A-share daily turnover shrinks from 3.13 trillion to 1.88 trillion in Q3; tech stocks lead declines

With just three trading days remaining in the third quarter, it is time to take stock of A-share market performance.

For most retail investors, the quarter is defined by a sharp correction in tech stocks in July, followed by a modest rebound in early-to-mid August, after which the market underwent a clear style shift.

Some analysts suggest that liquidity flowing out of tech stocks from mid-to-late August onward "nourished" previously suppressed sectors and themes, briefly creating a state of "tech falls, everything rises." However, this rotation was accompanied by a rapid decline in trading volume, making it difficult to sustain.

Key Data Points

According to Wind data, as of September 24:

• Average daily turnover in A-shares shrank from 3.13 trillion yuan in June to 2.70 trillion yuan in July, 2.25 trillion yuan in August, and 1.88 trillion yuan in September.

As illustrated by the Wind All-A Index, the broader market experienced repeated volatility throughout Q3. While there was some support on the downside, upward pressure remained significant, and no breakout was achieved.

Implications

1. Capital withdrawal or lock-up: Many funds that were active in June and July either exited the market or became trapped, gradually reducing their trading activity.

1. Tech's diminished status: After the oversold rebound in early-to-mid August ended, tech stocks lost their status as the "primary theme." They became just one of many sectors in rotation, with capital showing little commitment.

1. Index performance lagged: Given tech stocks' still-high weighting and their strong influence on index movements, major indices underperformed in Q3. The higher the "tech content," the weaker the index. As of September 24:

• Shanghai Composite Index: down 5.0% quarter-to-date
• ChiNext Index: down 24.3%
• STAR 50 Index: down 26.5%

Reflections and Emerging Trends

No stock rises forever. This review is not merely nostalgic but an opportunity for reflection.

Notably, since mid-September, amid a "non-tech" dominant environment, a handful of tech sectors and individual stocks have resonated with overseas markets, gradually reversing their July losses and approaching (or already hitting) new highs. Some tech stocks that barely fell in July have continued to rise through August and September, emerging as "survivors."

This represents both a localized capital clustering around new industrial logic and a fresh interpretation of tech's broad rally in June and sharp sell-off in July:

In a market where "70% lose, 20% break even, and 10% profit," at what point did you see—and seize—the trend?

For a detailed review report, see below.

Disclaimer: Investing involves risk. Independent judgment is essential. This article is for reference only and does not constitute investment advice. Market entry carries its own risks.

Editor: Zhao Yun Cover image source: Trading software screenshot

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