Is It A Good Thing For Retail Investors To Withdraw Most Of Their Stocks?

A shares are famous for their high turnover rate and high speculation. Now that retail investors withdraw from the speculation of most stocks, is this not a good thing? It shows that value investment is recognized and let the national team play games with the organization. Is this not what everyone expects?

However, careful analysis will find that once a large number of retail investors choose to rest or withdraw from the market, some retail investors' enthusiasm for the market is gone.

At present, the turnover rate in the A share market is 2.95 times that of the 20 day mobile average turnover / total market value, which is close to the low end of the two-year range and is similar to that of November 2014.

According to statistics, the volume of Shanghai composite index shrank to 118 billion yuan in May 25th, a record low in October 2014. Since May 9th, the Shanghai Composite Index closed at 2850.86 points and 27801 points, with an average daily fluctuation of 0.5%, far below the 3% level in January this year and 5% in July last year.

In the past two weeks, the Shanghai Composite Index has been fluctuating at 2800 points. Volatility It hit a new low in December 2014, with a lower turnover rate, down 80% from last year's high. Some investors may say that the mature and active NASDAQ turnover rate is only 242%. The turnover rate in the A share market is not low. What's so good about it?

In addition, not all stocks have low turnover, but those with no hype value have low turnover. Some stocks have a low turnover rate, because some people just want to pay dividends. Why do they need to change hands?

For example, many people holding large blue chips did not want to make money by hype, but to earn dividends for more than one year's fixed deposit. This shows that some investors like buying. Bank shares Long term holding will not buy today and sell tomorrow. If that is done, it is equivalent to sending money to the broker.

It is worth noting that the blue chips will also split up. Excess production capacity The inefficient "zombie enterprises" only know that they earn high salaries for executives, but when it comes to dividends, they are not only "zombie" in the physical field, but also "zombie" in the stock market.

Manufacturing surplus capacity, occupying credit resources and accumulating financial risks, "zombie enterprises" have become a virus that impede industry development and economic growth. In the A share market, a lot of "zombie enterprises" rely on all kinds of means such as government subsidies, shell protection and so on. They will not go away in the A share market and enjoy the convenience of financing continuously. According to media reports in early April this year, 265 listed companies in the A share market have been reduced to the "zombie enterprises" in the capital market. The prominent feature of these companies is the continuous financing of the A share market and the huge amount of subsidies they receive from the government every year.

It is a good thing that the listed companies that have been "zombie" are exposed as early as possible in the capital market.

Compared with those "zombie" companies, the other extreme is that stocks with short term concept hype are highly mobile.

In April 20th, for example, data showed that the turnover rate of 60 stocks was over 20% on the same day. Among them, the turnover rate of 3 stocks in the name of home exchange, blue ocean and China was over 50%, and half of the chips were changed. Among them, the highest exchange rate reached 67.14%, and the name exchange also became the two most frequently traded stock in many consecutive trading days.