Shanghai Composite Index Falls Below 2800 Again, A-Shares Expected to Enter a Trading Rebound Window
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Today, the stock indices of both markets declined unilaterally, with most stocks falling; all three major indices hit new lows in the afternoon. By the close, the Shanghai Composite Index dropped 2.68% to 2756.34 points, the Shenzhen Component Index fell 3.5%, and the ChiNext Index declined 2.83%.
In terms of sectors, the tourism sector slumped, with Jiuhua Tourism hitting the limit down; the lithium mining concept plunged, with Tibet Mineral Development and Huati Technology among those hitting the limit down; short drama gaming concepts, media and entertainment, and hotel and catering sectors led the declines.
The A-share market hit a new phase low again, with the Shanghai Composite Index briefly falling below 2800 points. Institutions believe the market is currently at a critical point of a negative feedback loop in capital circulation. However, it should be noted that quasi-'stabilization fund' capital has begun to exert continuous force, significantly underpinning the market. Considering that both the index and the valuations of heavily held institutional stocks have reached historical extremes and that steady growth policies are expected to be further intensified, in the short term, A-shares are expected to enter a trading rebound window.