Investors Expect The Dream Of Wealth Appreciation To Collapse Again From The Stock Market.

When I talk about China's stock market, I have said one thing: "China's stock market is neither an economic category nor a category of investment science". Three

If I am to classify the stock market, I will include the Chinese stock market in the category of literature and art.

This is no disrespect to China's stock market, but the most authentic portrayal of China's stock market over the past 20 years.

Taking the current dramatic stock market as an example, in the case of a substantial decline in the real economy, the Chinese stock market started a startling surge in early 2014. The stock index has exceeded 5000 points in 1 years and has risen by more than 150% from 2000 to the worst in the world.

However, the surge will inevitably lead to a sharp fall. From June to now, China's stock market has gone through a startling crash. The stock index has fallen below 3000 points. The 1000 shares have become the norm of the stock market. Many of the stock market investors who have gained a lot from the stock market in the first half of the year have lost their money. Some of them have been leveraged by leveraged securities and leverage. The government has adopted the most necessary means to support the market, and even does not allow some institutions to sell stocks below 4500, but the market confidence has reached the limit.

Like many cycles in the past, investors expect the dream of increasing wealth from the stock market once again to be shattered.

However, the more weird logic behind it is the weird logic behind it.

Taking the current stock market skyrocketing as an example, in the case of extremely difficult economic fundamentals and a sharp decline in profits of listed companies, the so-called bull market has quietly started. Its performance is beyond the imagination of most economists and is difficult to explain in normal economic logic.

Why did the stock market go against the trend when the real economy was bad?

Some people attributed the current bull market to the "reform dividend" including financial reform, and some attributed it to the expectation of monetary easing under the downward trend of the real economy. Some even attributed it to "national will" and stressed that making the bull market stronger and stronger is a "national strategy".

And this strategy of "national bull market" has gained a series of circumstantial evidence: in the process of the current stock index soaring, every market adjustment has been immediately followed by some departments and state media. Some top executives of the financial sector have bluntly stated that "the stock market boom can feed the real economy", and some national level media have been saying "the bull market has just started after the 4000 point".

This hint and clear expression of the state's support for the market results in the massive influx of funds into the stock market and the craziness of the whole population. Even when the danger is imminent, many investors are still firmly convinced that the 5000 point is not enough. If the market does not break through the 6124 round of the last round, it will not be a bull market at all.

Even when the danger is obvious, investors have lost their basic sense. They ignore the hints of risk, ignore any warning indicators, and go all in to kill them.

In the case of inflation, any rational thinking will be laughed at by the market, but the subsequent slump gives fairness to law and reason.

When more than 3000 stocks are like "journey to the west", all of them are fine. No matter whether they have wings or high flying in the air, they can not remind people of the history of over 20 years.

In some cases, some media have no integrity, some organizations have lost their sense of shame. When the collective logic of collective action advocates "bull market", China's stock market has become a place where some interest groups collectively cheat in financial fraud.

Some people flicker, the stock market is good, and has a supporting role in the market economy. The author does not understand the reason in all economic logic: the stock index is high, is the performance of the listed company high, or is the false prosperity enabling the real economy to get better? Obviously, this is a very absurd self deception.

SFC chairman assistant was arrested, CITIC Securities executives suspected of insider trading in large areas, investors understand that the previous rescue measures failed, it was a large rat convened a group of mice to study how to protect granaries.

This is the real source of confidence anemia in China's stock market for a long time.

In fact, I believe that even if China's macro-economy is worse, the confidence of the stock market should not be so horrible when the monetary policy is loose.

The fundamental factor behind this is still the essence of the "money market" in China's stock market and the loss of trust in the market by regulators.

As we all know, China's capital market has developed into one of the largest capital markets in the world in the past 20 years. In recent years, the scale of IPO has always been the first in the world, but it hasn't correspondingly returned dividends to ordinary investors, giving reasonable return on investment, excessive price earnings ratio, in the name of the delisting system, intensified insider trading, and no mandatory dividend sharing system, making China's capital market a real money market and a real loss market.

That is to say, in the past 20 years since the operation of China's capital market, the key to investors' "confidence anemia" is that the stock market has not formed a system to protect investors' interests and give investors a reasonable return on the positioning of the system.

For a money market, everyone is fighting.

The sharp rise and fall of the stock market is an inevitable result.

From now on, the bull market is essentially a "leveraged cow" driven by monetary easing under the expectation of monetary easing.

Leverage has become the most important force in the stock market boom. Under the guise of a series of so-called financial innovations, such as OTC capital allocation and umbrella trusts, the bubble grows crazily, but people who are out of their senses are totally unconscious.

And the panic that loses entity support, and management's brutal, rough leveraged behavior, all these efforts are empty.

If inflation is a national will, the collapse is undoubtedly the result of the direct intervention of the state, at the management level.

The logic of China's stock market has changed significantly under the obvious intention.

Management thinks that by breaking down the lever, it breaks the leg of mad mad cattle and allows the stock market to enter the so-called slow bull channel.

However, our management is too confident and too lacking in basic awe of the market. As a result, the stock market has fallen sharply after the collapse of confidence. Despite the daily rescue measures, however, when the general manager of the rescue market and the assistant chairman of the SFC were investigated, the top executives of CITIC securities, the largest brokerage company in the state owned enterprises, were suspected of insider trading on a large scale. Once again, Chinese retail investors felt the horror, the ups and downs of the "horror blockbuster" in the market and the dark water they did not know.

A lot of the market.

When the market regulator is ignored, when the interests of a large number of retail investors in this market are trampled, the confidence of investors in this market can be talked about.

If a capital market does not put the interests of investors in the first place, it will put money and financing in the first place. Such a capital market is doomed to have no future.

When investors' confidence and illusions are exhausted, but investors are aware of the nature of the capital market, it is rather hard for them to return to the capital market once again.

The stock market crash is actually not terrible. What's terrible is that in the past 20 years, the stock market's concept, positioning, and stock market regulation have not only made little progress, but in many ways.

The stock market has become a game of anti intelligence, and investors' hopes and confidence have finally collapsed after several ravages.

The last drop of blood in China's stock market must be the tears for Chinese investors to bid farewell to the market.