The Liquidity Risk Of The Stock Market Has Been Resolved And The Market Occupies A Leading Position.

The recent trend of the market can be seen as tangled. If it wants to go down, it will go up and down.

Such a string of downward jump trend, not only let many parties dare not act reckless, but also let the empty side plate to be afraid, resulting in a further decline in Thursday's volume, A share performance is even more depressed, investors in the current market should see more control less good position.

The main culprit that led to A shares' sluggish and continuous shrinking is mainly caused by four unfavorable factors.

First, last week, A shares were added.

340 thousand, the lowest level since May when the data was released, and the incremental funding slowed down the volume of the downturn. Secondly, last week, the guarantee net outflow of gold was 101 billion 100 million, and the balance reached a new low in July. The continuous outflow of funds is not conducive to the continuation of the stock index rebound. Again, the refinancing trial will be restarted at the fastest or on Friday. Although the issuing scale is limited, the market confidence is still insufficient, and the stock index shocks are unavoidable. Finally, after the stock market crash, the A share investors only have less than 51 million people, which is 24 million lower than the 75 million in the end of June.

Therefore, in the volume can shrink, the market is unstable, the huge increase, the performance is dim, the chips are not stable, the main shipment stocks, we can rebound every time.

The sharp adjustment occurred in a bull market that lasted for nearly a year, even if it fell by 30%, which is still nearly 80% higher than a year ago.

Despite the fluctuations since mid June, China's stock price is still at a high level relative to its historical and international level.

On the one hand, it shows that the fall of China's stock market is reasonable.

About the recent stock market's judgement and suggestion, there are probably the following points: first, the risk of the panic market falling in early July has basically been lifted.

The reason for the panic drop is that there are a large number of levers in the two tier market. After this fluctuation, leveraged funds have been greatly reduced, and most of the highly leveraged funds have been withdrawn or forced to close out, leaving only low leverage (leverage ratio less than 1:1) funds; the "two melts" in the field decreased from 2 trillion and 260 billion to 7 at the end of the month, a decrease of 40%.

In addition, after substantial fluctuations in the market, both investors and financial institutions have stepped up risk control, with a similar probability of panic dropping in the early July.

In July 27th, the index fell again by 8%, but there was no sign of a stock price drop. This indicates that the liquidity risk of the stock market has been resolved.

But the overall valuation of stocks is still high, especially the valuation of small and medium sized boards and gem.

According to market experience, when the market falls more than 30%, there is no profit margin. If it continues to fall, most investors will lose money.

China is a market dominated by individual investors. The characteristics of retail investors are the mentality of reluctant to sell after losses. Therefore, even if the market still has a fall, the rate of decline will be very slow and the risk will be controllable.

Second, efforts should be made to leverage.

Leverage is the stock market.

The source of the umbrella, especially the umbrella type trust and other types of distribution in the gray area, can not be effective only by policy prohibition under the temptation of interest. Only when the market is baptized can these non compliant funds be cleared out of the market.

After the fluctuation in July, these funds have been partially cleared out of the market, but they still have a considerable scale. They should be co operated through multiple channels to clean up the funds, and at least must be sunny.