On June 21, the three major A-share indexes opened lower collectively, followed by volatile adjustments, with the Shanghai Composite Index falling below the 3,000 point mark. The trading volume of the Shanghai and Shenzhen markets decreased by 104.8 billion yuan compared to the previous trading day. According to investment company securities analysts, the Shanghai Composite Index breaking below 3,000 points signifies that the stock market’s fig leaf has been removed.
By the close of trading, the Shanghai Composite Index fell by 0.24% to 2,998.14 points, the Shenzhen Component Index dropped by 0.04% to 9,064.84 points, and the ChiNext Index declined by 0.39% to 1,755.88 points.
Overall, more stocks fell than rose, with over 2,600 individual stocks declining in the entire market. The total trading volume of the Shanghai and Shenzhen markets on the day amounted to 619.6 billion yuan, a decrease of 104.8 billion yuan compared to the previous trading day.
In terms of sector performance, in the industry sectors, construction decoration, building materials, chemical pharmaceuticals, and medical services led the gains, while education, automation equipment, minor metals, and beverage manufacturing sectors were among the top decliners.
Among the thematic sectors, brain-machine interfaces, underground pipeline networks, water conservancy, and new urbanization sectors saw the biggest gains, while sci-tech innovation and new stock listings, photoresist concept, EDR concepts, and dye sectors witnessed pullbacks.
Guosheng Securities stated that in the context of a lack of incremental inflows and a game of existing funds, it is naturally difficult for the market to sustain a general uptrend. In the short term, the Shanghai Composite Index may engage in a tug-of-war around the 3,000 point mark, and looking ahead, if unexpected negative factors emerge in the market, it is not ruled out that the Shanghai Composite Index may test the support level between 2,900-2,950 points.
The Shanghai Composite Index’s fall below 3,000 points quickly became a hot topic, sparking widespread discussion on June 21. This was due to the fact that the majority of stocks had already fallen below the 3,000 point mark.
Huang Sheng, certified as an investment company securities analyst, expressed on social media that 3,000 points act as a fig leaf, and the main players shattered it by the closing bell, tearing off this fig leaf.
He believed that 3,000 points are at most a psychological support, and it won’t be long before it returns above that level. However, the current key issue is that people are leaving the stock market. The trading volume of the two markets on the 21st was 619.6 billion yuan, down 104.8 billion from the previous trading day. Recent trading volumes have been increasingly lackluster. There are over 5,000 stocks listed in the two markets, and it’s becoming harder to achieve a trading volume of even 800 billion yuan, let alone reaching 1 trillion. This indicates that fewer and fewer people are trading stocks.
Huang added that many people are realizing that to minimize losses, they are avoiding playing the stock market. Investors all have this mindset. In such a situation, the question arises – does A-share still have a future?
An investor named “Cai Nv Xin Xin” stated that the stock market has fallen into such a precarious situation, and investors are embroiled in a difficult battle to defend the 3,000 point mark. While the China Securities Regulatory Commission keeps talking about cracking down on fraud, three crucial points – trust, confidence, and belief – have not been addressed throughout. She remarked that despite the numerous favorable policies introduced by authorities this year, the stock market remains lackluster, indicating that investors have lost trust, confidence, and belief in the market.
“The lack of trust means investors no longer rely on the China Securities Regulatory Commission. People feel like the Commission’s statements are traps that lure them in. Many consider the Commission’s words to be misleading, so they are hesitant to invest in the stock market, leading to a lack of confidence. People no longer have expectations for the market’s future as they have suffered heavy losses. Multiple rounds of delistings have caused widespread devastation, and the lack of confidence is a common sentiment among people.”