In 2022, the three major indexes of A shares fell collectively. Shenzhen Component Index fell by 26%, GEM Index fell by nearly 30%, and the Shanghai Stock Exchange Index fell by 20%.
There are three main reasons for the decline of A shares:
First, the Russia-Ukraine conflict triggered geopolitical crisis to intensify, which led to the impact of the global supply chain, triggered a food crisis, energy crisis , etc., which had a major impact on global economic recovery.
Second, The Federal Reserve raised interest rates , including four consecutive interest rate hikes of 75 basis points. Developed countries in Europe and the United States followed closely and continued to raise interest rates, leading to a tightening of global currencies. The most direct impact of currency tightening is on real estate and the stock market. Therefore, the global stock market has generally maintained a downward trend this year.
Third, as for domestic epidemic prevention and control policies, first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen have adopted silent management this year, which has a certain impact on economic recovery and caused economic growth to be slower than expected. The stock market is a barometer of the economy, and the economy is the cornerstone of the long-term and healthy development of the stock market. If the economy faces downward pressure, the stock market will naturally fall.
Looking forward to 2023, the stock market is expected to usher in a volatile and rising market
1. The new epidemic prevention and control policies are more scientific and precise, effectively reducing the impact on economic development.
2, The Central Economic Work Conference clearly reminded that in 2023, we will go all out to develop the economy and give top priority to restoring and expanding consumption. There is sufficient power to drive the economic troika of exports, investment, and consumption. Next year's economic growth rate is expected to be above 5%. There is no problem. The worst stage of the economy has passed, the economic turning point has appeared, and the stock market turning point is taking shape.
3. After the New Year's Day holiday in 2022, the stock market opened near 3650 points, maintaining a volatile downward trend across the board. Moreover, the three major indexes have been falling for a year, and the stock market has oversold and is at the bottom area. After the New Year's Day in 2023, the market opened near 3,000 points, which is a full 650 points lower than the opening in 2022. Therefore, technically A-shares have the demand for an oversold rebound, and the market in 2023 is worth looking forward to!
Risk reminder: The stock market is risky and you need to be cautious when entering the market!
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