Glamour stocks leading stock market tumble
China stocks tumbled on Monday, with previous glamour stocks related to vaccines and pork retreating sharply from earlier rallies.
The benchmark Shanghai Composite Index lost 1.87 percent to end at 3,292.59 points, while the smaller Shenzhen Component Index fell 2.73 percent to 13,284.03 points.
The ChiNext Component Index, meanwhile, slumped 3.33 percent to 2,641.2 points, and the blue chip CSI300 Index closed 2.11 percent lower at 4,669.37 points.
Turnover on the two major bourses added up to 1.02 trillion yuan (US$149.53 billion), expanding largely from the 838.7 billion yuan in the previous session.
Total trading volume on the ChiNext board, meanwhile, expanded to a record 354.78 billion yuan.
The mainland posted a net outflow of 5.47 billion yuan to overseas markets via the Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong.
JX Asset Management Co noted that the escalation of Sino-US trade tensions and the increasing volatility of overseas stock markets had a negative impact on A-share sentiment. Despite that, as the domestic economy continues to recover with the easy credit policy being pushed forward, the company still expects a bull A-share market in the medium to long term.
As for individual shares, over 60 listed firms gained by more than 9 percent, while stocks of 36 companies declined by the same amount.
Pork shares led the slump. Tech-bank Food Co plummeted by the daily limit of 10 percent and Jiangxi Zhengbang Technology Co lost 9.76 percent, while New Hope Liuhe Co and Tangrenshen Group Co both dropped over 8 percent.
The semiconductor sector was among the biggest decliners. SG Micro Corp, GigaDevice Semiconductor (Beijing) Inc and NAURA Technology Group Co all lost over 9 percent. Among those listed on the STAR Market, VeriSilicon Microelectronics (Shanghai) Co, Semiconductor Manufacturing International Corporation and Advanced Micro-Fabrication Equipment Inc all tumbled more than 10 percent.
The agricultural sector, food companies and bio-technology shares also posted losses.
Shares related to third-generation semiconductors, however, gained strongly, as it was revealed that Chinese government is planning to emphasize supporting the development of third-generation semiconductors in the 14th Five-Year Plan (2021-2025).
Roshow Technology Co and Jiangsu Aucksun Co both surged by the daily 10 percent cap, while those listed on the ChiNext board, such as Shenzhen Changfang Group Co and Xiamen Changelight Co, jumped by the maximum 20 percent.
