The impact of US tariffs on "black swan" continues to ferment. Global stock markets encountered "Black Monday" on the 7th. The major A-share indexes also fell on the same day, with the Shanghai Composite Index opening sharply lower and rebounding in the late trading, eventually falling more than 7%, losing to the 3100-point mark.

Global stock markets fell sharply on Monday

On the 7th, Asian stock markets suffered a heavy blow. As of 4 p.m. Beijing time, the Tokyo Nikkei 225 index fell more than 7%, the FTSE Singapore Straits Times index fell about 8%, and the Taiwan weighted index fell more than 9%.

European stock markets also opened sharply lower. On that day, the European Stoke 50 index fell by more than 6% at the opening, the German DAX index fell by more than 7%, the British FTSE 100 index fell by more than 4%, and the French CAC40 index fell by more than 2%.

The US stock market, which was at the "episode" of the tariff earthquake, also suffered heavy losses. According to the data, from April 3 to 4 after the announcement of the so-called "reciprocal tariffs", the US stock market value evaporated by about US$6.6 trillion (approximately RMB 48.06 trillion), the largest two-day market value evaporated in history, basically equaling the sum of the total economic output of Germany and South Korea in 2024. The prices of the three major U.S. stock index futures fell again on the 7th, putting a big shadow on the future trend of U.S. stocks.

On the same day, the three major A-share indexes also closed down collectively. As of the close, the Shanghai Composite Index closed down 7.34%, the Shenzhen Component Index closed down 9.66%, and the ChiNext Index closed down 12.5%. The turnover volume of Shanghai and Shenzhen stock markets was about 158.78 billion yuan, an increase of about 450.2 billion yuan from the previous trading day. However, in terms of the trend after the United States announced its tariff policy, the Shanghai Composite Index performed better than the major stock indexes of the United States, Japan and other countries.

Zhao Qingming, deputy director of the Institute of Exchange Management Information, said in an interview with China News Service's National Express that the recent huge shock in global stock markets is mainly due to the impact of US tariff policies. As the main body that deeply participates in global economic and financial integration, it is difficult for China to not be affected. Therefore, A-shares that resume markets after the Qingming Festival are under pressure to make up for the decline.

Central Huijin takes action to increase its holdings

As the A-share market approaches the end of Monday's A-share market, Central Huijin Investment Co., Ltd., which has always been regarded as the representative of the "national team" by investors, issued an announcement stating that Central Huijin is firmly optimistic about the development prospects of China's capital market, fully recognizes the current A-share allocation value, and has once again increased its holdings in trading open-end index funds (ETFs). It will continue to increase its holdings in the future and resolutely maintain the stable operation of the capital market.

After the announcement was released, the decline in A-shares narrowed. According to media statistics, the trading volume of multiple broad-based ETFs increased in the late trading session today.

The transaction volume of the Huaxia Shanghai Stock Exchange 50 ETF (510050) exceeded 1.1 billion yuan in the last six minutes before the closing, and the transaction volume of the whole day quickly rose to 9.547 billion yuan. E Fund Shanghai and Shenzhen 300 ETF (510310) also saw a rapid increase in trading volume 7 minutes before the closing, and the total daily trading volume exceeded 10 billion to 10.762 billion yuan at the end.

As of today's closing, Huatai-Prudential Shanghai-Shenzhen 300 ETF (510300) led the transaction volume, at 24.315 billion yuan; E Fund ChiNext ETF (159915), E Fund Shanghai-Shenzhen 300 ETF (510310) exceeded 10 billion yuan; Huaxia Shanghai-Shenzhen 300 ETF (510050), and Huaxia Shanghai-Shenzhen 300 ETF (510330) also exceeded 9 billion yuan.

Looking forward to the future:

Investors should maintain confidence and patience

Yang Delong, chief economist of Qianhai Kaiyuan Fund , said that recently, US tariff policies have had a negative impact on market sentiment, resulting in a plunge in global stock markets, and A-shares have also plummeted due to panic. But it should be seen that China is confident of dealing with the decline in foreign demand caused by trade frictions. The central bank may provide a low-interest liquidity environment through tools such as interest rate cuts and reserve requirement ratio cuts. At the same time, China has made breakthroughs in the field of technological innovation, whether it is hard technology such as chip semiconductors, or soft technology such as artificial intelligence, it has attracted global attention.

Yang Delong said that since the beginning of this year, the A-share technology stocks have been strong, far exceeding the US stock market. The sharp drop in US stocks is related to Trump's tariff war and the excessive increase in US stocks themselves, while the valuation of China's high-quality assets is at a historical bottom and there is limited room for decline. Investors should maintain confidence and patience to deal with market volatility by holding high-quality assets. In order to avoid short-term fluctuations, appropriate reduction of positions is also an option. In the long run, China's high-quality assets still have opportunities for valuation repair.

Yan Xiang, chief economist at Founder Securities , said that at a time when the US tariff policy "haze" affects the global market, the A-share market may be expected to emerge from an independent market, which is better than the performance of other global markets as a whole. The main logic includes: although foreign demand is under pressure in the short term, the economic trend remains unchanged; the A-share valuation is low, and equity assets are outstanding in cost-effectiveness; the quality of listed companies has steadily improved, consolidating the micro-foundation; dividend repurchases have continuously improved investor returns; patient capital inflows will promote the healthy development of the market.

CICC's latest research report stated that under the impact of the so-called "reciprocal tariffs" in the United States, the global trade system has ushered in a century of changes, and global asset prices have also fluctuated significantly. Although this tariff increase will inevitably bring challenges to China's economy, compared with 2018, the Chinese stock market has more favorable conditions, including the risk aversion requirements brought by geopolitical narratives and the changes in technological narrative triggered by DeepSeek, the valuation advantages of China's assets themselves and the space for macroeconomic policy efforts. Overall, Chinese assets are resilient in the short term compared to global stock markets, and medium-term opportunities outweigh risks. If policies are properly handled, the market risk premium is expected to continue to improve, and the "Chinese asset revaluation" is still in progress.

In addition, international institutions are also optimistic about the Chinese market. HSBC's latest "Emerging Market Investment Intention Survey" shows that China's new round of measures to promote economic growth has boosted investors' overall confidence in emerging markets. Coupled with positive factors such as the increase in investment attraction in China's technology sector, the global institutional investors interviewed are particularly optimistic about the prospects of the Chinese market.

Among them, 25% of respondents listed China as the fastest growing emerging market in the next 12 months, ranking first; 45% of respondents believed that China's strong performance was the biggest benefit of emerging markets, a significant increase from 29% in the survey in December last year; 34% of respondents were optimistic about the prospects of China's stock market, higher than other emerging markets, an increase of 15 percentage points from December last year, and was listed by respondents as the first choice for emerging market investment in recent days.