The Chinese Communist Party conducted a two-day so-called joint exercise around Taiwan, causing continuous declines in the mainland stock market. On May 24th, the Shanghai Composite Index fell below the 3100-point mark, with over 3800 individual stocks in Shanghai, Shenzhen, and Beijing all experiencing declines, and trading volume noticeably shrinking.
The Shanghai Composite Index saw a slight increase at the beginning of the day on the 24th but quickly fell back. It closed at 3088.87 points, down by 0.88%; the Shenzhen Component Index closed at 9424.58 points, down by 1.23%; the ChiNext Index closed at 1818.56 points, down by 1.81%; and the STAR 50 Index closed at 727.21 points, down by 2.05%.
The total turnover on the Shanghai and Shenzhen stock markets was 763.924 billion yuan, significantly lower than the 847.703 billion yuan from the previous trading day.
The A-share market sentiment was dismal, with the real estate sector experiencing a sharp decline, and companies like China City Construction, Wo Ai Wo Jia, and Yuexiu Development hitting their downside limits. The semiconductor sector also plunged, with companies like Jiangbolong and Hanwujiji-U falling by over 6%. Companies related to low-altitude economy concepts also suffered significant drops, such as Andaweier and Blue Ocean Huateng.
Hong Kong stocks continued to plummet, with the Hang Seng Index and Hang Seng Technology Index opening low and maintaining a downward trend throughout the day, with the Hang Seng Technology Index dropping over 2.8% intraday. Technology and internet-related stocks experienced widespread declines, with companies like Bilibili-W and Weibo-SW leading the losses.
After Taiwanese President Lai Ching-te delivered his inaugural speech on May 20th, the Chinese Communist Party’s Eastern Theater command initiated a two-day joint exercise around Taiwan named “Sword of Unity – 2024A” starting from May 23rd, which led to condemnation from across Taiwan and international backlash.
On the day of the provocative military exercise around Taiwan by the Chinese Communist Party (May 23rd), the three major A-share indexes opened low and continued to decline. The Shanghai Composite Index fell by over 1.5% at one point, dropping below the 3100-point mark. It closed at 3116.39 points, down by 1.33%; the Shenzhen Component Index closed at 9541.64 points, down by 1.56%; the ChiNext Index closed at 1852.07 points, down by 1.38%; and the STAR 50 Index closed at 742.40 points, down by 1.66%.
The turnover in the Shanghai and Shenzhen markets totaled 847.703 billion yuan.
Weighted sectors like non-ferrous metals and real estate collectively experienced declines, leading to a general downtrend in the market, with over 4500 individual stocks declining across Shanghai, Shenzhen, and Beijing.
Hong Kong stocks also weakened, with the Hang Seng Index and Hang Seng Technology Index opening low and continuing to decline, with the Hang Seng Technology Index dropping by over 2% during intraday trading. Technology and internet-related sectors, as well as the emerging forces in the automobile industry, faced significant declines, with companies like NetEase-S, XPeng Motors-W, and Alibaba-SW leading the losses.