What Happens After The Stock Market Stands At Ten Thousand Points?

The reason why "ten thousand points" is once again thrown to investors is because before that, "ten thousand points" has been to the stock market.

At least in December of last year, the turnover in Shanghai and Shenzhen two cities exceeded the trillion yuan mark. At the time when the 1 trillion and 260 billion day trading record was set up, the market sounded the trumpet of "ten thousand points theory", and thought that A shares were more than ten thousand points not a dream.

At that time, Liu Shuwei, director of the China Enterprise Research Center of Central University of Finance and Economics, also published an article entitled "ten thousand points are not dreams".

However, judging from the content of Liu Shuwei's "index 10000 points is not a dream", Liu Shuwei did not set a clear time limit for the arrival of stock index 10000 points, instead, it set five prerequisites for the arrival of stock index 10000 points: first, the overall profit level of the entity must be higher than that of the stock investment rate; two.

Earnings mainly come from share dividends, rather than the spread of low priced stocks that sell at a high price. Three, pollution and continuous loss of listed companies must be delisted in cement, steel and paper industries. Four, listed companies must ensure the authenticity and completeness of disclosing information; five, greedy dealers and deceptive "black lips" are severely punished.

To be frank, I am in favor of Liu Shuwei's five prerequisites for the stock index.

In fact, according to the setting of these five prerequisites, the ten thousand points of stock index are still only dreams.

Surprisingly, it was only three months after the five prerequisites set by Liu Shuwei.

For example, China Aviation Securities believes that: after the 7 year bear market of the A share market, the stock index will never be doubled. The 6000 point is also halfway up the mountain. Breaking through 6124 points is only inevitable. The basic target of the bull market is ten thousand points.

To this end, the broker reiterated specifically in the relevant media, "we continue to clear attitude: 6124 points must be broken, the ten thousand point is not a dream."

At present, the stock market is basically in a situation of being stupid. The institution calls out the "ten thousand points theory", which is full of heroism and is able to cater for the needs of the small investors in the market.

After all, in the current market approaching crazy market, reminding risks is a matter of suspicion. What the current market needs is mutual encouragement and mutual courage. Therefore, the "ten thousand points theory" can obviously win the favor of the foolish people.

Can A share tens of thousands of points? In the long run, this is no doubt.

But when it comes to looking at A shares, the market is full of doubts.

I believe that those who throw out the "ten thousand point theory" are also full of doubts about whether the stock index can be more than ten thousand points.

Here, let me assume that A shares can stand at ten thousand points, but the question I want to ask is: what happens after the stock market stands at ten thousand points?

If the stock index stands at ten thousand points, can the index continue to rise?

If the index station drops after ten thousand points, will it be a chicken feather for the stock market?

First, the daily turnover of the stock market will reach about 3 trillion yuan. How much social capital will be attracted by such a huge deal, or even the real economy? Will the stock market not cause economic development?

The two is,

The P / E ratio will also be high.

The average price earnings ratio of gem will be more than 300 times, and the price earnings ratio of the motherboard will also be about 80 times. The whole Chinese stock market is a huge bubble.

Three, the size will not accelerate cash flow.

In the face of hundreds of times of price earnings ratio, the size of the non cash will be cash in cash, and it will become cash in the stock market.

Faced with this kind of opportunity to cash in, it can only be a fool to hold stocks in hand.

Four, IPO and refinancing will go crazy.

In the face of such a good opportunity to index tens of thousands of points, not only will IPO speed up further, but the listed companies will have more money.

It will also be crazy, and the price of IPO and refinancing will also rise. The price earnings ratio of 100 times is no longer a high price issue.

Five, the balance of securities financing should also be 3 trillion.

In this case, the stock market has fallen, and the tragedy of this bubble burst, has anyone ever thought of this tragedy of killing many more? Such a tragic plot is obviously not comparable to that of the big bear market in 2008.

This will be a disaster for Chinese society and will not exclude the arrival of a financial crisis.

Therefore, the stock market stands at ten thousand points obviously not now.

The current stock market does not have the conditions of the stock market standing at ten thousand points, nor does it prepare the stock index station for tens of thousands of points.

When will the stock index stand at ten thousand points? That should be after the five preconditions set up by Liu Shuwei.

For now, the Shanghai Stock Index station is still a dream.