The global stock market has fallen sharply again, and the Shanghai Composite Index has shown independent market trends!

1. US AI tech stocks have fallen sharply again

On Tuesday, the Nasdaq index in the US stabilized for one day, but last night (Wednesday), US stocks fell sharply again, with the Dow down 0.47%, the Nasdaq down 1.81%, and the S&P 500 index down 1.16%. AI-related semiconductor technology leaders are the hardest hit in this downturn, with Tesla closing down 4.62%, Nvidia down 3.81%, and Broadcom down 4.48%, having fallen more than 19% since December; Google A and Micron Technology fell 3.21% and 3.01%, respectively.

2. The Asia-Pacific stock market has plunged again

The culprit behind this decline in US stocks can be attributed to the profit-taking from carry trades caused by Japan's interest rate hike, and no other reasons can be found. Therefore, today the Asia-Pacific stock markets, including Japan and South Korea, also followed suit and plunged. Both major indices opened lower and fluctuated downward, with the Nikkei 225 index dropping around 1.3% at noon and the Korean stock market down around 1.8% at noon.

3. The impact on Chinese concept stocks and Hong Kong stocks is relatively small

Last night, the decline in Chinese concept stocks in the US was narrower than that of the Nasdaq. The Nasdaq Golden Dragon China Index dropped slightly by 0.73%, and the A50 futures fell slightly by 0.14% during the night session; today, Hong Kong stocks also showed weakness, but the impact was much smaller than that on the Japanese and Korean stock markets. The Hang Seng Index reached a drop of 0.81% at 9:36 AM, then turned positive, with a slight decline of about 0.4% at noon. Tech stocks were affected even more, with the Hang Seng Tech Index dropping around 1.2% at noon.

4. The Shanghai Composite Index has shown independent market trends

Recently, the A-shares have been significantly affected by the declines in the US, Japanese, and Korean stock markets, with the representative decline occurring on November 21. This week, on Monday and Tuesday, they followed the plunge in the Asia-Pacific stock markets, but this morning, I believe that today's A-shares are unlikely to follow the decline in US stocks, although high-tech stocks will be somewhat influenced by negative sentiment. Indeed, the Shanghai Composite Index has shown independent market trends today, closing up 0.16% at noon, at 3876 points.

5. The performance of tech stocks is diverging

The previously continuously rising optical module sector has driven the communication equipment sector to lead the declines in both markets, with the ChiNext Index affected and closing down 1.81% at noon; additionally, the Shenzhen Component Index and the Sci-Tech Innovation 50 Index fell by 0.85% and 0.92%, respectively. However, there were more gainers than losers in both markets, indicating that the market is not bad. In the morning, 3607 stocks rose, while only 1672 stocks fell, with only 115 stocks declining by ≥3%.

In summary, the market aligns with yesterday's assessment. It is currently in a consolidation zone, with the Shanghai index being in a weak consolidation phase below 3950 points, and in a slightly strong market seeking a breakthrough above 3950 points. December is likely to remain in a consolidation range, with the spring market arriving, possibly by the end of December at the earliest, or in January, accompanied by policy announcements, which will also strengthen the market.