A-Share and Hong Kong Stock Turnover Falls to Three-Month Low as Tech Sector Sentiment Cools
N.R. Finch
Combined Shanghai-Shenzhen turnover fell below RMB 2.2 trillion on July 24, hitting a three-month low and down over 40% from the June peak — a tech-driven retreat that has the market waiting for a signal to re-enter.
How much did turnover shrink?
Combined Shanghai-Shenzhen turnover dropped to roughly RMB 2.2 trillion (~$325 billion), the lowest since April 13.
The recent high was RMB 3.7 trillion on June 22 — more than 40% has evaporated in about a month.
This means → the market did not cool gradually; capital pulled back on a large scale in a short window.
Where did the money leave?
Tech was the epicenter: the STAR 50 index has fallen 19% in July, far exceeding the CSI 300's 6% decline over the same period.
BNP Paribas strategist Scarlett Liu noted that IT-sector turnover accounted for nearly half of all A-share trading volume in June.
In plain terms = the stocks that rallied hardest are now selling off hardest, dragging the entire market's activity down with them.
What are investors worried about?
Chip stocks have been hit by sustained selling as concerns over overheated AI trades and stretched valuations continue to build.
Heavyweight IPO CXMT Corp. (长鑫科技) is set to list on the STAR Market next Monday, suppressing near-term buying appetite for chip names ahead of the debut.
This means → it is not just profit-taking; investors are re-evaluating whether these tech stocks deserve their current prices.
Is anyone stepping in to stabilize the market?
Regulators and listed companies continue to act: "national team" buying and corporate buybacks remain in progress.
Yet Everbright Securities International strategist Kenny Ng said the key to a turnover recovery is fundamental growth in the tech sector.
In plain terms = stabilization moves are ongoing, but investors want proof that earnings can keep up with valuations — not just a buyer of last resort.
What comes next?
Investors are watching whether the current pullback has run its course, waiting for a clearer signal before re-entering.
CXMT's first-day performance is seen as a key litmus test for near-term tech-sector direction.
This reflects a broader shift from "chase the rally" to "show me the evidence" — the next move hinges not on guessing direction but on waiting for data.
Content is for reference only, not financial advice.