On October 15, the A-share market underwent a sharp adjustment. The Shanghai Composite Index fell below 3,700 points during the intraday period, and more than 5,000 individual stocks fell in the entire market. Li Daxiao, a former chief economist at a brokerage firm and member of the Shenzhen Municipal Advisory Committee, said that the sharp decline in the market was mainly affected by the sharp decline in peripheral markets in the US, Japan, and South Korea. Philadelphia Semiconductor fell more than 4%, the Japanese stock market fell more than 4% in the intraday period, and the South Korean stock market fell more than 7%. The Science and Technology Innovation 50 Index fell more than 3% at the beginning of the market, erasing all gains this year. Some overvalued sectors are being adjusted in an orderly manner, which is also the reason for this round of market adjustments. Underrated blue-chip leading stocks are strengthening, and overvalued sector adjustments exist at the same time, and the market is in the process of structural adjustment. However, there is currently a gripper to stabilize the market. “We have a low interest rate environment, high-dividend assets as the mainstay, and large-cap blue-chip core assets. Long-term capital entry into the market is on the rise, and we can speed it up a bit.” He also said that currently the construction of a mechanism to stabilize the market is progressing, and confidence must be maintained when there are sudden market fluctuations, especially when peripheral factors cause panic.

On October 15, the A-share market underwent a sharp adjustment. The Shanghai Composite Index fell below 3,700 points during the intraday period, and more than 5,000 individual stocks fell in the entire market. Li Daxiao, a former chief economist at a brokerage firm and member of the Shenzhen Municipal Advisory Committee, said that the sharp decline in the market was mainly affected by the sharp decline in peripheral markets in the US, Japan, and South Korea. Philadelphia Semiconductor fell more than 4%, the Japanese stock market fell more than 4% in the intraday period, and the South Korean stock market fell more than 7%. The Science and Technology Innovation 50 Index fell more than 3% at the beginning of the market, erasing all gains this year. Some overvalued sectors are being adjusted in an orderly manner, which is also the reason for this round of market adjustments. Underrated blue-chip leading stocks are strengthening, and overvalued sector adjustments exist at the same time, and the market is in the process of structural adjustment. However, there is currently a gripper to stabilize the market. “We have a low interest rate environment, high-dividend assets as the mainstay, and large-cap blue-chip core assets. Long-term capital entry into the market is on the rise, and we can speed it up a bit.” He also said that currently the construction of a mechanism to stabilize the market is progressing, and confidence must be maintained when there are sudden market fluctuations, especially when peripheral factors cause panic.