The Shanghai Stock Exchange Index fell sharply in early trading on the 26th and dropped below 2,900 points, indicating a weakening in the market. The Shenzhen Component Index and the ChiNext Index also experienced weak falls, with northbound capital outflows exceeding 2.5 billion yuan in just half a day. At midday closing, the Shanghai Composite Index was down by 0.38% to 2895.14 points, the Shenzhen Component Index fell by 0.77%, and the ChiNext Index dropped by 1.57%. The total transaction volume for the two cities was 506.4 billion yuan, with a net northbound fund outflow of 2.522 billion yuan.
The real estate sector saw a surge, while media, building materials, construction, agriculture, coal, banking, petroleum, and brewing sectors all strengthened. The Hainan free trade and online game concepts were active, while semiconductor and chip concepts experienced a decline.
Despite the recent decline, Guosheng Securities believes that the market may be at a bottom stage and there could be a subsequent uptrend. They pointed out that recent favorable policies and continued large fund buying of broad-based ETFs have provided some support to market confidence. They also noted that most stocks are still in the oversold range, indicating potential for future growth.
From a strategic point of view, Guosheng Securities advised that restoring confidence is a slow process and that every callback in the early stage of the rise presents a good entry opportunity. They suggested paying attention to layout opportunities in sectors such as new energy, consumer electronics, and food and beverages.
The article was originally published by Securities Times Network and emphasized that the information provided does not constitute investment advice and individuals should act at their own risk.