On the second trading day after the National Day holiday on October 9th, the three major indexes of A-shares opened significantly lower. The Shanghai Composite Index plummeted nearly 7% at one point, ultimately falling below the 3300-point mark, while the ChiNext Index dropped by more than 10%.
By the closing bell, the Shanghai Composite Index fell by 6.62% to 3258.86 points; the Shenzhen Component Index declined by 8.15% to 10557.81 points; the ChiNext Index plunged by 10.59% and broke below 2300 points to 2280.1 points; and the CSI 50 Index dropped by 12.11%.
The total turnover of the two markets reached 2.9398 trillion yuan, down by 511.3 billion yuan from the previous trading day. The market saw a net outflow of funds exceeding 235.2 billion yuan. Stocks across the board experienced declines, with 295 stocks rising and 5043 stocks falling, including 854 stocks hitting the limit down.
According to data from Dazhihui VIP, a total of 76 stocks in the two markets and the NEEQ had an increase of more than 9%, while 3162 stocks saw a decrease of over 9%.
Various sectors experienced broad declines, with industries such as gaming, internet e-commerce, consumer electronics, aquaculture, real estate, Sora concepts, and PEEK materials leading the losses. Sectors like securities, semiconductors, Huawei concepts, and state-owned enterprise reform concepts faced heavy outflows of funds from major investors.
Within the real estate sector, stocks such as Tefasco Services, HKC Holdings, Tianjin Binhai Development, and Dalong Real Estate, among others, saw over 50 stocks hit the limit down or dropped more than 10%.
Since the measures introduced by the Chinese authorities on September 24 to boost the stock market, major shareholders of A-share listed companies have continued to reduce their holdings, cashing out and exiting. Some companies’ shareholders have even reduced holdings by nearly 1 billion yuan in a single instance, while in some cases, shareholders have collectively sold off their shares, clearing their stock positions.
Reportedly, on the evening of October 8 alone, around 40 listed companies disclosed plans for reducing their holdings, including companies like Nanshin Technology, Wanlang Magnetic Plastics, and Fūsai Technology.
A known blogger and influential figure on Weibo, “Awakened Shopkeeper,” posted, “The vast majority of information that ordinary people see has been processed to show what others want you to see. On the surface, there is a large number of post-’90s and post-’00s actively entering the market, making the situation seem very promising. However, underneath, there are over 200+ corporate executives and major shareholders selling off their shares in large quantities in the short term. With no wage increases and a downgrade in consumption, where is the positive news in this?”
A financial blogger and Weibo influencer, “Hat Guy Talks Finance,” remarked, “Lately, the market has been rising almost every day, but it rises and falls simultaneously. I even regret reducing my positions. The severity of this market downturn is evident.”
Weibo influencer “Awkward at the Time” commented, “They tell you not to buy a house, not to get married, your money can’t be spent… finally they come out.” Furthermore, there are comments from netizens expressing sentiments like, “They’ve been urging you to consume and drive domestic demand since last year, not to save money. Now each and every one of you is tricked into the stock market, enjoying playing with it, right???” and “After the holiday, it’s time for robbery.”
“Friendship reminder: for those entering the market with running, make sure to keep at least 10,000 yuan for living expenses or emergencies.” “Always remember to keep 3000 yuan as a reserve, in case you need an electric bike for food delivery later.”