Chen Shi: The Starting Path Of Structural Bull Market In China'S Stock Market

With the development of the market, there are still many differences in the nature of the market.

Many believe that the bull market has arrived.

The empty side believes that the market is merely a rebound, the bear market is not over yet, or the bull market is far from coming.

This view is not unusual, including some large institutions.

Its empty logic is mainly that the economy does not support the bull market.

Our basic view is that China's stock market has entered a structural bull market and is moving from a structural bull market to a comprehensive bull market.

In the early years of the bull market, especially in the early stage of the bull market, it is necessary to discuss whether the support is needed. This is not the case.

We simply analyze the trend of various indices and mainstream industries to see whether the market has entered a structural bull market.

China's stock market is the most complex stock market in the world. For various historical reasons, various sectors and indexes have emerged, such as Shanghai Composite Index, Shenzhen composite index, Shenzhen composite index, small and medium board index, gem index, B share index and so on.

Before long, the stock market rose and fell, and all kinds of indexes were identical, so the Shanghai composite index could represent the whole market.

But with the increase of stocks, especially in the past two years, China's economy has been greatly differentiated from the industry in the pition period, resulting in a great difference in the performance of various indices.

The best performing companies are gem.

The gem index fell from 1239 in December 2010 to 585 in December 2012, which opened a reversal journey.

By February 2014, the gem index reached 1571 points, or 168%, and the number of shares rose by several times.

After adjustment, it is once again approaching the peak of history.

Such a huge increase indicates that the gem has entered the Daniu market and has been going on for nearly two years.

Look at the medium and small boards.

After the sharp decline in 2008, the small and medium-sized board index reached a minimum of 2114 points, and then rose all the way. In November 2010, it hit a record high of 7439, or up to 254%.

After a 2 year crash, it dropped to 3557 in December 2012, and the index was cut.

Then the shock rose to 5696 points this week to a new high of nearly two years, or 60%.

Viewed from the historical trend of small and medium-sized plates, a large upward triangle appears.

This shows that the small and medium-sized board market has always been in a big bull market.

Even though the low point has been calculated since 2012, there has been an increase of 60%.

Then look at B shares.

Ingredient B refers to the fact that in the past 7 years, it has gone through a large triangular form and is at a historical high level. Even from the remarkable low point in September 2012, the index has risen by nearly 70%.

The B-share market in Shanghai stock market is very complex. In the past three years, it has been collating as a whole and it has increased by 24% since June.

Finally, I would like to see the index.

After the Shanghai Composite Index reached 1664 points in 2008, the low point in recent years was 1849 in June 2013.

Since June this year, the Shanghai stock index has broken through the low ranking arrangement and has been rising continuously. This week, it has hit a new high of 2391 points over the past year, but has not yet effectively broken through the previous high point of 2444 points and the pressure line since 6124.

From the increase point of view, the Shanghai Composite Index rose by 29% from 1849 points to date.

If it starts at the start of low market in June this year, the increase will be 19%.

Therefore, we say that the Shanghai composite index is not yet confirmed that it has been reversed.

From the above

The trend can be seen that although the Shanghai composite index began to rise after June this year, the market for gem and small and medium-sized boards has been one or two years.

The Shanghai Composite Index has been weak, but many industries and sectors of Shanghai stock market have actually reversed prices, including the index of big plates such as medicine and electronic information.

Obviously, China

The structural bull market can be said to start in December 2012, marking the gem index and has been going on for nearly two years. At present, the whole market is in the process of switching to a comprehensive bull market.

When banks and cyclical stocks are still low, the Shanghai stock index will break through again and will enter a comprehensive bull market.

Looking back, the 1849 point is the true starting point of the bull market in China's stock market.