CSI 300 dropped 5.17%
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This week, signs of weakness emerged in the A-share market, with upward momentum facing resistance. Investors should remain cautious. The SSE Index(000001) dropped 5.55% this week, with the current index value at 3211.43, a 12.6% decline from its highest point this year. The index’s trading volume was 18.88% lower than the 50-day average. Similarly, the CSI 300(000300) fell 5.17%, with the current index at 3775.16, down 15.17% from its year-to-date high, indicating broad market weakness. The Shenzhen Index(399001) saw a more significant drop of 7.16%, with the current index at 9897.12, 16.58% below its year-to-date high, showing considerable outflow pressure. The ChiNext(399006) dropped 8.57%, reflecting a clear pullback in small and mid-cap stocks.
On the international front, the Nasdaq Composite(0NDQC) and the S & P 500 Index(0S&P5) were also affected, falling by 2.24% and 1.71%, respectively. Although they have rebounded slightly from their year-to-date lows, overall market sentiment remains cautious. The Hang Seng Index (HSI) dropped 1.64% this week, indicating a volatile adjustment in the Hong Kong market.
In terms of economic data, initial jobless claims in the U.S. for the week ending December 28 improved slightly, at 211,000, below the expected 222,000, indicating resilience in the U.S. labor market. China’s official manufacturing PMI for December stood at 50.1, slightly below expectations and the previous value, signaling a slowdown in manufacturing activity. The Caixin manufacturing PMI was 50.5, also below expectations, reflecting potential pressure on domestic economic growth. Globally, manufacturing PMI data in the Eurozone and the U.S. also showed lackluster performance.Regarding market trends, well-known Wall Street bulls have warned that U.S. stocks could face a 10%-15% correction, and Morgan Stanley has suggested that the “dominance era” of large tech stocks may end this year. Domestically, the People’s Bank of China has again conducted a 55 billion yuan swap operation, releasing positive signals to support market liquidity and economic recovery.
From an industry perspective, the Finance-Publ Inv Fd-Bond(G6723IG.CN) was the best performer this week, up by 2.82%. It was followed by the Finance-Publ Inv Fd-Eqt(G3442IG.CN) andMining-Gold/Silver/Gems(G1040IG.CN), which increased by 1.41% and 1.25%, respectively.
In terms of industry performance, the overall market showed weakness this week. The performance of the TOP33 stocks reflected this trend, with 6 stocks up and 27 down, yielding an average decline of 5.82%. Among the top gainers, Yutong Bus ‘A'(600066)led with a 3.0% rise. The company is currently a leader in the new energy bus sector, with an O’Neil Score of 76, EPS Rating of 93, and RS Rating of 87, indicating strong earnings growth and market performance. Despite its average industry ranking (Group Rank 73), the company’s strong fundamentals make it a stock worth paying attention to.
Current market sentiment remains cautious, particularly as the A-share market faces intensified adjustments. In investment portfolios, attention should be given to stocks with strong fund inflows and solid fundamentals, while remaining wary of potential further market corrections.
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published on January 3, 2025