Pi Haizhou: Leverage Is A Double-Edged Sword.

In the press conference held at the 5 day of the SFC, in view of the current stock market situation, the spokesman of the securities and Futures Commission, Deng Ge, expressed the hope that the majority of investors, especially new investors in the market, would invest rationally, respect the market and fear the market, and bear in mind that the stock market is risky.

This is the first time that the SFC has published its views on the current market for the first time, and the reminder of "fear of the market" is very timely.

Since November 24th, the evolution of the A stock market has been quite violent and different from any round of the market history in the A stock market.

Not only the rise of the market has been fierce, but also the volume has increased dramatically.

In the last ten trading days, the Shanghai composite index continuously conquered 2500 points, 2600 points, 2700 points, 2800 points, 2900 points and five cities, and the daily turnover of two cities also created a new record of 710 billion 500 million yuan, 914 billion 900 million yuan and 10740 billion yuan in China's stock market and the world stock market.

The reason why A shares have been able to get out of this trend is one of the magnifying effects of investors' funds.

Because of margin trading, investors' share capital has been magnified.

As of December 4th, the balance of financing in Shanghai and Shenzhen two cities was as high as 879 billion 600 million yuan, a new high in history. In December 4th, the amount of financing purchase was 156 billion 400 million yuan, accounting for 17.63% of the A shares traded on that day.

Not only that, some investors even buy stocks through the way of distribution, and the ratio of allocation is 1 to 3 and 1 to 5.

Investors' funds have multiplied several times.

Because of this, the current market is known as "bull market on leverage" by public opinion.

In the current rising market, the leverage effect brought by this kind of capital leverage is obvious.

The most amazing legend is that a large Shenzhen household can see the recent trend in the market. It buys 10 million shares of a brokerage company and 10 million shares of Minsheng Bank (600016 shares), and 3 pactions, excluding the cost of financing, making a net profit of 2 hundred million.

Leverage has brought the mythical money making effect.

However, in the admiration of this myth of making money, investors must have a sense of risk, especially to recognize the risk of such leverage.

Although in the rising market, capital leverage will bring money making effect to investors, and even enable investors to get rich overnight.

It is always a double-edged sword.

Although under the action of this kind of capital leverage, the stock market's rising trend is like the rainbow, and the money making effect of investors is increasing rapidly. But once the market changes, the stock market's decline is also fierce, and its fall will also exceed people's imagination.

In the morning of December 5th, the Shanghai Composite Index fell sharply by 165 points in half an hour, which is just the present time.

A preview of the drop in the market situation, and in such a sharp decline, the loss of investors is also huge. Investors with capital leverage will also double their investment losses.

For this reason, for the present

Market, investors must have an awe of heart, reduce leverage speculation.

In particular, those with high proportion of capital allocation and investors who are heavily engaged in financing and speculation should reduce the leverage of stock investment as soon as possible.

After all, with the recent sharp rise in stock index, the short-term investment risk in the market is also increasing.

And from the perspective of rational investment, investors also need to do their best. Excessive leverage of investment will only exacerbate investment risks and ultimately escape the fate of investment failure.

Although such investors do not exclude stage success, they are likely to lose everything if they fail.