Shanghai Composite Index Completes Intraday Adjustment; Three Major Uncertainties Remain in the Market

Ask AI · Will the Federal Reserve’s rate cuts focus more on inflation or employment data?

On March 23 (Monday), the Shanghai Composite Index gap-down, initially falling to 3,866 points, then completed an intraday correction, with a V-shaped rebound that temporarily pushed it above 3,900 points, easing some pessimism.

According to institutional views, there are three major uncertainties both domestically and internationally:

First, energy supply—after the intensity of conflicts decreases, to what extent can civil aviation resume?

Second, the Fed’s rate cut expectations—are they more focused on inflation indicators or more concerned with actual employment conditions?

Third, the impact on China’s economy—is it facing cost shocks or opportunities for supply chain re-shuffling?

CITIC Securities states that these issues may become clearer only by April. In the short term, due to significant uncertainty, some market participants are reducing positions, and previously strong-performing stocks have recently declined more.

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