The CSI 300 has fallen for 12 consecutive weeks as A-shares undergo a historically rare correction
As of October 30, the CSI 300 Index had fallen for 12 consecutive weeks, with a cumulative decline of about 14% over that period. Media reports citing Reuters said this was the longest run of consecutive weekly losses in the index’s recorded history. Note that the record is for the CSI 300, not the Shanghai Composite Index; nor can it currently be described as the “longest-ever streak worldwide” for stock markets.
Looking at the final trading day of October: the Shanghai Composite Index closed at 3,599.02, down 1.44%; the Shenzhen Component Index fell 2.73%; the ChiNext Index fell 4.13%; and the STAR 50 Index fell 5.48%. The ChiNext Index dropped 23.02% in October, its largest monthly decline since February 2016. More than 4,600 stocks fell across the market, and trading value totaled about 1.69 trillion yuan.
Why the declines? First, a pullback in U.S. tech stocks, along with concerns over whether the huge capital spending on AI will deliver returns, weighed on sentiment and spilled over into A-share tech stocks. Second, trading in previously popular sectors had become crowded, while earnings failed to keep pace with valuation expectations, prompting investors to reassess prices. Third, risk appetite declined, with investors placing greater emphasis on cash flow and earnings certainty.
#中国股市 #A股暴跌
As of October 30, the CSI 300 Index had fallen for 12 consecutive weeks, with a cumulative decline of about 14% over that period. Media reports citing Reuters said this was the longest run of consecutive weekly losses in the index’s recorded history. Note that the record is for the CSI 300, not the Shanghai Composite Index; nor can it currently be described as the “longest-ever streak worldwide” for stock markets.
Looking at the final trading day of October: the Shanghai Composite Index closed at 3,599.02, down 1.44%; the Shenzhen Component Index fell 2.73%; the ChiNext Index fell 4.13%; and the STAR 50 Index fell 5.48%. The ChiNext Index dropped 23.02% in October, its largest monthly decline since February 2016. More than 4,600 stocks fell across the market, and trading value totaled about 1.69 trillion yuan.
Why the declines? First, a pullback in U.S. tech stocks, along with concerns over whether the huge capital spending on AI will deliver returns, weighed on sentiment and spilled over into A-share tech stocks. Second, trading in previously popular sectors had become crowded, while earnings failed to keep pace with valuation expectations, prompting investors to reassess prices. Third, risk appetite declined, with investors placing greater emphasis on cash flow and earnings certainty.
#中国股市 #A股暴跌
