On May 23, 2024, the Chinese Communist Party conducted military exercises around Taiwan in a provocative manner. On that day, all three major indexes of A-shares collectively fell, with the Shanghai Composite Index dropping over 1.5% at one point, falling back to near the 3100-point mark. 4578 individual stocks in the market experienced declines, creating a general downward trend in both the index and individual stocks. Meanwhile, Taiwan’s stock market remained stable, sparking discussions among Chinese netizens.
May 23 saw A-shares opening low and continuing to slide, with all three major indexes dropping over 1%. Out of 5313 stocks, only 735 rose while 4578 fell. By the closing bell, the Shanghai Composite Index was at 3116.39 points, down 1.33%; the Shenzhen Component Index stood at 9541.64 points, down 1.56%; and the ChiNext Index was at 1852.07 points, down 1.38%. The total turnover of the Shanghai and Shenzhen markets reached 847.7 billion yuan, an increase of 164 billion yuan over the previous trading day.
Hong Kong stocks also weakened, with the Hang Seng Index and the Hang Seng TECH Index opening low and continuing to fall, with the Hang Seng TECH Index dropping over 2% intraday. Technology and new energy vehicle stocks led the decline, with NetEase-S, Xiaopeng Motors-W, Alibaba-SW among the top losers.
At the same time, Taiwan’s stock market closed steadily, with the weighted index ending at 21607 points, up 55 points, or 0.26%.
It is worth noting that the Chinese People’s Liberation Army Eastern Theater organized forces such as land, sea, air, and rocket forces to conduct the “Joint Sword-2024A” exercise around Taiwan and the surrounding areas of Kinmen from 7:45 am on the 23rd to the 24th.
This situation has sparked discussions among Chinese netizens.
Investment content creator and Weibo influencer “Trader Ming” said: “Another day of big drops. Looking at it, Taiwan’s stock market is also at a historical high, what else can be said.”
Financial blogger and Weibo influencer “Stock Flower 1987” said: “When deterrence becomes routine, it loses its effectiveness! Look, the Taiwan stock market stands as solid as Mount Tai, while scaring off A-shares and domestic investors enough.”
Netizens commented: “Looks like I have to spend my money on deterrence.” “It shows that others simply do not care about the military exercises, they are just doing it for show.” “It shows that they are not worried at all, they are quite happy.” “They’re afraid you’ll be waiting eagerly every day.” “Is Taiwan going to attack the mainland?” “Domestic investors are clear, just following the trend.” “Traders bear all the consequences.” “Because the whole world is supporting them.”