On Wednesday, May 28, the three major indices of the Chinese stock market all fell, reflecting weak market sentiment. According to the Securities Times, the Shanghai Composite Index closed down 0.02% at 3,339.93 points; the Shenzhen Component Index fell 0.26% to 10,003.26 points; and the ChiNext Index dropped 0.31% to 1,985.38 points. Overall market performance was poor, with nearly 3,500 stocks declining and total trading volume reaching 1.034 trillion yuan.

In terms of industry performance, sectors such as agriculture, chemicals, pharmaceuticals, real estate, and semiconductors all experienced declines, indicating a lack of investor confidence in these areas. In contrast, industries like textiles and apparel, logistics, food and beverage, brewing, insurance, and banking showed relatively stable performance with increases.

China Post Securities analysis pointed out that although there have been some phased achievements in the China-U.S. trade friction, which positively impacts the stabilization of the domestic macro economy and the valuation repair of the A-share export chain, it also reduces the necessity for the government to launch large-scale domestic demand stimulus policies. It is expected that the window for related policy implementation will be delayed until late July.

Currently, the A-share index has rebounded to levels seen before the China-U.S. trade friction 2.0, but for further increases, the market needs new positive news to boost confidence. China Post Securities noted that as individual investor sentiment turns negative and the first-quarter financial reports of A-share listed companies are mediocre, the market may face a volatile situation.