By hannover-web.com On October 9th, China’s A-shares faced a sharp decline after a period of notable gains. All major indices ended the day in the negative territory. The Shanghai Composite Index opened lower and continued to slide, ultimately closing down more than 6%, dipping below the critical 3,300-point threshold and breaking a ten-day winning streak.
At the end of the trading session, the Shanghai Composite Index was recorded at 3,258 points, reflecting a 6.62% drop. The Shenzhen Component Index closed at 10,557 points, down 8.15%, while the ChiNext Index, focused on high-growth companies, fell 10.59% to settle at 2,280 points. The overall trading volume for both the Shanghai and Shenzhen markets amounted to approximately 29.4 billion yuan, a decline from the previous day.
Yang Delong, the chief economist at Qianhai Kaiyuan Fund, shared insights on the significant pullback in A-shares, attributing it to several factors. He noted that many stocks had recently enjoyed substantial gains, leading to increased profit-taking pressure and contributing to the market correction. Additionally, Yang highlighted how performance in overseas markets has affected investor confidence in China’s A-shares.
Statistics from Eastmoney, a prominent financial data provider, indicated that all sectors within the A-share market experienced losses that day, with the gaming and battery sectors seeing some of the steepest declines. Interestingly, the semiconductor sector showed relative resilience despite the overall downturn.
Zhao Dongmei, an analyst at Guoyuan Securities, expressed a more optimistic outlook. She suggested that the current wave of gains might not be finished, pointing to ongoing support from policy measures as a positive sign. Zhao believes that additional policies with the potential to boost the stock market are still on the horizon, making the situation worth monitoring.
