On September 10th, the main stock indexes of A shares opened low and continued to decline, with the overall market showing weakness. The total turnover of the Shanghai and Shenzhen Stock Exchanges was nearly 1.65 trillion yuan, marking a year-to-date second lowest record and a significant decrease of about 208.5 billion yuan compared to the previous trading day. This marked the fourth consecutive day that turnover remained below 2 trillion yuan. Additionally, Yushu Technology, which was listed in August, dropped below 500 yuan.
By the close of trading, the Shanghai Composite Index reported 3934.40 points, a decrease of 0.43%; the Shenzhen Component Index was at 13,617.67 points, down 0.77%; the ChiNext Index reported 3338.42 points, a decrease of 0.49%; the STAR 50 Index suffered the largest decline, dropping 2.81%.
Out of 4512 listed stocks, 4512 of them experienced declines, while only 955 stocks saw gains.
In the context of a general decline in the market, none of the 42 banking stocks in the sector experienced declines. At the same time, the technology sector encountered challenges, with the semiconductor and communication equipment sub-indices experiencing highs and lows. The chip giant Moore Line plummeted nearly 6%, and Yushu Technology’s stock price fell below 500 yuan to reach a new low of 498.7 yuan, evaporating over 240 billion yuan in market value from its previous peak.
It is noteworthy that the total turnover of the Shanghai and Shenzhen stock exchanges throughout the day was reduced by 2084.59 billion yuan compared to the previous trading day, totaling only 1.647 trillion yuan, setting a new low for the year. The lowest turnover of the year was 1.63 trillion yuan on April 7, marking the first time in the second half of the year that turnover fell below 1.7 trillion yuan.
This also marks the fourth consecutive trading day that turnover in the two markets has fallen below 2 trillion yuan. According to iFinD data, the number of days with turnover of less than 2 trillion for the year has expanded to 16 days.
Trading volume is often seen as an important indicator of market liquidity and investor sentiment. Continued decreases in trading volumes indicate a reduced willingness to trade in the market, with some funds choosing to adopt a wait-and-see approach in uncertain market conditions.
Zhongyuan Securities predicts that there is a higher possibility of the Shanghai Composite Index continuing to consolidate amidst fluctuations, with structural rebalancing as a core feature. Close attention should be paid to macroeconomic data, changes in overseas liquidity, and policy trends.
Chinese expert Li Tingqian told the Epoch Times, “Looking solely at the indices, apart from the STAR 50, there were not many declines. However, with 4500 stocks falling and significant shrinkage in turnover, it is obvious that external funds are hesitant to enter, and existing funds are in a stalemate. Market sentiment is scattered, and a series of policies introduced by the authorities are basically ineffective. The myth of wealth creation in the stock market is no more. Tech stock valuations are being reassessed, leading to decreased attractiveness for funds, which are seeking alternative investment avenues.”
The performance of A shares has once again become a topic of discussion on Weibo.
Financial blogger “Gengbaixingjun” posted, “It is another situation of declining volume and price, with trading volume being 210 billion less than yesterday, which is very frustrating. Today’s turnover has hit a new low since early April, indicating that funds are reluctant to participate – either leaving or ‘playing dead,’ leading to a vicious cycle… In such circumstances, it is essentially impossible for the A-share market to self-rescue. We must wait for when the U.S. stock market will rebound, particularly when tech stocks in the U.S. rebound, which can in turn drive the A-shares.”
Financial blogger “Touyuwendao” stated, “The market is currently very weak, with trading volume only at 1.6 trillion, indicating a year-low in activity and inactive funds. Almost no one is making money, with nearly all strategies leading to losses. Hot topics are quick to reverse, with a drop stop happening suddenly, like in the agriculture sector in the past two days. Long-term investments are facing sustained decline. Themes are changing rapidly, but nothing is gaining traction.”
The blogger later analyzed in a post, “Yushu Technology fell below 500 today, and as things stand now, the high probability of Yushu’s market value falling below 100 billion, currently at 200 billion. Judging from market performance, it is basically defenseless, continuously falling, with the market showing no confidence, and the bullish funds only resisting step by step, rather than launching a counter-attack, just to make the price not look too bad. There is not even a decent rebound in sight.”
Financial blogger “Wenlixiong” commented, “Market sentiment is contagious; when it is bullish, it becomes increasingly lively, providing more opportunities for individual stocks. Conversely, when sentiment is low, it becomes quieter, with fewer opportunities for individual stocks. Currently, the situation in A shares falls into the latter category.”
Meanwhile, the Hong Kong stock market opened low and continued to decline, with the Hang Seng Index and the Hang Seng Tech Index both falling. Weighted tech stocks, new energy vehicle stocks, new consumer and Apple concept stocks, as well as AI heavyweights, saw dual declines, with Zhipu falling by 10% and MINIMAX (Ruiyu Technology) dropping by 9%.
By the close of trading, the Hang Seng Index fell by 1.27% below 25,000 points, the H-share Index dropped by 1.13%, and the Hang Seng Tech Index plummeted by 2.04%, with all three major indexes hitting new lows in recent stages. Both the Hang Seng index and Hang Seng tech index have been declining for four consecutive days.