Retail Investors Are The Driving Force For Stock Market Growth.

The uncertainty of China's stock market is even more obvious.

However, as retail investors are the driving force of the current stock market rise, the Chinese stock market index will not change as long as the government's intention to destroy the "bull market" will not change.

If the government's policy intentions change or there is any sign of change, the domestic stock market momentum may collapse at any time.

This is the key to how far the bull market in China's stock market can go.

It can be seen that the Chinese stock market opened a historic page in 2014, not only because the stock index went out of the doldrums in the past 7 years, and the stock index rose the world's leading position, but also that the Chinese stock market created two historical records in 2014.

One is in December 5th, the Shanghai and Shenzhen A shares traded more than 1 trillion yuan per day to refresh the world record, and this record was broken by the turnover of about 1400000000000 yuan in March this year.

On the other hand, the total market value of China's stock market reached 3 billion 620 million yuan in December 19th, the first time it was ever over Japan.

The total market value of China's stock market jumped second after the Chinese economy surpassed Japan in 2010.

These two aspects have been refreshed in 2015.

For this round, especially the rapid rise and brilliance of China's stock market, it can not be predicted by any existing theories and models, nor can any macro data or economic index be explained.

Many people believe that this is a bull market without economic growth or without any reason.

As far as China's stock market goes, how far can it go?

Some people even think that the bull market of China's stock market will soon end and the stock market bubble burst from 2007 to 2008.

Of course, when the bull market is determined by countless personal decisions, when will the bull market end? Where will it go? We have no crystal ball and can not see it clearly, but there are two big trends investors are very clear about.

Since 2014, the government's intention to destroy the "national bull market" is very obvious. Especially after last year's new housing loan policy, the government has realized that the Chinese real estate market is already unable to save A Dou. It is impossible to build up the current GDP growth through real estate, so the government has to hope to destroy the "national bull market" to save the economy.

Because in the eyes of the government, apart from this move, it is impossible for the Chinese economy to regenerate prosperity.

Therefore, whether it is loose monetary policy or the theme of making stock market speculation, one after another, one after another.

Under such circumstances, how can all kinds of funds not rush into the market to push up the share price? How can the volume of trading in the market go up to a new high?

In addition, domestic retail investors are the biggest driving force for this wave of stock market rise.

Because of the huge

Before and after the Spring Festival in 2015, a large number of domestic investors entered the stock market, from college students, wage earners to middle-aged people, the elderly and so on.

From the family dining table to all kinds of public places, the topic of public discussion has shifted from how to buy houses earlier and how to enter the stock market.

The retail investors have become the driving force for the rise of China's stock market.

The SFC pointed out that retail pactions accounted for more than 90% of the current market pactions.

Data from China Securities Clearing Center also showed that in from March 16th to 20th, the number of new A share accounts was 1 million 138 thousand and 500, an increase of 57.95%, a record high of nearly 8 years.

And to increase the domestic level

The confidence of the stock market and the influx of more residents into the stock market make the government not only clear the purpose of "national bull market" but also strengthen the atmosphere of "national bull market".

For example, the crackdown on the "rat farm" in the stock market has increased the trust of investors in the stock market; new index products have been introduced to enable investors to have more choices in the market; the Shanghai and Hong Kong exchanges have been launched so that overseas investors can also participate in the Chinese stock market; the financing and winding up business has been more flexible so as to enable more investors to facilitate the use of the tool.

So far, China's stock market has reached a balance of 15000 billion yuan, and the scale of financing has reached 4% of the total market value of the stock market, much higher than that of the US stock market by 2%.

Plus, the current stock market in China.

There are fundamental differences with 2006-2007 years.

First, the amount of wealth held by domestic residents has increased several times, especially in the first ten years.

And wealth holdings increased, and the strength of entering the stock market naturally increased.

Two, whether the old stock investors or new investors, or after the baptism of the previous stock market crash, or the improvement of knowledge level, the knowledge of stock market and the stock market of the stock market are much higher than before.

The three is that the Chinese retail investors are in the forefront of the 1980s and 1990s.

Because these investors do not hold too much wealth and fail to catch up with the growth opportunities of the previous rounds, the risk of gambling has become more intense.