Over 3,700 Stocks Decline: What Drives the Few That Rise?
On Wednesday, A-shares experienced a significant downturn, with over 3,700 stocks falling. However, a few

On July 13, the A-share market witnessed a significant downturn as major indices collectively fell. The Shanghai Composite Index decreased by 1.54%, the Shenzhen Component Index dropped by 2.61%, and the ChiNext Index fell by 2.38%. The total trading volume across the market was 1.8642 trillion yuan, which represented a decrease of 318 billion yuan compared to the previous trading day, with over 4,500 stocks declining.
Despite the overall market decline, the traditional Chinese medicine sector demonstrated remarkable resilience. Stocks such as Longshen Rongfa and Tianmu Pharmaceutical hit their daily price limit, showcasing strong investor interest. Additionally, the banking sector experienced fluctuations, with Suzhou Bank rising over 6%. The gas sector also performed well, with Shuhua Gas and Jiufeng Energy reaching their price limits.
Conversely, the commercial aerospace sector faced significant adjustments, with nearly 50 stocks dropping over 9%. Notably, Changying Tong, which had previously surged over 500% in value, approached its daily limit down, falling more than 19% on this day alone. The stock had seen a remarkable increase of 285.74% between May 6 and June 25, but has since declined over 47% from its peak.
On the news front, the State Council released the "15th Five-Year Plan for the Revitalization and Development of Traditional Chinese Medicine" on July 10, which emphasizes the importance of integrating traditional and Western medicine. This plan is expected to facilitate the modernization of traditional Chinese medicine and promote its global outreach.
According to research from Shanghai Securities, the number of new traditional Chinese medicine drugs approved by the National Medical Products Administration from 2020 to 2025 has reached 26. The continuous optimization of the review and approval system for traditional Chinese medicine is expected to enhance clinical value and accelerate the approval process for new drugs. Companies with strong brand power and innovative research capabilities are anticipated to thrive in this environment.
In summary, while the A-share market faced a downturn, specific sectors like traditional Chinese medicine and banking showed potential for growth amid the overall market challenges.