On August 25th, the total turnover across A-share markets shrank to 1.84 trillion yuan, dipping below the August 21st "freezing point" figure of 1.89 trillion yuan, signaling that investor观望 sentiment has reached an extreme. The Shanghai Composite Index opened slightly lower and quickly probed downward in the morning session. After breaching the previous trading day's low, buying interest emerged to push the index higher, but the afternoon rebound stalled at the 5-day moving average, ultimately paring its gains. The Shenzhen Component Index followed a similar pattern of bottoming out and recovering, yet bullish conviction remained weak; an intraday attempt to turn positive was met with renewed selling pressure, and the index closed in the red.
By the close, the Shanghai Composite Index settled at 3889.44 points, up 0.19%; the Shenzhen Component Index finished at 13745.87 points, down 0.35%; and the ChiNext Index ended at 3397.52 points, shedding 1%. Combined turnover across the Shanghai, Shenzhen, and Beijing exchanges stood at just 1.84 trillion yuan, contracting by nearly 180 billion yuan from the previous session.
On the sector front, agriculture, forestry, animal husbandry, and fishing; healthcare; media; and real estate led the gains. Only a handful of sectors, including nonferrous metals, banking, and chemicals, experienced pullbacks. Despite the divergence in the major indices, individual stocks delivered a broadly positive performance. More than 4,200 stocks closed in the green, with 70 hitting the daily limit-up—both figures showing notable increases—while fewer than 1,300 stocks declined.
Looking at the near-term trajectory, securities analyst Wang Xiaoli noted in an interview: "Although the indices have shown a bottoming-out and recovery pattern, with turnover at such极度 low levels, whether the rebound can be sustained remains uncertain. In the short term, multiple moving averages are converging above the major indices, which will inevitably become significant resistance on the path to recovery. Furthermore, with market sentiment extremely cautious, any adverse development could trigger aggressive selling, further amplifying index volatility. Overall, the current turnover level is insufficient to support a sustained upward move, and investors should focus on whether the indices can establish effective support within the current range."
Chen Yuheng, senior investment consultant at Jufu Investment, offered his perspective: "Taking both market movements and capital characteristics into account, the A-share market remains in a phase of repeated bottom-building and oscillation, making a unilateral uptrend unlikely in the near term. This rebound is a textbook case of low-volume sentiment repair rather than a trend reversal. Trading volume throughout the day was markedly lower than the previous session, with turnover once again falling below the 2 trillion yuan threshold. The continued absence of incremental capital, coupled with persistently subdued overall turnover, reflects that the underlying cautious mindset of market participants has not fundamentally shifted."
Chen Yuheng further explained that following the sustained pullback in earlier sessions, short-term market sentiment has already descended to relatively low levels. Combined with the continuous contraction in turnover and the gradual exhaustion of selling pressure, favorable external catalysts have naturally triggered this technical rebound. "However, insufficient volume indicates that off-market capital has not entered on a large scale. The market's bullish foundation is weak, and the rebound lacks the capital support needed for a sustained rally."
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