Afternoon Observer: Is Quantitative Selling the Biggest Hidden Worry for A-shares?

China's stock market is experiencing a wave of downward pressure.

Although high-end manufacturing assets such as chips and robots, which sit at the intersection of the two major trends of domestic substitution and artificial intelligence (AI), are lining up for listings, the global sell-off in chip stocks, rising investor doubts about the high valuations of tech stocks, and insufficient domestic demand in China's economy have clearly weighed on A-shares.

As the market weakens, quantitative funds have once again been pushed into the spotlight.

So-called quantitative funds are investment funds that use mathematical models and computer programs to analyze market data and automatically generate or execute buy and sell strategies.

Concentrated selling within a short period of time to push down stock prices or indexes is called "smashing the market" by the market.

Whether quantitative trading was an amplifier of the July decline or a scapegoat pushed to the forefront when market confidence was fragile has also become the latest focus of controversy in China's capital market.