CSI 300 Falls 1.33%
Editor’s Note: As always, we would appreciate any feedback you have. It will help us make this app more useful to you.
The A-share market remains in an attempted rally phase, but major indices weakened again this week, indicating the rally foundation remains fragile. The SSE Index(000001) fell 0.56% for the week, still slightly above the 50-day moving average but dropping below the 5-day, 10-day, and 20-day moving averages, and remaining 7.72% below its 1-year high. The CSI 300(000300) declined 1.33% for the week, breaking below key medium- and short-term moving averages, down 10.19% from its 1-year high, with significant pressure visible in heavyweight sectors. Growth stocks saw deeper corrections, with the Shenzhen Index(399001) falling 3.13% and the ChiNext(399006) dropping 4.03% for the week, sitting 17.45% and 24.97% below their respective 1-year highs, and clearly trading below both the 50-day and 200-day moving averages, indicating strong profit-taking in previously active growth themes. In terms of volume, weekly turnover of major A-share indices expanded slightly compared to the previous week, but the final day’s volume generally remained below the 50-day average volume, suggesting that while some turnover occurred during the decline, the willingness of incremental capital to step in remained limited.
External markets performed relatively steadily. The Nasdaq Composite(0NDQC) rose 0.69%, and the S & P 500 Index(0S&P5) gained 0.47%, both maintaining above their medium-term moving averages and only 2.23% and 0.88% from their 1-year highs respectively, indicating U.S. stocks remain in a high-level consolidation pattern. The Hang Seng Index(HSI) rose slightly by 0.26%, standing above the 5-day, 10-day, 20-day, and 50-day moving averages, reflecting a modest improvement in Hong Kong stock risk appetite compared to the prior period. The overall resilience of overseas risk assets remains acceptable, contrasting with the A-share internal style retracement, suggesting the current A-share correction stems more from internal risk appetite and structural rotation rather than purely external shocks.
The current domestic and international economic policy orientations remain divergent: the U.S. is more focused on inflation, employment, and financial market stability, while China continues to deploy policies around expanding domestic demand, stabilizing growth, and promoting structural upgrading. The U.S. August ISM Manufacturing PMI came in at 54.6, below expectations and the prior reading but still in expansionary territory, indicating manufacturing activity is not stalling. ADP employment increased by only 38,000, below expectations, showing some easing in corporate hiring demand. Initial jobless claims for the week were 206,000, slightly above expectations, also reflecting a cooling labor market. Meanwhile, EIA crude oil inventories fell sharply by 4.45 million barrels, significantly better than expected, indicating tightening oil supply-demand dynamics, with oil prices and energy inflation likely to remain volatile. Under this combination, the Federal Reserve faces a dilemma: on one hand, weakening growth and employment support “standing pat”; on the other, energy prices and inflation pressures have not fully receded, limiting premature dovish shifts. Therefore, September policy is more likely to revolve around the debate of “whether to pause rate hikes,” with an overall cautious stance.
Beyond monetary policy, spillover risks from U.S. economic policy are also increasing. Global government bond yields have generally risen, reflecting the sustained suppression of bond and equity market valuations in a high-interest-rate environment. Rising tensions in the Middle East and elevated risks in the Strait of Hormuz could further push up global energy prices, disturbing U.S. and global inflation expectations.
Domestically, policy priorities remain on boosting consumption, stabilizing financing, and supporting investment in key areas. Seven ministries proposed that total retail sales of consumer goods reach approximately 60 trillion yuan by 2030, signaling that expanding domestic demand has shifted from short-term support to medium- and long-term systematic planning, with smart consumption, services consumption, and scenario innovation becoming key focal points. Meanwhile, discussions about “cash handouts to stimulate consumption” also indicate that current policy places greater emphasis on improving household income expectations and consumer confidence, rather than merely short-term stimulus.
Monetary and financial policy reflects a “moderately accommodative and precisely targeted” approach. The central bank previously intensified high-frequency overnight reverse repo operations and extended the maximum term of individual housing loans to 40 years, aiming to stabilize liquidity and reduce homebuying pressure on residents. New policy-based financial instruments have been launched, with an 800-billion-yuan quota “opened,” indicating policy is using quasi-fiscal tools to drive infrastructure and major project investment, offsetting the weakness in credit and social financing.
On industrial policy, the focus remains on “stabilizing SMEs + promoting tech upgrades.” The “15th Five-Year Plan for Promoting SME Development” was released, reflecting a policy direction of stabilizing employment and market entities. Meanwhile, AI, smart terminals, and next-generation technology applications continue to gain momentum, indicating policy is combining domestic demand expansion with the cultivation of new quality productive forces.
In terms of sector performance, capital flows continue to show characteristics of parallel event-driven and thematic rotation, with this week’s leading gains concentrated in high-elasticity sectors such as media & entertainment, telecom services, and gaming software. The top-performing sectors were Leisure-Movies & Related(G7810IG.CN), up 13.40%;Telecom Svcs-Wireless(G4892IG.CN), up 7.02%; and Computer Sftwr-Gaming(G3584IG.CN), up 6.76%. Among them, the Leisure-Movies & Related sector significantly led the gains, reflecting heightened capital attention to content consumption, scheduling catalysts, and the recovery of the entertainment industry’s prosperity. The Telecom Svcs-Wireless sector’s strength indicates the market still holds strong expectations for connectivity, mobile application ecosystems, and related infrastructure services. The Computer Sftwr-Gaming sector remained active, reflecting ongoing capital preference for digital content, interactive entertainment, and software application assets. Overall, hot spots have shifted from previously policy-benefiting and defensive-oriented directions back to sub-sectors with high elasticity and catalyst-driven themes. Short-term risk appetite has improved somewhat versus the prior period, but sector rotation speed remains fast.
TOP33 posted an average weekly change of -2.81%, with only 7 stocks rising and 26 falling, indicating significant pressure on strong-performing stocks overall, suggesting that the market’s internal profit-making effect has contracted, with leading stocks reflecting localized opportunities rather than systematic expansion. The best-performing stock this week was Shenzhen Leading Semiconductor Industry Co Ltd(603991), up 18.84% for the week. The company’s O’Neil industry is Chemicals-Plastics(G3079IG.CN), with an RS Rating of 96, an EPS Rating of 80, and an O’Neil Score of 72, indicating outstanding price performance and earnings growth. However, its industry rating of 61 has not yet entered the historically more dominant top-40 industry range, and its Acc/Dis Rating performance still needs further observation, meaning the stock currently reflects more individual strength, with subsequent sustainability dependent on volume confirmation and improved industry linkage.
In the current “attempted rally” phase, the combination of index retracement and accelerating hot-spot rotation means the operational focus should remain on stocks where earnings and relative strength can mutually validate each other. If heavyweight indices gradually stabilize, strong sectors continue to expand, and more stocks show post-earnings volume-backed strength, the reliability of the market rally could be further enhanced.
What do you think? Please email us any questions or comments.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.
published on September 4, 2026