China News Client, Beijing, July 6 (Xie Yiguan) On July 6, the Shanghai stock index rose 5.71%, and all three A-share stock indexes have entered a technical bull market.
"If anyone still doubts that the bull market is coming, it can only be missed. From now on, I will not toss, and will not do the band, until the stock price is high, completely sold." An investor said on Weibo , "Do not move like a mountain, wait for the flowers to bloom."
There are many similar voices on social networks such as Weibo, Stockbar, WeChat, and Douyin. "Bull market" screen, the era of "pick up money" in the stock market?
Shanghai Stock Exchange Chart.
A shares rose sharply, and the three major stock indexes entered a technical bull market
On the 6th, the Shanghai Composite Index continued its strong momentum, breaking through the 3200 and 3300 points during the session, closing at a new high since February 2018, and successfully achieving the "Five Lianyang".
As of the close, the Shanghai index rose 5.71% to 3332.88 points, the largest single-day gain in 5 years, compared with this round of market lows, it rose more than 20%; the Shenzhen Component Index rose 4.09% to 12941.72 points; the GEM index rose 2.72% to 2529.49 points And return to 2500 points.
This also means that the three major A-share stock indexes have all entered the technical bull market. According to the technical theory of the stock market, a 20% increase will enter a technical bull market. Shenzhen Component Index and GEM Index have entered the technical bull market successively in June.
The soaring stock index led to a surge in market value. As of the close of July 6, the total market value of the stocks of the Shanghai Stock Exchange and the Shenzhen Stock Exchange totaled 70.95 trillion yuan, about 10.06 trillion US dollars, a new high since June 2015.
Trading sentiment was high. On the 6th, the turnover of Shanghai and Shenzhen reached 1.5661 trillion yuan, which exceeded 3 trillion yuan for 3 consecutive days. It is worth noting that in only 40 minutes of opening, the turnover of the two cities was nearly 600 billion yuan. At the same time as the transaction was hot, investors reacted, and many brokers were experiencing APP stalls.
On the disk, the industry sector was all red. Securities and banks continued to perform strongly and closed up more than 9%. 23 brokerage stocks had daily limits. In addition, the tourism, insurance, semiconductor, real estate and other sectors also performed well. As of the close, a total of 3,508 stocks in the two cities rose, 216 stocks daily limit; only 206 stocks fell.
Northbound funds, which have always been called "smart funds," continued to raise funds. After net inflows of more than 10 billion yuan in the first two trading days, the net inflows on the 6th day reached 13.653 billion yuan. Among them, Shanghai Stock Connect had a net inflow of 5.101 billion yuan, and Shenzhen Stock Connect had a net inflow of 8.552 billion yuan.
"Bull market" swipes the screen, and the discussion of the stock market has become hot again
As the Shanghai stock index continues to rise, the turnover of the two cities has increased sharply, institutions have continued to increase their holdings, and stocks of brokerages have risen. The discussion on the "bull market" has been rising on social platforms.
The WeChat index shows that the discussion about the "bull market" is increasing day by day, and it has soared to 9.19 million on July 5, with a daily rate of 64.07%. The Baidu index shows that the search for "bull market" reached a high point on July 3.
On the 6th, keywords such as A shares and the stock market appeared on the hot search. Topics such as "the bull market is coming" and "the perfect time to enter the market" continue to appear on social platforms such as Weibo, WeChat, and Tieba.
Screenshot taken from WeChat index.
Many stocks groups have also begun to become lively. "It's time to lie down to make money?" "Go in" "Four consecutive boards, everyone is alert to risks", and there are many voices.
The “bull market” has swept the screen and the number of investors entering the market has also increased. According to media sources, in June Guotai Junan online account opening increased by more than 30% month-on-month, of which the highest proportion of account opening after 90s reached 30%; the number of new accounts opened by CITIC Securities in June increased by about 30% month-on-month.
Pictures circulating on the Internet show that uncles and aunts have poured into the business hall to open accounts. Some netizens ridiculed, "Everyone who frys shoes comes to speculate in stocks." Even the off-site allocation that has been quiet for a period of time has started to move with the rise of A shares, and 10 times the benchmark allocation.
Information figure: Stockholders in a securities business department are concerned about the market trend. China News Agency reporter Zhang Langshe
A-share "picking up money " is coming?
Facing the hot market, many people are concerned about the future market of A shares? Is it already in the early stage of the bull market?
In this regard, Cathay Securities believes that the current low valuation of A-shares is characterized by the downside of risk-free interest rates. The driving force is the reduction in the expected return of financial management of banks, which further strengthens the phenomenon of funds chasing assets. "As a result, the market outlook is optimistic, breaking through 3300 points and waiting for 3500 points."
"The current background is that the global liquidity is rampant and there is no obvious tightening in the near future. China's economic data continues to exceed expectations, and the market can expect the Chinese economy and corporate earnings to gradually increase year-on-year in the next few quarters. This is the A-share's recovery 'Logic, this is also a comprehensive bull market logic." Anxin Securities Chen Guo team said.
"A good economic recovery and incremental funds have driven the stock market to rise." Pan Xiangdong, chief economist of New Era Securities, told China News that the early consumption and technology growth have been relatively high, and have gone out of the structural market. At present, the economy is recovering well, infrastructure investment, Real estate investment has become the main driving force of the economy. In addition to the restart of the European and American economies, China's external demand has also rebounded. PPI growth bottomed out and corporate profits have improved. The financial real estate and other periodic sectors have risen rapidly since July, showing signs of plate rotation.
"But before the vaccine comes out, the epidemic may interfere with the economy and the market. Therefore, it is not easy to say whether this round of market can become a bull market in a comprehensive sector." Pan Xiangdong pointed out.
In Bohai Securities' view, short-term performance improvement is expected to bring about periodic repairs, but the continuity remains to be seen. Considering that the current mid- to long-term logic of the technology sector has not changed, and the monetary policy has been undoubtedly tightly tightened under demand pressure, it is not easy to get a premature judgment of a comprehensive style switch. If there is no adjustment process in the previous strong stocks in the phased style switching market, then when the supplementary increase is over, the market does not rule out that the overall adjustment is the end of the phased market.
"Although the stock market is full of gas, Changhong still needs to be calm! Recently, the major financial markets have pulled the market, and the theme stocks have been pressed the pause button! If the theme can rise again when the market returns, it will be a "real cow." Some investors said.
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