A-share market review | Three major "culprits" work together to push down the market, A-shares fall sharply on high volume! All three major indexes closed down more than 2%

On May 21, the market rose throughout the day and then fell back, with all three major A-share indexes dropping by more than 2%. The Shanghai Composite Index fell below 4100 points, with early leading sectors seeing most of their gains erased in the afternoon. The Science and Technology Innovation 50 Index fell by more than 3%, after briefly rising by over 3%. By the closing bell, the Shanghai Composite Index fell by 2.04% below 4100 points, the Shenzhen Component Index fell by 2.07%, and the ChiNext Index fell by 2.35%. The total turnover in the Shanghai and Shenzhen markets was 3.48 trillion yuan, an increase of 527.9 billion yuan from the previous trading day. According to an analysis of market trends and public information, today's significant drop is the result of a triple effect of "excessive rise + fund redemption + tightening external conditions." Firstly, the semiconductor sector surged in the morning, with the Science and Technology Innovation 50 Index hitting a new high. However, as the semiconductor sector fell back from its highs, it directly impacted the sentiment of technology stocks. Secondly, funds were mostly concentrated in the semiconductor and major financial sectors, causing other sectors to hemorrhage heavily. Previously popular sectors like electricity and utilities experienced significant drops, with over 4000 stocks in total falling in the two markets. This extreme differentiation weakened the overall market sentiment and deprived the indexes of stock support. Thirdly, the US bond yields remained above 5%, creating expectations of global liquidity tightening that weighed on growth stocks. Combined with technical pressure around the 4200-point level, any market movement led to selling pressure. In terms of market performance, the glass substrate and optical electronics sectors surged against the trend, with stocks like Boe Technology Group and Caihong Display Devices hitting their daily limit-up. In the afternoon, the major financial sector saw a rise, with bank and brokerage stocks leading the gains, and China Construction Bank Corporation reaching a new high, rising by over 2%. The autonomous driving concept stood out, with companies like Zhejiang Shibao hitting their daily limit-up, and sectors like the robotics and electric motor sectors being active. Looking ahead, China Securities Co., Ltd. believes that the current market differentiation is superficial, while the style shift is essential. The medium-term rebound trend remains unchanged, with consolidation serving as a build-up phase. Future funds will continue to focus on high-growth sectors like semiconductors and AI, although there will still be adjustment pressures on high-performance themes.