Is China'S Stock Market Cheap Or Cheap? Many People Don'T Quite Understand.

In the current market environment, although there are many weighting stock valuation advantages have been quite prominent, but if there is no continuous care of funds, then simply rely on the stock market funds can not pry up such stocks.

On the contrary, in the market environment driven by stock capital, because of the relatively limited fund utilization rate, some stock markets with a large early decline and low circulation market value have also gone out of the fast rebound market.

It can be seen that under the special market environment of the A share market, the level of stock valuation is still a reference index, but it is not a decisive indicator.

In practice, the market will eventually be concerned about the continued impact of capital.

In other words, in a capital driven market environment, we still have the capital to decide.

998 points in 2005, 1664 in 2008, 1849 in 2013 and 2850 at the end of August 2015.

From the low market point of the past ten years, the operation of the market as a whole has been continuously increasing.

If 2850 is used as a new starting point, the current market position is quite reasonable.

However, if compared with past market lows, the current market position is slightly higher.

However, in terms of the average price earnings ratio corresponding to the corresponding time periods, the overall value of the market shows a continuous upward trend.

Among them, in the 5 and June 2005 and October 2008, the average price earnings ratio of the A share market was between 14 and 16 times.

However, in combination with subsequent market performance, this p / E level often achieves the bottom stage of the market at that time.

However, the market price earnings ratio before and after June 2013 appears to be even lower.

Among them, the Shanghai stock market's average price earnings ratio is even as low as 10 times, and is far below the lowest value in 2005 and 2008.

Among them, in the vicinity of the market high in 2001, the A share market recorded an average price earnings ratio of 60 times.

Between September 2007 and October, the A share market also recorded a 60 fold increase in the P / E ratio.

As for the time before and after the 5178 high points this year,

It also recorded close to 60 times earnings level.

Affected by this, the subsequent market also quickly entered the adjustment market.

In the past three months, it is the most sensitive time for the A share market to fall.

During the period, taking the Shanghai Composite Index as an example, its cumulative maximum decline was as high as 45%, while the GEM market, which had a better performance earlier, showed a decline of more than 55%.

Then, after a rapid decline in the A share market, the position of the current market index, is it really cheap or fake?

Up to now, the Shanghai Stock Exchange A average price earnings ratio is about 16.72 times, the Shanghai composite index 180 average price earnings ratio is about 12.57 times, the Shanghai Composite Index 50 average price earnings ratio is about 10.14 times.

As for the Shanghai Composite Index 380, its corresponding average price earnings ratio is about 38.5 times.

At the same time, specific data from the Shenzhen market can also be used to assess the valuation level of the current market.

Among them, although Shenzhen A shares average price earnings ratio is about 44 times, but the major index

There are still great differences.

Specifically, the average price earnings ratio of Shenzhen's main board is about 27.1 times, and the highest value in this year is about 43 times.

The average price earnings ratio of the small and medium board index is about 55.41 times, and the highest value in this year is about 85 times.

As for the gem index, its average price earnings ratio is still nearly 90 times the level, but has fallen by 146 times the highest in the year.

In addition, in view of the more than 2000 shares in the A share market, there is a great difference in the price earnings ratio of stocks.

Among them, as of October 19th, there were 56 stocks with less than 10 times dynamic price earnings ratio in the two cities, and mainly banks, brokerages, insurance, electricity and other sectors.

The stock market in the two cities is less than 15 times dynamic price earnings ratio, and there are only 131 stocks.

However, from another perspective, the stock market data of the two cities, 520 of the two cities with a P / E ratio of 1000 times, and 595 of the 500 times earnings.

There are as many as 1221 stocks with a dynamic price earnings ratio of 100 times.

By the above

We can see that there are huge differences in the valuation level in the market.

During the period, although the market index has fallen sharply, it is still difficult to disguise the risk of overvaluation of some stocks.

By the same token, with the sharp decline of the overall market valuation level, some of the undervalued stocks have a more significant valuation advantage.

However, the author believes that in the A share market, because the market trend is still dominated by capital drive, it is the kingly way for the market index or the specific stocks to attract the attention of the funds.

However, similar to the past year's crazy bull market, under the influence of the strong push of various funds, the market has finally gone crazy, and many stocks which lack basic support have been flying to the sky for a long time.