On November 14th, Chinese A-shares once again entered a downward trend, with the three major indexes opening lower and continuing to decline in the afternoon, especially as the ChiNext Index fell by 3.4% and the Shanghai Composite Index dropped below the 3400-point mark.
By the closing bell, the Shanghai Composite Index fell by 1.73% to 3379.84 points, breaching the crucial 3400-point level; the Shenzhen Component Index dropped by 2.83% to 11037.78 points; and the ChiNext Index experienced its largest drop in nearly a month, falling by 3.4% to 2334.96 points.
The overall market witnessed a broad decline, with 487 stocks rising and 4846 stocks falling across both the Shanghai and Shenzhen stock exchanges, while nearly 700 stocks saw declines of over 5%, and 30 stocks remained unchanged. The total trading volume of the two cities reached 1.8385 trillion yuan, down by 170.7 billion yuan from the previous trading day, indicating a significant decrease in trading activity.
Military industry stocks led the decline, with China Weitong and Huzhong SiZhuang both hitting the limit-down. The semiconductor sector also experienced significant drops, with Ningbo Silit Electronic, Canshuo Stock, Oulai New Materials, among others, declining. The communications sector underwent noticeable adjustments, with Century Dingli and Online-to-Offline seeing declines. The real estate sector continued to weaken, with Shenzhen Zhenye A, Zhangjiang High-Tech, and Huaxia Happiness experiencing larger declines.
As the A-shares experienced a widening decline, the Hong Kong stock market also faced a sharp setback.
The Hang Seng Index and the Hang Seng TECH Index both opened significantly lower. By the close of the market, the Hang Seng Index fell by 1.96% or 387.64 points to 19435.81 points, with a total daily turnover of 173.262 billion Hong Kong dollars; the Hang Seng China Enterprises Index dropped by 2.21% to 6973.08 points; and the Hang Seng TECH Index fell by 3.08% to 4318.32 points.
According to the “China Fund News,” some analysts attribute the market downturn partly to the rise in the U.S. Dollar Index. On the 14th, the U.S. Dollar Index continued to rise, breaking through its high point of 106.6 two years ago.
Real estate expert and Vice President of the Nanjing Real Estate Association and the South China Urban Research Association, Meng Xiangyuan, wrote in a blog post: “There may be a shift in investment style, and external factors are also pressuring the market, which should not be underestimated. Everything has a cause and effect, and market fluctuations are unpredictable… Stocks are different from houses, as they are not limited to domestic markets and can be chosen from the best options worldwide.”