On April 7, financial news reported that last Thursday the market fluctuated and declined, with the Chinext Price Index leading the fall. Stocks in Consumer Electronics and high overseas sales proportion concepts collectively suffered heavy losses, with multiple stocks including Luxshare Precision Industry and Goertek Inc. hitting the daily limit down. Throughout the day, the transaction volume in the Shanghai and Shenzhen markets reached 1.14 trillion, an increase of 163.1 billion compared to the previous trading day. In terms of sectors, the China-Japan-South Korea FTA, veterinary medicines, Logistics, and tourism sectors rose significantly, while Consumer Electronics, Small Appliances, Siasun Robot&Automation, and PCB sectors faced significant declines. By the close last Thursday, the Shanghai Composite Index fell by 0.24%, the Shenzhen Component Index fell by 1.4%, and the Chinext Price Index fell by 1.86%.

In today's brokerage morning meeting, GF SEC believes that the USA's tariffs on China have a limited impact on the A-share Computer Industry; China Securities Co.,Ltd. suggested being Bullish on the Innovative Drugs industry that is currently not affected by tariffs; Galaxy Securities stated that Deep Sea Technology has entered a new stage in Global Strategy, focusing on opportunities in core equipment.

GF SEC: The USA's increased tariffs on China have a limited impact on the A-share Computer Industry.

GF SEC believes that the USA's imposition of additional tariffs on China has limited impact on the A-share Computer Industry. From the current structure of listed companies, most of the companies in the industry, which are mainly in Software and Technology services, focus on the domestic market, and the proportion of hardware companies involved in exports to the USA is relatively low. Furthermore, among hardware companies, the share exporting to the USA is also low. According to the calculations based on the Computer (Shenwan) component stocks, the overseas income proportion of computer stocks is 8.3%, 8.3%, and 8.5% for the periods of 2022-2023 and the first half of 2024 respectively. If calculated on the basis of total sector revenue, the overseas income proportion for the Computer sector is 11.6%, 12.2%, and 14.1%. If only considering income exposure to the USA, the actual proportion is even lower.

China Securities Co.,Ltd. is Bullish on the Innovative Drugs industry, which is not affected by the tariffs.

China Securities Co.,Ltd. believes that the impact of tariff policy on the pharmaceutical industry chain is quite complex and may still have variables. In the USA's recent imposition of tariffs on China, pharmaceuticals are not involved. At this point in time, the focus is on the Innovative Drugs industry, which is not affected by tariffs, the opportunities for improving domestic market shares of Medical Devices and Blood Products under self-control, and industries such as Traditional Chinese Medicine, pharmacies, and distribution that are closely related to domestic demand without much correlation to tariffs. In the long term, going overseas should still be an important direction of Global Strategy for pharmaceutical companies, with a firm belief in the incremental opportunities brought by overseas expansion.

Galaxy Securities states that deep-sea technology has entered a new strategic phase, focusing on core equipment opportunities.

Galaxy Securities stated that an international deep-sea equipment system framework has formed, including general equipment for deep-sea exploration operations, deep-sea resource development equipment, deep-sea security equipment, and deep-sea scientific research equipment. In recent years, China has continuously increased investment and developed a number of major equipment, including the operational manned submersible 'Jiaolong', the 10,000-meter manned submersible 'Fendouzhe', the first set of domestically produced underwater oil trees, the 'Kaituo No.1' deep-sea heavy-load mining vehicle, and domestically developed integrated underwater construction equipment. China's deep-sea technology and equipment have seen rapid breakthroughs, but some core equipment and key components still rely on imports, and there is still a certain gap in product precision and reliability compared to international advanced levels. The deep-sea exploration and development market has vast potential, and with the promotion of national and local policies, China's deep-sea technology development is expected to accelerate. On one hand, it will drive the industrialization process of deep-sea equipment; on the other hand, it is expected to deepen the self-control of core equipment and key components.