What happened? A-shares dived, the infrastructure sector crashed, and the semiconductor sector rose sharply against the trend
China Fund News Taylor
Brothers and sisters, today's market is very divergent, Hong Kong stocks are already rebounding and rising, A shares are rushing higher in the morning, and it didn't last long, all the way to the close!
The Shanghai index opened high and went low today, and the ChiNext index rushed high and fell. Today's transaction was 775.3 billion yuan. By the close, the Shanghai Composite Index was down 0.7%, the Shenzhen Component Index was down 0.56%, and the ChiNext Index was down 0.53%
A total of 1,869 stocks rose and 3,176 declined.
Northbound funds sold a net of nearly $5.5 billion.
Let's find out why.
The biggest reason for today's market plunge is the sudden flash crash of the infrastructure sector in China, which is directly related to external interference, the expansion of the Palestinian-Israeli conflict, and the increase in the uncertainty of peripheral geopolitical risks.
The semiconductor sector soared. According to Guojun analysis, the phased stabilization of Sino-US relations is expected to promote the improvement of trading activity of high-risk preference investors and rebound opportunities in related fields.
Events and impact: U.S. Senate Majority Leader Schumer, who has a hawkish attitude toward China, led a congressional delegation to China. Before the APEC meeting in November, Sino-US relations are expected to stabilize in stages, and the current stock prices and valuations of most sectors are at a low level, and the marginal catalyst of the phased stabilization of Sino-US relations is expected to form a thematic opportunity.
Clue 1 of the rebound: the technology sector where sanctions were intensive and adjusted a lot. The U.S. agreed to Samsung and Hynix to supply equipment to their Chinese factories, indicating that stabilizing U.S.-China relations will facilitate supply chains in some areas. Export controls in the field of science and technology mainly target cutting-edge technology fields such as semiconductors/high-end equipment and AI.
Clue 2 of the rebound: the economic and trade areas where tariffs were imposed and adjusted more. Since the United States began to impose tariffs on Chinese goods in July 2018, the cost of exports to the United States has increased the cost of related industries and companies, and industries such as machinery and equipment/electronics/auto parts/home appliances/light manufacturing have been greatly affected.
Market adjustment, capital huddle Huawei industry chain, Huawei and Cialis will launch M7, and release M9 in December. In addition, the continuous release of Huawei mobile phones will also drive the sentiment of the automotive chain.
In addition, the peripheral market rose sharply today, Hong Kong stocks rebounded, Nikkei jumped 2%, and Europe opened sharply higher.