On Monday (November 18), A-shares continued to decline overall, with the three major stock indices experiencing their third consecutive drop, with the Shanghai Composite Index barely holding above 3300 points. Over 200 stocks in the market fell more than 9%, with over a thousand stocks declining more than 5%, and trading volume shrinking for the fourth consecutive day.
At the close, the Shanghai Composite Index fell by 0.21% to close at 3323.85 points, approaching the critical level of 3300 points; the Shenzhen Component Index fell by 1.91% to close at 10544.02 points; the ChiNext Index dropped by 2.35% to close at 2190.95 points, all three indices plummeting more than 9% over three trading days; the CSI 50 Index fell by 3.64%.
In terms of individual stocks, a total of 4120 stocks in the market saw declines, with 1060 stocks dropping by more than 5%, and over 200 stocks falling by over 9%.
The turnover of Shanghai and Shenzhen stock markets amounted to 1.7577 trillion yuan, down by 68.8 billion yuan compared to the previous trading day, with a net outflow of funds exceeding 90 billion yuan. The turnover of Shanghai, Shenzhen, and Beijing markets combined amounted to 1.7963.88 billion yuan, marking the fourth consecutive day of decreased trading volume.
The three major stock indices have now experienced three consecutive declines. Last Thursday (November 14), A-shares saw a general decline as all three major indices opened low and continued on a downward trend, with the ChiNext Index dropping by 3.4% and the Shanghai Composite Index falling below 3400 points; on the 15th, A-shares continued to decline as the three major stock indices suffered heavy losses, with a net outflow of funds exceeding 105.9 billion yuan.
Today (November 18), the topics “Is the A-share bull market over?”, “Three consecutive declines for the A-share three major stock indices,” and “A-share trading volume shrinks by 67.3 billion, with over 4100 individual stocks falling” have surged in popularity on Weibo.
Chinese economist and fintech expert, author of “Financial Technology,” Yu Fenghui, analyzed in a blog post, stating: “Today’s A-share market seems to have been hit by a cold wind, with all three major indices declining simultaneously, especially the ChiNext Index and the CSI 50, dropping significantly. Although the Shanghai Composite Index remains relatively resilient, it is also destined to fall, with just a step away from the 3300-point mark. The market sentiment appears to have cooled down, as evidenced by the four consecutive days of shrinking trading volume, indicating a decrease in the level of activity among investors, who have become more cautious.
“With over a thousand stocks falling by more than 5%, this reflects heightened market panic, possibly influenced by external uncertainties or below-expected internal economic data. In such circumstances, investors tend to adopt conservative strategies, reduce holdings, and await clearer market conditions.”
Financial blogger and Weibo influencer “Qingchuan Hanhua” remarked: “Is the A-share bull market still here? Of course not. If it were, most people would be making money. If it were a bull market, funds would not be panicking, fleeing persistently; if it were a bull market, there would be no heartache over A-shares.
“The fact is, there has never been a bull market in 2024. Those shouting about a big bull market are now bleeding profusely, filled with resentment. A-shares still remain A-shares, with the majority of financial consumers unable to learn from their mistakes, always walking the road to break even, caught in a cycle of suffering…”
“Mian A” is a popular term on the Chinese internet, where netizens and stock investors draw parallels between A-shares and a fraudulent group in northern Myanmar.