Chinese stock market volume shrinks.
On Tuesday, all three major indices in China’s stock market fell, and the volume of both the Shanghai and Shenzhen markets shrank to around 660 billion yuan. China’s leading financial commentator Shui Pi said that the A-share market is basically a soul-less state, a bit unable to find the north, except for “drinking and eating medicine”, other sectors did not act, once the wine sector and the pharmaceutical sector into the adjustment, shock, the whole market is like a broken kite drifting with the wind.
After the Qingming Festival on April 6, China’s stock market trends throughout the day shock, plate trends vary, including industrial stocks to lead the performance of pharmaceutical stocks at the bottom. By the end of the day, the Shanghai Composite Index was down 0.04% at 3,482.97 points; the Shenzhen Composite Index was down 0.28% at 14,083.34 points; and the Growth Enterprise Market Index was down 0.72% at 2,831.6 points. The CSI 300 index closed down 0.41% to 5,140.34 points; the CSI 300 Medicine and Health index and the CSI 300 Optional Consumption index closed lower by 1.72% and 1.6%, respectively, and were the top declining sectors on Tuesday.
On the plate, tourism, hotels and restaurants, brewing, food and beverage, pharmaceutical and biological were the top decliners.
It is worth noting that the Shanghai market traded 286.330 billion yuan and the Shenzhen market traded 373.875 billion yuan, with a combined turnover of 660.205 billion yuan in both markets, a significant contraction from the previous trading day’s 716.718 billion yuan, showing that the Chinese stock market was sluggish.
So far this year, China’s stock market has been on a roller coaster ride with the Chinese New Year on the yellow calendar as the dividing line, with the major indices leading the Asian markets in losses so far after the holiday.
Bloomberg reported on April 6 that the road to a second-quarter rebound in China’s stock market could be very rocky and bumpy in the face of uncertainties such as a possible tightening of market liquidity and deteriorating U.S.-China relations.
The Shanghai-Shenzhen 300 Index, which is dominated by high-valued white-horse stocks, lost the psychological 5,000-point barrier several times last month and posted its worst performance in the past year in the first quarter; the most heavily weighted Guizhou Maotai fell nearly 28% from its all-time high in February. Liquidity-sensitive technology stocks were also vulnerable to declines, with the Shenzhen GEM index falling 7% for the quarter, its worst single-quarter performance since the second quarter of 2019.
According to Bloomberg’s quarterly survey at the end of March, the median forecast of 19 mainland institutions for the Shanghai Composite Index at the end of the second quarter was at 3,400 points, while about 15 institutions had median forecasts for the CSI 300 Index and GEM Index at 4,950 and 2,500 points, respectively, with the latest closing price about 2-12% downside from the forecast point.
Well-known Chinese financial commentator Shui Pi wrote on April 6 that today (April 6), the Shanghai and Shenzhen stock market indices ended with a decline, and the main reason for the poor performance of the indices is that the indicator stocks, which have a relatively large impact on the indices, are generally in the doldrums. Whether it is the wine sector, or the pharmaceutical sector, real estate sector, financial sector, including the new energy vehicle sector are sluggish, directly affecting the index, showing a relatively weak and oscillating pattern.
Shui Pi believes that, at present, the A-share is basically a state of soul, a little unable to find the north of the feeling, in addition to “drink and take medicine”, other sectors did not act. Once the wine sector and the pharmaceutical sector into the adjustment, shock, the whole market is like a broken kite floating with the wind.
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