--- title: "First quarter earnings season is over!" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/40307648.md" description: "$Shanghai Composite Index sh000001$ The first-quarter earnings season is officially over, and institutional funds are back in the game! Yesterday, the index surged straight past 4100 points again, back to the familiar rhythm dominated by institutions. The fact that institutions chose to return on the second-to-last day of the holiday is, to put it bluntly, them positioning early for May's market, no need to overthink it. The hottest sector yesterday was undoubtedly rare earth permanent magnets! The earnings of the top few rare earth companies in Q1 are almost equivalent to their entire last year's performance, that's insane! Actually, at the beginning of the month, I shared with everyone: from a valuation perspective, the two institutional tracks of Sci-Tech Innovation blue chips and rare earths..." datetime: "2026-04-30T01:46:52.000Z" locales: - [en](https://longbridge.com/en/topics/40307648.md) - [zh-CN](https://longbridge.com/zh-CN/topics/40307648.md) - [zh-HK](https://longbridge.com/zh-HK/topics/40307648.md) author: "[点金胜手](https://longbridge.com/en/profiles/12090136.md)" --- # First quarter earnings season is over! $Shanghai Composite Index sh000001$ The Q1 earnings season is finally over, and institutional funds are back in action! Yesterday, the index surged directly above 4100 points again, back to the familiar rhythm of institutional dominance. Institutions chose to return the day before the holiday ends. To put it bluntly, they are laying the groundwork for May in advance, no need to overthink this. The hottest sector yesterday was undoubtedly rare earths/permanent magnets! The earnings of the top few rare earth companies in Q1 almost matched their entire last year's performance, that's insane! Actually, at the beginning of the month, I shared with everyone: from a valuation perspective, the Sci-Tech Innovation blue chips and rare earths, these two institutional tracks, are the most reasonable and worth watching. I mentioned the opportunities in this industry chain back then and reiterated the logic of minor metals and rare earths mid-month. The return of institutional funds yesterday mainly fell into two categories: one is many low-position institutional tracks starting to take over, like the rare earths we mentioned; the other is already strong tracks starting to accelerate, like hardware sectors such as electronic cloth. So everyone needs to pay attention next, these two styles are different, don't mix them up. One can be held long-term with a patient mindset, the other cannot—take profits when you see them, don't be greedy. Now let's talk about the core tracks: 1\. Rare Earths/Non-ferrous Metals Both leading rare earth stocks hit the daily limit up yesterday. This is a collective effect of the entire sector, not just individual stock performance. Moreover, the double bottom pattern is confirmed, and the next step is to continue the recovery rhythm. My earlier prediction about minor metals rising has come true. The core reason for yesterday's rare earth surge is still the stellar earnings report, giving institutions reassurance. Plus, the star effect of 'Zhang Mengzhu' boosted short-term market sentiment—an unexpected event-driven push. Rare earths remain a track suitable for long-term speculation. Just master the rhythm of selling high and buying low, treat it with equanimity—don't chase highs, and don't panic sell. Yesterday, rare earths rose first; the permanent magnet sector might be a step slower. No rush, it will catch up gradually. 2\. Semiconductors/Equipment Semiconductors were in their second day of adjustment yesterday. I estimate after two more days of adjustment, there should be a recovery. Be patient. The bellwether is still Haiguang. It started correcting after hitting previous highs, but trading volume has remained ample. After the adjustment, it will exert force repeatedly, no need to worry too much. Big players like SMIC and 'Han Wang' already have valuation advantages, so overall sentiment in the semiconductor direction isn't bad. After a slight adjustment, they will continue to perform. Additionally, there's important news today: the US announced a ban on exporting semiconductor equipment to Hua Hong. This indicates the "MATCH Act" is gradually taking effect. Subsequent attention on the semiconductor equipment sector will be higher. Lithography machines are the core of equipment and definitely need key focus. By the way, electronic cloth might be entering its final acceleration phase, everyone can pay more attention. 3\. Green Power Green power is now the most active track for retail investors. Policies keep rolling out one after another, never stopping. This direction is purely driven by retail investors, not quant funds, so situations like a direct A-share massacre or one-day wonders generally won't occur. The rhythm is relatively easier to grasp. Currently, the leaders and core stocks of this sector are basically concentrated in the Huadian group. Besides that, some low-position stocks with advantages are also worth watching. 4\. Commercial Aerospace This direction has some short-term divergence, and the hype has cooled a bit, but don't abandon it completely. Satellite communications, space computing power, and recovery technology remain key focuses. 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