Short Line Stocks: Seven Steps For Short-Term Top Players

At present

A share investors are likely to become cannon fodder in two aspects. First, the valuation power of A shares is captured by US investors, and the two is that the market share of A shares has been captured by market expansion.

The author has always opposed H-share as the valuation system of China's capital market. The Hong Kong dollar is the shadow money left over from the colonial era. It is powerless, unable and incapable to become the center of A stock valuation.

But the reality is that US dollar investors indirectly grasp the valuation power of A shares through the H-share valuation system, and this discourse power is amplified by the parrot speakers in the mainland market in China, thus bringing together the chorus of A shares market and mature market.

In fact, this is in disguise to give the main pricing power to us dollar investors.

The rise and fall of the A share market is more and more closely related to the international market and the Chinese Hongkong market.

As a result, the premium in the A share market is likely to become the reason for the discount in the near future.

For example, the monopoly premium that should be owned by monopoly enterprises such as PetroChina has become the reason for the discount at the time of high inflation. When the monopoly price is subject to a certain degree of administrative control and can not follow the international market price, investors will be ruthlessly abandoned.

The policy orientation of the A share market has been very clear. Preventing inflation risk and preventing financial crisis has become a major policy consideration.

In this Boao forum, Maskin, the winner of the 2007 Nobel prize in economics, stressed that in some cases, the government needs to intervene actively, and the financial market is a good example.

The chairman of the central bank's monetary policy committee seconded it and said that the US subprime crisis had had a great impact on China's foreign trade export and capital level. The main task of China's macroeconomic policy is to guard against the financial crisis.

On April 12th, Zhou Xiaochuan, governor of the Central Bank of China, attended the seventeenth Ministerial Conference of the international monetary and financial committee in 2008, saying that China's overall economic situation was good, but there were still outstanding problems and deep-seated contradictions such as excessive investment growth and excessive credit supply.

After the A shares were lowered at around 6100, there was a large amount of money coming into China's mainland blue chips from around 3300.

Tianjin securities has unveiled the truth of two short selling funds, whether T20666 or T20471, from November 2007 to April 2008, with more than 100 billion capital, tacitly priced stocks bought at a low cost, suppressing the large blue chips such as China Petroleum and China Shenhua, which have already caught numerous small and medium-sized investors, and also caught up with the heavily bundled funds in the mainland.

Very tacit understanding is, when pressing, raised the call of the mainland stock price revaluation, the big blue chip is plunged into the abyss of perdition.

We can not know the relationship between them, but the tacit understanding of their cooperation is obvious.

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When A shares and H-share premiums were squeezed to around 40%, especially when many blue chips broke down, foreign capital began to sweep goods, not only through QFII, but also in Hongkong, China, buying A50 Fund (2823), and from April 2nd, the paction suddenly jumped, and the turnover was 3 billion 900 million yuan on that day, reaching 10 times of the usual paction. After 5 trading days, it was super high turnover, and 5 trading days were trading 25 billion 700 million yuan.

In April 3rd, 314 million additional fund units were issued by the issuers, and 300 million additional fund units were issued on the 8 day. The total amount of funds flowing into the two trading days was more than 10 billion yuan. Large investors and investors bought the A50 fund. The purpose was to indirectly purchase large blue chips through the A50 fund, and to purchase the A50 index constituent stocks directly in the mainland.

It is naive to think that foreign capital is weak in the bottom of the stock market. They have gained great control over the derivatives market and the products of the A share market linked to China's Hongkong and Singapore market.

If the policy does not curb this trend, the only way for A share investors to avoid cannon fodder is to keep a close eye on foreign investment and keep a close eye on the Hongkong market.

Policy is probably not optimistic, investors should learn to protect themselves.

At the same time, in order to prevent wealth from being swept away in the process of exchange rate liberalization, what managers do now is to open channels for financing and refinancing, and open the door to allow funds to enter.

The China Securities Regulatory Commission has recently approved the qualification of qualifying foreign institutional investors (QFII) of Baode letter asset Co., Ltd., so that the QFII will be expanded to 54.

Despite the cold market in mainland China, the speed of issuing funds and the speed of issuing new shares have not diminished. This proves that the intention of a new round of forced entry and gradually attracting global funds has been very obvious.

The government will not rescue the market, and the government will make a big pool of funds to keep the price earnings ratio at an acceptable level.

In the new round of market game, Goldman Sachs is optimistic about H-shares, and HSBC investors are optimistic about Chinese stocks.

If we still insist on cutting meat, and insist that the stock market fall to 2500 points, that is to take the initiative to act as cannon fodder.

In the domestic and foreign capital law, small and medium-sized investors have no right to speak, but they have the right to judge and follow suit. They must have a clear mind and a keen eye.