The Awkward Situation Of A Shares' Fluctuation To Zero 'Can Not Help But Arouse Deep Thinking.

While the Merrill clock is disrupted at the same time, "asset shortage" has become an obstacle that investment can not be bypassed.

This is the volatility of the market and stocks and the attractiveness of the funds. The market is constrained by the stock index futures and the dystocia of the options. It is difficult for the organization to play its due role in the market, so it has to adopt the retail style of operation passively.

The news of Tuesday's "Shanghai stock index's fourteen year low" has sparked widespread concern among investors. This has also pushed the recent market shrinkage and volatility to the public eye.

After the "1000 stock limit" and "1000 shares limit", now ushered in "thousands of strands", the recent market is really no one can start.

In the final analysis, the solution to the current market volatility and the vicious circle of capital departure depends on the sound investment channels and the further enrichment of investment instruments.

Doubt: why the money does not come?

From historical experience, narrow fluctuations often correspond to the low willingness to participate in capital.

However, it is not fair to compare the amplitude of August 30, 2002 0.26% with the recent ones, mainly because the scale of the market has long been different.

The exchange data showed that in August 2002, the number of A shares was only 1197, and the total market value of two cities was only 4 trillion and 650 billion yuan. In August this year, two cities had 2930.

The total market value is 49 trillion and 160 billion yuan.

It can be seen that the current liquidity predicament is even more serious than before.

The current narrow oscillation is similar to that of the extremely low amplitude in history. Therefore, we can not simply use historical experience to say that now is the beginning of the new round of "ox bear".

But why exactly?

Gradually showing boredom or even avoiding fear?

On the one hand, with the gradual narrowing of the volatility of the two markets, the market arbitrage space is also rapidly decreasing, and the difficulty of intra day trading has increased rapidly, which has led to the outflow of active funds in the field, as well as the continued outlay of funds on the sidelines.

Under the dual attack of the departure of funds and the lack of funds outside the field, the emergence of the "one day tour" that led the "leading tomorrow" today seems to be expected.

This has further led to the gradual loss of market vitality, and institutions and retail investors who continue to make money in the field can only passively choose to "zombie".

These will continue to exacerbate the decline of market volatility, and funds are caught in a vicious circle.

On the other hand, while the circulating funds in the market are gradually shrinking, the "bloodletting" of funds is far from being stopped.

As of Thursday, this year, the two cities have ushered in 119 new listings.

Moreover, while issuing expansion, debt to equity swap and reduction are also continuing to form active diversion of A shares.

This makes the market which is short of money seem to be getting more and more difficult.

Contemplation: maturity is inelastic.

Some investors may say that the fluctuation of the Shanghai composite index is related to the smaller fluctuation of the heavyweight itself. However, careful observation shows that the volatility of the gem which has always been the most active in the market has also experienced a sharp convergence in the near future.

According to information data, following the Shanghai Composite Index on Tuesday, the amplitude of the gem index further narrowed to 12.71 points after setting a low level of intraday amplitude of 13.70 points, which has set a new low since November 18, 2014.

With the emergence of a series of "strictest" new rules, the trend of malicious speculation and excessive speculation in the original A share market has been significantly suppressed. For the strong speculative and strong leveraged markets that were frequently "thousands of shares" or "1000 shares", the current regulation can be very effective.

However, it is followed by fluctuations in the market and even the "market of thousands of stocks". Does that mean that the market is mature?

The answer is obviously not so simple.

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And excessive speculation has been curbed, accompanied by the market elasticity has been suppressed, and only once appeared in the stock market heavyweights or even bank shares on the "ECG" trend now began to appear in many small cap stocks.

For example, on Wednesday, only 17 of the 2682 stocks that normally traded were more than 10% within the day, while those with less than 1% in the day reached 366.

The sharp convergence of stock volatility not only led to almost no intra day trading opportunities, even because the popularity of the market was low, and the share price also showed numbness to the good news.

One investor told reporters: "there is no mainstream hot spot in the market, and the fluctuation of individual stocks has narrowed the error rate of technical analysis.

Buying is quilt, but it's better not to operate.

Expectation: improving investment channels

In the absence of significant external variables, A shares fall into a cycle of continuous narrowing and self strengthening, which may become a normal stage.

In desperation, institutions and retail investors have to turn their capital to other targets. This is also evident from the recent surge of Hong Kong stocks through the southern army. A shares will soon usher in Shenzhen Hong Kong, and whether attracting live water to A shares is one of the hot spots of the market.

Capital market can not only have A shares, but there should be more investment channels.

In recent years, the bond market has been developing vigorously, and the next step is to establish and perfect the mature capital market and build a multi-level securities market. The key point needs to be pferred to improve the expansion and enrichment of the stock market and futures related varieties.

Of course, at the same time, we need to improve the system to prevent the related varieties from becoming a hotbed of excessive speculation again.

The gap between the highest and lowest points of the Shanghai Composite Index has been shrinking rapidly since August, compared with the fluctuation of 100 per cent in the beginning of the year.

In September 8th, it just hit a 14 year low of 12.88 points in the day, and the record was broken again at 11.94 on Tuesday.

Although amplitude has picked up slightly yesterday, it still has only 14.91 points, which is at the low level recently.

The low position is not only the amplitude of the stock index, but also the trading of two cities, which lingers below 400 billion yuan in the near future.

On Wednesday, AB shares in Shanghai and Shenzhen two cities totaled only 351 billion 703 million yuan, or even less than 2 trillion and 420 billion yuan last year's largest turnover.

Such embarrassing situation can not help but arouse deep thinking.