On Friday, September 6th, all three major indexes of the A-shares market fell across the board, with the Shanghai Composite Index hitting a new low since early February and over 4700 stocks trading in the green.
At the close, the Shanghai Composite Index fell by 0.81% to 2765.81 points; the Shenzhen Component Index dropped by 1.44% to 8130.77 points; and the ChiNext Index declined by 1.70% to 1538.07 points. Market turnover remained sluggish, with a total turnover of 542.6 billion yuan (RMB, same below) in Shanghai and Shenzhen, an increase of 7.9 billion yuan from the previous day.
The Shanghai Composite Index continued to hit new lows. Public data showed that the previous low point of the Shanghai Composite Index was recorded on February 5th this year, closing at 2702.19 points.
According to Wind statistics, a total of 536 stocks in Shanghai, Shenzhen, and the Beijing Stock Exchange saw gains, while 4710 stocks experienced declines, and 98 stocks remained unchanged.
Stimulated by the news of a possible merger between Guotai Junan Securities and Haitong Securities, the non-banking financial sector saw a rapid rise in the opening session, climbing nearly 2% intraday, but the gains significantly retreated in the afternoon.
The beauty and skincare sector led the declines, with stocks like L’Oreal, Runben Co., and Aimerik all falling. The coal sector also took a hit, with Shaanxi Coal and Shanxi Coal International seeing significant declines. The electronic and technology sectors collectively fell, with Kaisheng Technology hitting the limit down, while Zhuoyi Technology, Dongjing Electronics, Shanghai Electric Shares, among others, also saw considerable declines.
According to “Securities Star” report, the lack of sustainability in hot spots remains unresolved. In this environment, analysts suggest focusing on buying the dips in thematic rotations. For those considering fund safety, it is advisable to wait patiently for clearer signals of market turning stronger before entering the market.
“Zhongyuan Securities” noted that the current average price-earnings ratios of the Shanghai Composite Index and the ChiNext Index are 11.92 times and 25.97 times respectively, below the median level of the past three years, indicating that market valuation still remains relatively low. It is expected that the stock indexes will continue to fluctuate overall, while close attention should be paid to changes in policy, funding, and external factors in the future.