On November 6, the mainland stock market experienced a collective decline among its three major indices, with the ChiNext Index plummeting by 3.96%. More than 4,700 stocks listed on the Shanghai, Shenzhen, and Beijing stock exchanges saw a drop in value, leading to a significant downturn in investor sentiment. The total trading volume for the Shanghai and Shenzhen markets reached approximately 1.66 trillion yuan, a decrease of over 20% compared to the previous trading day.
When the market closed, the Shanghai Composite Index reported at 3,649.18 points, marking a decline of 1.1%. The Shenzhen Component Index finished at 11,175.78 points, down by 2.57%, while the ChiNext Index closed at 2,465.23 points, suffering a substantial loss of 3.96%.
According to reports, all three major indices opened sharply lower on the morning of November 6, with the Shanghai index, Shenzhen Component Index, and ChiNext Index down by 2.11%, 3.72%, and an alarming 4.99%, respectively. While the early morning declines moderated slightly, the afternoon session maintained this weakness, with the ChiNext Index extending its losses further as the trading session progressed.
Throughout the day, trading volume in the Shanghai and Shenzhen markets totaled 1.6578 trillion yuan, which is roughly 460 billion yuan lower than the prior trading day, reflecting a 22% drop. Notably, financial data service provider Wind reported that 4,739 stocks from these markets and the Beijing Stock Exchange were down, contrasted with only 757 that saw gains, and there were 80 stocks that remained unchanged. The number of losers far outweighed the number of gainers by six times.
Power hardware and electronics stocks led the decline, with notable companies like Cambridge Technology and Aohong Electronics hitting their daily price limit down. Industrial Fulian and Shengyi Technology also faced significant drops. During the morning session, shares of NewEase, Zhongji Xuchuang, and Tianfu Communication fell by over 10% at one point.
By the end of the trading day, Shengyi Technology was down by 9.37%, Lanqi Technology by 8.36%, and Industrial Fulian by 8.08%. Additionally, shares in the non-ferrous metals sector weakened, with companies like Huayang New Materials, Xinlaifu, Yunnan Geosciences, and Jinchengxin all dropping more than 7%. West Mining and Jiangnan New Materials also faced declines exceeding 6%.
In a midday development, three optical communication firms—NewEase, Zhongji Xuchuang, and Tianfu Communication—announced stock repurchase plans. These announcements included updates on previously made repurchases, adjustments in the use of repurchased shares, and proposals awaiting deliberation by shareholder meetings.
When the trading session closed, Zhongji Xuchuang, NewEase, and Tianfu Communication finished the day down by 9.19%, 7.28%, and 5.79%, respectively.
An analysis from financial news outlet Cai Lian She noted that the significant reduction in trading volume reflects a growing sense of caution among market participants. Power hardware stocks have recently emerged as a leading cause of the market decline, and the timing of their recovery will be crucial in determining the pace of market sentiment recovery.