There Are 5 Characteristics Of The Chinese Bull Market.

< p > in the foreseeable future, the Chinese economy will continue to exist on the basis of the factors affecting the company's profit growth. In the short term, < a href= "http://news.sjfzxm.com/news/list.aspx Classid=101112107105" > bull market < /a > hard to say.

But while sharing the "feast" of China's stock market, investors in China's stock market will also have to face the "Chinese bull market" because of the many unique features of China's economic development.

< /p >

< p > the author thinks: policy city, game city, Universal City, pitional city and concussion city are five characteristics of "Chinese style bull market".

Therefore, we must strengthen basic research, pay attention to policy research, fully understand the market risks brought by the participation of the whole people, and rationally handle the abnormal fluctuations in the profits of Listed Companies in the pitional stage, and prevent the risk of the high and volatile operation of the stock market. This is a problem that all investors must face seriously and properly solve.

< /p >

< p > one of the characteristics, policy market.

Market is the only policy.

In the past more than 10 years, behind every major turning point in the market and the emergence of the market, we have made a profound policy mark. Whether we admit it or not, the most prominent factor affecting China's stock market is the trend of policy.

We notice that no matter the speed of new issue, the return of red chips, the introduction of stock index futures, < a href= "http://news.sjfzxm.com/news/list.aspx Classid=101112107107" > monetary policy < /a > and the reduction of state-owned shares, including the rhythm of new fund issuance, etc., it is possible to become a bargaining chip for policy adjustment and control of the stock market.

When the bull market index continues to climb to a new peak, the overvaluation is not the biggest concern of the market. The suppression of fear policy is the "Damour and Chris sword" on investors' heads. The policy has become the most important influencing factor of the stock market, changing the inherent operation rules of the market, and the capricious volatility of the market can also find the final explanation from the policy regulation, which constitutes the main feature of the "Chinese bull market".

The policy can not only produce quotes, but also create inflection points. It can also change the rhythm of the stock market and accelerate or slow down the evolution of the market, which has attracted many market participants to study "policy bottom", and "policy bottom" has gradually constituted the backbone of market index operation.

We believe that for a long time, the stock market is still hard to get rid of the shadow of policy regulation.

China's stock market is often in a contradiction between fear of policy regulation and policy support, and it becomes a major obstacle for the market to rely on its own regulatory function and gradually mature.

< /p >

< p > two of the characteristics of the game market.

Stock market is a place where interests are partitioned again.

After IPO, the fund-raising in the primary market has come to the operation activities of the listed companies, and if the two tier market does not consider dividends, the re distribution of market interests can only be regarded as a zero sum game brought by capital gains.

Statistics show that in 2006, more than 1400 listed companies earned a net profit of 389 billion 200 million yuan, but with the stamp duty of 0.3[%], if the average daily trading volume of 200 billion yuan is taken into account, 288 billion yuan will be returned to the Treasury every year. If the average commission of the broker is calculated by 0.2[%], it will generate 192 billion yuan commission income all year round, two items sum up to 480 billion yuan, which has exceeded the net profit of the listed company to 100 billion yuan, and the two market has been reduced to the "zero sum game".

Behind this game, there are multiple game relationships between management and market, prohibited shares and tradable shares, institutions and retail investors.

Under this kind of game relationship, the premise for individual investors to overcome the market is to defeat the institutions first.

The "5. 30" stamp duty accident is the fuse of the current stock market adjustment. It is a successful game between management and the market from the systemic risk caused by the sharp rise in the market.

< /p >

< p > three of the characteristics of the whole city.

Narrow investment channels make stock investment the main channel for residents to invest.

In the absence of sound social security, wealth accumulation has become the goal of the whole nation. Over the years, the substantial increase in household savings has reflected the growing worries about housing, children's education, pension and other costs and the future inflation. Asset appreciation has become an inevitable choice for people to shake off poverty and pursue asset safety.

In the first half of the year, the stock market has shown the characteristics of saving and moving, and the stock market structure is becoming more and more popular because of its strong liquidity, low investment threshold and quick profits in people's consciousness.

However, due to the lack of investors' awareness of the nature of the stock market and the establishment of risk prevention awareness, the first half of the year there was a situation of low price stocks and junk stocks. Then, in 5. 30, a sharp fall in subject shares and bad performance stocks triggered a warning bell for investors to chase short-term wealth.

< /p >

< p > four of the characteristics, pitional city.

As the listed companies are in the period of non tradable shares, the market has entered a special stage. At this stage, the listed companies become the supporters of their own market value growth.

First, it is reflected that equity incentive must make Future Ltd profit or market growth promise.

Secondly, large shareholders turn from "tunneling" to "inject", but because the injection of "high quality" assets is often one-off, there is a lack of corresponding protection for sustained growth in earnings.

Third, it is reflected that the listed companies are both investment targets and market participants. The listed companies are keen on the equity investment in the two tier market and create a blockbuster effect.

Fourth, big Africa seeks favorable cash opportunities to further overdraw company profits.

Listed companies are likely to create short-term earnings growth, boost stock prices, overdraft the future and create the best escape opportunities.

The pition market has increased the difficulty of research institutions in predicting market trends and corporate profits.

< /p >

< p > five of the characteristics, the shock market.

First, the research institutes are highly consistent with their opinions.

Because of the increasing influence of research, it directly affects the mainstream capital flow of the market, and it is also easy to become an influential factor to help the market rise and fall.

Second, the participation of the whole people, the retail business rushing headlong into the herd, the development of the market is highly related to the number of retail accounts.

It is easy to induce blindly follow the market.

Third, the influx of overseas capital into the stock market has aggravated the market turmoil.

Fourthly, cross shareholdings of funds increase stock market risk.

Although camp and blue chip stocks may play an important role in stabilizing the market, but because of the serious cross shareholding phenomenon, once the market collapses and the owners redeem large amounts of money, it is still difficult for the fund to get rid of the prisoner's Dilemma and become the last straw in the market crash and overcoming the camel.

Fifth, earnings volatility of listed companies has increased.

Because the profits of listed companies are not only affected by the economy itself, but also by the impact of asset injection, the possibility of large and large profits will increase, and in the context of the combination of two taxes, new accounting standards and equity incentives, the a href= "http:// news.sjfzxm.com/news/list.aspx Classid=101112107108" false prosperity "/a" will be ushered in.

< /p >

In essence, the domestic securities market of "emerging and pitional" has created the main characteristics of the "Chinese bull market". It has also triggered the escalation of the debate on value valuation, increasing the difficulty of basic research and amplifying the market risk. P

The characteristics of the "Chinese bull market" remind investors that the stock market is a place where interests can be repartitioned. If the profit growth of listed companies is difficult to continue, the market will become a zero sum game. In addition, fundamental research should pay special attention to policy research, fully understand the market risks brought by the participation of the whole people, and rationally handle the abnormal fluctuations in the profits of Listed Companies in the pitional stage, so as to guard against the risk of the high and volatile operation of the stock market.

< /p >