On Monday, July 8th, the A-share market in China saw a widespread decline, with all three major indexes trading lower, and over 4800 stocks falling, while the total turnover of the Shanghai and Shenzhen stock markets remained below 600 billion yuan for the fourth consecutive day.
July 8th saw the A-share market opening lower and trending downwards, with the Shanghai Composite Index closing at 2922.45 points, down 0.93%; the Shenzhen Component Index closing at 8561.95 points, down 1.54%; the ChiNext Index closing at 1628.76 points, down 1.62%; and the STAR 50 Index closing at 692.49 points, down 0.91%.
Market data indicated a general decline, with statistics from Wind showing that a total of 454 companies on both the Shanghai and Shenzhen stock exchanges and the Beijing Stock Exchange saw gains, while 4846 companies experienced declines, with 57 remaining unchanged.
Market turnover continued to be lackluster, with the Shanghai market recording a turnover of 270.872 billion yuan, the Shenzhen market recording a turnover of 311.139 billion yuan, and the total turnover of both markets amounting to 582.011 billion yuan. Although there was a slight increase compared to the previous trading day’s turnover of 574.85 billion yuan, the turnover in both markets remained below 600 billion yuan for the fourth consecutive day.
Sentiment in the A-share market was very low, with the computer sector leading the decline. Stocks such as **Zuojiang** plummeted by over 60%, while companies like Aerospace and Information Technology, Xiongdi Technology, Haoyun Technology, and Information Development saw declines exceeding 10%. Real estate stocks also saw significant drops, with **Chengjian Development** and Financial Street falling by over 7%.
The publication “Every Economic News” reported that in the previous week (July 1st to July 7th), various major A-share indexes closed lower for the week, showing a continued downward trend. The Shanghai Composite Index, in particular, saw a rare eight consecutive weeks of declining weekly closes.
Senior investment consultant at **Jufeng Investment**, **Chen Yuheng**, told **Caixin** that the recent market downturn and declining trading volume were primarily due to a lack of investor confidence, leading to shrinking turnover. The continued decline in turnover further affected the sustainability of individual stock rebounds. Without a profit-making effect, most investors remained in a wait-and-see mode, exacerbating the market’s low sentiment and leading to a negative feedback loop.
Another senior investment consultant at **Jufeng Investment**, **Zhao Ling**, stated that the market’s persistent weakness was largely tied to the prolonged economic downturn, coupled with the ongoing net outflow of foreign capital. Optimistic market expectations were dashed, shifting gradually towards a more pessimistic outlook. Defensive sectors and government bonds continued to rise, further intensifying this divergence and weak expectations.
The sharp decline in A-shares quickly became a hot topic on the internet today.
Economic blogger and Weibo influencer **Ye Ai Mao** remarked, “Stocks beginning with the Chinese character ‘Zhong’ fell by 1.4%. Who’s bearing the brunt of this? A-shares fell early in the day and made it to the top trend again. Retail investors are in for another tough ride.”
Financial blogger and Weibo influencer **Xu Wenchun** shared, “Consistently losing money in the long term will indeed have many negative effects on physical and mental health. I’m constantly irritable now, and you can probably see that from my Weibo posts.”
The author of a headline article and Weibo influencer **Zhuang Jia Liao Caijing** commented, “After an overall decline on July 8th in the A-share market, Chinese stock investors are having a tough time. If you have accumulated any sins in your past life, investing in A-shares in this life seems to be the way to pay off all debts!”