On April 25, the Shanghai index fell below 3,000 points, and the three major A-share indexes all fell by more than 5%.
As of the close, the Shanghai Composite Index fell 5.13% to 2928.51 points; the Shenzhen Component Index fell 6.08% to 10379.28 points; the ChiNext Index fell 5.56% to 2169 point.
In terms of northbound funds, known as “smart money”, although the overall net sells, Shenzhen Stock Connect bucks the market and buys nets. The net sales of northbound funds were 4.397 billion yuan throughout the day, including a net sales of 4.847 billion yuan in Shanghai Stock Connect and a net purchase of 450 million yuan in Shenzhen Stock Connect.
Among the top ten trading stocks in Shanghai and Shenzhen stock markets, Enjie, Ganfeng Lithium, and Sungrow ranked the top three in terms of net purchases, and received net purchases respectively. 431 million yuan, 264 million yuan, 125 million yuan.
The top three stocks sold were China Merchants Bank, Wuliangye and Hengrui Medicine, with net sales of RMB 2.412 billion, RMB 722 million and RMB 573 million respectively.
The U.S. rate hike cycle adds to geopolitical risks, making emerging markets more volatile.
“It is becoming clear that the Fed is accepting that the Fed needs to raise rates extremely aggressively to control inflation. The Fed has not raised rates in one go since 1994. 75 basis points, but the implication of a 75 basis point rate hike seems less outlandish to almost all of us. In fact, according to CME’s FedWatch tool, traders are now pricing in at least two of the next two Fed meetings. The probability of a rate hike of 75 basis points is more than 95%.” MATT WELLER, head of global research at GAIN Group, believes that traders believe that the Fed will actively raise interest rates if there are no surprises. However, monetary policy is imprecise, and it takes a long time to play a role in the real economy. Given this, volatility is likely to remain high across all markets for the rest of the year.
The global capital flow report released by the Institute of International Finance (IIF) on the evening of April 5 shows that in March, among emerging market countries, the stock market and the bond market each outflowed 67%. billion and $3.1 billion. This is also the first time since March 2021 that emerging market countries as a whole have faced capital outflows.
Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said at the 2022 Boao Forum for Asia Annual Conference: “The net inflow of foreign capital will also be considerable this year. Although the stock index fell today, theThe capital from China is still a net inflow, that is to say, foreign capital has long-term and lasting confidence in China. We must see this. I have dealt with foreign capital a lot in the past few years. Maybe foreign capital has a familiar process when looking at China. Sometimes they don’t understand it. Sometimes when we have a policy, he panics and leaves. He will be back. “
Yue Kunzhong, a researcher at Jinzhang Investment, a subsidiary of Gridshang, said that there are two main reasons for today’s decline, one is the unexpected tightening of overseas liquidity, and the other is Market sentiment is too sluggish, making investors less confident in the short term. Unfavorable factors in the external market continue one after another, the exchange rate of RMB against the U.S. dollar continues to depreciate, and today is another recent low. The market will continue to fluctuate in the near future and will repeatedly bottom out.
Looking ahead, Juming Investment believes that from the perspective of valuation, the market has now been in line with 2018. “It is already consistent with the bottom position we calculated at the end of January. In this position, we will not take the initiative to sell net, and may gradually sell defensive positions such as finance, real estate, airports, and energy, and gradually replace them with growth stock positions. “
“This quick release of bearish sentiment helps to identify a bottom in the short term. Looking back on history, although the things the market worries about in each bear market are different, the policy has played a role every time, and there has never been an exception. After the bottom of the policy, the bottom of the market will appear soon. This stage is the best time to allocate stock assets. “Xia Fengguang, manager of Rongzhi Investment Fund, a subsidiary of Pai Pai.com, told reporters that the direction of monetary and fiscal policy is also the core driver of the operation of the macroeconomic cycle, so the bottom of the policy is inseparable from the bottom of the economy and the bottom of the market. For long-term investors In other words, every crisis should not be wasted and active allocations should be made during times of panic in the market.