A Shares Have The Basis Of Intermediate Rebound But Will Not Take Big Steps.

In other markets, Hong Kong stocks, which are closely related to the A share market, have seen sharp fluctuations.

Among them, the Hong Kong stock market recorded a 7.31% month decline in September.

Even though the Hong Kong stock market has seen a marked rebound since October, the Hong Kong stock market is still a bit away from its previous high position.

Well,

Where is the upward trend?

Perhaps more investors believe that Shanghai and Hong Kong through the current A share market continued to rise in the root cause.

However, a detailed look at the Shanghai and Hong Kong pass rules, in essence, from the threshold, trading system, paction time and other conditions, the Hong Kong stock market can be seen as an advantage.

As for the A share market, because of investment

In the long term, the role of Shanghai and Hong Kong in attracting outside funds may not be too great.

However, Shanghai and Hong Kong did generate a good expectation of the extra liquidity in the A share market, which is a driving force for the rise of the stock market, but not the root cause.

along with

The formal "opening up" of the two markets will gradually converge, which will also help improve the immature mechanism of the A share market.

With the further improvement of the relevant system, the A share index is expected to be added to the MSCI index in the future.

Obviously, according to the expected development, the new liquidity of the A share market is expected to be quite clear. The next step is to solve the problem of investment confidence which has long been suppressed by the market.

In fact, for a huge A share market, there is no lack of capital, but the lack of investor confidence in investment.

Indeed, over the past few years, even if the market has continued downward trend for a long time, there will be a lot of liquidity coming out of the market whenever there is good news coming out of the market, which will lead to the short term rapid rise of the market.

More often than not, the market has become numb with the rapid rebound of the index, and investors are afraid to follow suit. After all, the rebound in the past market has brought more uncertainty to investors.

It can be seen that because of the bad market environment in the A share market and the imperfection of the market system, the investment confidence of the market has dropped sharply.

At the same time, the financing and investment functions of the stock market have been weakened.

At this point, whether from the national strategic level or from the perspective of management protection investors, it is very important to gradually restore the financing and investment function of the stock market.

Therefore, at this stage, it is undoubtedly the top priority to boost the stock market and enhance investor confidence in investment.

As a result, under the strong political pressure, the stock market rally continued.

Perhaps this is the biggest source of A share gains.

Rebound or reversal, which is the most concern of investors.

In fact, there are many ways to measure stock market rebound and reversal.

According to Guo Shiliang, the index rose from the bottom to near 20%, which will reach the typical ox bear watershed.

If the market can break through effectively, the stock market is expected to enter a real reversal market.

In fact, as far as the current market trend is concerned, it is very close to this area, and the present market is also preparing to face a big challenge.

I believe that at present, A shares have the foundation of intermediate rebound, but they do not have the foundation to take a big leap.

Obviously, a large number of new liquidity inflows are undoubtedly the most direct driving force of the current rally.

However, the institutional loopholes in the market have not been effectively solved, or the long and short trading system in the stock market has always existed and the rules of the game are still biased towards short sellers.

Therefore, in such a market environment, management is also in urgent need of changing the corresponding rules of the game, creating greater impetus for the further rise of the stock market.

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