On August 12, the three major indexes of A-shares collectively fell, with trading volume dropping below 500 billion, hitting a new low since May 2022, attracting market attention.
By the close of trading, the Shanghai Composite Index fell by 0.14% to 2858.20 points, the Shenzhen Component Index fell by 0.24% to 8373.47 points, and the ChiNext Index fell by 0.2% to 1592.39 points, marking a new low since February 7.
Data from Wind showed that the net outflow of main funds from both Shanghai and Shenzhen stock markets reached 16.28 billion yuan on the day. Specifically, the net outflow of main funds from the ChiNext board was 4.327 billion yuan, while the net outflow from the SSE 300 component stocks was 4.321 billion yuan, and the net outflow from the STAR Market was 711 million yuan.
Over 3600 stocks fell in the market, with sectors such as real estate, tourism, semiconductors, automobiles, and retail experiencing declines. The three major telecommunications operators all saw a downturn, with China Mobile falling over 2% and dropping below the key level of 100 yuan.
The healthcare sector led the gains in the two markets, with concepts related to COVID-19 medications, testing, traditional Chinese medicine, and vaccines performing well. This is related to the renewed surge in COVID-19 cases in China.
Recently, many netizens have been posting “阳了” (meaning “infected by COVID-19” in slang) on social media platforms. The latest data from the Chinese Center for Disease Control and Prevention for July 2024 also shows an increase in COVID-19 cases nationwide.
It is worth noting that A-shares have seen a rare new low in trading volume in the past four years. The total trading volume for the day was 495.88 billion yuan, a decrease of 67.2 billion yuan from the previous trading day, with the total trading volume falling below 500 billion yuan, marking a new low since May 25, 2020.
The new trading volume in A-shares has attracted market attention.
Financial blogger “短線刀客888” commented: “On the one hand, you can say low trading volume indicates low prices, on the other hand, you can say the market is too bad, causing some people to sadly exit.”
Financial blogger “青山MA5” analyzed in a blog post: “On May 25, 2020, the total trading volume of Shanghai and Shenzhen stock markets was 482.5 billion. According to data from East Money, there were 4,260 A-shares listed on that day. Therefore, the average trading volume per stock that day was approximately 113 million yuan.
“On August 12, 2024, the total trading volume of A-shares in the two markets was 495.9 billion yuan, with a total of 5,199 A-shares listed. The average trading volume per stock that day was approximately 95 million yuan.
“So, comparing the average trading volume per stock, the volume today has broken a new low for even longer.”
The author and financial blogger “实战牛姐” said, “Today in the A-share market, the trading volume has dropped below 500 billion. Don’t think this will lead to a low-volume and low-price rally, as that’s highly unlikely. Another indicator is that the number of limit-down stocks today is greater than the number of limit-up stocks, and there is a strong sentiment of individual stocks being abandoned by funds. While some high-priced stocks may have rebounded, it’s mostly self-rescue efforts. The market sentiment can be described as extremely bleak.
“In the morning, banks rallied to support the market, and in the afternoon, securities firms tried to do the same but failed. If the firm support at 2850 (in the Shanghai Composite Index) is broken today, it’s only a matter of time before it happens tomorrow. Once this level is breached, there will be no support below, and without any super positive news to protect the market, we could see a direct plunge to 2635 by mid-August… It’s wiser to observe more and act less!”