A-Shares Continue to Weaken as Market Declines Further
In the afternoon trading session, A-shares continued to weaken, with the Shanghai Stock Exchange Index dropping below 3,000 points. Both the Shenzhen Stock Exchange Index and the ChiNext Index experienced declines of more than 2%, while the software and Internet sectors plunged more than 5%.
Specific indexes reveal the extent of the market downturn: at the close, the Shanghai Stock Exchange Index stood at 2,993 points, a decrease of 1.26%, the Shenzhen Stock Exchange Index at 9,222 points, down 2.40%, and the GEM Index at 1,789 points, reflecting a 2.81% decline. The total trading volume for the day in both cities was less than 900 billion yuan.
In terms of fund flow, northbound funds recorded net sales of 7.250 billion yuan by the close of A-share trading. Of this amount, 1.764 billion yuan was sold through Shanghai Stock Connect and 5.486 billion yuan through Shenzhen Stock Connect. The transaction volume of northbound funds accounted for 14.56% of the total A-share transaction volume, with trading activity decreasing by 7.82%.
The banking, coal, and home appliance sectors were the only ones to close slightly higher, with the rest experiencing across-the-board declines. Sectors such as the Internet, software, communications, components, semiconductors, and automobiles saw drops of more than 3%.
Analysts at Guosheng Securities noted that the recent market performance has seen intensified differentiation among high-level theme stocks, with signs of profit-taking pressure. Market style is shifting between highs and lows, while the RMB exchange rate fluctuates in the short term. The influx of northbound funds has been accelerating, providing support to the market. CICC highlighted better-than-expected major economic data for January and February, but cautioned that China is still in the downward stage of the financial cycle and that fiscal efforts are needed to consolidate economic recovery.