The Continuous Depreciation Of RMB Is An Important Factor Leading To The Diving Of B-Shares.

Although the total market value of B shares can not be compared with the volume of A shares, it does not mean that A shares can not be affected, but the author also disagrees with the argument that the B shares fall can not guide the trend of A shares.

In fact, this is not the first time that B-share diving has caused A shares, which has been staged many times before.

For example, in December 28, 2015, the strong B-share index suddenly plunged into a dive on the eve of the morning closing. The late fall dropped to 7.9%, which was affected by the sharp drop in the B-share market. After the opening of the afternoon, the Shanghai composite index continued to fall, down to 2.59%.

If investors compare the trend of B shares and A shares in April 27, 2011 and June 9th, it can be found that the diving of B shares often leads to the decline of A shares.

Therefore, the fall of B shares will often become the "burden" of A shares, and has been proved by many facts.

In the morning of the first trading day this week, the Shanghai and Shenzhen stock markets were calm and calm. But since 1:50 p.m., the sudden change of the Shanghai Composite Index has fallen sharply. The biggest drop is nearly 1%, which has also caused some investors' uneasiness.

Both the Shanghai and Shenzhen stock markets fell sharply, and the disaster started.

Diving.

The biggest drop in the B-share index on Monday was nearly 7%, while the late market fell 6.15%.

In terms of stocks, none of Shanghai's B shares are red, and 5 of the 51 regular B shares are down, with a drop of over 5% of 42.

Shenzhen B shares, 42 listed companies in normal trading, in addition to a trading limit of a flat, the remaining 40 all fell.

From the data we can see the tragic degree of B-share diving.

For the sudden trend of B-share diving, the mainstream view of the market is that the recent devaluation of the RMB is an important factor leading to the B-share diving.

For example, on Monday, the central parity price of the renminbi dropped by 222 points, and the US dollar reported 6.7379 yuan against the renminbi, the biggest decline since a week and a 6 year low.

The continuous devaluation of the renminbi is no doubt about the pressure on the B-share itself, but the B-share crash will cause us to ponder.

However, the B-share is now a drag on the A share tragedy, and the relevant departments should be considered to solve the historical legacy of B shares.

In fact, the purpose of the Shanghai and Shenzhen Stock Exchange to launch B shares was mainly to attract

。

Nowadays, there are many ways to attract foreign capital, and the historic mission of B shares has been completed.

Moreover, due to policy adjustments, the B-share market has not developed much for many years. B-share Listed companies are also being refinancing. The B-share market is just like "chicken ribs" and has been gradually marginalized. Such a market is virtually no longer necessary.

The solution to B-share problem is not without thought.

For example, before, whether it is Shanghai B shares or Shenzhen B shares, there are successful cases of B-share pfer to A shares. These successful cases can also be used as reference or reference for other B-share Companies.

For those A+B listed companies, B shares can be converted into shares based on the A share price.

Even pure B share companies can refer to indicators such as average price earnings ratio in the same industry, and the key to the problem is artificial.

On the other hand, I think small volume B-share diving will spread to large volume.

At least, it shows that the A share market is vulnerable to external influences, and also shows the weakness of the A share itself.

On Monday, the main culprit of A shares fell, though it was a sharp fall in B shares, but there is no doubt that there are also factors in the recent market downturn.

The most essential problem is that our market is not yet a mature market, and there is great room for improvement in terms of system construction, market regulation and investor protection.

If we have made great progress in the above three aspects, B shares diving may be just like A.