On April 23, after opening high, the A-shares market weakened, with over 4000 individual stocks falling, and the three major indices collectively declining. The ChiNext Index and the Shenzhen Component Index fell by more than 1.5% intraday, and the Shanghai Composite Index once again broke below the 4100-point mark.
By the close of trading, the Shanghai Composite Index fell below 4100 points, down 0.32% to 4093.25 points, while the Shenzhen Component Index fell 0.88% to 15043.45 points; the ChiNext Index fell 0.87% to 3720.25 points, and the STAR 50 Index dropped 1.28% to 1432.59 points. Out of the market, 1330 individual stocks rose, while 4078 individual stocks fell.
The total turnover of Shanghai, Shenzhen, and Beijing markets reached 2.82 trillion yuan, compared to the previous day’s 2.445 trillion yuan. The net outflow of funds in the market was 1382.60 billion yuan throughout the day, with 481.88 billion yuan outflow in Shanghai and 900.72 billion yuan outflow in Shenzhen.
Rare earth sector plummeted by 8%, precious metal sector tumbled by 5%, energy metals, non-ferrous metals, and other sectors fell by over 3%, leading the decline. On the other hand, liquor sector rose against the trend by 3%, while sectors such as marine equipment, coal, power, and utilities rose by 2%.
Of note, shares of Lanshi Heavy Equipment, *ST Shuyuan, Aonong Biosciences, and Huanrui Century all hit limit-down. On the evening of April 22, an unusual scene appeared in the A-shares market. The four companies mentioned above successively announced that they were under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws and regulations. The four companies are in different industries, including high-end equipment, electronic information, agriculture and animal husbandry, and film and culture.
On April 23, the A-shares market once again became a hot topic on Weibo.
Investors complained, “We thought that we could make money and break even with the market heating up, but in the end, not only did we not make a penny, but our positions deepened. Our hopeful anticipation was completely extinguished by the market. It’s really unpredictable, entering the market with joy, only to leave with disappointment. Although the overall market doesn’t seem to plummet, individual investors’ accounts are losing big every day.”
“The market is generally falling, with profit-taking reaching a freezing point. Funds are fleeing to safety, high-priced sectors are retracting, and the panic-stampedes are intensifying emotional volatility. Investors need to manage their positions rationally and not blindly follow the trend of cutting losses.”
“Just as A-shares reclaimed the 4100 mark, they faced a correction with the index lively but individual stocks struggling. Structural market trends are evident, where making gains on the index without actual profits becomes the norm. Increased volatility during annual report season requires a rational approach, avoiding blindly chasing highs.”