Hexun Investment Advisor Chen Xiaojun: A-shares Plunge, Chemicals Rise, How to View the Market Outlook?

The three major A-share indices collectively plunged at the close. Is there any negative news over the weekend? Will they continue to fall next week?

Horizon Investment Advisor Chen Xiaojun said that today, over 3,800 stocks in the market declined, with a sharp drop at the end of the day. Hong Kong stocks also retreated, with a decline of over 1%. The decline in both A-shares and Hong Kong stocks is linked, indicating that the market is definitely related to international situations. The main reason is simple: there is uncertainty in weekend news, and everyone is worried about the escalation of the war, so funds are choosing to stay on the sidelines and avoid risks. Meanwhile, the US dollar index has returned to the 100 mark, and the three major US stock indices were also plunging before the market opened. Will they fall again next week?

In the short term, the Shanghai Composite has technically broken below a key level today, and the downward trend is very clear. Everyone should be cautious about risk prevention. However, some sectors still showed resilience today, such as the chemical industry and the electric power sector, which performed relatively strongly. The chemical sector was counter-trend today, and wind power continued to be strong. Green electricity has shifted to nuclear power. Next week, we can keep an eye on NVIDIA’s GDC conference.