📌 All-line plunge—here’s why
🍖 Chopper said:
This news is about today’s sudden plunge during the A-share intraday trading, but then quickly some analysis comes up with reasons—for example, certain sectors have risen too much in the short term and are pulling back, or there was interference from external news. Actually, this kind of “plunge” has been pretty common lately, so there’s no need to panic.
Specifically by sector: the areas that fell the hardest today may be technology-related—like $SMIC (688981)$, a chip stock. It had run up earlier and is now pulling back to around the 70 level. In the short term, the bearishness is mainly because market sentiment is cautious, along with some capital waiting for earnings to land. But in the long run, the logic is still about domestic substitution. The key is whether the Q3 earnings can be delivered as expected.
The risk is that this sharp selloff might not be over yet—don’t rush to bottom-pick. Compare it with $Hua Hong Semiconductor (01347)$, another chip-related stock on the Hong Kong exchange: today it’s down by roughly the same magnitude. But the A-shares of SMIC have a higher premium and bigger volatility. If I had to choose, I’d focus more on the type with stronger earnings certainty, not purely concept-driven trades.
#688981 #A股
🍖 Chopper said:
This news is about today’s sudden plunge during the A-share intraday trading, but then quickly some analysis comes up with reasons—for example, certain sectors have risen too much in the short term and are pulling back, or there was interference from external news. Actually, this kind of “plunge” has been pretty common lately, so there’s no need to panic.
Specifically by sector: the areas that fell the hardest today may be technology-related—like $SMIC (688981)$, a chip stock. It had run up earlier and is now pulling back to around the 70 level. In the short term, the bearishness is mainly because market sentiment is cautious, along with some capital waiting for earnings to land. But in the long run, the logic is still about domestic substitution. The key is whether the Q3 earnings can be delivered as expected.
The risk is that this sharp selloff might not be over yet—don’t rush to bottom-pick. Compare it with $Hua Hong Semiconductor (01347)$, another chip-related stock on the Hong Kong exchange: today it’s down by roughly the same magnitude. But the A-shares of SMIC have a higher premium and bigger volatility. If I had to choose, I’d focus more on the type with stronger earnings certainty, not purely concept-driven trades.
#688981 #A股