Stock Market Falls as All Major Indexes Dip Over 1%
The stock market took a tumble on April 16, as all three major indexes experienced significant declines throughout the trading day. The Shanghai Stock Exchange Index fell by 1.65%, the Shenzhen Component Index dropped by 2.29%, and the ChiNext Index saw a decrease of 1.97%.
The divergence between large and small indexes continued, with the micro-cap stock index plummeting by more than 10%. More than 1,000 stocks across the entire market also fell by their limit or by over 10%.
In terms of sectors, some industries such as kitchen and bathroom appliances managed to rise, while sectors like Sora, new industrialization, tourism, and education were among the top decliners.
Overall, individual stocks experienced more declines than gains, with over 5,000 stocks in the market falling. The total turnover for the Shanghai and Shenzhen stock markets on this day was 947.2 billion, a decrease of 49.9 billion from the previous trading day.
Northbound funds sold a net 2.793 billion yuan throughout the day, with over 3 billion yuan flowing back in the last 30 minutes of trading. The Shanghai Stock Connect saw 1.36 billion yuan being sold, while the Shenzhen Stock Connect recorded 1.433 billion yuan in sales.
Market observers noted the extreme differentiation between large and small cap stocks, with the trend shifting towards a general decline, leading to the market being described as “Icebergs everywhere.” This was reflected in the performance of the Shanghai Composite Index, which closed at 3,007.07 after 5,066 stocks fell on this day.
Analysts attributed the market downturn to various factors, including the impact of new regulations such as the “Nine National Regulations” and the new delisting rules. Some investors compared the current situation to a similar decline seen in early February, highlighting the potential challenges facing micro-cap stocks in the current market environment.
Despite the negative sentiment, market participants were urged to remain cautious and patient, as historical trends have shown that short-term fluctuations may not necessarily dictate long-term outcomes. The importance of thorough research and strategic decision-making in times of market volatility was emphasized.
The original article was published by Daily Economic News under the title “A-shares cannot rely solely on ‘Chinese prefix’ and high dividends,” highlighting the need for a balanced approach to investing in the current market conditions.