Positive signal! Rare earth permanent magnets, surge in the afternoon

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On April 7th, the three major A-share indices all closed higher, with market hotspots rotating rapidly. The Shanghai Composite Index rose 0.26%, the Shenzhen Component Index increased 0.36%, the ChiNext Index gained 0.36%, and the STAR Market Composite Index rose 0.85%. The total market turnover was 1.62T yuan.

Xinhua News Agency reports that on April 7th, an explosion occurred in the Jubail Industrial Zone in northeastern Saudi Arabia, which was a large-scale attack. Jubail Industrial Zone is one of the world’s important petrochemical production bases, with an annual output of about 60 million tons of petrochemical products, accounting for 6% to 8% of global total output.

Following this news, chemical stocks surged across the board. The glyphosate, acrylic acid, chemical raw materials, agrochemical products, and organic silicon sectors led the gains, with Jiangtian Chemical, Dongyue Silicon Materials, and others hitting the daily limit (“20CM”). Xin’an Shares, China National Agricultural Means of Production, and LiuHua Shares also hit the daily limit.

The rare earth permanent magnet concept saw a significant rally in the afternoon. According to a message released by Baotou Rare Earth Products Exchange on April 3rd, market sentiment is becoming more positive, the previous price adjustment phase has ended, and rare earth prices are expected to stabilize and gradually rebound.

The sports concept also rose in the afternoon. Jinling Sports (rights protection) hit the daily limit (“20CM”), with Zhongti Industry and Gongchuang Turf also reaching the daily limit.

JinYao Pharmaceutical achieved seven consecutive limit-ups, becoming the latest “Limit-Up King” of A-shares. Wind data shows that from March 24th to April 7th, JinYao Pharmaceutical’s stock price increased by 106.74%, doubling in 10 trading days. The sharp rise in JinYao Pharmaceutical’s stock price is related to the market labeling it as an innovative drug concept and speculating on it. The company recently issued multiple announcements about stock price fluctuations, stating that its current R&D mainly focuses on generic drugs, with no ongoing innovative drug projects, and that related hype involves clear misinterpretation. The company’s main business involves the research, production, and sales of steroid hormones, amino acid raw materials, and formulations. Additionally, the company’s recent operating performance has declined significantly, and the stock price increase has deviated markedly from its fundamental business. The stock’s rapid and continuous short-term rise carries a risk of sharp decline.

Rare earth permanent magnet concept strengthened in the afternoon

In the afternoon, the rare earth permanent magnet sector surged sharply, with China Rare Earths hitting the daily limit, and Zhongke Magnetics and Shenghe Resources following suit.

On the news front, Baotou Rare Earth Products Exchange announced on April 3rd that the market for light rare earth varieties is performing positively. From March 30th to April 3rd, the supply of low-priced praseodymium-neodymium oxide sources continued to decrease, traders’ participation increased, and quotes steadily rose, prompting metal producers to follow suit and raise prices. However, downstream companies remain cautious, with orderly procurement and increasing actual transactions. For medium and heavy rare earths, prices remained stable with slight increases. Overall, as market transactions gradually recover, market sentiment is becoming more positive, the previous price correction phase has ended, and rare earth prices are expected to stabilize and gradually rebound.

Guotai Haitong released a research report stating that the long-term investment value of rare earths as a key strategic resource remains optimistic. Under tight supply and demand balance, the supply-demand table is important, but more attention should be paid to the macroeconomic influences on metal price trends—monetary policy, macro expectations, geopolitical games, and supply disruptions will be decisive.

Sports concept surged again in the afternoon

In the afternoon, the sports concept rapidly rose, becoming a new market hotspot. Jinling Sports hit the daily limit (“20CM”), with Shuhua Sports, Zhongti Industry, and Gongchuang Turf also reaching the daily limit.

The rise of the sports concept is mainly driven by event catalysis. Xinhua News Agency reports that the first Zhejiang Provincial City Football League (referred to as “Wuyue Cup”) kicked off in Jiaxing on April 6th. The Wuyue Cup draws on the format of Zhejiang Province’s city basketball league, maintaining a grassroots football event positioning and an “athletics platform, cultural tourism, commerce, agriculture, and opera” operational model. Notably, besides the Wuyue Cup, the Scottish Premier League (SPL) 2026 season will start with its opening match on April 11th.

Guojin Securities’ research report believes that, as service consumption supply-side deepens, cultural and sports events become key tracks. The provincial city football leagues, represented by the SPL, continue to gain popularity, not only boosting related event operation demand but also stimulating cultural and tourism consumption, which benefits listed companies in sports equipment, event services, and related sectors, thereby warming market sentiment.

（Market images in the article are from Tonghuashun and Wind）

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Editor: Song Yafang