A-shares suddenly plunged, with more than 4,500 stocks falling

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2024-05-23 17:35Published in Guangdong

A-shares fell on the hot search again.

On May 23, the three major A-share stock indexes collectively opened lower. The two markets fluctuated lower in the morning, and the weakness did not change in the afternoon, the decline expanded, and the trend of opening low and going low throughout the day was out.

As of the close of trading on May 23, the Shanghai Composite Index fell 1.33% to 3,116.39 points, the STAR 50 Index fell 1.67% to 742.4 points, the Shenzhen Component Index fell 1.56% to 9,541.64 points, and the ChiNext Index fell 1.38% to 1,852.07 points.

The turnover of the two cities was 847.7 billion yuan, an increase of 16.4 billion yuan from the previous trading day; The net outflow of funds in the broader market exceeded 57.8 billion yuan.

Stocks in the two cities showed a trend of falling more and rising less, with 735 stocks rising and 4,578 stocks falling. Among them, 37 are up limit stocks and 28 are down limit stocks.

On the disk, only a few sectors such as military industry, shipping, and aviation rose; Non-ferrous metals, tourism, hotel catering, media and entertainment, glass substrate concept, gold concept, etc. fell sharply.

Why are A-shares weakening today?

Some analysts said that this may be caused by emotional interference at home and abroad and the demand for phased adjustment at the end of market valuation repair.

On May 22, local time, the Federal Reserve released the minutes of the Federal Open Market Committee (FOMC) meeting from April 30 to May 1. The minutes showed that the Fed decided to slow the pace of interest rate hikes in May, keeping the target range for the federal funds rate between 5.25% and 5.50%.

Inflation has eased over the past year but remains elevated, and the committee's 2% inflation target has not made further progress in recent months, the minutes said.

On the other hand, since February 6, A-shares have continued to rise, and the Shanghai Composite Index has broken through the 2,800, 2,900, and 3,000 points marks from 2,700 points.

Today, the Shanghai Composite Index has successfully stood at the 3,100-point mark and forged ahead to 3,200 points.

Industry experts said that after the continuous upward movement, the transactions in the two cities gradually shrank, and the technical situation continued to diverge, and the overall upward height may be relatively limited. After a short-term continuous upward rush, it may enter a range-bound shock.

It is worth mentioning that international investors are currently bullish on A-shares.

Recently, Goldman Sachs announced that it would raise the 12-month target of the MSCI China Index from 60 to 70, and the 12-month target of the CSI 300 Index from 3900 to 4100.

Goldman Sachs analysts said that after visiting the United States, Singapore, Tokyo and other places, and communicating with investors, they found that international investors' sentiment, risk, appetite and interest in China's stock market are improving.

In addition, Sunil Tirumalai, chief strategist of global emerging markets equities at UBS, also announced an upgrade to A-share and Hong Kong stock ratings.

Author | Zhang Xiaolei

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