Does A Share The Bottom Of Foreign Investment?

A lot of people are concerned.

Is it possible to be admitted to the emerging market index fund (MSCI) in June 15th? It is certainly worth celebrating, and I think sooner or later, I will definitely go in, because China, as the second largest economy, has not entered the emerging market index fund because its stock market index of the capital market is unthinkable.

Q: at present, the volume of stock index has basically reached the standard of land volume. According to historical rules, the land price will appear after the land amount. This A share may not be able to escape this fate. What do you think of this statement?

Shui Po: there is no land price in Shanghai and Shenzhen stock markets. Instead, there is a wave of volume rebound. We initially define this as a self struggle, self redemption and self revolution in the bear market.

Because in the 2850 place, if the result is serious, the resistance in the field will be saved, and the rebound will belong to this nature.

After the rebound, there will be shock adjustment, so I have repeatedly reminded you that the adjustment of this round of market will not end soon, it will have a repeated bottoming process.

Water skin: first, it is related to the nature of this round of market quotation. This round of market is the market of policy launch. Many people will feel that the approach is fooled. Second, there are more investors involved, because with the advent of mobile terminals, the advent of the mobile phone stock market has made it very convenient to stock speculation. People can not control their hands and enter the market frequently. Third, there are more new leeks.

Of course, it is precisely because of the policy market that the government repeatedly rescues the market in this process. The rescue market has repeatedly delayed the adjustment of the time and space, making everything complicated, and actually lengthened the bear market's time artificially.

Shui Po: This is the first time in the history of the operation of the certification company, because in the past, the bailout market only stayed on the policy level.

The power of the funds used has gone through trillions, and has led to a huge fluctuation in the RMB exchange rate.

The price is very large. Until now, our leaders have repeatedly explained the necessity of rescuing the market, the great significance of saving the market, and the urgency of rescuing the market, and stressed that the fundamental premise is that the market has to return to the market, and that the government bailout is just an emergency solution.

Q: in the near future, after a continuous crossing, a big 94 point line has excited many people. What do you think of this rising market?

Water skin: after two weeks in a row, especially after three days, the market fluctuated by no more than 0.05 points, there was a big line. This line made the people who began to see more excited again. But I still want to remind you that this is actually a self rescue of the funds inside the field.

Bear market fell too much, there is a rebound, down or rebound is also very normal. After the rebound, the energy that this wave is doing is actually the next wave of energy. Here we should remind you again, it is a rebound, not a reversal.

Q: what is the probability that A shares will be included in MSCI? What will be the impact after the inclusion? Will overseas institutional investors play an international role?

Water skin: A shares will not be included in MSCI, of course, it will not become a life-saving straw. On the one hand, it will only come into force in 2017. On the other hand, it will have a process. At the very beginning, it is possible that 5% of the constituent stocks may enter. Now, the eligible stocks may be 400, and the capital involved in 5% is about 20 billion dollars. 20 billion US dollars equivalent to 160 billion yuan can not solve any problem. At most, it is a symbol. The emerging market index has great influence on small areas and small countries, and it is disproportionate to the market of such a large volume in China.

Q: even if foreign investors are willing to be the disc player, will A share bottom?

Shui Po: even if A shares enter the emerging market index, foreign capital begins to break in and out does not mean that A shares will be bottomed out, because we compare the trend of future index of different countries and regions in the emerging market index. It is not necessarily that the Taiwan stock market may have a larger increase. It may increase by 70% in a few years, but Korea is different.

Q: foreign capital preference for undervalued blue chips, such as finance, real estate, biomedicine, automobile, retail and other valuations in historic lows, will there be the effect of gradual revaluation of valuation depressions?

Shui Po: This is actually a step by step, especially in finance. If we confirm that the Chinese economy is a L trend, we will continue to adjust the downward trend. Then there will be a sustained outbreak of bad debts. After the bad debts broke out, bank stocks, insurance stocks, including brokerage stocks can still stand. This is a big problem.

In addition, I would like to remind you that we can make a comparison, take A shares and H shares to make a comparison, such as China Merchants Bank and Minsheng Bank. If foreign capital is passive allocation, why does it not match H-shares? H shares are generally 30% to 40% lower than A shares. We also know that blue chips seldom offer shares, and sending shares is a game of self deception. So if you take cash dividends as the current revenue, it is also a dividend. Why buy A shares instead of buying H-shares? This is a puzzling problem.