On October 8, the first trading day after the holiday, the market experienced a volatile correction, with more than 3,700 individual stocks declining across the board.
On the sector front, shipping, power batteries, oil and gas, chemicals, and banking all strengthened collectively; on the declining side, the CPO concept continued to weaken, and the semiconductor supply chain underwent volatile adjustments.
As of the close, the Shanghai Composite Index fell 0.79%, the Shenzhen Component Index dropped 2.07%, the ChiNext Index declined 3.15%, and the STAR Market Composite Index slid 4.55%. Combined trading volume across the Shanghai and Shenzhen markets reached 1.68 trillion yuan, an increase of 244.1 billion yuan from the previous trading day. (Data source: Wind, October 8, 2026. Past performance does not guarantee future results. Markets carry risk; invest with caution.)
Li Xuewei, Fund Manager of HSBC Jintrust Value Pioneer Fund: Today's market saw a volume-driven decline with relatively deep structural losses, with the pullback still concentrated in the semiconductor and computing hardware supply chains.
The direct trigger was the overnight global "double sell-off" in stocks and bonds, which pushed long-end yields to new highs, alongside market concerns stemming from chip-related rumors.
Specifically, the overnight U.S. 10-year Treasury yield once again broke through 5.3%, briefly rising to 5.36% during intraday trading, marking a new high since 2002; on October 7, the U.S. Treasury completed a 10-year bond auction at a yield of 5.3%, the highest since November 2000. Combined with Fed officials signaling a possible additional rate hike within the year, global risk appetite retreated, and Asia-Pacific markets came under broad pressure on the first trading day after the holiday.
The current volatility is still primarily the result of converging short-term factors, including the global long-end yield shock, geopolitical and industrial policy disruptions, and the clearing of positioning structures, rather than changes in domestic economic fundamentals or market-wide conditions.
During this pullback, dividend and resource-oriented sectors such as oil and petrochemicals, utilities, transportation, coal, and banking rose against the trend, indicating that the market is not experiencing a systemic risk release but rather a rebalancing of highly crowded tech positions and a shift of capital toward low-valuation defensive directions.
Meanwhile, the overseas AI industry trend did not reverse during the holiday period (the Nasdaq and S&P 500 briefly hit all-time highs, and the Philadelphia Semiconductor Index rose against the trend). The A-share tech pullback stems more from positioning and sentiment factors; the market is expected to usher in a recovery window after sentiment eases and positions are rebalanced.
Looking at the medium to long term, domestic equity assets offer ample room and opportunities. On one hand, "anti-involution" policies alongside coordinated fiscal and monetary efforts are improving both supply and demand sides, with corporate earnings and ROE in a recovery cycle. A-shares are expected to receive medium to long-term support driven by both the numerator end (earnings improvement) and the denominator end (domestic liquidity support). On the other hand, China's economy possesses sufficient resilience, household excess savings remain substantial, and as capital market reforms deepen (improved dividend and buyback systems, entry of medium to long-term capital), a positive feedback loop of "capital entering the market—gradual stock market rise" is expected to form, further attracting foreign participation and building a sustained upward trajectory.
Historical experience shows that in the long-term upward process of the stock market, short-term sentiment disruptions are inevitable but will not change the long-term upward direction.
Key focuses include midstream manufacturing and consumer sectors benefiting from economic stabilization, recovery, and supply-demand improvement; high-dividend directions with defensive value; and tech growth opportunities that still possess prosperity momentum after being validated by earnings delivery.
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