On Thursday, July 4th, A-shares once again experienced a general decline, with the three major indices continuing to fall, and the trading volume in the Shanghai and Shenzhen markets remained below 600 billion for the second consecutive day, indicating a very bleak market. Some financial bloggers have referred to this day in the A-share market as “Black Thursday”.
The three major A-share indices continued to decline collectively. At the close, the Shanghai Composite Index fell by 0.83% to 2957.57 points, the Shenzhen Component Index dropped by 0.99% to 8673.83 points, and the ChiNext Index slid by 0.78% to 1647.22 points. The total turnover in Shanghai and Shenzhen was 583.1 billion yuan, an increase of 2.8 billion yuan compared to the previous day (580.3 billion yuan).
Individual stocks showed a general downward trend, with more declines than gains, with over 4800 individual stocks falling.
Market sentiment in the A-share market was very pessimistic. The commerce and retail sectors, which saw a significant rise on the 3rd, led the decline on this day, with companies like New Huadu Supercenter, Nanjing Changle, and Huitongda facing larger-than-average declines. The real estate sector experienced a heavy blow, with companies like China Fortune Land Development, Caixin Media, and TechFaith falling by over 6%. Tourism stocks also weakened, with Tianmu Lake, Tibet Tourism, and Qujiang Cultural Tourism all seeing losses.
On the market, only the household appliances and banking sectors saw gains. The commerce and retail sector led the decline, with a drop of over 3%. Real estate, social services, and environmental protection have experienced significant declines.
Zhongli Capital’s partner and financial blogger “Brother Sheng Finance” posted: “A-shares staged a Black Thursday. What can save you, my A-shares? Yesterday, A-shares once again saw a decline in trading volume. While the indices didn’t drop much, individual stocks were basically unable to rise. In the morning, A-shares wanted to rebound under the influence of external factors, but there wasn’t much capital following.”
Financial blogger and Weibo influencer “Ye Aimo” said: “With more than 4800 individual stocks falling in A-shares, the number of companies in decline is secondary. What’s more important is the lack of volume, with no one buying, making it easy for continued declines or flash crashes in individual stocks.”
Financial blogger and Weibo influencer “Askfish” commented: “Today, A-shares are again in a state of weak activity. The stock and housing markets under the decline of the balance sheet give a feeling of ‘despite all the hype and heavy makeup, the courtyard remains empty, and the horses are scarce’.”
Shen Meng, Executive Director of Xiangsong Capital, stated to Caixin that the market has been continuously weakening recently due to the lack of supportive positive news. Investor risk aversion is evident, especially before the upcoming Third Plenary Session of the Chinese Communist Party, resulting in a strong wait-and-see sentiment in the market, leading to low trading volume and a weakening overall market.
The day before (July 3rd), the three major indices also collectively fell. At the close, the Shanghai Composite Index dropped by 0.49% to 2982.38 points, the Shenzhen Component Index fell by 0.59% to 8760.43 points, and the ChiNext Index decreased by 0.3% to 1660.12 points. Overall, more stocks fell than rose, with over 3700 individual stocks in decline. The turnover in Shanghai reached 580.3 billion yuan, hitting a new low in nearly 10 months.