On April 25, A-shares fell sharply, with the Shanghai Composite Index falling 5.13%, the largest single-day decline since February 2020. Returning to the history of A shares , there have been many single-day sharp drops, and the 5% single-day decline cannot rank in the top ten.
Inventory of the single-day plummeting in A-shares in history
December 16, 1996: The decline is 9.91%
You read that right, market hit the limit! In 1996, the Shanghai Composite Index rose from a high of 512 points on January 19 to 1258 points on December 19. In less than a year, the cumulative increase was 140%, and the Shenzhen Component Index rose by more than 300%.
In October 1996, in order to prevent the stock market from overheating, the China Securities Regulatory Commission issued "12 gold medals" in succession, but it still failed to prevent the stock market from rising.
On December 16, the People's Daily published an article titled "Correctly Understand the Current Stock Market", stating the stock market as "the surge in recent period is abnormal and irrational." It immediately triggered the stock market " Black Monday ". The Shanghai Composite Index opened lower by 105 points and finally closed at 1,000 points, falling 9.91%, and the Shenzhen Component Index fell 10.08%. Most stocks in the two markets hit the daily limit on that day. The next day, the Shanghai Composite Index plummeted 9.44% again, and the Shenzhen Component Index fell by 9.99%.
July 30, 2001: Decline 5.27%
July 30, 2001, A-shares encountered "Black Monday" again. In mid-June 2001, the Ministry of Finance launched a plan to reduce state-owned shares in , and the stock index showed signs of peaking. On July 24, the reduction of state-owned shares officially began in the issuance of new shares, and the stock market began to fall. On July 30, the Shanghai and Shenzhen stock markets recorded the biggest decline in two years, with the Shanghai Composite Index falling 5.27% and the Shenzhen Component Index falling 5.21%.
Then, A-shares experienced a five-year bear market, and they never saw 2245 points again. They did not return to the top until the historical bottom of 998 points in 2005. The Shanghai Composite Index fell from 2245 points on June 14 to 1514 points within one year, and 80% of investors were trapped.
May 30, 2007: 6.5%
2007 was the darkest year in the history of A-shares, with a lot of plunges. On June 4, 2007, the Shanghai Composite Index fell by 8.26%; on May 30, 2007, the Shanghai Composite Index fell by 6.5%, which is what we often hear about the "5.30" stock market crash; on February 27, 2007, the Shanghai Composite Index fell by 8.84%.
On May 30, 2007, the Ministry of Finance announced the increase of stamp duty, from 1‰ to 3‰. On that day, the Shanghai Composite Index plummeted by 6.5%, falling nearly 1,000 points in just one week, falling from 4,300 points to 3,400 points. During this period, most stocks encountered multiple limit downs in a row, and investors were everywhere.
However, this is just an episode of the bull market. After the "5.30" drop, the Shanghai Composite Index rose to its historical high of 6124 points, and the market turned to blue-chip stock . A large number of medium-sized small-cap stock have been going downward, and retail investors have no hope of getting out of the trap for many years.
January 19, 2015: 7.7%
The bull market restarted in the second half of 2014, but on January 19, 2015, investors experienced the biggest plunge, with the market value of the two markets evaporating by 3 trillion yuan in one day.
On January 19, 2015, affected by the regulatory authorities' move to regulate securities lending and financing, the Shanghai Stock Exchange Index plummeted in a huge amount, falling by more than 8.33% during the session. 19 listed brokerage stocks collectively hit the limit. 1,932 stocks in the two markets fell, and 159 stocks hit the limit, setting the largest single-day decline in A-shares in six years, which is the so-called "119 stock market crash".
May 28, 2015: 6.5%
On May 28, 2015, the Shanghai Composite Index fell 321 points, a drop of 6.5%, setting the second largest drop this year again. More than 500 stocks in the two markets hit the limit, and more than 2,000 stocks closed down, with trading volume of 2420.58 billion yuan in the two markets.
Interestingly, there is no obvious reason for this stock market plunge, and the industry generally understands this plunge as a panic smash under high leverage of A-shares.
June 19, 2015: 6.42%
On June 19, 2015, A-shares plummeted again, with the Shanghai Composite Index falling more than 300 points throughout the day, a drop of more than 6%, and nearly 1,100 stocks hit the limit. Like last time, after hitting a seven-year high of 5178.19 points, A-shares began to leverage in pain.
This time, a large number of financing markets were sold out in panic, and many retail investors who chased high prices were everywhere. , once known as China's God Car, became the last straw that broke the stock market. Investors who intervened at high levels were worried that they would become the next Sinopec and PetroChina.
June 26, 2015: 7.4%
June 26, 2015, not long after the rebound, A-share investors suffered a collapse-like blow again. The Shanghai Composite Index fell below the 4400, 4300 and 4200 marks in the session. More than 2,000 stocks in nearly 30 sectors hit the daily limit, and only more than 50 stocks rose, including secondary new stocks that had not opened.
January 4, 2016: Decline 6.86%
That day was the first trading day of A-shares in 2016, and it was also the first day of the official implementation of the " circuit breaker mechanism ". After the opening of in Shanghai and Shenzhen, the Shanghai Composite Index continued to fall after opening . The Shanghai Composite Index fell below the two integer marks of 3500 points and 3400 points, with a drop of 4% at one point, almost triggering a circuit breaker. The Chinese version of the circuit breaker mechanism is based on Shanghai and Shenzhen 300 Index as the standard, with 5% and 7% as the circuit breaker threshold, and two-way circuit breaker. The biggest drop in the Shanghai and Shenzhen 300 in the morning session was 4%, which was close to the circuit breaker threshold of 5%. As of the closing of the day, the Shanghai Composite Index closed at 3296.26 points, down 242.92 points, down 6.86%, with a turnover of 240.9 billion yuan; the Shenzhen Component Index closed at 11626.0 points, down 1038.85 points, down 8.20%, with a turnover of 355.3 billion yuan; the ChiNext Index closed at 2491.24 points, down 222.81 points, down 8.21%, with a turnover of 88.31 billion yuan.
May 6, 2019: 5.58%
In the context of economic and trade frictions, Trump said it will impose tariffs on US$200 billion of goods exported to the United States to 25%. Under the influence of negative news, on the first trading day after the May Day holiday, the two markets failed to get a good start. The Shanghai Composite Index fell sharply, closing down 5.58%, and once fell below 2,900 points during the session; the ChiNext Index fell 7.94%, and once fell below the 1,500 point mark.
February 3, 2020: 7.72%
The last time the Shanghai Composite Index fell by more than 5% in a single day is traced back to two years ago. At that time, the new crown epidemic suddenly broke out, Wuhan was locked down, and many cities pressed the pause button, the economy was hit hard, and the market was in panic. It was the Spring Festival holiday at that time, and on the first trading day after the holiday, the Shanghai Composite Index fell 7.72%.
