A-shares showed strength with volatility today, as the Shanghai Composite Index reclaimed the 4100-point level. At the close, the Shanghai Composite was up 0.64% at 4108.57 points, while the Shenzhen Component Index rose 1.23%, the ChiNext Index gained 1.66%, the STAR Composite Index advanced 1.78%, and the Beijing Stock Exchange 50 Index increased by 1.12%. Market sentiment was active, with a full-day turnover of 2.41 trillion yuan and over 4,000 stocks rising across the board. Most industry sectors closed higher, with power grid equipment, nuclear fusion, and computing hardware themes leading the gains, while oil, gas, and precious metals sectors saw adjustments.

Following consecutive declines, stock markets in Japan and South Korea closed higher collectively. The Nikkei 225 Index rose 1.90% to 55,278.06 points. The Korea Composite Stock Price Index surged 9.63%, hitting a record high, after briefly triggering a trading halt with an intraday gain exceeding 12%, reflecting a rapid shift in market sentiment from extreme panic. South Korean President instructed relevant departments to implement a 100 trillion won (approximately 470.4 billion yuan) market stabilization plan as soon as possible to further calm capital market sentiment.

The Fourth Session of the 14th National People's Congress opened in Beijing today, releasing the 2026 Government Work Report. The report emphasized taking scientific and technological innovation as the core engine, focusing on breakthroughs in key core technologies, strengthening industrial foundation reconstruction and major technical equipment advancements. It outlined building advanced manufacturing as the backbone, coordinating the renewal of traditional industries, the growth of emerging industries, and the cultivation of future industries. The report also stressed simultaneously advancing the "AI+" initiative alongside the digital, intelligent, and green transformation of manufacturing to solidify the foundation of the real economy. New quality productive forces are identified as the core strategic focus for the "16th Five-Year Plan" period, set to become a key driver of economic transformation and growth.

The power grid sector performed strongly today. Overseas, recent policy discussions have highlighted that major technology companies are being encouraged to address the high energy consumption of data centers independently to avoid driving up residential electricity prices. Tech giants including Amazon, Google, Meta, and Microsoft participated in a meeting on March 4th and signed commitments to meet the additional power demands of new AI data centers through power purchase agreements and self-built power plants. Much of the U.S. power grid was built in the 1950s-1970s, is aging severely, and has entered a replacement cycle, driving high demand growth for power equipment. China's power grid equipment sector holds leading advantages in both technology and cost, giving it significant export potential. Transformer and high-voltage switchgear exports are projected to increase 48.6% and 31.5% year-on-year by 2025, respectively, with related leading companies expected to achieve high growth in overseas revenue.

Domestically, State Grid Corporation released a set of key measures, specifying quantitative targets for the "16th Five-Year Plan" period, including connecting over 200 million kilowatts of new energy and increasing distribution network capacity by 900 million kVA. Investment plans are anticipated to be revised upward to 4.3-4.5 trillion yuan, a 40% increase compared to the "14th Five-Year Plan" investment. Projects related to ultra-high voltage, distribution network expansion, microgrids, and digital-intelligent transformation are accelerating simultaneously. The National Energy Administration recently announced the first batch of pilot projects for enhancing new power system construction capabilities, encompassing 43 initiatives such as system-friendly new energy power stations, grid-forming technology applications, smart microgrids, computing-power coordination, virtual power plants, large-scale high-proportion new energy transmission, and next-generation coal power. The 2026 Government Work Report highlighted new power systems, green transition, energy security, and dual-carbon goals as core keywords, suggesting power grids and energy storage may become essential investment areas.

Against the backdrop of recent geopolitical tensions, the power grid, as a critical component of energy transmission, is seeing its strategic value reassessed. Concurrently, the sector benefits from stable technological iteration, with leading companies possessing strong cash flows and high earnings visibility, making them a destination for避险 funds and contributing to the sector's recent sustained upward trend. Given the combination of intensified domestic power grid investment and opportunities for overseas equipment exports, the long-term investment thesis for the power grid equipment sector remains solid. Interested investors may consider持续关注 the Power Grid ETF (561380), which closed up 4.14% today.

The communication equipment sector also rebounded today. Global AI development is generating massive computing power demand, driving a surge in requirements for core components like high-speed optical modules and data center networking equipment. Overseas, Broadcom released earnings yesterday, projecting AI-related revenue to exceed $100 billion by 2027, providing an optimistic overall demand outlook. As a key global supplier of optical communication chips and switch chips, Broadcom's positive AI revenue forecast reinforces market belief in the longevity and high certainty of AI investments. Additionally, with Nvidia's GTC 2026 conference approaching, where the company is expected to unveil its next-generation AI chip, market anticipation and sentiment are gradually building. Domestically, the 2026 Two Sessions placed "AI+" at the core, proposing supporting projects like computing power center construction, gigabit optical networks, 5.5G/F5G, and satellite internet. Communication equipment, as the digital foundation, is poised to receive incremental budget allocations. As the business models for large AI models near commercialization and models continue to iterate and upgrade, computing power demand is expected to drive sustained growth upstream in the industry chain.

Recent attention has also focused on the quantum communication field. The release of China's first downloadable quantum computer operating system, compatible with various technical routes like superconducting and ion trap, coupled with breakthroughs in multiple quantum computing prototypes, has strengthened market confidence in the overall quantum technology ecosystem. The 2026 Government Work Report首次 proposed "establishing a growth and risk-sharing mechanism for future industry investment," explicitly listing quantum technology as a key future industry for cultivation, catalyzing expectations for policy dividends. Quantum communication is transitioning from laboratory research to scaled application, offering broad industrial prospects and potentially raising the growth ceiling for the communication equipment sector.

With high景气 in overseas computing power segments like optical modules and servers, and continued domestic policy support, market recognition of the industry trend remains strong. The communication equipment sector still holds significant allocation value. Interested investors may consider持续关注 the Communication ETF (515880), which closed up 2.63% today.

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