In the closing of the first half of 2024 for A-shares on June 28th, the total market value of A-shares evaporated by 2.76 trillion yuan. Calculated among 220 million stockholders, the average loss per person in the first half of the year was approximately 12,600 yuan.
On the final trading day of the first half of the year (June 28th), the overall market fluctuated widely throughout the day with the three main indices showing mixed trends. As of the close on the 28th, the Shanghai Composite Index rose by 0.73%, the Shenzhen Component Index fell by 0.01%, and the ChiNext Index dropped by 1.16%.
Based on reports from the International Finance News and Netease Finance, looking at the market performance in the first half of the year, there was a divergence in the performance of major indices. The Shanghai Composite Index fell by 0.25%, while the Shanghai 50, the CSI 300 Index rose, and the ChiNext Index plummeted by over 10%. The Zhongzheng 2000 Index fell by 23%, the BeiChuan 50 Index dropped by over 30%, and the Tonghuashun ST sector slumped by over 55%.
Excluding the newly listed stocks in 2024, 795 listed companies saw an increase in the first half of the year, with 4,524 stocks experiencing a decline. Over 273 stocks dropped by more than 50%, while 2,830 companies saw their stock prices fall between 20% and 50%, accounting for 53.21% of the total.
At the beginning of the year, the total market value of A-shares was 83.71 trillion yuan, decreasing to 80.95 trillion yuan by the close of June 28th, witnessing a total market value decrease of nearly 2.76 trillion yuan. Based on the 220 million stockholders, the average loss per person in the first half of the year was approximately 12,600 yuan.
Hu Xijin, the former chief editor of the Chinese state media People’s Daily, who once actively participated in stock trading, disclosed on June 26th that after a year of trading, his total losses amounted to 74,597 yuan, accounting for 10.65% of his initial capital of 700,000 yuan.
Analyzing the performance of the A-share market, Chen Xingwen, Chief Strategic Officer of Heiqi Capital, attributed the situation primarily to factors such as geopolitical tensions, Sino-US relations, limited stimulus effects of domestic macro policies, the failure to effectively transform market liquidity into economic vigor, and a lack of market confidence under strict financial regulations. Additionally, the stock index has been hovering around the 3,000-point mark due to these factors.
It is noteworthy that in recent years, the A-share market has been steadily contracting. Since 2020, the Chinese authorities initiated an unprecedented “antitrust” investigation targeting Internet companies, leading to frequent penalties, warnings, and summons for these companies. Subsequently, the authorities’ crackdown extended to a broader range, causing fluctuations in Chinese A-shares, Hong Kong stocks, and Chinese concept stocks.
According to statistics from China Securities Journal, the total market value of A-shares decreased by 16.21 trillion yuan in 2022. Calculated among 206 million investors at the mid-year, the average loss per investor in 2022 was 78,700 yuan.
A report from the official Weibo account of Tonghuashun Finance last year stated that a survey conducted by CCTV’s program “Economic Half Hour” on 764,600 stockholders in 2022 revealed that 92.51% incurred losses. Due to prolonged suffering in the stock market, shareholders’ mental states were generally poor, with 23% feeling overwhelmed by losses, 33% experiencing anxiety, and 29% showing symptoms of depression. Shortly after, the relevant news was deleted.
In reality, negative economic news in China has been prohibited from reporting in recent years, to the extent that the extent of the decline in the total market value of A-shares in 2023 did not appear in any reports.