A-Share Market Volatile Bottoming: Shanghai Composite Falls 0.62%, ICBC and CCB Hit New Highs, Consumer Sector
On July 30, A-share markets experienced volatile bottoming. The Shanghai Composite Index fell 0.62% to 3,804.69 points, while the Shenzhen Component dropped 2.73% and the ChiNext Index lost 3.97%. Total turnover on the Shanghai, Shenzhen and Beijing exchanges reached RMB 2.3584 trillion, up RMB 46.7 billion from the previous session. Banking stocks strengthened, with Industrial and Commercial Bank of China and China Construction Bank hitting new intraday highs. The consumer sector continued its rally, with baijiu, food and beverage, and auto stocks active. Technology stocks corrected sharply, dragging the ChiNext Index lower.
On July 30, A-share markets experienced volatile bottoming. At the close, the Shanghai Composite Index stood at 3,804.69 points, down 0.62%; the Shenzhen Component Index at 13,285.80 points, down 2.73%; the ChiNext Index at 3,244.62 points, down 3.97%; and the STAR Composite Index at 1,755.22 points, down 5.70%. Combined turnover on the Shanghai, Shenzhen and Beijing stock exchanges reached RMB 2.3584 trillion, up RMB 46.7 billion from the previous trading day. In terms of sectors, baijiu, food and beverage, and automobile assembly sub-sectors bucked the trend with active gains, while the computing hardware chain continued its deep correction.
Capital flowed into dividend-weighted stocks. The banking sector, one of the main market weight sectors, strengthened against the trend, with Industrial and Commercial Bank of China (ICBC) and China Construction Bank (CCB) both hitting new intraday highs. At the close, ICBC traded at RMB 8.15 per share, with a total market capitalisation of RMB 2.90 trillion; CCB closed at RMB 10.97 per share, with a total market capitalisation of RMB 2.87 trillion. Among the top ten A-share stocks by market capitalisation, only Changxin Technology edged slightly lower, while ICBC, CCB, Agricultural Bank of China, China Mobile, PetroChina, Bank of China, CATL, Kweichow Moutai and CNOOC all rose.
The consumer sector continued its warm trend. Since the start of the week, the consumer sector has strengthened steadily, with food and beverage, baijiu and retail sub-sectors rotating actively. As of the close on July 30, multiple stocks including Jinhui Liquor, Shede Spirits, Yiming Food and Junyao Health hit their daily price limits. The persistent correction in technology stocks dragged the ChiNext Index into a larger retreat, and the adjustment in technology stocks since July has drawn market attention. From a fundamental perspective, the technology industry trend that has driven the market upward in the past two years remains unchanged, and the current round of global technology stock adjustment is more attributable to macro conditions and the unwinding of crowded trades.