On October 8th, the first trading day after the “Golden Week” holiday, A-share market saw a gloomy start as investors faced a “black opening.” The market initially surged in the morning but later fluctuated and fell, with a further dive in the afternoon. The Shanghai Composite Index briefly dropped below 3800 points, closing with a small uptick near the end of trading, but it failed to reverse the downward trend. Most individual stocks experienced more declines than gains, with evident market losses, leading to all three major indices closing in the red.
At the close, the Shanghai Composite Index fell by 0.79% to 3811.90 points, the Shenzhen Component Index dropped by 2.07% to 12620.90 points, and the ChiNext Index plummeted by 3.15% to 3036.66 points. The CSI 300 Index also fell by 1.09%.
The total trading volume in the Shanghai and Shenzhen markets reached 1.68 trillion yuan, significantly higher than the trading volume on the last trading day before the holiday, indicating active market trading. Out of the 1698 stocks traded, 3748 declined while 1698 rose, with the median change around -1%. The majority of investors saw losses in their accounts on that day, reflecting a typical scenario of “high-volume decline.”
According to Wind data, out of 31 Shanghai-Shenzhen Industry Classification industries, only 10 saw a net inflow of main funds. Among them, the electrical equipment industry had a net inflow of 1.874 billion yuan, ranking first, while the electronics and communications industry experienced a combined net outflow of 19.373 billion yuan. Main funds withdrew from several industry leaders, with a total net outflow of over 2.8 billion yuan from stocks like “Yizhongtian.”
Various sectors in the industry experienced declines, with sectors like batteries, coal, nuclear power generation, shipping ports, and petrochemicals leading in gains, while semiconductor, rare earth, biotechnology, robotics, electronic chemicals, communication equipment, and medical services saw prominent declines. Defensive sectors such as oil, power, and banking, however, rose against the trend.
On October 8th, several topics related to the A-share market trended on Weibo.
Economic blogger “Contrarian Wanderer” posted, “Really falling! From pre-holiday to post-holiday, a repeat of high-volume plummeting today. What is happening with A-shares?”
“Master Trader,” who claims to be the general manager of Chongqing Dongjin Investment Advisory Co., analyzed that the index breaking below 3800 points during the trading day froze market sentiment, providing three key observations.
Firstly, judging from the performance on the first trading day after the holiday, the A-share market appeared “much weaker than expected,” especially after the plunge following an initial surge today – severely denting market morale and confidence. Although the index remains above 3800 points, the visible market losses are significant. Previously hyped hard-tech stocks continue to be the main force behind the sell-off, with institutional funds rapidly streaming out of semiconductor and chip stocks.
Secondly, looking at the trading volume, the market saw increased activity that predominantly led to declines, signaling that long-term losses have prompted some funds to opt for exiting. While a short-term oversold rebound may be possible, the medium-term trend continues downward, making it difficult to fully reverse in the short term.
Lastly, he pointed out that October 9th (Friday) is the last trading day of the week, and the significant high-volume decline on October 8th is not conducive to repairing market sentiment.
Economic blogger “Trader Jianfang” remarked, “The ChiNext Index and the ChiNext 50 Index both fell below support levels today. Let go of illusions, and face the declining trend. Trading in a downtrend requires more caution, tighten stop-loss orders and only buy into panic or reversals; avoid bottom fishing, or if unable to trade, better to take a break.”