Following “Black Monday,” the A-share market experienced another day of volatility on Thursday, July 16th. The three major stock indices fell by over 2%, with all key indexes showing widespread declines. The Shanghai Composite Index dropped below the 3900-point mark, while the ChiNext Index fell by over 4%, indicating substantial market pressure and garnering significant attention.
By the closing bell, the Shanghai Composite Index was down by 1.85% to 3882.41 points, the Shenzhen Component Index dropped by 1.97% to 14488.65 points, and the Growth Enterprise Index fell by 2.95% to 3692.46 points. The ChiNext Index saw a significant decline of 4.02%, reflecting challenges faced by technology innovation companies. The SZSE Component Index fell by 1.85%, and the SME-ChiNext 100 Index dropped by 2.65%.
According to data from Wind, a total of 2495 stocks rose while 2860 stocks fell across the two exchanges and the Beijing Stock Exchange, with 169 stocks remaining flat.
Data from “Dazhihui VIP” revealed that there were 80 stocks with gains exceeding 9%, and 113 stocks with losses exceeding 9% across the two exchanges and the Beijing Stock Exchange.
The total trading volume on the Shanghai and Shenzhen stock exchanges amounted to 2.4036 trillion yuan, marking a decrease of 167.6 billion yuan compared to the previous trading day. Of this total, the Shanghai market turnover was 1.1242 trillion yuan, while the Shenzhen market turnover reached 1.2794 trillion yuan.
In terms of sector performance, semiconductor chip stocks experienced adjustments with multiple stocks such as ASML, TSMC, and Intel seeing limit down movements. Mining hardware stocks weakened, with companies like Bitmain, China Stoner, and China Materials seeing limit-down movements. Diamond cultivation sectors faced declines, with sectors like oil and gas, chemicals, and coal ranking high in losses. On the other hand, the film and television sector remained active, while pharmaceutical and commercial sectors showed strength. Sectors like pork, tourism, hotels, and liquor led in gains.
Financial firm Cai Xin Securities expressed that overall, the market performance was below expectations. With overseas tech assets rebounding, there was significant negative feedback on the A-share technology innovation direction. Short-term volatility in hard technology continued without improvement, which could affect market sentiment and limit momentum for broader market rebound and other sectors. Additionally, the continuous decrease in the overall market turnover indicates a relative lack of confidence in funds.
The institution predicts that short-term market conditions may continue to be volatile while seeking more positive signals. Factors like significant market volume upswings, the three major indices returning to 5-day and 10-day moving averages, and a sustained improvement in hot sectors are crucial in confirming market upward potential. Therefore, investors are advised to control their positions appropriately, focus on observing market rotation during volatile conditions, and increase participation when positive signals emerge. In the medium term, July is expected to be a period of significant market fluctuations, suggesting a balanced allocation strategy.
The recent movement in A-shares has caught the attention of many investors and financial bloggers, trending on social media platforms like Weibo under the tag “A-shares.”
Financial blogger “Liu Hongming Stable Investment” remarked, “It’s tough, 3900 points gone again. The key lies in the panic brought by these technology stocks like ‘Light Core Lithium.'”
Financial blogger “Professor Numerical Prediction” stated, “A-shares plunged again, serving as a reminder to investors! With a drop of over 80 points, the index once again fell below 3900 points, triggering another round of panic selling. Today, AI-related stocks continued to lead the decliners, reinforcing the caution to stay away from AI upstream stocks.”
Financial blogger “A Rising Dark Horse” commented, “Too harsh, accelerating downtrend starting, with the index falling below 3900 points and the Growth Enterprise Market below 3700 points. Semiconductor stocks on a five-day decline… How’s everyone holding up?”
Extreme sports enthusiasts and stock market observer “Brother Peak Adventurer” announced, “Starting today, I will no longer provide any opinions on A-shares. Thank you.”