The pulse of China’s equity markets quickened on April 10 as the growth-oriented ChiNext index surged by 3.78%, reaching its highest level since the end of 2021. This broad-based rally saw over 3,900 individual stocks advance, signaling a robust return of risk appetite among domestic investors. While the benchmark Shanghai Composite posted a more modest gain of 0.51%, the outperformance of the tech-heavy Shenzhen and ChiNext boards suggests a structural rotation back into high-growth manufacturing and innovation sectors.
At the heart of this resurgence was the lithium battery supply chain, which experienced an explosive broad-market breakout. Industry giants such as CATL saw gains of over 6.6%, while several mid-cap players like Guoxuan High-tech and Tibet Mining hit their daily upward limits. This rally reflects a renewed confidence in China’s dominant position within the global energy transition, as production efficiencies and supply chain integration continue to provide a competitive moat for domestic leaders.
The technology narrative was further bolstered by the rapid ascent of the CPO (Co-packaged Optics) sector, a critical component of the burgeoning AI infrastructure market. Xinyisheng, a key player in high-speed optical modules, saw its market capitalization surpass the 500-billion-yuan threshold for the first time. This milestone highlights the market's willingness to reward companies that are deeply embedded in the global hardware supply chain for artificial intelligence and cloud computing.
Conversely, the day’s action revealed a cooling of the defensive play that has characterized recent months, with precious metals facing a sharp correction. Zhaojin Mining fell by more than 8%, tracking a broader retreat in gold-related assets as capital flowed toward pro-cyclical and growth-oriented sectors. This rotation from safe havens to high-beta stocks, supported by a 7% jump in brokerage bellwether Citic Securities, suggests that institutional players are positioning for a more sustained bullish phase in the A-share market.