festival, the "spring restlessness" has been cashed, and new industries such as AI are good + trading the two sessions and fiscal policies in advance, the market has continued to rise, and the heat has also been significantly restored. At present, after a round of valuation repair + key points of policy game, the market has repeatedly increased, how to grasp the rhythm of the two sessions in the future? Referring to the historical market before and after the two sessions, it continued to fluctuate upward: it rose in advance before the meeting, may be suspended during the meeting, and continued to attack after the meeting. The direction is expected to continue TMT growth/small cap (growth upward attack + continuation of the main line before the meeting). In March, the policy transaction was suspended, and the tangential dividend may be staged.

Zhongyuan Securities pointed out that the current average price-earnings ratios of the Shanghai Composite Index and the ChiNext Index are 14.07 times and 37.92 times respectively, which are at the median average level in the past three years and are suitable for medium and long-term layout. The counter-cyclical control policy continued to increase, the fiscal force and monetary easing formed the support, and the deepening of the capital market reform became the focus. ETF funds continued to flow in, the migration trend of residents' savings to the equity market strengthened, and signs of foreign capital repatriation appeared. March is a key window for spring agitation, with policy expectations, improved liquidity and the start of the earnings season boosting sentiment. Recently, foreign institutions have rebounded in their attention to A-shares, and policy optimization and low valuations are still the core attractions. With the continuous implementation of domestic macro-control and pro-growth policies, the future market is expected to show the characteristics of technology-led, dividend defense, consumption recovery and domestic demand-driven. It is still necessary to pay close attention to the changes in policy, capital and external market. In the short term, we recommend focusing on investment opportunities in sectors such as batteries, energy metals, chemicals, and medical services.

Dongguan Securities pointed out that the uncertainty of the recent U.S. tariff and trade policy may have a certain impact on the global market, while geopolitical tensions may push up the demand for safe-haven funds. From the perspective of the domestic environment, the PMI recorded 50.2% in February, rebounding above the boom and bust line, showing that China's economic prosperity level has generally rebounded. Looking ahead, the economic data in January and February began to be disclosed one after another, verifying the success of this round of counter-cyclical force, and the short-term or continuation of the structural differentiation of A-shares, but the medium-term trend still has upward momentum. In addition, the policies of the two sessions are expected to give better support to A-shares, such as policies to support the private economy, people's livelihood consumption and technological innovation, which are expected to be further deployed, and the market may show a strong pattern of shocks.

Huaan Securities pointed out that looking forward to the market outlook, it still adheres to the view that the market is volatile at a high level and the industry is back in rotation, and it is recommended to pay attention to three main lines that are expected to rotate in terms of specific industry opportunities: 1) Before mid-March, the infrastructure advantage varieties with strong seasonal effects. Focus on engineering consulting services, environmental protection equipment, professional engineering, environmental governance, non-metallic materials, cement, general equipment, and new metal materials. 2) Areas with policy catalysts, focusing on medicine, automobiles, and home appliances. 3) Banks and insurance companies that have short-term allocation cost performance and medium and long-term strategic allocation value under market shocks.