Under the backdrop of the US-China trade war, the Chinese stock market continued its weak and volatile trend today (October 22) following last week’s “Black Friday,” with all three major stock indices ending the day in decline, and trading volume continuing to shrink, reaching a new low in nearly three months.
At the close of trading, the Shanghai Composite Index fell by 0.07%, closing at 3913.76 points; the Shenzhen Component Index fell by 0.62%, closing at 12996.61 points; and the ChiNext Index fell by 0.79%, closing at 3059.32 points. The total turnover of the Shanghai and Shenzhen markets was 1.667 trillion yuan, with volume further shrinking, down 206 billion from the previous trading day, falling below 1.7 trillion for the first time since August 5.
Last Friday, the total turnover of the Shanghai and Shenzhen markets was 1.94 trillion yuan, ending a streak of 40 consecutive trading days surpassing 2 trillion yuan.
According to data from Securities Times, on October 22, the net outflow of funds from the Shanghai and Shenzhen markets was 31.49 billion yuan, with a net inflow of 10.634 billion yuan into the ChiNext board and a net outflow of 12.34 billion yuan from the Shanghai and Shenzhen 300 index stocks.
In terms of fund flows, within the Shenwan first-level industries, 6 industries saw a net inflow of main funds. The light industry manufacturing industry had the highest net inflow of main funds, reaching 427 million yuan; the building materials and household appliance industries had the highest net inflow amounts of over 2.8 billion yuan each; and the petroleum and petrochemical, machinery equipment, and beauty care industries all had net inflows of over 340 million yuan.
Among the 25 industries with net outflows of main funds, the electronic and power equipment industries had the highest net outflow amounts, each exceeding 4 billion yuan. The computer, non-ferrous metals, and non-bank metallic industries had the highest net outflow amounts, each exceeding 2.6 billion yuan; and the automobile, communication, banking, and basic chemical industries had net outflows of main funds exceeding 1 billion yuan.
The A shares continued to shrink in volume, drawing market attention.
Financial blogger “Boke Stock Affairs” wrote in a blog post, “With the market shrinking in volume and falling negatively today, the future is uncertain. If securities firms do not boost the market tomorrow, the overall market may break down, with a severe lack of external funds to support it. Once it falls below the trend line, a new reshuffling of trends will occur. Today’s operation involved reducing positions in a cautious manner to observe short-term trends.”
Financial blogger “Shenzhen Li Yuhang” stated, “With the shrinking volume and decline, the adjustment has not yet ended. As trading volume declines, both long and short positions are starting to remain cautious, and hotspots are fading. With the shrinking volume and decline, the adjustment continues.”
Financial blogger “Stock Sweep Monk” expressed, “The main reason for the current significant volume contraction in the market is that many funds are holding steady. While the index has rebounded recently, most individual stocks have not. The market is waiting for the meeting results to make another breakthrough on the main line.”