Beijing Securities 50 Index rises against the trend; oil and gas stocks perform actively

Sourced from: Shanghai Securities News

Xinhua Finance, Shanghai, April 3 (report)—On April 2, the A-share market saw choppy consolidation and adjustment. The Northbound Venture 50 Index remained active against the trend, rising by more than 2% at one point during the session. As of the close, the Shanghai Composite Index was at 3,919.29 points, down 0.74%; the Shenzhen Component Index was at 13,486.94 points, down 1.60%; the ChiNext Index was at 3,172.65 points, down 2.31%; the STAR Market Composite Index was at 1,631.32 points, down 2.56%; and the Northbound Venture 50 Index was at 1,281.91 points, up 0.30%. In terms of the market breadth, the total trading value across the three markets—Shanghai, Shenzhen, and the Beijing market—amounted to 1.8577 trillion yuan for the full day. The biopharmaceutical and life sciences sector continued to show strength. Tianjin Pharmaceutical, as a stock that advanced to its fifth consecutive daily limit-up, became the market’s highest consecutive limit-up target. Oil & natural gas, coal, agriculture, and other sectors also performed actively.

Oil & gas stocks rise against the trend

Driven by a sharp increase in international oil prices, on April 2, A-share oil & gas stocks strengthened accordingly. By the close, Bo hui Co., Ltd. rose to a daily limit-up with a 20% gain. Multiple other stocks also hit limit-ups, including Heshun Petroleum, Sinocast Engineering, Bek Energy, and Blue Flame Holding.

Yesterday, Jerry’s shares hit the daily limit-up during intraday trading, opened the limit-up board after noon, and closed at 108 yuan per share, up 7.56%, with a total market value of 110.6 billion yuan. Late on the evening of April 1, Jerry’s Co., Ltd. released an announcement stating that the company’s wholly owned subsidiary, GPS, signed a sales contract for a gas turbine generator set with a U.S. client. The contract amount is $301 million (approximately 2.08 billion yuan).

Meanwhile, the shipping sector was also active. China Merchants Ship, and China Merchants South Oil both reached the daily limit-up during intraday trading. By the close, China Merchants Ship was up more than 8%, China Merchants South Oil was up more than 6%, and others such as COSCO Shipping Special Units and COSCO Shipping Energy followed higher.

At a recent earnings briefing, China Merchants Ship said that in recent years, changes in the global oil trade and shipping patterns have made the hard-asset attributes of tanker businesses increasingly prominent. Within the oil supply chain, they are becoming more and more of a supply-chain bottleneck, and the expected returns may have an opportunity to rise significantly.

A research report from CITIC Securities stated that ongoing geopolitical instability in the Middle East continues to disrupt conditions, amplifying the fragility on the supply side of oil transportation. At the same time, it is reshaping the global energy seaborne shipping pattern, further widening the industry’s supply-demand gap. Disruptions to oil supply from the Middle East force Asian buyers to turn to purchasing from the Atlantic basin. Shifting from short routes to longer routes boosts vessel utilization rates by multiples. Most idle fleet capacity is absorbed by long-distance demand. Combined with Asian countries’ efforts to plug shortfalls in energy security, this is accelerating expansions of strategic crude oil reserves and providing long-term support for rising incremental demand in oil shipping.

Fiber-optic concept sees repeated momentum

Yesterday, the fiber-optic concept strengthened again. Te Fa Information and Hisense Optoelectronics both saw their share prices reach historical highs during intraday trading; Huiyuan Communications and Huamai Technology both hit daily limit-ups.

Yesterday, Longfei Optic Fiber, another popular stock, also hit the daily limit-up during intraday trading. It showed an 8-day streak with four consecutive limit-ups, and its share price continued to set historical highs. As of the close, Longfei Optic Fiber was at 332.49 yuan per share, up 7.95%, with a total market value of 275.3 billion yuan.

Longfei Optic Fiber’s 2025 annual report shows that in 2025 the company achieved operating revenue of 1.86T yuan, up 16.85%; and net profit attributable to shareholders of listed companies was 814 million yuan, up 20.40%.

A research report analysis from Huatai Securities said that as a global leading manufacturer, Longfei Optic Fiber has a leading share in the upstream capacity for preforms. It is expected to benefit from fiber-optic price increases and improvements in product mix, thereby thickening profits. For next-generation fiber-optic technologies, the company’s hollow-core fiber technology continues to iterate. It has deployed commercial and pilot projects in regions including Asia, Europe, and the Americas. In 2026, the company will work together with leading global telecom operators and cloud service providers to advance more than 50 commercial and pilot hollow-core fiber projects.

A report released by the overseas research team of Everbright Securities stated that fiber-optic cable prices have continued to rise significantly since the beginning of 2026. The auction procurement prices for fiber-optic cables by operators have kept climbing. Behind this are three layers of factors: first, demand for high-speed transmission for AI data centers is driving growth in demand for high-end fiber; second, supply and demand for fiber preforms are tight, and capacity expansion has a long cycle; and third, demand related to fiber-optic drones further lifts fiber-optic prices.

Institutions: April may bring a configuration window

Looking ahead, a research report from Hualong Securities said that judging from overall market performance in March, although the market was disturbed by external factors, the A-share market still demonstrated strong resilience. On the one hand, policy-related factors are positive and market expectations remain stable. On the other hand, improvements in energy self-sufficiency and the leading advantages in the green energy sector have eased market concerns about related risks, making April potentially a window for market positioning.

A report released by the Li Qiusuo team at China International Capital Corporation (CICC) said that it may currently be a relatively low point for A-shares in the medium term. Risk release and downside pullback are expected to bring good opportunities for positioning. Although there is still some uncertainty in the short-term trend, after the market goes through adjustment, the risks in the A-share market have been further released, and valuations are at a relatively reasonable level. From a medium-term perspective, the macro environment has not undergone fundamental changes, and the logic supporting the “steady progress” of the A-share market still holds. Risk release and downside adjustment are expected to provide good opportunities for positioning.

The Li Qiusuo team said that April is the disclosure period for listed companies’ 2026 first-quarter reports. After years of capacity contraction, supply-demand in some areas—especially cyclical industries—has improved. Since the beginning of this year, product prices such as lithium battery materials, chemical goods, and hardware in the AI industry chain (such as fiber-optic cables, storage, targets, and MLCC, etc.) have risen, and the performance of related listed companies is expected to improve.

Editor: Wu Zhengsi

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