Stock Indexes in Shanghai and Shenzhen Fall, While Bank Stocks Rise
Last Friday, the stock indexes in Shanghai and Shenzhen experienced fluctuations and declines in early trading, with a further decline in the afternoon. The Shanghai Stock Exchange Index fell 0.85% to 2929.18 points, the Shenzhen Component Index fell 1.07% to 9116.44 points, the ChiNext Index fell 1.45% to 1775.58 points, and the BSE 50 Index fell 4.02%. The total transaction volume in the two cities was 736.3 billion yuan, with nearly 2 billion yuan in net northbound funds purchased.
Analysis from CITIC Securities suggested that institutional adjustments and additional positions have led to significant effects on funds in the market during the first week of the new year, as the market trading ecology and style differentiation have tended towards the extreme. The mid-January period is expected to mark a critical time as the economy awaits data and geopolitical disturbances, which may lead to increased policies. The market is expected to see more funds entering, thus indicating an important turning point.
In terms of industries, sectors such as military industry, media, semiconductors, and medicine were among the top losers, while sectors such as agriculture, automobiles, petroleum, brewing, and securities firms all fell. Bank stocks, on the other hand, bucked the market trend and rose. CITIC Securities recommends prioritizing oversold growth represented by science and technology innovation.
In other market news, my country’s foreign exchange reserves have rebounded above $3.2 trillion, and the annual global consumer electronics event, CES, will be held in Las Vegas from January 9 to 12, 2024. Furthermore, the release of “special edition” AI chips in China by NVIDIA has been announced, signifying positive signs for the market.
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