Understand The "Bull'S Temper" Of China'S Stock Market

The elimination of cheap shares by the market is a major feature of the bull market. However, looking at the current bull market is not only dependent on the improvement of the policy environment, but also on the gradual improvement of the market environment.

Among them, the improvement of policy environment is the foundation for China's stock market to achieve the two take-off.

Prior to the public statements of the SFC executives, there were statements made by the central bank executives, and the importance of the state's stock market also reached an unprecedented level. Thus, under the influence of a series of positive energy, the stock market has also brought great stimulation to the stock market.

Moreover, the gradual recovery of the market environment is not only attributable to the accelerated layout of large capital and large institutions, but also closely related to the accelerated entry of Chinese uncle and Chinese aunt.

According to statistics, since March this year, China's stock market has 690 thousand new accounts. Among them, 9 to 13 March this year, two new stock accounts for 721 thousand and 500 households, a significant increase of 8.9%. At the same time, the market financing balance is also rising sharply compared with the same period in the past. Up to now, the scale of the two scale of the market has broken through the 1 trillion and 380 billion pass and is heading for the 1 trillion and 400 billion mark.

It can be seen that in the context of the simultaneous warming of policy environment and market environment, it has also created an excellent condition for the continued strength of the stock market in the near future.

Looking at the history of China's stock market for more than twenty years, the situation of "short bear and long bear" basically appears. On the one hand, the market rules system is still immature, which brings great shock to the market. On the other hand, the market is still dominated by retail investors, and price speculation is far beyond the value investment factor.

It is undeniable that in the actual operation of the market, there are often over exaggerated benefits, overdraft market space and other issues.

In recent years New shares For example, the original management will set up a distribution. supervise The red line limits the price earnings ratio of new shares. However, in practice, due to the low price earnings ratio, it is easy for some institutional funds to hype after listing. Therefore, the supervision of IPO has finally become "exist in name only", and behind the successive stir up of new shares, it has seriously overdrawn its future rising space.

Take the recent rising market as an example, the management has released some remarks that are conducive to the development of the stock market, but have been magnified infinitely by the big capital institutions. At this point, the expected Slow bull market But it has become the trend of mad cow. It is clear that once the stock market once again replicated the previous soaring market and completed hundreds of thousands of points in an instant, the good intentions of management finally became an excuse for some people to get rich quickly.

It is worth noting that in China's stock market, although the proportion of retail investors is at a high level for a long time, in fact, the number of retail investors who actually make profits is very low.

More than ten years ago, when the stock market still hovered near the level of 2000, the proportion of retail investors with a market value of less than 100 thousand yuan accounted for more than 85%. However, after many years, the market share of retail investors with a market capitalization of less than 100 thousand yuan is high, even showing a continuous growth trend. On the contrary, the market share market value of over 5 million yuan has remained low for a long time. It can be seen that even if the stock market has performed many rounds of bull and bear transformation, the number of retail investors who can finally achieve wealth appreciation is very low. In other words, China's stock market is still a market that few people can afford.

However, in a rare bull market, investors often need to understand the "bull temper" of China's stock market. That is to say, once the stock market is activated, it will be difficult to stop. But if this rhythm is not well handled, the potential risk is fatal. Therefore, it is also confirmed that the stock market bubble is often the best time to get rich quickly. But at the same time, if we do not grasp well, the rapid evaporation of wealth may also happen in a flash.