The Chinese stock market continued to weaken today (23rd), with all three major indices falling by more than 3%, and the Shanghai Composite Index briefly dropping below the 3800 point mark.
The three major A-share indices collectively weakened today, with the Shanghai Composite Index falling below the 3800 point mark at one point. At the close, the Shanghai Composite Index fell by 3.63% to 3813.28 points; the Shenzhen Component Index fell by 3.76% to 13345.51 points; and the ChiNext Index fell by 3.49% to 3235.22 points. The total trading volume in Shanghai, Shenzhen, and Beijing reached 2.45 trillion, an increase of 145.4 billion compared to the previous trading day.
Over 5200 individual stocks in the three markets experienced declines.
Almost all industry sectors saw declines, with only the coal sector bucking the trend. Major losers included precious metals, hotels and catering, components, tourist attractions, optical electronics, medical beauty, household goods, and social services sectors. In terms of individual stocks, there were only around 300 that rose, with nearly 40 stocks hitting the daily limit up and over a hundred stocks hitting the limit down.
Some netizens pointed out that the state-owned institutional investors were aggressively selling off stocks, causing the Chinese stock market to be the worst performer globally since the Russia-Ukraine conflict. Despite this, there are daily calls for a bull or steady market, with claims about the bright prospects of the Chinese economy. The stock market has been engaged in a 17-year battle to defend the 3000-point mark, only to suddenly shift to a more stable trend? Blaming international factors for declines and attributing gains to the economic narrative.
Starting from February to March, the Chinese stock market hovered in the range of 3950-4100 points. By March 20th, the Shanghai Composite Index broke below the 4000 point psychological barrier after shaking adjustments lost the six-month average line. The total trading volume in Shanghai and Shenzhen markets reached 2.29 trillion, up by 175.9 billion from the previous trading day.
Overall, there has been a continuous net outflow of funds in the Chinese A-share market. For instance, the outflow of major funds on specific days stood at a high level, exceeding 600 billion yuan on March 17th and nearly 700 billion yuan on March 19th, indicating sustained pressure from capital outflows.