A shares more than 4300 stocks closed down A record, “group extinction” why?

2022-07-09 0 By

As the Spring Festival approaches, many a-share investors face the question of whether to hold shares or to hold coins during the festival.In the Russian Ukraine crisis triggered global market concerns, many investors resolutely chose the latter.On January 25, the A-share market suffered A rare drop, the three major indexes closed down more than 2%, more than 4300 stocks closed green, only more than 200 stocks rose, more than 90 stocks closed down the limit.It was the first time in history that more than 4,000 stocks fell.Market analysts interviewed by “China Times” reporters believe that behind the a-share market plunge overseas markets, the epidemic, pre-holiday capital risk preference decline and other factors.Confidence is more important than gold when markets are falling irrationally.The Shanghai Composite Index closed down 2.58% at 3433.06 points on Jan. 25, the first time it has breached the 3,500 mark in nearly three months.The Shenzhen Component index tumbled 2.83 percent to 13,683.89 points.The chinext index fell 2.67 percent to 2,974.96, falling below 3,000 for the first time since May 2021.In terms of trading volume, Shanghai and Shenzhen traded 936.8 billion yuan, compared with 72.6 billion yuan on the previous trading day.The net outflow of funds from north China totaled 3.574 billion yuan, including 2.2 billion yuan from Shenzhen Stock Connect.In terms of industry sectors, all the 31 First-level shenwan industries closed down, with media, comprehensive and coal industries leading the decline, down 6.09%, 5.09% and 4.72% respectively.Banking, household appliances and transportation industries fell at the bottom, down 1.68%, 1.76% and 1.79% respectively.Popular concepts also stalled, cloud games, rich media, virtual digital people, digital currencies and other concepts suffered heavy losses, down more than 6%.Behind the rare drop, A shares are troubled by multiple factors.Chen Li, chief economist and director of research institute of Chuancai Securities, told China Times that European stock markets fell sharply last night, with France’s CAC index and Germany’s DAX index falling by more than 3%, Russia’s RTS index falling by 8.11%, and the NASDAQ index of the United States falling by more than 4% despite turning red at the end of the day.Overseas tension makes the global risk aversion heating up, at the same time A share to form A certain risk transmission.In addition, Chen fog, said the current global outbreak still has repeatedly, who is 24, said last week, with 100 new cases of the global average every three seconds COVID – 19 cases, one person died of COVID every 12 seconds – 19, at the same time the Mick Dijon crown “terminator” is not new worldwide will appear more varieties, and domestic aspects of the current epidemic is still sporadic, repeatedly outbreak remained uncertainty;Finally, the Spring Festival holiday is approaching, and there are uncertainties in overseas risks during the holiday, so the risk preference of funds decreases and the willingness to allocate funds actively decreases before the holiday.It’s worth noting that global capital markets have been experiencing wild swings of late.The Nasdaq is down more than 12 percent for the year, its biggest monthly drop in more than four decades.Yang Delong, chief economist of Qianhai Open Source, told The China Times that this round of decline in THE US stock market is partly due to the reversal of the Federal Reserve’s monetary policy, which has gradually shifted from easing to tightening.It hasn’t raised rates yet, but the first rate-setting meeting of 2022 will be held this week, raising concerns among investors that the Fed could send a hawkish message.Mixed results from U.S. companies that recently reported fourth-quarter earnings also weighed on share prices.”Riskier assets have been somewhat abandoned this year because of concerns about fed tightening.Russia’s stock market fell more than 10 percent in a day amid the recent turmoil in Ukraine, which also had an impact on European markets.Tensions between the US and Russia will still have an impact on short-term market movements.”Yang delong said.However, Yang delong believes that the a-share market has been adjusted for A long time before, so the impact of the overseas market plunge on the A-share market should not be too big.Some quality stocks in the A-share market have already fallen out of value. It is suggested that investors should keep confidence and patience at the moment instead of worrying too much about the situation in the overseas market.”Confidence is more important than gold, and when the market falls irrationally, especially because of money, it is actually a layout opportunity.”It is worth mentioning that in the afternoon of January 25, Beijing time, The beginning of the European stocks ushered in a rebound across the board.France’s CAC40, Germany’s DAX30 and Britain’s ftse 100 were all up around 0.5% as of 17:00.Looking ahead to the market, Chen Li said that from the recent speeches of the Central bank and the issuance of special bonds, fiscal and monetary policies throughout the year are expected to continue to exert force, “steady growth” is still the main tone of this year, will constitute A basic support for the macro economy, in this context, for the A-share market is still “optimistic” attitude.It is suggested to focus on the direction supported by performance and focused on national policy in 2022.Responsible Editor: Ma Xiaochao Editor: Xia Shen Tea