Shanghai Composite Index drops 1%, falls below 3,900 points, CPO concept stocks defy the market and rise.

Ask AI · CPO Concept Strengthens Against the Trend—Does It Benefit From the Rollout of All-Optical Switching Technology?

China Business Network (Zhongxin Jingwei) April 3 report: On April 3, A-shares opened higher and then fell; the Shanghai Composite Index lost the 3,900-point level. By the close, the Shanghai Composite Index was down 1.00%, at 3,880.10 points; the Shenzhen Component Index was down 0.99%, at 13,352.90 points; and the ChiNext Index was down 0.73%, at 3,149.60 points.

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In terms of the market, sectors such as laser equipment, optical components, and lithography machines led both markets higher; sectors such as coking coal processing, forestry, and nitrogen fertilizer were among the worst performers.

The CPO (co-packaged optics) concept strengthened, with multiple stocks such as Deckael and Sinic Electronics hitting the daily limit. On the news front, on April 2, the Ministry of Industry and Information Technology issued a notice on carrying out a special campaign to empower small and medium-sized enterprises with inclusive computing resources. It proposed promoting the deployment of technologies such as all-optical switching to reduce network latency from computing application terminals to servers and improve the experience of interactive applications.

Innovation drug concept stocks were partially active, with China National Medicines and Tianjin Tasly Pharmaceutical, among others, hitting daily limits.

By the close, the advance/decline ratio of all traded stocks in the Shanghai and Shenzhen markets was 716:4746. There were 38 stocks that hit the daily limit and 41 that hit the daily floor.

In individual stocks, some of today’s daily-limit gainers are: YUNSAI Zhilian (10.01%), Far East Holdings (10.01%), Tianjin Tasly Pharmaceutical (9.94%), New Energy Shandong (10.00%), and Tongyu Communications (10.00%). Some of today’s daily-limit losers are: Tianshun Shares (-10.00%), Yunmei Energy (-9.93%), Fuyun Transportation (-9.99%), Anco Hi-Tech (-10.00%), and Guangxi Energy (-9.92%).

The top five stocks by turnover rate are: Huidu New Materials, Tongda Shares, Zhongli Group, Menovo Pharmaceuticals, and Baker Energy, with turnover rates of 47.491%, 45.730%, 42.690%, 41.474%, and 41.399%, respectively.

Galaxy Securities believes that as the Iran-Iraq ceasefire talks begin and uncertainty in the earnings season is gradually removed, the market is likely to enter a phase of ranging and bottoming out with rotation in its structure. The three key logics—policy support, funds entering the market, and the revaluation of Chinese assets—remain unchanged. The downside room for A-shares is relatively limited. The Iran-Iraq conflict has not shaken the long-term foundation of A-shares’ slow bull market. It is recommended to adopt a strategy focused on performance and to lay out positions when opportunities arise.

Also, Galaxy Securities analyzed that because the current situation between Iran and Iraq is in a stage of “dynamic balance with relatively high risk,” the likelihood of further escalation is high. This will also raise concerns about global energy, supply chains, and inflation, causing asset pricing to focus even more on the two core logics: the revaluation of strategic resources and the geopolitical security premium.

Galaxy Securities also mentioned that the densely scheduled technology summits in China—such as the 2026 Shenzhen International Exhibition on Innovative Technologies for Electronic Components and Chips from April 9 to 11, the 2026 Greater Bay Area International Cryogenic Liquid Cooling Industry Conference, the 2026 China Humanoid Robot Ecology Conference from April 17 to 19, and the second Shanghai Global Low-Altitude Economy Exhibition from April 23 to 25—are expected to create linked catalyst effects for A-shares, especially in related industry chains such as semiconductors, AI computing infrastructure, and humanoid robots. (China Business Network APP)

(The views expressed in the article are for reference only and do not constitute investment advice. There are risks in investing; exercise caution when entering the market.)