New Capital Is Coming, A Shares Are Expected To Rise.

Last week

Strong trend, the industry believes that far beyond expectations.

Because the Fed announced its withdrawal from QE, the US dollar index has reached a new high in recent years, and the US dollar index K-line chart has continued to accelerate upward trend, indicating that the US dollar appreciation trend is accelerating and global capital should return to the US mainland.

This will put pressure on global stock markets, especially the emerging markets in the Asia Pacific region.

But strangely enough, the global stock market has continued to soar in recent trading days, and A shares have been continuously Squeesing. The Nikkei index was even more eye-catching on Friday and nearly 5%.

Faced with such a trend, it is pointed out that this is due to the appropriate response policies in the Asia Pacific emerging market.

In Japan, for example, when the Fed announced its withdrawal from QE,

The Japanese government has decided to increase the annual purchase of debt by 30 trillion yen, and will continue to QQE until inflation stabilises at 2%, extending the holding time of treasury bonds to about 7-10 years, and expanding the purchase scale of EFE and JREIT by two times.

This shows that the monetary easing policy in the Asia Pacific market remains the same. In the future, it is expected to attract more arbitrage capital to the Asia Pacific market, and so does A shares.

Therefore, the A share market is facing a rare opportunity to do more.

The loose monetary policy in the Asia Pacific market provides a more optimistic space for China's central bank's monetary policy, and is conducive to the strong market of A shares.

At the same time, the Asian Pacific stock market and the whole global stock market are rising, which is conducive to boosting the participation of A share market participants.

That is to say, under the demonstration effect of the global stock market rally, A shares will continue to pour into the wind market, which will drive the volume of A shares to continue to enlarge, and the short-term A shares will be optimistic.

Full strength can be expected.

However, from the public opinion of the weekend, although market participants hold a more optimistic view of the short term strong market, but for small and medium-sized, emerging industry stocks are cautious, think that the current A share market main line has successfully switched to banking stocks, real estate stocks, port stocks and other traditional industrial stocks, emerging industry stocks, small cap stocks will be difficult because of high valuation.

In other words, the Shanghai stock index, Shanghai and Shenzhen 300 index, Shenzhen stock index and other major indexes will continue to move forward, but the gem and small and medium-sized board will face some pressure.

This view does have some reasonable points, but from past experience, once the new capital runs into the field, it will rapidly change the hot spot of the A share market.

After all, the investment of new capital is diversified.

In the initial stage, it may swarm into traditional industries that underestimate the value, but once it is settled, some of the new funds will turn to small market value.

After all, the undervalued traditional industry stocks have a large market value, and the impact of small funds on stock prices is limited. Therefore, some strength funds will choose small and medium-sized market capitalization.

What's more, as time goes on, the hype market of the annual report and the speculation of 2014 performance are about to start. Only the small market value varieties will have the advantage of increasing the share capital and strong elasticity of performance. Therefore, small and medium value market varieties are expected to recover rapidly in the near future, and A shares are expected to enter the overall strong market situation.