On July 13, the A-shares opened low and continued to decline throughout the day, with major indexes plummeting across the board. More than 4600 stocks on the market fell, with over a hundred hitting their downward limit. The total trading volume in the Shanghai and Shenzhen markets shrank to 570.8 billion yuan.
At the close of trading, the Shanghai Composite Index fell by 2.06% to 3913.79 points, the Shenzhen Component Index dropped by 3.48% to 14522.85 points, and the ChiNext Index fell by 3.1% to 3723.52 points.
Across the board, stocks showed a trend of widespread declines with over 4600 stocks in Shanghai, Shenzhen, and Beijing trading lower, and more than a hundred stocks hitting their limit down. Trading volume significantly decreased, with the total turnover in Shanghai and Shenzhen amounting to 2.82 trillion yuan, down 570.8 billion yuan from the previous trading day. Specifically, Shanghai’s turnover was 1334.9 billion yuan, a decrease of 228.2 billion yuan compared to the previous trading day, while Shenzhen’s turnover was 467.8 billion yuan.
According to information from “Great Wisdom VIP,” a total of 47 stocks on the two markets and the Beijing Stock Exchange saw gains of over 9%, while 597 stocks experienced declines of over 9%.
In terms of sectors, there were notable losses in the fiber optic concept, with companies such as Hengtong Optic-Electric, Chengdu Rongding, Fiberhome Communications, and Sifang Information hitting the limit down. The storage chip concept also experienced a collective decline, with companies like Will Semiconductor, Techpade, and Nexperia hitting the limit down. MLCC concept stocks also faced downward pressure, with Fenghua Advanced Technology reaching the limit down. Conversely, sectors such as banking, oil and gas, and traditional Chinese medicine showed strength amidst the market downturn.
On July 13, various topics related to the A-share market trend trended on Weibo.
Financial blogger “Full Position Bull” shared an analysis, stating, “The financial sector’s full effort to support the market was unable to reverse the decline. The end of the tech rally cycle is inevitable. Today, all major indexes saw declines exceeding 2%, with the banking sector surging against the trend by over 2%. The financial sector has been doing its utmost to support the indexes. However, the excessive weighting of technology giants in the A-share market has led to a collective weakening of tech stocks worth hundreds of billions or even trillions. Relying solely on banks and insurers to support the market, they simply cannot withstand the market pressure brought by the retreat of tech behemoths, resulting in minimal support effectiveness.”
Financial blogger “Zhang Liyang Market Outlook” expressed, “A-shares took another hit today, with the Shanghai Composite Index hitting a three-month low. How many investors are trapped now? Recently, the tech semiconductor and AI computing power sector experienced a major pullback after soaring in the first half of the year. Core leading companies saw a sudden change in their fortunes within a month; storage chips and other previously hot sectors suddenly cooled off. Funds are moving from high volatility and high valuation directions towards defensive sectors. Many investors’ accounts are likely in the red, and wallets are severely depleted.”
Financial blogger “Extreme Trader” wrote, “Looking at the current turnover rate of A-shares, it is evident that the market is still in a bearish phase. Assuming the current quantitative turnover accounts for one-third, after squeezing out the water from the machine, the actual daily turnover rate of A-shares is around 0.8% to 0.93%, placing it in the historical 30% to 38% neutral to low range. The market is experiencing weak fluctuations in existing shares, the absence of incremental funds, and there is still a significant gap in the activity standards required for a full bull market.”