The Central Logic Behind The Bull Market

Throughout the last nine months, the Chinese stock market has been "arrogant".

Since the beginning of July last year, the stock market has risen to a maximum of 100%, and the gem index has multiplied several times.

At the same time, as the stock market continues to boom, the number of new accounts opened and the scale of the two financial businesses in the stock market has also increased dramatically, and has created a new record in recent years.

But in the face of the crazy stock market boom, many investors are suffering from "fear of heights".

However, unlike the past, when the stock market continues to be crazy, people's daily and Xinhua news agency did not pour cold water on the frenzied performance of the stock market, but positively affirmed the positive impact of the current stock market.

Recently, Xinhua published an article saying that the economy is under greater pressure, especially the stock market.

In fact, this statement by the official media also affirmed the positive impact of the stock market on the real economy.

This shows that in the context of a stable policy environment, it has also triggered a huge influx of new liquidity into the A share market.

At this point, under the influence of simultaneous improvement of policy environment and market environment, the tempo of stock market has also accelerated significantly.

In the meantime, when the stock market has reached a new high, what is the purpose of the Central Committee in keeping up with the bull market?

As we all know, China's stock market is known as "policy market".

In other words, a piece of paper often has more or less influence on the operation trend of the stock market.

The author believes that our country is at the critical time of economic pformation, and the way of investment promoting economic growth has been proved unable to go through.

Therefore, our country urgently needs to open up a new growth channel to boost the economic development.

Boosting the real estate industry has been seen as an excellent way to boost the economy and boost economic data.

However, after experiencing the golden period of development over the past ten years, many parts of China have been kidnapped by the real estate industry.

At the same time, under the background of high inventory pressure in many parts of China, de stocking has become a trend.

Therefore, from the perspective of management, the real estate industry can not be lost, but maintaining the status quo may be the best.

To boost the stock market, this is completely different from the previous management practices.

In the past, the state was afraid that the stock market would be caught in a stir.

Because once the stock market is activated, it is difficult to press down, thus affecting all aspects of social development.

But today, the significance of boosting the stock market is quite different.

On the one hand, under the great environment of reform and anti-corruption, the stock market will undoubtedly become the best place to hide and enrich the people.

On the other hand, boosting the stock market is conducive to upgrading.

The direct financing function also pave the way for the subsequent registration system.

As a result, it has satisfied the common people.

Desire can also meet the overall needs of social financing.

It is worth noting that, from the strategic perspective of management, A shares should be continuously boosted to enhance the attractiveness of the stock market.

The other side will also be

Revitalize the stock market and make use of the tools such as Shanghai and Hong Kong to realize the "interconnection and interconnection" between the two markets, and finally create favorable conditions for the strategic deployment of the country.

In fact, in the recent A stock market continues to boom, at the same time, the Hong Kong stock market has been ready to sign.

In April 8th this year, for example, the share of Hong Kong stocks had been exhausted for the first time.

At the same time, the Hong Kong stock market has also hit a new high in recent years.

Obviously, first of all, to boost the A share market, and then to boost the Hong Kong stock market through the liquidity in the A share market, to a certain extent, is in line with the demand of "interconnection and interconnection" between the two markets.

According to statistics, the premium rate of A shares is still 28%.

However, compared with the premium rate of nearly 35% days ago, H-share's valuation advantage still exists.

Therefore, under the background of "interconnection and interconnection" between the two markets, the discount premium rate between AH shares is expected to be further narrowed.

It is worth noting that behind the central bull market, there is a deeper consideration. That is, with the help of the two capital markets, we will strengthen the functions of Shanghai and Hong Kong as well as the future Hong Kong and Hong Kong, and add more chips to the future A share in MSCI, and further boost the process of RMB internationalization.

To sum up, I believe that since the stock market has entered a bull market, there is no need to worry too much about the stock market's idea of turning from a bull to a bear again.

From the perspective of strategic layout of the Central Committee, only when the stock market goes on the market, can it really help improve the direct financing function of the stock market and boost the smooth pformation of China's economy.