To some extent, although A-shares are independent, not all market conditions will lead to a corresponding decline in the A-share market. However, due to the excessive plunge of US stocks, this situation will inevitably have a certain chain reaction. For our A-share market, because the A-share market has gone out of a certain rebound and there is also a corresponding callback demand, the A-share market may fluctuate accordingly because of the sharp decline of US stocks.
The three major US stock indexes plunged across the board.
Because of the impact of the Fed's interest rate hike expectations, the three major US stock indexes have plummeted by at least 3%, and the Nasdaq index has directly lost 5% of its market value. At the same time, the Dow Jones index also fell more than 1200 points, and the Standard & Poor's index fell about 4%. Under this influence, the global capital market share price generally showed a downward trend.
This situation will lead to a corresponding decline in the A-share market.
The reason for this is mainly because the photovoltaic sector and energy storage sector in the A-share market have gone out of a very high increase, and some stocks even soared by more than 300% in just one month. In this case, once there is a corresponding decline in US stocks, this decline may further affect the stability of the A-share market and even lead to a large outflow of capital. If the capital outflow speed is too fast, this way will lead to a corresponding decline in the A-share market.
At the same time, this problem will not only affect the A-share market, because almost all capital markets will be affected accordingly. Especially for those small and medium-sized economies, some countries and regions have plunged by more than 50% because of the Fed's interest rate hike, and the assets in the corresponding regions have further shrunk.