On June 20th, the mainland stock market experienced a volatile adjustment throughout the day, with the Shenzhen Component Index leading the decline and the Shanghai Composite Index barely holding above the 3,000 point mark at the close. By the end of trading, the Shanghai Composite Index fell by 0.42%, the Shenzhen Component Index dropped by 1.63%, and the ChiNext Index decreased by 1.44%. Both Shanghai and Shenzhen markets saw increased trading volume with foreign investors net selling about 30 billion yuan worth of onshore stocks over several consecutive trading days.
The A-share market saw a collective retreat on June 20th, with the Shanghai Composite Index closing at 3,005.44 points, the Shenzhen Component Index at 9,068.85 points, and the ChiNext Index at 1,762.70 points. The total turnover in Shanghai and Shenzhen reached 724.4 billion yuan, an increase of 19.6 billion from the previous trading day.
Industry sectors displayed a general decline, with sectors such as automotive services, engineering consulting, wind power equipment, real estate services, trade, aerospace, and media and culture among the top losers.
At the individual stock level, nearly 4,500 stocks experienced declines.
According to Daily Economic News, with support from major financial stocks, especially banks, and blue-chip stocks, the Shanghai Composite Index hit a low of 3,001.77 points, coinciding with its 120-day moving average. As the market closed, investors remained on edge.
FX168 Financial News reported that the recent rebound in the Chinese stock market seemed to lose momentum, as foreign investors have been net selling for eight consecutive days, with the most significant sell-off seen in Maotai stocks. Capital outflows from Chinese stocks by overseas funds have reached the longest continuous period in eight months.
Through the Stock Connect linking Hong Kong and mainland stock markets, foreign investors have net sold a total of 30 billion yuan worth of onshore stocks over eight consecutive trading days until the 19th, marking the worst period since October last year.
Leading financial influencer with 140,000 followers, “Mao Ge Talks Stocks,” expressed concerns about the Shanghai Composite Index approaching the 3,000-point mark and the ChiNext Index dropping by over 1%. The downward trend is disheartening, with over 3,600 stocks in the Shanghai market falling, indicating clear negative financial impacts and a significant outflow of funds. “This is the eighth consecutive day of fleeing. Anyone in this market might want to curse; the A-share market is in a terrible state!”
With 170,000 followers and certified as an investment manager and high-quality financial content creator, Liang Mingxuan stated that today’s (20th) market conditions were quite tough. Most people are losing money, with over 90% of individuals facing losses. The overall market condition is agonizing, with the 3,000-point mark held for the time being, leaving many feeling helpless. More than 4,000 companies in both Shanghai and Shenzhen markets saw declines exceeding 3%, resembling a small-scale stock disaster.