On June 11th, the A-share market opened lower with the Shanghai Composite Index, the Shenzhen Component Index, and the ChiNext Index all experiencing fluctuations and declines throughout the day. By the closing bell, all three major indices had fallen, with 4,065 stocks losing value, marking the second consecutive day of decline for the A-share market. Some securities firms believe that the A-share market still needs more room for comprehensive upward movement and may continue to experience fluctuations in the near term.
The A-share market saw a collective lower opening for the three major indices on the 11th. After an initial rise, both the Shanghai and Shenzhen markets saw downward fluctuations. In the afternoon, the markets remained weak, with individual stocks showing a general downward trend for the entire day.
According to a report from Hong Kong’s “Sing Tao Daily,” the Shanghai Composite Index rose by a maximum of 4 points during the day, reaching a high of 3997 points. Subsequently, the market reversed course and saw a maximum decline of 34 points, hitting a low of 3958 points. By the close of trading, the Shanghai Composite Index stood at 3987 points, down by 6 points or 0.16%. The Shenzhen Component Index rose by a maximum of 108 points throughout the day, reaching 15,062 points. However, the market turned downward afterwards, with a maximum decline of 248 points and closing at 14,851 points, down by 102 points or 0.68%.
Additionally, the CSI 300 Index closed at 4722 points, down by 26 points or 0.55%, while the ChiNext Index closed at 3811 points, down by 43 points or 1.13%.
This marks the second consecutive day of decline for the three major A-share indices.
According to data from the financial data provider Wind, on the 11th, out of 5432 stocks listed on the Shanghai and Shenzhen exchanges as well as the Beijing Stock Exchange, 1369 stocks rose, 4065 stocks fell, and 88 stocks remained unchanged.
The total turnover of both markets amounted to 2.5521 trillion yuan, a decrease of 67.2 billion yuan compared to the previous trading day’s 2.6193 trillion yuan. Specifically, the Shanghai market had a turnover of 1.1856 trillion yuan, down by 41.5 billion yuan from the previous trading day, while the Shenzhen market recorded a turnover of 1.3665 trillion yuan.
In terms of sector performance, media and entertainment stocks plummeted by nearly 4%; electronic information and automobile manufacturing stocks fell by over 1%; real estate, biopharmaceuticals, cement, power, steel, and financial stocks showed a soft trend. On the other hand, non-ferrous metal stocks rose by over 3%, chemical stocks rose by over 1%, while petroleum and coal stocks were relatively weak.
In response to these market movements, experts quoted by The Paper argued that the short-term stabilization and recovery of the overall market currently lack necessary conditions, suggesting that near-term fluctuations may continue to dominate the A-share market.
Fu Jingtao, Chief Analyst of A-share Investment Strategy at Shenwan Hongyuan Research Institute, stated that the structural uptrend in the A-share market is approaching a high level area, with further room for comprehensive upward movement yet to be opened. The period from June to July may present a window for rapid adjustments.
According to Caixin Securities, the risk of a sharp decline in the A-share market in the short term is relatively low, but there is still a strong wait-and-see sentiment among investors, indicating that the market rebound is not yet confirmed.