China'S Stock Market Is Indeed A Retail Dominated Market.

One of the characteristics of China's stock market is that investors' structure is highly scattered. If the securities account is opened, the current number is nearly two hundred million, of which more than 99% are individual customers.

Of course, if the assets held by accounts are accounted for, the proportion of institutions will increase substantially.

However, in the case of the market value of free tradable shares, the vast majority are still in the hands of individual investors.

Among the individual investors, the assets below 100 thousand yuan accounted for the overwhelming majority.

In addition, in daily pactions, 80% of the business is done by individual investors.

From these levels, the Chinese stock market is indeed a market dominated by retail investors.

It is necessary for China's capital market to mature and solve the problem of retail ownership. From the perspective of professional investment in securities, retail investment is not a good method either.

However, to overcome the trend of retail ownership, it is necessary to solve the problem from the source rather than unilaterally developing institutional investors. As long as the funds of individual investors are handed over to institutions, the problem of retail ownership will not exist.

On this issue, the parties concerned should make an in-depth study of it and form an objective judgement so as to facilitate the targeted solution.

A recent report has also mentioned this point. After discussing the characteristics of retail ownership in detail, it is also mentioned that this situation makes the market lack of long-term investment philosophy, with ups and downs, and irrational fluctuations.

It should be said that the existence of these problems is undoubtedly related to the characteristics of the retail market.

As early as more than 10 years ago, the regulatory authorities put forward a bold slogan called "ultra conventional institutional investors". Although it did not continue the formulation again, in practice, institutional investors' policy care and tilt were everywhere.

But so many years passed, even though

As the volume has increased considerably, the influence of buying and selling activities on the market is obvious, but there is no obvious change in the disadvantages brought about by the various retail businesses mentioned earlier.

Or it can be said that although the structure of investors is changing, the market remains unchanged.

Why can't the pattern of retail ownership change? Is it because Chinese individual investors are stubborn, and even have the ability to assimilate institutional investors who are hard to support? I am afraid not to say so.

To clarify this problem, we need to analyze it from the source.

First of all, although China is already the second largest economy in the world, but because of the large population base, the average person's wealth is still very limited, and the gap between the rich and the poor is serious. So, for most individual investors, there are not enough investment funds to be invested.

And because investment channels are narrow, relatively speaking,

It is the mass investment market with a low threshold, which forms the realistic basis for the retail market.

Secondly, in the past more than 10 years, institutional investors have made some progress under the impetus of all kinds of forces, but this is mainly reflected in the scale, their investment philosophy and investment effect can be said to have been criticized by the market.

This should be recognized, which is related to the economic environment and is also related to the real conditions of the market.

Under these circumstances,

The advantages are hard to achieve, and can only follow the trend, like a large retail investor.

A few days ago, some public opinion put forward the corresponding problems when discussing the operation of the national team.

Although the "national team" is also making a "short difference" in high dumping and low absorption, it can not be verified or falsified, but the private sector is questioned based on the market structure. At least, it also shows from one side that even the introduction of trillions of institutional investors can not change the characteristics of the retail market. The reason here can not be simply attributed to too many individual investors in the market.

Third, any market has its own characteristics, which is not essentially related to investor status.

In a sense, in most countries and regions, the stock market is dominated by individual investors, where private investors invest indirectly in the form of investment funds.

The reason why the market does not appear in retail market is because the economic environment and market conditions play a decisive role.

Therefore, it is not objective to blame China's retail investors and immature investors. It is very impersonal to blame the problems of investors in the market.