Last week, a de-escalation in external geopolitical tensions boosted global risk appetite, leading to a phased rebound in the A-share market. Performance data from publicly offered Fund of Funds (FOFs) showed several products achieving weekly returns exceeding 4%. However, sector rotation remained concentrated in previously popular themes. Industry observers note that while global markets are pricing in optimistic expectations, sectors and stocks with solid earnings validation continue to attract capital within the current A-share market trajectory, though caution is warranted regarding overvalued segments.
A-share markets trended upward throughout the week, with numerous FOFs rising over 4%. From April 13 to April 19, markets extended their gains, primarily driven by eased tensions between the US and Iran, which improved risk sentiment. Among broad market indices, the Shanghai Composite Index closed at 4051.42 points, up 1.64%, the Shenzhen Component Index rose 4.02% to 14885.42 points, and the ChiNext Index gained 6.65%, finishing at 3678.29 points. Leading sectors included communications, electronics, and power equipment.
Boosted by the rally, publicly offered FOFs delivered strong performance, particularly equity-oriented products, with many posting weekly gains above 4%. For instance, among equity FOFs, ChinaAMC Optimal Allocation A led the pack with a weekly net value increase of 4.97%, while ChinaAMC Sector Allocation A also achieved a 4.31% weekly return.
Within hybrid FOFs, BOC Smart Selection Aggressive Three-Month A recorded a 4.80% weekly gain, and E Fund Advantage Driven One-Year Holding A rose 4.74%. These funds maintained significant exposure to technology-oriented assets. For example, BOC Smart Selection Aggressive's latest quarterly report highlighted holdings like ChinaAMC Communication ETF and Guotai Communication ETF, which both surged over 8% during the week.
Analyzing the weekly market performance, Minsheng Royal Fund noted that continued de-escalation in the Middle East prompted markets to price in optimistic expectations regarding sustained US-Iran ceasefire negotiations, thereby improving risk appetite. Additionally, better-than-expected first-quarter results from several leading heavyweights confirmed profit resilience in high-growth sectors. The Nasdaq's 11-day winning streak further buoyed sentiment, contributing to the A-share rally through positive spillover effects from US tech stocks.
Looking ahead, Minsheng Royal Fund emphasized that structurally, communications, electronics, and non-ferrous metals sectors showed relative strength. As external shocks subside, market focus in mid-to-late April may shift toward first-quarter earnings high-growth areas. Resource sectors such as non-ferrous metals and petroleum石化, along with new energy, optical communication, and semiconductor supply chains, are expected to report robust earnings growth.
Institutional attention remains focused on high-growth sector investments, with machinery, electronics, and computers drawing significant interest. Last week, the release of stronger-than-expected preliminary 2026 first-quarter reports from certain optical module firms reinforced market focus on earnings certainty despite high valuations. Institutions widely highlighted investment opportunities in high-growth tracks.
Public fund research activity last week concentrated on three high-growth industries—machinery, electronics, and computers—each receiving over 100 research visits from fund houses, significantly outpacing other sectors. According to Howbuy data, machinery equipment attracted 137 research visits, covering 12 stocks within the sector. Jereh Group, Tongli股份, and Naipu Mining Equipment were each researched more than ten times, emerging as top picks in machinery.
The electronics sector followed with 125 research visits involving eight stocks. Lens Technology, Jiejie Microelectronics, Huate Gas, and Biwin Storage each received no fewer than twenty research attentions from fund institutions.
The computer sector was researched 104 times, covering ten stocks. Hikvision, SuperMap Software, SDIC Intelligence, and Dipu Technology were among the most closely watched, each attracting clustered research from over ten public fund managers.
Industry experts suggest that with accelerated adoption of AI agents, multimodal large models, and AI programming, artificial intelligence is transitioning from a "training era" to an "inference era." Jinxin Fund's Tan Zhimi noted that looking forward, investors should focus on industrial trends, as shortages in computing power cards are unlikely to ease soon, sustaining opportunities in computing power leasing. Moreover, restricted supply of high-end imported computing cards has opened an unprecedented market window for domestic suppliers.
According to Tan, investment opportunities are no longer limited to chips but are spreading across the entire industry chain. Additionally, late April marks the final phase of annual and first-quarter earnings disclosures, a critical window for both negative surprises and positive earnings surprises. In the current market environment, strategy focus should shift from thematic speculation to earnings-driven selection, prioritizing companies with solid fundamentals and high growth certainty.