How popular is Big A now?
A brokerage employee chatted in a group that more than 1.3 million people were waiting in line for account opening! It turns out that if you can make money by speculating in stocks, you can’t buy them even if you have to wait in line.
The trading volume of the Shanghai and Shenzhen markets exceeded 2 trillion. What does this mean? This is a historical record since the bull market in 2015. Before that, the average daily trading volume of the market was about 500-800 billion, which tripled in one day.
As the bull market flag bearer, brokerage concept stocks collectively hit the daily limit. This is not the first day of the daily limit. In addition to the leading CITIC Securities, Oriental Fortune and others have already hit the daily limit for 4 times. It doubled in 5 trading days.
If you think the market is over here, then look back at the bull market in 2015, and you will see that Oriental Fortune is a 100-fold bull stock!
At that time, there were not only this one hundred-fold stock, but many others.
Suddenly, Big A tastes better than pancakes.
In fact, for the prosperity of the A-share market, the China Securities Regulatory Commission had already advocated it a year ago, and even mobilized the Ministry of State Security. If you have been in the stock market, you will never forget these news:
This was the policy at the time, but there was no real money involved, the market still did not improve, and the battle to defend 3,000 points failed.
Later, as we all know, BlackRock withdrew from the Chinese market and started speculating in Bitcoin (and then launched an application for a Bitcoin ETF). At that time, BlackRock said that no matter how much you buy, there will be people selling, and they are eager to sell the company to you.
Foreign capital was also forced to withdraw. At that time, the vice chairman of the China Securities Regulatory Commission said that if foreign capital dared to cause trouble, the risk control system would immediately control the account. The risk and management of external funds are mature in terms of technical means.
It was not until last week that the China Securities Regulatory Commission and the central bank jointly released funds into A-shares.
Now that policies and money have arrived, an important issue needs to be controlled, and that is the main players in the market: listed companies.
As we all know, listed companies are usually the largest stock holders, and it is easy for them to become market makers, and they will falsify data, but the punishment is not severe. Then the CSRC's consultation on market value management accountability last week is very critical. The decline must be held accountable!
The top leaders have released a "Draft for Soliciting Comments on Market Value Management", in which there is a very important provision, that is, if the closing decline of the main index components reaches 20% in 20 consecutive trading days, or the stock price falls below 50% of the highest closing price in the most recent year, that is, it is halved, listed companies will need to propose clear response measures. To sum it up in one sentence, that is, those who fall sharply or continuously will be held accountable, and the company must take remedial action.
Summary: We know that there are five major factors that affect the equity market, namely, policy, news, technical, sentiment, and fundamentals.
From a fundamental perspective, A-shares have been falling for years, and many high-quality companies have fallen below their net value. Sentiment is extremely low, and the technical side has reached the oversold stage again. The policy side has been severely stimulated, and the global recession has entered a new stage. When there are internal and external stimuli, the shorts will retreat. The rise will come. Looking at the US stock market, which has been bullish for 50 years and the Indian stock market, which has been bullish for 10 years, the A-share market will also have its own cycle.
Of course, we may be experiencing a new global economic cycle, and all kinds of assets will be stimulated by loose policies and usher in a new round of cyclical bubbles.
The current Russian-Ukrainian war and the Israeli-Palestinian conflict have spread to Lebanon and Iran. This relatively large-scale conflict will eventually have an outcome. The Dongfeng-31 intercontinental missile launched last week made the United States aware of the new situation in the Pacific. The US's anti-global policy may become ineffective, and a new round of global political and economic structure is taking shape.
Historical article: Is it possible that we are in a new cycle of human history? !
(This is just a sharing of opinions, not investment advice)
