Sino-Singapore Jingwei, October 13th. On the morning of the 13th, the A-share trend diverged. The Shanghai Composite Index opened lower and fluctuated lower. The deepest intraday drop was nearly 1%, and the decline narrowed near midday; the Shenzhen Component Index performed strongly, of which The Growth Enterprise Market Index rose more than 1%.

　　As of the midday close, the Shanghai Composite Index fell 0.35% to 3,534.43 points; the Shenzhen Component Index rose 0.45% to 14,199.20 points; the ChiNext Index rose 1.11% to 3,173.13 points.

　　GEM refers to the early trading trend Source: Wind

　　On the disk, education stocks led the two cities, with Kede Education and Kaiyuan Education 20% daily limit, Xueda Education, Chuanzhi Education, and Ongli Education daily limit; automotive, beverage manufacturing, semiconductor and other sectors are active.

The oil and gas mining and services, coal and other sectors were among the top decliners. 

　　Up to now, the ratio of all trading stocks in Shanghai and Shenzhen stocks is 1709:2662, with 47 daily limit and 32 daily limit.

　　In terms of individual stocks, the current daily limit stocks are as follows: Shuyu Civilian (19.99%), Jianghuai Automobile (9.97%), Yihua Health (10.00%), Gold Rabbi (10.02%), Guangyuyuan (10.00%).

The limit-down stocks are as follows: Shanghai Energy (-9.98%), Qifeng New Materials (-10.03%), Inner Mongolia Huadian (-10.06%), Shanghai Electric Power (-10.01%), Bengang Steel Plates (-9.98%).

　　The top five stocks with turnover rate are: Xinzhonggang, Shuyu People, Huaertai, Reading Culture, and Zhongjie Precision, which are 59.917%, 58.942%, 38.865%, 30.880%, and 30.594%, respectively.

　　On the last trading day, the Shanghai and Shenzhen stock markets fluctuated and adjusted as a whole, and the whole line closed overcast.

Guohai Securities believes that there are three main reasons for the market decline. One is that the market’s concerns about stagflation continue to increase, the second is that market risk appetite has declined significantly, and funds did not return significantly after the holiday. The third is that US stocks opened higher and lowered overnight. There are still some concerns about Taper, U.S. Treasury interest rates and the U.S. dollar index, and the performance of large companies in the earnings season.

　　For the market outlook, Huaxin Securities previously stated that the total turnover has shrunk below one trillion. It can be seen that there is still strong selling pressure in the range of 3600-3650 points in the short-term. A-shares may fall again and confirm the possibility for investors. In other words, we can first observe the strength of the A-shares' regaining. At present, it is recommended to wait and see.

After the wide adjustment of A shares, the short-term market will usher in another opportunity for a rebound, but the strength of the rebound remains to be seen.

(Zhongxin Jingwei APP)

(The opinions in the article are for reference only and do not constitute investment advice. Investment is risky and you need to be cautious when entering the market.)