A-share daily average turnover falls from 3.13 trillion yuan to 1.88 trillion yuan in Q3, tech stocks lead declines

With just three trading days remaining in the third quarter, we take an early look back at 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's style shifted further.

Some analysts suggest that liquidity flowing out of tech stocks from mid-to-late August onward "nourished" other previously suppressed sectors and themes, briefly creating a state of "tech falls, everything rises." However, this style 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 fluctuations 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 ceasing trading activity.
2. Tech's diminished status: After the oversold rebound in early-to-mid August ended, tech stocks lost their status as the "major theme." They became just one of many sectors in rotation, with capital showing little commitment.
3. Weak index performance: 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%

Reflection 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 small number of tech sectors and individual stocks have resonated with overseas markets, gradually reversing July's losses and approaching (or already hitting) new highs. Some tech stocks that barely fell in July have continued to rise in August and September, emerging as "survivors."

This represents both a localized capital rally under new industry logic and a fresh interpretation of tech's broad rally in June and sharp decline 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: Investment involves risk. Independent judgment is essential. This article is for reference only and does not constitute a basis for buying or selling. Market entry risks are borne by the individual.

Editor: Zhao Yun Cover image source: Trading software screenshot

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