Recently, A-shares have been experiencing continuous decline and the market sentiment is extremely pessimistic. On Monday afternoon, the “national team” made a strong move to stabilize the market, but widespread selling pressure still emerged. On Tuesday, A-shares rebounded significantly, but on Wednesday (July 22), the rebound lacked strength, with major indices falling (the ChiNext Index dropping over 3%) and individual stocks seeing declines, with the total turnover of the Shanghai and Shenzhen markets shrinking by over 300 billion yuan.
On July 22, under the strong support of the “national team,” the A-share market encountered resistance as it attempted to rise.
In the morning session, the Shanghai Composite Index surged rapidly before experiencing strong fluctuations, while the ChiNext Index exhibited weak narrow oscillations. In the afternoon, both markets fluctuated downward, with the ChiNext Index widening its losses. By the close of trading, with the support of the “national team,” the Shanghai Composite Index edged up by 0.07% to 3867.03 points; the Shenzhen Component Index fell by 1.42% to 14061.44 points; the Growth Enterprise Market Index dropped by 3.23% to 3566.73 points, and the STAR 50 Index declined by 2.26%.
According to Wind data, out of a total of 5400 listed stocks on both exchanges and the Northbound Stock Connect, 1528 saw gains, 3872 experienced losses, and 124 remained unchanged. Data from “Great Wisdom VIP” shows that 85 stocks witnessed gains of over 9% while 30 stocks saw losses of over 9%.
The total turnover of the Shanghai and Shenzhen markets amounted to 2.6533 trillion yuan on July 22, down by 303.8 billion yuan compared to the previous trading day.
In terms of sectors, the power sector saw a counter-trend surge, while the precious metals sector collectively rose. The storage chip concept fluctuated and retreated, with one company, Delixi, hitting the limit down six times in eight days, having a current market value of 103.7 billion yuan. Baiweistorage plummeted by over 8%, dragging down multiple stocks. The PCB concept underwent volatile adjustments, with China GiantStone locking at the limit down and Copper Crown Copper Foil falling by over 10%.
The trend of A-shares continues to influence financial bloggers and investors.
An article by the consultant of “China Technology Investment” magazine, “Chenge Dingqian” posted, “Today’s most tricky situation in A-shares: while the index doesn’t seem to be falling, individual accounts are quietly shrinking! Many retail investors closed the trading day in confusion: the Shanghai Composite Index remains in red, why are all of their positions in the green? The core truth is one: extreme structural differentiation, with heavyweights being supported and growth stocks being suppressed, resulting in a poor market performance where money is made on indices but not on individual stocks!”
Financial blogger “Lengyu Qiaohe 0504” posted, “Yesterday’s enthusiasm was too strong, celebrated by everyone, especially the violent rebound in technology. I poured cold water in the morning, technology is not the beginning of a new uptrend, it’s just an oversold rebound. Experts should speak less to avoid misleading retail investors.”
Financial blogger “Xu Yunshu Investment Notes” summarized the lessons from this market movement, “There are two crucial lessons from this trend that must be remembered: one is to actively reduce positions during an accelerating stage, and the other is to decisively execute stop-loss orders when touched. The stop-loss line is crucial, even if the thematic logic is hot, once there is a technical breakdown, discipline must be followed.
“Reviewing my own problems: failing to completely liquidate positions at high levels, watching the handsome unrealized gains and feeling lucky, thinking that minor pullbacks are insignificant. As the continuous decline unfolds, fantasizing about imminent rebounds, and ultimately experiencing a roller coaster ride.”