Tragedy! Japanese stocks plummeted by more than 12%! A-shares fell 44 points, an

  • 2024-07-21

Long live the spectacle! Stock indices can even hit their limit down! Amid a global stock market plunge, the Nikkei index fell by more than 4,700 points today, with a drop exceeding 13%. This kind of collapse is terrifying, triggering a global capital panic!

Following the sharp decline in the Japanese stock market, today's Asia-Pacific stock markets plummeted across the board. Even our A-shares were affected, experiencing two rounds of sharp declines, with the Shanghai Composite Index breaking below 2,900 points and setting a new low in adjustments. Sectors and individual stocks also fell in tandem, with more than 4,700 stocks declining, making it another day of "turning off the lights to eat noodles." What exactly caused today's A-shares to dive?

Reason one: Due to the drag from the sharp declines across the Asia-Pacific stock markets today, with the Japanese and South Korean stock markets experiencing high-volume crashes, the Taiwan Weighted Index, Hang Seng Index, and Australian stock markets all saw significant drops.

As the Asia-Pacific stock markets plummeted today, it directly ignited the fuse for today's A-shares to dive, especially during the afternoon session when they were hit again by short-selling, with a clear strong selling pressure. All of this is the fault of the ongoing selling pressure from the external stock markets.

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Reason two: Due to the strong short-selling forces within today's A-shares themselves, coupled with the outflow of selling pressure from within the market, these two forces fermented and exerted their influence during the trading session, forcibly driving today's A-shares down.

For instance, the two major dives in today's A-shares were definitely caused by short-selling forces; of course, it is also possible that panic selling is emerging, with panic sellers mainly stemming from pessimistic sentiments, frightened by the sharp decline in the Nikkei index.

Reason three: The heavyweight sectors only provided support but did not drive the market up, seemingly using heavyweight stocks to lure more people to sell and escape, covering up the large-scale capital outflow and selling for cash, in order to attract more retail investors to take over the positions and help institutions and main forces to offload their holdings.

Similar to today's strong lift in the liquor, securities, and insurance sectors, which quickly rose and then fell, perhaps if the heavyweight stocks did not provide support today, the A-shares would not have looked so ugly, and many would not dare to enter the market to take over positions. The main forces cashed out a huge amount of 40 billion today, and it is difficult for the market not to fall with the main forces selling billions in a single day!

Will it continue to fall tomorrow?

The global stock markets are all crashing, especially the Asia-Pacific stock markets which are collapsing today. If the European and American stock markets crash again tonight, there is no doubt that the Asia-Pacific stock markets will continue to fall tomorrow.Predicting that the A-share market will continue to decline tomorrow, it is almost certain that the three major indices will open lower, due to the anticipated significant drop in the European and American stock markets tonight; after the opening, the market is expected to slide accordingly, followed by the intervention of mysterious funds to support the market. However, this support will not lift the market but only mitigate the decline, and the outlook for the A-share market tomorrow remains bearish.

The main reasons for the expectation of a continued decline in the A-share market tomorrow are influenced by "internal and external troubles," with the following two specific reasons:

Reason one: With the A-share market plunging again today, the Shanghai Composite Index has broken below the 2,865 points of last week, setting a new low for the adjustment. Such a drop will lead to pessimistic sentiment, an outflow of selling pressure, and a rise in risk aversion. Under these circumstances, the outlook for the A-share market tomorrow is very unfavorable, and it is expected to be bearish.

Reason two: The Asia-Pacific stock markets experienced a sharp decline or significant drop today, and this decline is bound to spread to the European and American stock markets. The reason is that during the day, ETFs such as the Dow Jones, Nasdaq, and S&P 500 also fell sharply, which is sufficient to prove that the European and American stock markets tonight are also destined for a significant drop. If the European and American stock markets do indeed experience a significant drop tonight, it is certain that the A-share market will open lower and decline tomorrow.

In summary, the risk of a global stock market crash is still spreading. Today, the Asia-Pacific stock markets suffered a heavy blow, with the Japanese stock market, South Korean stock market, Australian stock market, and Taiwan Weighted Index all plummeting. Influenced by the collective plunge of the Asia-Pacific stock markets today, the A-share market could not escape the fate of two significant drops.

However, investors must have confidence in our A-share market. Although the A-share market could not avoid a significant drop today, compared to the decline in the Nikkei stock market, this drop is merely a minor one. We remain steadfast in our optimistic view of the future of the A-share market.

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