On Monday, September 9th, the three major indexes of A-shares collectively opened lower, with the Shanghai Composite Index and the Shenzhen Component Index both falling by over 1% during the session, hitting new interim lows. The ChiNext Index managed to turn slightly positive towards the end of the day. The Shanghai Composite Index briefly dipped to 2726 points, leading to calls in the market for a defense battle at 2700 points.
By the closing bell, the Shanghai Composite Index was down 1.06% at 2736.49 points; the Shenzhen Component Index fell 0.83% to 8063.27 points; the Sci-Tech Innovation 50 Index dropped 1.12% to 654.94 points; and the ChiNext Index rose 0.06% to 1539.04 points.
According to Wind statistics, a total of 1944 stocks in the two markets and the Beijing Stock Exchange saw gains, while 3089 stocks experienced declines, and 312 stocks remained unchanged.
The total turnover of the Shanghai and Shenzhen markets amounted to 518.6 billion yuan, a decrease of 24.1 billion yuan compared to the previous trading day.
Looking at market performance, banking, coal, and oil sectors saw significant declines, while precious metals, machinery, and home appliances segments were generally lackluster. On the other hand, the medical sector surged against the trend.
The coal sector led the declines, with major companies like China Coal Energy and Xinji Energy posting significant drops. The oil and petrochemical sector also faced declines, with the prices of the three major oil companies collectively falling, as China Petroleum, CNOOC, and Sinopec dropped by over 2%, nearly 2%, and almost 2% respectively. High-priced stocks across various sectors plummeted, with multiple stocks in companies like Shenzhen Huakang, Public Transport, and Jinjiang Online hitting limit-down.
Concepts related to private hospitals soared, with stocks like Yingkang Life, Hainan Haiyao, and Jimin Health all hitting limit-up. On the news front, the Chinese Ministry of Commerce and two other departments recently issued a notice on expanding opening-up trials in the medical field, proposing to allow the establishment of wholly foreign-owned hospitals (excluding traditional Chinese medicine, and excluding the acquisition of public hospitals) in Beijing, Tianjin, Shanghai, Nanjing, Suzhou, Fuzhou, Guangzhou, Shenzhen, and Hainan Island.
The sluggish performance of A-shares has garnered market attention.
Financial blogger “Individual Xiaoxiaoyao” commented in a blog post, “This market is a mess. Since the beginning of September, it has been hitting new lows every day. Maybe the morning lows are not enough, and they continue to drop in the afternoon. It hit a low of 2726.97 today. Tomorrow, the battle to defend 2700 will begin. The market has dropped sharply from 3170, and even globally, the A-share market continues to decline. There’s not much else to say, we’ll have to wait for when the big rally in September will come. Funds continue to lie idle.”
Financial blogger “Simply Creating Classics” said, “The 3174 confirmed in the market on May 23, 2024, is the high point within two years… Does it seem more and more like it now? It’s still early, let’s see together.”
Financial practitioner “Price Investment Research Institute” analyzed in a blog post, “The battle to defend 2700 has begun again, and this time it’s hard to hold. The three major heavyweight sectors—banks, coal, and oil—are not looking optimistic. The CPI for August came out, showing a 0.6% year-on-year increase, maintaining a deflationary state. Rate cuts are imminent, and banks face continued pressure on interest rate spreads. Without fundamental economic support, coal and oil prices continue to decline, putting pressure on coal and oil stocks in the A-share market.
“The global economy is weakening, with Europe staying weak and the United States beginning to weaken. The cumulative reductions in non-farm payrolls for June and July totaled 86,000. With no economic fundamentals to support them, coal and oil prices are continuing to decline, weighing on coal and oil stocks in the A-share market.
“Individual stocks have been declining this year, displaying a typical distribution market. The seesaw effect is evident. With the current adjustment of weightings, individual stocks may be able to stop falling and rebound.”