The Risks Of Stock Market Still Exist. How Long Will The Bull Market Take?

As long as all participants in China's stock market work together, the bull market that starts now is a long and healthy bull market.

The stock index began to rise in March 2016.

Is this the start of a healthy bull market? How far can this bull market go? Will there be a stock market crash? Can companies get financing as the stock index rises? Can investors get investment returns?

In the third Plenary Session of the 18th CPC Central Committee, it put forward: "improving the multi-level capital market system, promoting registration system reform, and promoting equity financing through multiple channels."

The construction of multi-level capital market is gradually reducing the risk of small and medium investors' stock investment, and promoting equity financing through multiple channels has expanded the financing channels of enterprises.

The 13th Five-Year plan deleted the "strategic emerging industries board".

These policies that are consistent with national conditions have enhanced investor confidence.

Two, industrialization of scientific and technological achievements is a driving force for listed companies to improve their performance.

At the NPC and CPPCC news conference, Wan Gang, Minister of science and technology, said: "we need to build a pfer team of scientific and technological achievements that understand technology and understand the market."

At present, our country has a large number of scientific and technological achievements, and even the unique scientific and technological achievements of the world.

These scientific and technological achievements are the guarantee of China's economic pformation.

However, we are faced with a bottleneck: we lack a team that can pfer scientific and technological achievements to enterprises.

The construction of the pfer team of scientific and technological achievements requires the joint efforts of both scientific research institutions and enterprises.

At present, Shanghai Stock Exchange and Shenzhen Stock Exchange are mixed markets of institutional investors and retail investors.

In such a mixed market, if market speculation prevails, retail investors will be treated as "leek".

Such a market is not only a disaster, but also easily lead to social instability.

China's stock market must establish a good atmosphere, encourage listed companies to pform scientific and technological achievements into innovative products, enhance profitability, encourage value investment, and the better the listed companies' performance, the more dividends they receive, the more financing they will get in the stock market.

In order to establish a good atmosphere of China's stock market, the "zombie company" of Shanghai Stock Exchange and Shenzhen Stock Exchange was pferred to "new three boards" through the pfer board system.

"Zombie company" can be defined as four years of deduction in five consecutive years.

Net loss for five consecutive years.

Through the pfer board system, the quality of listed companies on the main board will get better and better, and share dividends will also increase. Investors' investment income mainly comes from share dividends rather than high spreads and low prices.

Only when we enter the main board can we get more financing opportunities.

Four, there are still risks of stock market crash.

Since March 21st, China Securities and finance company has resumed the five period varieties of 182 days, 91 days, 28 days, 14 days and 7 days of the pfer financing business, and has reduced the financing rate to the deadline.

The pfer financing business can only be used in the stabilization fund. When the stock index fluctuates violently, the stock index will fluctuate. Otherwise, this business will become a stock hazard potential.

Some netizens suggested that the margin trading business be abolished, because under the trading board and T+1 system, the scale of the stock market's import and export volume is limited, and the "two melting" increases the stock outflow and discharge. When the stock index fluctuates violently, the "two melt" incoming and outgoing flow will immediately flow to the restricted stock import and export, which is very easy to cause "stampede" and trigger a "stock disaster".

In May 19, 2015, the balance of margin trading between Shanghai and Shenzhen two cities was equivalent to 5 times that of the same period in 2014.

Soon after, the stock index plunged.

The "bubble cow", which is blown up by leverage funds, is the destroyer of China's stock market and the "time bomb" of China's stock market.

The "stock market disaster" triggered by leveraged funds is less than a year old.

Healthy bull market needs policy support, performance support of listed companies and capital inflow with value investment.

If you want to leverage the capital to drive foreign capital into the market, then this is to cure poison and quench thirst.

Five, small investors must use their own funds to buy stocks.

The gradual decline in interest rates on bank deposits is a trend.

At present, China's stock market has more and more listed companies dividend rate over bank deposit rates.

Households will buy some stocks with long-term investment value with their own funds. In the long run, the investment income will certainly exceed the interest income of bank deposits.

Small investors must use their own funds to buy stocks with long-term investment value, and never borrow money to buy stocks.

As a long-term investment, investors do not have to worry about short-term fluctuations in stock prices, but pay close attention to the operating performance and development prospects of listed companies.

Borrow money to buy stocks. Once the loan is due and the share price falls, the borrower will lose everything.

The stock market crash in June 2015 caused the billionaires to lose everything because they bought shares with the stock, so the lesson of blood was more than a few cases.

Six, safeguard the healthy development of China's stock market.

Since June 2015, less than a year ago, China's stock market has experienced a rare boom and fall, which has hurt its strength.

Now that China's stock market is recovering, we should cherish the hard won bull market.

As a regulator of the government's securities market, the SFC must ensure the correctness of its policies.

As long as the listed companies enhance their profitability and improve their performance, they will win the favor of investors.

If investors insist on value investing, they will be able to get the expected return on investment.