U.S. stocks fell sharply overnight, U.S. technology stocks suffered a "bloodbath", and market concerns soared. In early trading on September 9, a large area of the A-share market was "green", and the ChiNext Index once fell by more than 4% during the session; the declines of the three major indexes narrowed slightly during the session.
According to Wind data, as of midday closing, the Shanghai Composite Index and Shenzhen Composite Index fell 1.07% and 2.21% respectively; the GEM Index fell 3.46%, falling below the 2,600-point mark. The total market value of Wonderquan A at midday closing was 79.57 trillion yuan, and it was 80.63 trillion yuan at the close yesterday. This means that the total market value of A shares evaporated by 1.06 trillion yuan in half a day.
Source: Wind
Judging from the performance of industry sectors, pharmaceutical and biological, agriculture, forestry, animal husbandry and fishery, media, electronics and other sectors have all declined; low-priced steel stocks have risen together, pushing the steel sector to buck the market and rise by nearly 2%.
Three major characteristics emerged in the callback
html In early trading on September 9, the A-share market once again experienced a sharp correction. At the same time, the market also shows three major characteristics.First, the phenomenon of grouping of low-priced stocks on the GEM has cooled down. As of midday closing, only 2 of the 11 daily limit stocks on the GEM market were trading below 10 yuan.
Source: Wind
Second, low-priced steel stocks rose collectively. As of midday closing, the steel sector bucked the trend and rose 1.98%; among the 28 rising stocks in the sector, only 2 had share prices higher than 10 yuan.
Source: Wind
In this regard, Chen Li, director of the Sichuan Securities Research Institute, told China Securities Journal that on the one hand, since September, with the arrival of the traditional peak season of the cyclical sector, the demand for upstream industrial products is expected to show a cyclical improvement, which will be superimposed in the second half of the year. The country is accelerating infrastructure construction, and steel and coal prices are expected to rise due to demand. At the same time, the overall growth rate of the industry this year is small, so it is reasonable for the sector to rise; on the other hand, low-priced stocks have recently received greater attention from the market. , and there are also more low-priced stocks in the coal, steel, and power industries. The capital level is based on the factors of "fundamentals + market sentiment" and prefers to buy lower-priced stocks in the industry.
Third, the GEM market is actively trading, with half-day turnover exceeding that of the Shanghai stock market. As of the midday close, the Shanghai stock market's turnover was 220.88 billion yuan, while the GEM market's turnover was 240.54 billion yuan.
In addition, Fengshang Culture, the first batch of new shares on the GEM under the registration system, fell 3.41% in half a day to 135.22 yuan, falling below the issue price and touching as low as 133.7 yuan. It was the first new stock under the registration system to break the issuance. The stock was listed on August 24, with an issue price of 138.02 yuan.
Three major reasons triggered the market crash
According to analysts, there are the following three major reasons that triggered the market crash:
First of all, the U.S. stock market plummeted again overnight, which triggered market concerns. Chen Li, director of Sichuan Securities Research Institute, told China Securities Journal that the external market continues to weaken, which has a negative impact on A-shares; in addition, Tesla fell by more than 20% last night, and Apple fell by more than 6%, which has a negative impact on domestic related industrial chain stocks. This creates a conduction effect and drives the index down.
Secondly, market sentiment has dropped. Chen Li believes that the GEM trading volume on September 8 was 337.4 billion, while the Shanghai stock market’s trading volume was only 320 billion. The total trading volume of more than 900 stocks on the GEM exceeded the total trading volume of more than 1,800 stocks on the Shanghai stock market. Today’s GEM callback is also a Makes sense.
Finally, the low-priced stocks on the GEM were loosely united and funds were withdrawn quickly. Analysts said that the news of the suspension of trading and verification of three stocks including Tianshan Biotech has dampened the hype of low-priced stocks on the GEM market, and the speculation of low-priced stocks on the GEM market has cooled down today.
Institutions are optimistic about the slow bull pattern of A-shares.
Looking forward to the market outlook, institutions believe that in the short term, the market still needs to correct and consolidate; in the medium and long term, the slow bull pattern of A-shares has not changed. At the same time, institutions also called on investors to view market fluctuations rationally and to participate in market investments rationally.
Gui Haoming, chief market analyst at Shenwan Hongyuan, pointed out that at present, the market consolidation will take a long time to complete. “It will take some time for technology stocks to rise again, and the adjustment for blue chip stocks, especially consumer stocks, may not be completed yet. "
Chen Li said that it is expected that institutions will be difficult to unite again in the short term, which will put certain pressure on the rise of the market. However, sectors such as cycles and banks are currently at low valuation levels, and the risks are relatively low. There is no risk of a sharp decline in the market for the time being. Base.
In the medium and long term, Chen Li said that the logic of slow bull growth in A shares still exists.Chen Li further pointed out, “On the one hand, the reform of the capital market has deepened, and the system has been continuously improved and optimized, which has continued to attract domestic and foreign long-term funds to enter the A-share market; on the other hand, the macro economy is generally improving, with traditional infrastructure supporting demand and new infrastructure growing rapidly. There is sufficient potential for economic recovery.”
Guosheng Securities Strategy Zhang Qiyao team believes that the current external risks are no longer the main problem, and macro liquidity will not be systematically tightened. At the same time, institutions led by public funds continue to enter the market, and the stock market has sufficient liquidity. Against this background, the current market logic has not changed.
For investors, Chen Li recommends sticking to value investing, paying attention to core assets, reducing the interference of market sentiment on one's own investment, not blindly chasing ups and downs, pursuing long-term profits, and ignoring short-term fluctuations.
For investors who are inexperienced and don’t have enough time, Chen Li suggests that they can hand over their funds to professional investors. "Investors can choose to participate in securities market investments by purchasing funds. On the one hand, the fund's basket of stocks can reduce non-systematic risks. On the other hand, professional investment by fund managers makes it easier to obtain excess returns." Chen Li said.
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