On July 31, the A-share market on the mainland officially concluded with major indexes floating in the green for the month, showing an overall trend of volatility and downward movement. The ChiNext sector became a particularly hard-hit area in the retreat, with the STAR 50 and ChiNext boards both experiencing monthly declines of over 20%. The ChiNext Index saw the second-largest monthly drop in history, down by 23% in July, while the SZSE Component Index and CSI 500 both fell by over 15%.
According to various reports from mainland media outlets, as of the close of trading on July 31, the Shanghai Composite Index closed at 3832.26 points, marking a cumulative decline of 6.40% for the month; the SZSE Component Index fell by 16.21% for the month. Both the ChiNext and STAR Market representative indices experienced declines of over 20% in July, with the ChiNext Index dropping by 23% and the STAR 50 Index plummeting by 27.80%. The CSI 1000 Index fell by 19.69% this month, while the SSE 50 Index saw a decline of 2.22%.
Tech stocks collectively faced pressure for adjustments this month, with the semiconductor industry chain experiencing a surge followed by a decline. Companies like SMIC, Huatian Technology, Beijing Ultrapower, and Jianghua Micro saw rapid declines after hitting highs within the month, with Xi’an Microelectronics falling by nearly 60%. The storage chip sector also saw significant declines, with companies like Advantest, ZTE Microelectronics, and Baicells experiencing drops of over 50%.
Throughout July, the A-share market continued to spiral downwards, with a sharp drop on July 28. The Shanghai Composite Index held above 3800 points by a thread, and tech stocks encountered a “Black Tuesday,” with the ChiNext Index falling by over 7%, leading to a prevailing sense of pessimism in the market.
On that day, the three major A-share indexes opened lower collectively and maintained a downward trend throughout the day, with declines gradually expanding, yet individual stocks fluctuated.
By the closing bell, the Shanghai Composite Index fell by 1.16% to 3813.31 points, barely holding above 3800 points; the SZSE Component Index dropped by 4.52% to 13,509.68 points; the ChiNext Index plunged by 7.35% to 3327.03 points, dragging down the STAR 50 Index by 6.33% and the STAR Market Composite Index by 5.93%.
The downward trend mainly concentrated on AI hardware, semiconductors, and other high-growth sectors. The semiconductor and computing hardware industry chains underwent significant adjustments, with CPOs, storage memory, and PCB sectors leading the declines; concept stocks related to rare metals, CRO, solar energy, lithium batteries, and commercial aerospace also saw notable drops.
In terms of communication stocks, companies like New easy win, Zhijia Xuchuang, Cambridge Technology, Telecommunications, Ruiche Network, Dingtong Technology, and Changfei Optical Fiber all either hit their limit down or fell by over 10%. In the electronics sector, companies like Xi’an Yicai, Puran Technology, Hengyunchang, Yuanjie Technology, Changguang Huaxin, and Optics Intelligence Technology all either hit their limit down or experienced drops of over 10%.
On July 30, the mainland A-share market once again slumped, with the ChiNext Index dropping by nearly 4% and the STAR 50 Index plunging by over 5%, resulting in over 3600 stocks across the market experiencing declines.
Semiconductor, CO packaging optical (CPO), and printed circuit board (PCB) sectors led the declines. Companies like Dongshan Precision, Gigalight Technology, Cambridge Technology, Changshu Technology, and Tongfu Microelectronics all hit their limit down; Yuanjie Technology fell by 17.2%, Xingchen Technology by 17.35%, and New easy win by 11.89%.
Zhijia Xuchuang saw a drop of 9.15%, with a trading volume reaching 59.773 billion yuan, setting a historical record for the stock. Companies like Syntronix and Allwinner Technology also fell by over 10%.
The performance of A-shares has dampened market sentiment, with related topics frequently trending on Weibo.
A fund blogger with 1.024 million followers, “Hali Treasure Master,” expressed, “July’s closure of A-shares, an unforgettable July! The STAR Market plunged by 25.9% in a single month, with a high opening and closing on the last trading day, and the selling pressure remains strong! The ChiNext dropped by 23% in a single month!”
Financial blogger “Liuyi Zhonglu” stated, “If, in the recent past, there were still hopes for technology amid the crash, after such a tumble on Tuesday, it seems like there are hardly any bright spots left in tech. Tech’s decline on Tuesday was partly due to various institutions bearish sentiment, combined with the stimulation of mass production from certain firms and a collective drop in external markets, ultimately showing the market’s fragile sentiment. During the technology decline, the low-end consumer direction is attempting to ferment. Panic selling was more evident in the afternoon.”
Tech blogger “Folu Qiu Xiaojie” commented, “Looking back at the market, many funds that doubled in the first half of the year saw widespread pullbacks of 30%-40% in the second half. The intense enthusiasm in the earlier period of herding was met with equally severe adjustments and declines in this cycle, making it an excruciating rollercoaster ride. In this round of corrections in July, public funds, private funds, quant funds, speculative funds, and individual investors all suffered losses without exception, with all players in the market sharing the ups and downs. Everyone is in the same boat. I sincerely hope that A-shares will stabilize and recover soon, as many investors are already finding it difficult to hold on.”