It Is Still A Long Time To Solve The Development Dilemma Of China'S Stock Market.

Now the stock market is entering a stage of "overcorrection". At this stage, any investment organization or individual with luck will be disappointed.

Because, after 7 months of bear market, more than 80% of shareholders have lost the desire to continue to fight.

With so many people dropping out of the gambling board, who can handle it?

Blow up again in the short term?

January 26th is another day of bad dreams for Chinese stock market and shareholders.

The Shanghai Composite Index fell below 2800 of the psychological line of defense.

Around 3:21 p.m., the decline was more than 6.4%, the Shanghai composite index was 2749, and the decline was 189.

The "China China Mobile", which triggered the burst of the stock market bubble in 2015, has also fallen by more than 6%. At the same time point, the price is 9.99 yuan a share, and the 10 yuan that I predicted in June last year is completely on the top. It is estimated that the "middle train" is not only 10 yuan, but also will continue to fall.

When a typical stock market that pierced the stock market bubble dropped to a low level, it was also the beginning of the entire stock market. That is to say, from 2800 to 2500, it should be the bottom of the Chinese stock market.

So why did I use the word "revenge"?

Or back to the psychological factors of the stock market investors to consider the problem.

You know, when the stock market is soaring, no matter whether the stock value is worthless, speculators will throw money into the stock market.

This is the case in the eight months from October 2014 to June 2015.

If the government did not rescue the market at 4000 last July, then the lowest point of the stock market could complete its process of being touched in 2015.

2015

To a certain extent, the time of foam explosion has been greatly extended, so that more speculators have more and more greedy ideas which should not be allowed, which has also caused greater destructive power to China's stock market.

Today, many bank stocks have lost the price that they had risen since January 2015, and even dropped sharply a year ago.

For example, the price of Bank of China today is 28% lower than that of a year ago, and Minsheng Bank is 14% lower.

The decline of bank shares is also representative on the one hand.

The weakness, especially the real estate downturn and the bad debts of banks, is also the extreme negative effect of investors on the stock market.

You know, the biggest investors in the stock market are institutions, especially banks and funds, as well as the social security funds of government departments and national investment companies.

Nearly 200 million of shareholders are just playing with those big players.

Those investment institutions are generally big bets before 2800 points, so falling below 2800 is also the time for these big players to start bleeding.

Big players are not like small investors. They have strong funds to withstand further plunge in the stock market.

Therefore, after falling below 2800 points, it may still fall, but the latter will not be as fierce and frightening as before.

Listed companies lack the ability to make profits and dividends, and lack the habit of paying dividends, which is the most terrible injury in China's stock market.

This kind of injury determines the Chinese stock market's "gambling" attribute.

Listed companies "gamble" the greed of small and medium-sized shareholders, so the main purpose of collecting money is financing.

Shareholders' gambling is that they think they are more stupid than other "fool" speculators.

Who knows, those who think the most intelligent speculators are the most stupid people in the end.

The government is also betting that companies and investors are rational, but the government is wrong. Companies and investors are not only rational but also irrational.