A-Share Market Afternoon: Major Indices Rise as Markets Maintain High-Level Volatility

China's A-share market opened with mixed performance on Wednesday, April 26. After a sharp morning rally, both markets entered a phase of high-level consolidation, maintaining this volatile range into the afternoon session.

The Shanghai Composite Index closed up 0.59% at 3,912.52 points. The Shenzhen Component Index rose 0.69% to 13,841.33 points, while the ChiNext Index gained 0.51% to close at 3,414.88 points.

Total market turnover reached RMB 1.8087 trillion, down RMB 23.2 billion from the previous trading day.

Yan Xiang, Chief Economist at Founder Securities, noted that a core reason for recent global market pressure has been the持续 rise in U.S. long-term bond yields, which has caused some volatility in the A-share market. However, he emphasized that while rising U.S. yields may affect liquidity, they are more of a disruptive factor rather than a decisive force shaping A-share trends. The primary drivers of the A-share market, he stated, remain China's domestic policy direction and fundamental economic conditions.

Looking ahead, multiple positive factors suggest that the long-term bullish trend in China's capital markets will remain intact:

First, China's medium- to long-term economic outlook remains favorable.

Second, A-share valuations are still within a reasonable range.

Third, the improving quality of listed companies is strengthening the market's microeconomic foundation.

Fourth, increasing dividends and share buybacks are enhancing investor returns.

Fifth, the continuous inflow of 'patient capital' is supporting healthy market development.

CITIC Construction Investment noted that after a 'low-volume rebound,' the A-share market may still require further consolidation. On the macro front, STAR Market companies reported a 136% year-on-year profit surge in their semi-annual reports, further validating the strong fundamentals of hard-tech sectors. However, there remains divergence in views on the pace of broader economic recovery.

On the policy front, continued statements supporting SOE tech transformation and PBOC measures to boost domestic demand are providing ongoing structural tailwinds.

From a liquidity perspective, trading volume dropped to RMB 1.84 trillion—the lowest in six months—indicating strong观望 sentiment among sidelined capital. With market activity dominated by existing funds, sector rotation has accelerated.

Overseas, U.S. markets closed higher, with investor focus on NVIDIA's (NVDA-US) earnings report. External sentiment is mildly positive but remains uncertain.

Overall, the short-term market is likely to continue in a 'range-bound index with structural rotation' pattern.