China’s stock market suffered a black Monday, with the three major indices closing down collectively, with tourism, liquor, Medicine and other big consumer sectors leading the decline in the two markets, with “stock king” Guizhou Maotai falling more than 4 percent and the market value of the two markets in Shanghai and Shenzhen evaporating $2 trillion a day in what the media called a “rare” event. Bloomberg reported that China’s stock market plunged on Monday, possibly putting pressure on the “two sessions” being held by the Chinese Communist Party.
On Monday (March 8), A-shares opened lower and accelerated their plunge at the end of the day. By the end of the day, the Shanghai index fell 2.30% to close at 3,421 points; the Shenzhen index fell 3.81% to close at 13,863 points; and the GEM index fell 4.98% to close at 2,728 points, losing 2,800 points.
China Fund News reported under the headline “A-share rare plunge of 2 trillion” that on March 8, A-share stocks were in a general decline pattern, more than 3,000 shares closed down, of which, the previous institutional long position stocks continued to fall sharply, the northward capital (foreign capital) sold nearly 9 billion, the market value of the two cities rare evaporation of 2 trillion.
The report said that most of the stocks that plunged were the fund’s long positions.
First of all, the brewing sector, March 8 again fell, Chongqing Beer, Luzhou Laojiao, Shanxi Fenjiu, etc. fell, Guizhou Maotai fell nearly 5%
In addition to liquor, a number of previously strong performance of photovoltaic concept stocks recently also continued to be sold by the funds.
Photovoltaic concept of the star stocks Tongwei shares, Sunshine Power, and other stocks fell across the board, Longi shares fell to a halt.
As one of the most popular topics last year, photovoltaic plate rose sharply since the second half of last year, Longi shares, Tongwei shares, Sunshine Power rose astonishingly. Leading Longi shares from March last year continued to rise to February this year, a cumulative increase of more than 4 times, Tongwei shares also rose nearly 4 times, Sunshine Power is from the low point last year rose more than 11 times.
The military industry sector is sharply lower, AVIC Shenfei, Airfa Power and many other shares fell.
Bloomberg reported on March 8 that investors are concerned that China’s monetary policy will tighten, resulting in poor liquidity conditions, and that some recently popular stocks are overvalued, sending China’s major stock indexes into a pullback period.
The report noted that the plunge in China’s stock market on Monday could put pressure on the ongoing “two sessions” of the Chinese Communist Party. The “two sessions” are the most important political and economic events of the year for the Communist Party, where government officials set out key economic and political priorities.
Shanghai Xiejie Asset Management’s Lin said today (March 8) was a pretty key drop beyond the bull/bear line, wiping out this year’s gains.
He said, “At some point, sentiment is low and any rally now will pave the way for further declines.”
Chinese Communist Party Premier Li Keqiang set an economic growth target of 6% or more on Friday. In response, the co-founder of Shenzhen Yuntai Investment Management Co. said the market is still evaluating the targets and interpreting their impact on stocks.
He argued that “this exacerbates the persistent problem of high valuations and people may sell stocks based on the news.”
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