China'S Stock Market Is Also Leveraged, Losing Leverage.

For now, after the recent "deleveraging" process, it has also substantially reduced the overall leverage level of the market.

Thus, in the process of gradual stabilization of the market, management does not want to enhance the speculative color of the market again, and in the short and medium term, "T+0" or other measures will be difficult to achieve.

Perhaps, for managers, they prefer to introduce policies such as pensions and other long term funds into the market to gradually increase the proportion of institutional investors in China's stock market, thus creating a good investment climate for the future stock market.

Over the past three months, the sharp fluctuations in China's stock market have been highly vigilant in the global stock market.

However, in view of this round of irrational collapse, China's stock market has fallen by more than 40%, while the decline of general stock has reached more than 50%.

On the whole, after only three months, the market value of China's stock market has been cut off.

Looking back at the data at that time, it fell from the highest 6124 points in 2007 to the lowest 1664 points in 2008. During the period, the market has accumulated the largest decline of 72%, which has become one of the largest market in the global stock market at that time.

Compared with the unilateral slump in 2008, although the overall decline in the current decline is slightly less, the impact of the market has been exacerbated by the full activation of highly leveraged funds.

At the same time, compared with 2008, the current stock market in China has increased a lot of innovative financial instruments, and the market value of the market has undergone tremendous changes.

As a result, the current decline in the stock market has a heavy impact on domestic financial markets and global financial markets.

However, in the context of the full activation of highly leveraged funds, it has also increased the leverage of leverage on the market.

This shows that with the activation of highly leveraged funds, it also accelerates the rising rhythm of the stock market.

However, for leveraged funds, it has a significant impact on the rise of the stock market, but in the process of the decline of the stock market, it has a significant impact.

Therefore, in the context of accelerating the "deleveraging" of the market, it has also rapidly expanded the pressure of "deleveraging" on the market, thus exacerbating the market's falling rhythm.

In essence, the activation of leveraged funds actually plays a significant role in raising the utilization ratio of funds.

Combined with the continuous influx of new liquidity outside the field, it also promoted the leveraging effect of the new market liquidity.

However, after a vigorous "deleveraging" process, leveraged funds suffered a heavy blow, but to a large extent, it reduced the overall utilization of funds.

At the same time, in a large environment of attractiveness of investment in the market, in fact, it also has an impact on the influx of new liquidity outside the OTC, thus reducing the added liquidity of the market.

I believe that for China's stock market, in fact, it can not be separated from a law, that is, "also become capital, lose money."

Obviously, for a market driven by capital, in the absence of sustained capital push, it also reduces the probability that the market will generate bull market.

At present, China's stock market is accelerating.

The process of "deleveraging" is coming to an end.

However, as leverage funds have been substantially cleaned up, leverage will have a big impact on the market's leverage.

At this point, the rising market prices are basically dominated by stock funds.

As for the new liquidity of the market, it is basically dependent on institutional reform and the impact of market policy.

In view of the former, the market can help.

The reform, such as the local pilot "T+0" trading system, aims to achieve the purpose of activating market stock funds, thereby enhancing the overall utilization of funds in the market.

Perhaps this is one of the measures to make up for the reduction of capital utilization caused by the market "deleveraging".

In view of the latter, the market can help.

To promote the gradual increase of the ratio of equity assets of venture capital investment to release more new liquidity.

Or, accelerate the pace of pension market entry and other measures to enhance the market's new liquidity influx.

However, it is more important to use these long term funds to enter the market to significantly increase the proportion of institutional investors in China's stock market, so that we can create a market value investment atmosphere and reduce more speculative colors.

After the irrational early fall, China's stock market will need a longer period of repair.

For today's Chinese stock market, stability is the absolute principle.

And in the premise of ensuring market stability and stability, we should gradually restore market confidence in investment.

Obviously, only when the market investment belief is restored, can the market capital's enthusiasm for entering the market be enhanced.

At the same time, this is the biggest precondition of stock market investment and financing function recovery.