On July 31st, the A-share market experienced a general decline with all three major indices plummeting. The Shanghai Composite Index fell by 1.18%, the Shenzhen Component Index dropped by 1.73%, and the Growth Enterprise Index decreased by 1.66%. Similarly, in the Hong Kong stock market, all three major indices also saw a comprehensive decline. The Hang Seng Index fell by 1.6%, the Hang Seng Tech Index dropped by 0.69%, and the State-Owned Enterprises Index declined by 1.72%.
By the close of trading, the Shanghai Composite Index dropped by 1.18% to 3573.21 points, the Shenzhen Component Index fell by 1.73% to 11009.77 points, and the Growth Enterprise Index decreased by 1.66% to 2328.31 points. The total trading volume in Shanghai and Shenzhen reached approximately RMB 1,936.35 billion, an increase of about RMB 91.756 billion from the previous trading day. Across the market, 4,287 stocks declined while 1,061 stocks saw gains.
On the market front, real estate stocks experienced significant drops. Shares of City Developments, China Merchants Shekou, Zhangjiang High-Tech, and Golden Land Group plunged by over 5%. Other notable declines included China Merchants Jiyu, Everbright International, Greenland Holdings, Binjiang Group, and Poly Developments, which fell by over 4%. The steel sector trended lower with Baosteel dropping by nearly 8%. Coal stocks also experienced a widespread decline with Antai Group falling by about 7%. Major financial stocks performed poorly, with China Bank Securities dropping by over 5%. The lithium mining concept fluctuated downwards as shares of Shengxin Lithium Energy and Contemporary Amperex Technology dropped by nearly 5%.
The pharmaceutical innovation sector showed strength with multiple stocks, including Nanxin Pharmaceutical, hitting the daily limit up. AI application companies defied the overall market trend, with stocks like Easy Data Technologies also hitting the limit up. The performance of AI hardware stocks varied, with liquid cooling server concepts showing strength, and companies like Yingweike hitting the limit up.
Guo Yiming from “Jufeng Investment Advisory” stated that as August approaches, following the index hitting a high of 3600 points at the end of July and the subsequent drop, the market may enter a short-term period of policy vacuum and earnings verification volatility. The index is likely to have a “mid-term rest” in the short term, with limited trending opportunities, but a clear structural market trend. August is expected to witness a period of volatility in the market while seeking certainty.
On the final day of July, the three major indices in the Hong Kong stock market also experienced a collective decline. By the close of trading, the Hang Seng Index dropped by 1.6% to 24,773.33 points, the Hang Seng Tech Index fell by 0.69%, and the State-Owned Enterprises Index declined by 1.72%.
In terms of individual stocks, the performance was mixed among technology and internet companies, with Meituan falling by over 4%, JD.com by over 3%, Xiaomi by over 2%, and Kuaishou rising by over 6%. Short video concept stocks showed strength, while some semiconductor concept stocks were active, with SMIC gaining over 1%. Gold stocks continued to decline, with Zijin Mining falling by over 8%, Tongguan Gold by over 7%, and Shandong Gold by nearly 4%. Real estate stocks led the decline, with Country Garden, Vanke Enterprise, and Longfor Group falling by over 7% and over 6%, respectively. Chinese-funded brokerage stocks showed weakness, with China Galaxy falling by over 5%.