Pi Haizhou: Beware Of The Risk Of Financing Stocks

For example, in November 28th, the A share market volume reached 710 billion 500 million yuan, which not only set a record of the single day turnover in the A share market, but also exceeded the peak volume in the history of the US stock market (July 26, 2007, 99 billion 500 million US dollars, or about 610 billion yuan), becoming the largest daily volume of a single country in the history of world stock market.

In December 5th, the A share market once again recorded the new day's trading volume. The turnover was $1 trillion, which reached an astonishing 10740 billion yuan.

This crazy performance of A shares is rare in history.

Even in the bull market in 2007, the A share market was not so crazy.

At the time, at that time, the turnover was far from the present.

The current Shanghai composite index is actually less than half of the 2007 bull market.

Why is this happening? This is of course closely related to the speculative nature of the A share market.

Margin trading is one of the most important reasons for this opportunistic achievement.

Data show that as of December 4th, the Shanghai and Shenzhen two city financing balance as high as 873 billion 500 million yuan, a new high, compared with six months ago, the balance of less than 400 billion yuan has doubled; in December 4th, the amount of financing purchase was 156 billion 400 million yuan, accounting for 17.63% of the A shares turnover.

Therefore, the current market is known as "bull market on the lever" by public opinion.

In fact, this is also the first time that the financing business has played the most important role since the formal start of margin trading in March 31, 2010.

Based on the continuous rise of stock market in recent period, the continuous expansion of stock financing scale, whether for the development of the market, for the income of the broker, or for the investors who participate in the financing, can be called "multi win".

This is why investors are actively financing, resulting in the rapid growth of the financing balance in the recent period.

After all, for investors, financing has brought about an increase in investment income. Investors finally realized the happiness of borrowing eggs from chickens. Why not?

However, although investors are currently working on

Intoxicated, some investors even played the stock market after they had tasted the sweetness of the financing, and further enlarged the investment leverage. But here, I want to remind investors that financing stocks must be risk conscious.

After all, financing and speculation is a double-edged sword for investors.

Although in the rising market, financing will bring the increase of investors' income, but once it falls,

It will aggravate investors' losses.

On this issue, the lessons of *ST Chang nine financiers should not be forgotten.

In fact, it is the 1st anniversary day of the tragedy of *ST Chang nine.

The stock was cut off for ten consecutive trading days from November 4, 2013 to December 24, 2013 as a result of rumors of Ganzhou's rare earth abandoned by the takeover target.

As a result, the stock's investors broke out.

These ones here

Not only did we lose all the investment cost but also became a "debt" because of the explosion.

Even in the face of the current hot market and no capital investment.

More sad is that recently, Hengtai securities to a *ST Chang nine of the financiers to court, demanding that they repay the 380 thousand yuan debt owed by the explosion.

*ST Chang nine's financiers have become the "Lambs" at any time.

Of course, from the current stock market, "*ST Chang nine case" is only a case, not necessarily universal.

But "*ST Chang nine case" clearly tells investors that financing and stocks are risky.

As for the current stock market, the risk of financing stocks is obviously increasing.

After all, the current fast rising market is not sustainable.

In fact, along with the sharp rise in stock index, the risk of stock price fall is also pregnant.

As a mature investor, they often choose to take the lead out of this crazy market.

In fact, foreign investors do this.

According to the data released by Bloomberg in December 2nd, ETF, which aimed at China's domestic stock market, has recently suffered a lot of capital withdrawal.

In the two week ended November 28th, traders withdrew about $845 million from China's A50 ETF of 5 billion 700 million US dollars, creating the largest outflow of the fund since its establishment in 2012.

The $9 billion 700 million A50 ETF index has outflow $585 million, the largest since 2009.

The withdrawal of foreign investors has sounded the alarm for A share's mad cow trend.

It is also for this reason that domestic investors must guard against investment risks that may arise from the financing of stocks.

First, in the current stock market mad cow situation, do not increase the amount of financing; two is to gradually buy the stock to be liquidated, return the funds back to the broker.

In fact, under the present circumstances, it is no doubt a wise choice for investors to pocket the earnings of financing stocks, which is the reason why they eat the middle part of the fish.