The Frequent Sharp Falls Of B Shares Aggravate The Risk Of Selling Pressure In The Market

In the past year, the performance of A-share market has tended to be stable, and the volatility has significantly decreased, while the B-share market has kept pace with the steady operation of A-share market, but it is still inseparable from the characteristics of low activity, poor liquidity, and weak daily average trading volume. However, after carefully observing the performance of the B-share market in the past year, it was found that the B-share market would have a one-day sharp decline once or twice every few months. Taking the last half year as an example, the B-share index plummeted 6.15% on October 17, 2016; On January 16, 2017, the B-share index dropped 2.64% sharply, and there was a 4% drop in the intraday. As for March 23 this year, the B-share index suddenly fell sharply in the afternoon, and fell nearly 4% during the session. The closing gradually stabilized, but it still fell 1.75% throughout the day.

Judging from the impact of the one-day slump of B shares on the A-share market, the B-share index does have the meaning of leading the index. Similarly, taking October 17, 2016 as an example, under the influence of the sharp fall of the B-share index, A-share showed a sharp decline in the afternoon, with a sharp drop of nearly 1% during the session. On January 16, 2017, under the influence of the sharp fall of B shares, A shares fell in a volatile manner on the same day. At one time, they fell sharply by more than 2% during the day, and then closed down slightly at the end of the day. As for March 23, 2017, it was pressured by the sharp drop of the B share index. A share fell sharply in the afternoon, but it was still reluctantly recovered in the late afternoon.

It can be seen from the data analysis of the past half year that the one-day sharp decline of B-share has a certain impact on the A-share market, and the B-share index has become the leading index in the market. However, from another point of view, in the past six months, when the B-share index fell sharply in a single day, it was followed by volatility and stability, and the subsequent recovery of the A-share market was more obvious. However, it is still necessary to further observe and confirm whether the sharp decline of the B-share index on March 23 this year can trigger the gradual recovery of the market.

In view of the sudden sharp decline of the B-share index on March 23, the market did not find any substantive news, and the market parties are still speculating and analyzing. There is no substantial news impact on the one-day sharp decline of the B-share index for the time being, but some market rumors superimpose the characteristics of weak liquidity and low market value of the B-share itself, which are easy to be used by some funds, thus achieving the purpose of panic suppression, indirectly dragging down the performance of the A-share market index.

In fact, the sharp fall of B-share often transmits panic to A-share market. However, as the B-share market with low transaction scale, it can not be compared with A-share market at all, and the one-day slump of B-share market is also difficult to bring too heavy a blow to A-share market, and the market may also have the problem of over interpretation. At the same time, we also pay attention to the recent market Capital The tense situation, while the liquidity continues to be more tense than expected, will also indirectly affect the weakness of the market, and in combination with the accumulation of early profit, thus increasing the risk of market selling.

In addition, there is another rumor that may be easily used by financial institutions. Specifically, there are rumors that MSCI proposed to A-share It was included in the downsizing plan of the global index, and in June this year, it was decided whether A-share was included in the MSCI benchmark index. In my opinion, it is still difficult for A-share to be included in MSCI, but once it is included in MSCI, the B-share market may be further marginalized, and its overall attraction will be further reduced. As for the international board rumors repeatedly mentioned in the early market, it is also easy to affect the psychological mood of the market, and the marginalization of B shares has become a fact, even a legacy of history. However, there is still no exact answer on how to solve the problems left over by the history of B shares in the future.

In fact, there has never been a thorough solution to the problem of the B-share market, which also plagues the pace of B-share reform. B shares are denominated in RMB and purchased and sold in foreign currencies, which is essentially different from A shares. However, there are still many problems for B shares, and the reform of B shares has not been able to achieve substantive breakthroughs.

Among them, over the years, the B-share market has been severely marginalized and completely reduced to a chicken rib market. Although some B shares have a certain discount rate space compared with A shares, it is difficult to attract the attention of funds due to their poor liquidity and activity. Moreover, the liquidity, market value and other issues of B-share have seriously restricted the development of B-share market, and its existence is far more formal than practical, while the overall positioning of B-share market is still more doubtful.

At the same time, investors participate Class B Obviously limited, and the inconsistency of pricing method and issuing object also directly affects the enthusiasm of investors to participate. Even though the investment of domestic individual residents was opened after 2001, the overall investment attraction has not been improved. In addition, the B-share market is lack of financing function and investment function, which indicates that this market is almost a chicken, and has no effective impact on the development of the capital market and the real economy. At the same time, due to the lack of effective hedging mechanism, and the problems of supervision, laws and regulations, there are still many areas to be improved, which also greatly reduces the enthusiasm of funds for investment.

In contrast, the A-share market has completed the listing process of more than 3000 enterprises. In recent years, the financing and refinancing scale of the stock market has exceeded the trillion level, and the development of the B-share market is even more worrying. It can be seen that a comprehensive solution is really needed for the historical legacy of the B-share market. In fact, in recent years, the reform of the B-share market is still in the state of "crossing the river by feeling the stones". During this period, the market tried "B to A", "B to H" and other ways to obtain a comprehensive reform plan. However, from the practical operation, the former is still feasible, but the latter is subject to a lot of threshold constraints, and the feasibility is also suddenly reduced.

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