A-share market confidence and sentiment have deteriorated sharply, with any modest rebound quickly met by selling pressure, making a genuine recovery extremely difficult. The daily question remains: when will new incremental policies and large-scale bargain-hunting capital arrive to support the market?
The short drama index plunged 8%, closing at its lowest point, with widespread 10% limit-down moves. Kunlun Tech fell over 12%, while Ciwen Media, Guangdong Guangzhou Daily Media, Tiandi Online, 37 Interactive Entertainment, Zhangyue Technology, and Hengdian Entertainment all hit limit down. As noted earlier, whichever sector rises will become the next target for heavy selling within days, reflecting excessive speculation and fierce trading battles.
Morning bargain-hunting capital attempted to lift the market, especially early in the afternoon session, but by the close the market collapsed again. Taichentech dropped 16%, Eoptolink Technology plunged 13%, Shenghong Technology tumbled 13%, while Tengjing Technology, Changxin Bochuang, and Robotechnik fell 10%. Tianfu Communication, Changguang Huaxin, Lianxun Instruments, and Dongshan Precision declined over 8%, and Zhongji Innolight lost 5%.
In semiconductor equipment, Kingsemi fell 13%, Huafeng Test & Control Technology dropped 9%, while Piotech, Han's Laser, Jingsheng Mechanical & Electrical, and Hwatsing Technology declined over 8%. AMEC lost more than 5%.
Copper-clad laminate was perhaps the least affected sector. In the morning, Jin'an Guoji and Hongchang Electronic surged to limit up, Huazheng New Material rose 8%, and the copper-clad laminate index briefly spiked nearly 4%. However, everything changed in the afternoon, with the sector diving sharply and ultimately falling over 2%. Huazheng New Material's 8% gain was wiped out and turned negative, while Hongchang Electronic opened its limit-up board.
Meanwhile, the banking index nearly turned positive as capital rushed back into defensive banking stocks, with ICBC hitting a new high. The Wind Dividend Index surged 1.14%.
More seriously, the STAR 50 plummeted 5.5%, closing at its lowest point. The ChiNext Index dropped over 4%, also closing at its session low. The CSI 300 was even more extreme, making history with 12 consecutive weekly declines, a record streak. The CSI 300 has fallen 1,000 points from its high, a decline of 21%, entering technical bear market territory.
Several reasons were summarized for today's A-share selloff: Google's earnings missed expectations with negative cash flow; Amazon also missed earnings with negative cash flow; Intel's fourth-quarter guidance disappointed, sending its stock down 23%. U.S. PCE data boosted expectations for a December rate hike, with the personal consumption expenditures price index rising 3.6% year-over-year in September, up from 3.4% the prior month and continuing to exceed the Fed's 2% target. Domestically, the market is highly jittery with extremely poor confidence and sentiment, vulnerable to external shocks; various large funds including insurance capital, quantitative funds, and mutual funds are all front-running; and tech giants have posted earnings misses, particularly recent leaders like Tianfu Communication, Eoptolink Technology, and Shenghong Technology, setting a very bad precedent.
A new development emerged in the afternoon: near the midday close, a rumor spread across social media about restrictions on selling, causing anger. But in the afternoon, it became clear this was not the case—only a personnel change had occurred, and it was a promotion, so the rumor was disproven, triggering a wave of selling. The market has been badly damaged, with frantic selling across the board. Under such panic, everything is being dumped, and having been burned by losses, any minor negative event gets infinitely amplified, with everyone fleeing like frightened birds.
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