The True Portrayal Of A Share Market: Cheng Also Levers, Also Loses Lever.

Market valuations still have obvious differentiation.

Although it has gone through a round of irrational speculation, the process of "de bubble" is far from over.

Entering the 2016, whether for domestic capital market or global capital market, it is a calm start.

In China's stock market, for example, in the first trading month of 2016, the stock market experienced a single month decline of nearly 20%, creating a single month decline in recent years.

Meanwhile, in January this year, the stock market once again set a new record low since June 2015. During the period, the stock market fell by more than 45%.

Originally, the essence of fusing policy is to create a "cooling off period" for irrational market, but it will not change the operation trend of the market in essence.

However, with the introduction of the Chinese version of the fusing mechanism, it has not only played a stabilizing role in the market, but also played an indirect role in helping to reduce the stock market.

During this period, the Shanghai and Shenzhen 300 index hit 7% fusing threshold in January 4th and January 7th this year, and the fuse had to be halted in a short time.

The launch of the fusing policy has pulled the already calm stock market into a dilemma of irrational decline again, which deserves our deep consideration.

At the same time, the RMB exchange rate and Hong Kong dollar in the period of combination

The impact of large fluctuations and other factors also directly promoted the continued downward trend of the stock market.

Funds determine the whereabouts of the stock market.

However, in a capital driven market environment, the overall leveraging of leverage funds from 2014 to 2015 led to the direct reason why the stock market took full advantage of the stock market at that time.

At the same time, in the context of the continuous growth of the market's money making effect, more highly leveraged financial instruments are fully activated, thus making the market more competitive.

To the climax.

However, "Cheng also levers, fail to leverage" is a true portrayal of the A share market in recent two years.

Obviously, after a series of "deleveraging" process in the second half of last year, leveraged funds have brought a significant drop in the market. During the period, the irrational drop in the stock market has reduced the confidence of market investment to freezing point.

However, in

After several months of short term stabilization, A shares in January were hit hard again.

However, the reason for this stock market crash is composed of many factors.

Among them, the introduction of the fusing mechanism has dragged the stock market once again into the dilemma of irrational decline.

In addition, for the current market, management does not want the stock market to continue running below 3000 points.

The main reason is that the longer the market runs below the 3000 point, or the larger the space to drop, the more potential systemic risks are likely to trigger.

At present, although the overall market risk is still controllable, for any irrational market environment, any risk is unpredictable. If the market continues to operate below 3000 points, it is still necessary to guard against the occurrence of systemic risks in the market.

However, from another perspective, after the recent irrational decline, the market has basically entered the stage of "de bubble" and "deleveraging".

In this regard, after the stock market's continuous risk release process, some high-quality listed companies have gradually demonstrated the opportunities for the long-term layout.

However, from the overall analysis, there are still obvious signs of differentiation in market valuation.

To this end, although the market has gone through a round of irrational speculation, but for some of the high valuation of the early burst stocks, its "de bubble" process is far from over.