Six Pressures Inhibit China'S Stock Market &Nbsp; Seven Suggestions To Boost The Stock Market

According to the news, this year, China's stock market, especially the European and American stock market and the BRICs stock market, have created a new high before the financial crisis. Only the Chinese stock market, which only thrive in the economy, only rebounded to the "halfway up" of the high point before the financial crisis, that is, the 3000 point fell off, and the bottom of the global stock market was once again.

The reason is that A shares have suffered too much pressure.

For investors at home and abroad, who are in a bad atmosphere and panic, they should be aware that the stock market is at the bottom of the market.

Remember, the 47 billion 900 million volume is the bottom. Before and after national day, "autumn rush" can be expected.

Pressure one

Importation

Since the United States adopted two rounds of quantitative easing policy, it has imported huge inflationary pressure to China.

From July to July, China's CPI reached 6.5%, hitting a 37 month high. 140 million people were worried and worried every day, and the stock market was overwhelmed.

Pressure two

Tight

Since last November, the central bank has raised the deposit reserve ratio and the 5 interest rate increase 12 times under the "prudent monetary policy", which has dropped the M2 from 28.5% to 13.5%, not only lower than the 16% target set by the two sessions in the beginning of the year, but also created a 7 year low and M1 also dropped to 11.2%, resulting in the extremely shortage of funds for enterprises, financial institutions and stock market, and the prevalence of private usury.

Pressure three

Pressure of expansion and great leap forward

Last year

Pressure four

Pressure on European debt crisis

Over the past six months, the European debt crisis, especially the debt crisis in Greece and Italy, has again become an excuse for some people to shirk the Chinese stock market.

In fact, Greece's territory is not as good as China's Jiangsu province. Its population is only 11 million, less than half of Beijing's population. How can its debt crisis become the reason for China's stock market to fail?

Italy has a strong economic strength, a large reserve of gold, and its debt to GDP ratio is 119%. How could this country collapse?

So even IMF thinks that the European debt crisis is obviously exaggerated.

Pressure five

QE3 pressure in the US

Since August, the Chinese stock market has been subject to the stress test of the "US debt default" storm, and the two time the stock market crashed sharply in August 9th and 11th.

Since September, it has undergone the stress test of QE3.

By raising taxes to the rich, the Federal Reserve has cut 2 trillion of its spending in 10 years. Recently, it has launched another $400 billion in the "reverse operation" of buying short-term treasury bonds to buy long-term treasury bonds in an attempt to revive the economy by stimulating credit.

News came out, Wall Street first took the trouble in the stock market, causing the European stock market and the Asia Pacific stock market to suffer a continuous setback, and China's stock market was also troubled.

Pressure six

Valuation pressure

At 2400 o'clock in September 23rd, the valuation of China's stock market, no matter the 5~7 times price earnings ratio of bank shares, or 11 times of Shanghai Stock Exchange 50 and Shanghai and Shenzhen 300 (2610.919, -58.56, -2.19%), or 17 times of the whole market, were all lower than those of last year's 2319 points, 1664 points in 2008 and 998 points in 2005, and were lower than the valuation of any country's stock market.

Last week, 47 billion 900 million of the stock market in Shanghai had a turnover rate of only 0.58%, which has been considerably lower than 1.2% at 998 and 1664 points.

Seven suggestions to boost the stock market

The connotation of direct financing is redefined, such as bond 70% and stock 30%.

Correct the expansion of the stock market and leap forward to cope with the development of the stock market every year and make a scientific quantitative plan.

The dividend tax of listed companies is reduced and the enthusiasm of investors in the medium and long term sectors is encouraged to stabilize the value center of stock market.

We intend to set up a stabilization fund to effectively deter domestic and foreign behaviors blindly shorting the stock market in China.

The upper limit of the inquiry price of the new issue price, that is, no more than 90% of the 20 day average price of the same stock, will overcome the inefficiency caused by the "three high" and "over raise" of the new shares.

It is stipulated that large shareholders of small and medium board GEM companies should disclose information to the market ahead of time before the two level market is reduced.

In view of the new situation at home and abroad, it is recommended to declare the international board postponed indefinitely so as to eliminate investors' worries.