Hexun Investment Advisor Qiao Lifang: U.S. stocks declined overnight. How will the A-shares perform next week?

We know that there was a significant drop in the US stock market overnight. Will our A-share market also open lower next week? Will there be further adjustments?

According to analysis by Hexun consultant Qiao Lifang, first from a technical perspective, we see that the market on Friday performed reasonably well, as it opened lower and then rose to fill the gap. There were 4,400 stocks in the two markets that closed in the green, with 93 stocks hitting the daily limit. Although the market had low trading volume, the quality of the gains on Friday was very high. The low volume is actually due to it being a Friday, and with the market just having formed a bottom, people noticed that the US stock market’s Nasdaq index broke the 3,794-point level on Thursday, which corresponds to the previous low of the Shanghai Composite Index at 3,794 points. Therefore, there were concerns that the A-shares would experience a further drop on Friday. However, the A-shares did open lower, but after that, they rose. The lithium battery, chemical, and pharmaceutical sectors on Friday were very strong, with significant upward momentum. So ultimately, the index formed a bullish structure. From this perspective, our A-share market is somewhat stronger compared to the overnight performance of the US stock market on Thursday.

But you mentioned that the US stock market fell; will our A-share market open lower on Monday? It is highly likely to open lower. Looking at the US stock market’s drop on Thursday, with the Nasdaq creating a new low, the A-share market will also open lower. Given that the US stock market experienced a significant adjustment overnight, the probability that our A-share market opens lower next Monday is also quite high.

(Edited by Shao Xiaohui)

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