The Communist Party’s national team entered the market on March 9 to protect the market, but the stock market still closed lower. The picture is a file photo.
On March 9, the three major stock indices of the mainland stock market continued to fall, the Chinese Communist Party ordered the “national team” to enter the market to protect the market, although the stock market appeared V-shaped rebound, but in the end could not withstand the market blow, and finally closed down. So far, the mainland stock market has fallen for four consecutive trading days.
A number of RTHK media quoted Bloomberg news, sources said, in order to avoid the stock market to continue to fall during the two sessions of the Chinese Communist Party, the authorities ordered the “national team” to enter to protect the market, the stock market rebounded briefly, the Shanghai index from once down 2% to pull back to near the flat. But the good times did not last long, after the afternoon, the mainland stock market fell again, as of the close of business on the 9th, the mainland Shanghai index, the deep into the index, the three major stock indexes closed down.
On the 9th, the A-share market opened habitually lower, with the Shanghai index opening 0.18% lower, the Shenzhen index 0.44% lower and the GEM 0.43% lower. After the opening, the two markets went down quickly, carbon neutral, environmental protection and other pre-strength sectors fell sharply, coupled with the deep adjustment of the military and other sectors, the two markets fell rapidly. Shanghai index once fell more than 2%; and deep into the index in the GEM finger dragging, once hand in hand fell more than 4%.
At this Time, there is a “national team” large sums of money into the stock market, so that the two markets fell again to quickly narrow. Near the close of the afternoon, the GEM index took the lead to turn red, the stock market showed a V-shaped reversal. But the “national team” to protect the plate did not last long, because the market sentiment is not high, after lunch, the two markets shocked lower by heavy losses.
By the end of the day, the Shanghai index fell 1.82% to 3,359.29 points; the Science and Technology 50 index fell 3.55% to 1,230.14 points; the Shenzhen index fell 2.8% to 13,475.72 points; the GEM index fell 3.5% to 2,633.45 points.
By the close of business on the 9th, the Shanghai index has fallen for four consecutive trading days, from 3503 points to 3359 points, falling below 3500 and 3400 points in succession two major hurdles. Since March 4, the Shanghai index has fallen 6.1%.
In the process, Guizhou Maotai was sold off, after plunging 4.86% on the 8th, it closed 1.17% lower on the 9th, and has fallen more than 26% since the high point on Feb. 18.
Because the Chinese Communist Party is holding two meetings at this time, some commentators teased that the mainland stock market really does not give face to the Chinese Communist Party.
Northeast Securities believes that from the perspective of magnitude and space, 3500 points and 3400 points may not be the final adjustment position, that is, the stock market is still falling.
For the mainland stock market tumbling reason, some securities institutions of the analytical point of view, said A shares of their own internal adjustment and balance is the main reason for the market decline, after the yellow calendar New Year currency retrenchment and U.S. bond yields upward is a secondary cause, or catalyst factors.
Qianhai open source Yang Delong said in an interview, A-share market in the year after the weak trend, a heavy blow to the confidence of many investors, especially before the stronger trend of the white horse stocks sharply adjusted, but also on the overall market sentiment caused a great impact.
Zhu Bin, an analyst at Southwest Securities, said that many leading stocks have not yet returned to the value range, the valuation is still not cheap, including newly issued funds, the allocation of incremental funds can not yet get off, which is a bubble how to get up, how to burst the process.
Reuters said in response that the Shanghai index has fallen 9.98% since the multi-year high it touched on Feb. 18, approaching a 10% drop into correction territory. And doubts about a bubble in China’s stock market, coupled with possible regulatory measures to rein it in, are forcing investors to pull out of the popular technology and consumer sectors.
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