Reuters, Shanghai, November 3-The Shanghai Composite Index of China’s stock market closed slightly on Wednesday, falling below 3,500 points, and the closing price hit a 10-week low. Photovoltaic and new energy sectors led the decline, while traditional energy stocks such as coal bucked the trend and rose.
Shanghai Composite Index.SSECClosed down 0.2% to 3,498.54 points, the index has fallen for three consecutive days.CSI 300 Index.CSI300Closed down 0.4%. The Shenzhen Growth Enterprise Market Index closed down 0.4%, and the Shanghai Science and Technology Innovation Board 50 component index closed down 0.4%.
Yan Kaiwen, chief strategy analyst at Huaxin Securities, said that the overall tone of the A-share market in the fourth quarter was a volatile downward trend. Weak earnings and the overall economic environment do not support the A-share market as a “breakthrough” relatively speaking. If the low interest rate environment cannot be maintained, it will depress the valuation of high valuation targets.
New energy and new energy vehicles led the decline. The CSI New Energy Index fell 2.5%, the CSI Photovoltaic Industry Index fell 2%, and the CSI New Energy Automobile Index fell 1.9%.
“This year is a year of explosive sales of new energy vehicles. Compared with this year, next year, with such a high base number, is there such a rapid expansion? Is there a penetration rate that continues to rise so fast? There will be a question mark.” Yan Kaiwen said.
The “New Energy Vehicle Industry Development Plan (2021-2035)” puts forward here that by 2025, the sales of new energy vehicles and new vehicles will reach about 20% of the total sales of new vehicles. According to data from the Passenger Car Market Information Joint Conference here, the domestic retail penetration rate of new energy vehicles in September has reached 21.1%.
The cold wave hit, coal stocks bucked the trend and led the rise, following the rise of coal futures. The China Securities Shenwan Coal Index closed up 4.2%.
According to the China Meteorological Administration’s news here, it is expected that from November 4th to 7th, affected by the cold wave, China will experience a strong wind cooling from the northwest to the southeast. There will be strong rain and snow in some areas, and strong wind in the eastern sea.
The National Development and Reform Commission of China said on Tuesday that in recent days, companies such as Yitai Group, Mengtai Group, Huineng Group and Xinglong Group in Inner Mongolia Autonomous Region have voluntarily lowered the price of 5,500 kcal thermal coal pithead to below 1,000 yuan/ton; coal is expected Prices will accelerate their return to a reasonable level. “(over)
Press Xu Kaiwen; review Wu Yunling
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