A sudden change in the A-share market has caused turmoil and tension among investors. Two leading stocks worth hundreds of billions experienced a significant plunge, triggering a fierce battle between long and short positions. On March 14, the A-share market saw violent fluctuations with the three major indexes collectively falling slightly. Industrial Fii, a leading stock in the technology sector, suffered a sharp decline for the second consecutive day, raising concerns among investors. The innovative drug sector initially surged in early trading but was later affected by overseas bad news, leading to a decline in heavyweight stocks such as WuXi AppTec and WuXi Biologics.
The continued decline of Industrial Fii has raised concerns about the weakening confidence in technology stocks as global economic growth slows down. The stock has plummeted more than 40% since its high in August last year, resulting in a loss of nearly 150 billion yuan in market value. Additionally, pharmaceutical stocks, which have always been favored by funds, also faced a major negative blow. WuXi AppTec was “expelled” from the US BIO organization, and rumors of a significant reduction in the price of innovative drugs by the National Medical Insurance Administration further added to the market panic.
Amid the complex and ever-changing external environment, investors are advised to remain rational, evaluate risk-return ratios carefully, and allocate assets wisely. While high-quality leading stocks present adjustment opportunities for gradual deployment, high-valued stocks that have experienced substantial gains should be approached with vigilance. It is crucial for investors to continuously improve their professional skills and monitor market trends to achieve long-term and stable returns in the turbulent A-share market.
A warning from the financial community emphasizes that the content, data, and tools in this article are for reference only and do not constitute investment advice. Investors are reminded to exercise caution when navigating the risky stock market.