Market Overview - The A-share market experienced a significant decline, with the Shanghai Composite Index dropping by 2.48% to close at 4015.75 points, marking the largest single-day drop since April 7, 2025 [3] - The Shenzhen Component Index fell by 2.69% to 13824.35 points, while the ChiNext Index decreased by 2.46% to 3264.11 points [3] - Total trading volume in the Shanghai and Shenzhen markets was 260.69 billion, a decrease of 255.8 billion from the previous trading day [3] Individual Stock Performance - A total of 4465 stocks declined, while only 741 stocks rose, indicating a broad market sell-off [3] - The median decline across all stocks was 2.15%, reflecting a simultaneous drop in both volume and price [3] Sector Performance - Only two sectors, electric grid equipment and the liquor industry, saw gains, with the liquor sector's core stocks performing particularly well [4] - The banking sector attempted to stabilize the market but ultimately closed down by 0.26% [4] - The most significant declines were seen in cyclical stocks, particularly precious metals, with declines in mining, coal, non-ferrous metals, steel, and oil sectors, many of which experienced drops close to 5% [4] Commodity Market Impact - The commodity market experienced extreme volatility, with gold prices plummeting to $4559 per ounce, a drop of 3.83%, and oil prices falling by 4.88% [5] - Silver prices also fell to $73.15 per ounce, down by 6.81%, indicating a chain reaction affecting related A-share sectors [5] Economic Indicators - Recent PMI data released by the National Bureau of Statistics showed a comprehensive decline in economic activity, with manufacturing, non-manufacturing, and composite business indices all falling below the "50 boom-bust line," indicating a slowdown compared to the end of last year [5] - The real estate and construction materials sectors weakened significantly, influenced by a reported loss of 82 billion from Vanke, compounding the market's challenges [5] Future Market Outlook - The current market downturn is seen as a potential opportunity for the upcoming Spring Festival market rally, with expectations for the index to form a new range-bound trading pattern [6] - The core support logic is based on the prior cooling of large blue-chip stocks under "national team" regulation, which has mitigated some risks [6] - Blue-chip valuations are at historical lows, suggesting limited downside potential for the index, as evidenced by the stable performance of major liquor stocks and the four major banks [6]