$XTALPI(02228.HK) Repost:

There's not much to say about today's A-share market, it's already a mini stock market crash. The STAR 50 Index was hit the hardest today, dropping over 7%. Stocks like Cambricon and Xinyisheng, which had seen huge gains earlier, have fallen more than 10%. Looking at the Shenwan industry classification, the communications sector has adjusted by 8.36% over three days, but still maintains a 50.45% gain year-to-date. The AI sector dropped 10%, but remains up 58% year-to-date. There's no particular reason to point to—it's simply that the market has risen too much too quickly in the short term, which is common knowledge. Today, the major indices broke below the 20-day moving average during the session. There was some buying in banks and brokerages in the afternoon, but the support effect was limited. Although trading volume was higher than yesterday, today's decline was on higher volume, indicating accelerating panic in sentiment. Let's look at the data to understand the scale of the current adjustment. Based on market experience, mild, normal, and severe adjustments are around 5%, 10%, and 20%, respectively. The CSI All Share Index has experienced 11 pullbacks of over 5%. These 11 pullbacks took an average of 38 days to recover. If you exited during these pullbacks, you would have missed an average return of 41%. From September 2nd, including today, the median decline in the All Share Index over these three days was 5%, which counts as a relatively mild adjustment. There was a severe adjustment in April this year, with a decline of over 15%. As for the outlook, my view remains unchanged from yesterday: a rebound is expected by next Monday at the latest. If it doesn't happen, I'll just have to ride it out. Of course, this is my subjective judgment and could be wrong. Everyone should make careful decisions with full awareness of the risks. A-shares are truly torturous—worse than a scoundrel, who at least doesn't toy with your emotions.

The people behind Jingtai are all from the A-share market, so today's pullback isn't due to any issues with Jingtai itself but rather a natural market correction. Of course, this 'natural' correction carries the inertia and characteristics of the 'Big A' market. Since we're here to play, we have to accept it. So, if panic intensifies, consider adjusting your positions.