China's stock market, history may repeat itself?

Home > Finance

China's stock market, history may repeat itself?

2018-06-08 00:25:36 232 ℃

If the future of the financial industry is reorganized with market order as its major goal, the Chinese securities market will have an opportunity. In the process of solving problems in development, we will be able to secure opportunities for development in the new kinetic energy segment. Otherwise, the opportunity period for the development of the securities market will be the same as in the past.

When will the Chinese stock market

be able to escape the haze?

China’s securities market is a market that is greatly disturbed by political climate and external factors. In the past, it has repeatedly missed the opportunity to rebound or grow up. For various reasons, it is always in confusion. Lost, struggling, repeating and failing to find a way to success. Even today, China's stock market is still alive in 2015's stock market disaster. When will it be possible to seize the opportunity to escape the haze? Has become the focus of the next Ampang research.

Combining all aspects of information, it is observed that China's recent market climate is once again becoming more mature and has a market base and economic foundation that has rebounded again. China's stock market Shanghai Composite Index created the largest one-day gain in more than a month, ending the previous six consecutive trading days. According to Ampang Consulting's follow-up studies, there are more and more indications that the Chinese market is currently entering a new kinetic energy zone. This new kinetic energy zone deserves great attention and careful attention.

In Ampang's view, China's PMI data for manufacturing and service industries all rebounded, especially for manufacturing PMI. An eight-month high has shown that the fundamentals are better than expected and that market confidence has been boosted, which can constitute a very important support. At the same time, June 1 is an important point in time when A-shares have been included in U.S. index companies. Prior to this, offshore funds could also flow into the mainland market via land-based stock exchanges and overseas institutional investment mechanisms. However, the short-term inflow of funds is limited, the impact on the market will be relatively stable, the broader market will not have an unexpected response to this.

However, the situation in the future will change with the opening of China's financial sector.With the change, the amount of capital in China's stock exchange environment is twice as high as usual, which means that many international capitals have complied with the US indexing company's Nai A initiative to advance into the mainland market. A key step for A-shares' integration into the global capital market is coming. With more than 200 stocks being included in international indices, international capital will continue to flow into domestic capital markets.

Not only that, trade disputes between China and the United States have also shown signs of abating, and at the very least they have not exacerbated China's completely unacceptable recurrence of trade warfare. This situation creates conditions for the elimination of market concerns. The upcoming "Special Fair" may eliminate unstable factors in Northeast China, and it may even make the market more optimistic.

The unstable situation in Europe has also created opportunities for us. The original risk points in Italy and the like have gradually approached the level of outbreaks, allowing changes in the choice of international capital. Sensitive funds began to seek new possible exports, even if it was a less secure safe harbor. China has offered such a choice. Although China is also facing the impact and influence of the drastic changes in the world market, this negative factor may be in a relatively safe range. China, as a big market country, has a smaller market space than Italy and ASEAN. The country is relatively safe.

Is China's stock market possible?

Back to the bull market before 2015?

A variety of positive forms do add a lot of confidence to the Chinese stock market. Will China's stock market return to the pre-2015 bull market? According to the judgment of Anbang Consulting, overall, the risks in China's financial market and securities market still exist, although there is a possibility of entering a new kinetic energy zone, but this refers to the basic market factors, the specific performance in the market, the scale of And the degree may be limited.

The main problem is that First, the instability in the trading environment still strongly influences the securities market. China's State Administration of Foreign Exchange's data at the end of the month shows that China's trade deficit in April is still not low, and the proportion of deficits in travel deficits is as high as nearly 80%. Under this premise, China stillIt is in a state of capital outflow.

Secondly, the social cost factor is still very big. And the biggest problem in China is that the social operating profit can not keep up with the increase of costs. The proportion of enterprises with high raw material costs and labor costs is Sustained over 40%, seriously affecting the market valuation, resulting in greater cost pressures is still one of the major issues in the production and operation of enterprises.

At the end of the day, the expectations of the Chinese stock market are significantly different from the “factual changes” in China's external market space. Chinese investors are always looking forward to solving problems in the short term and letting things settle down. However, the facts are simply impossible. This has also become a limiting factor. Anbang is concerned that the "frozen" effect of financial rectification and rectification, although the overall absolute lack of money, but the long-term consciousness and structure formed in the market is not easy to break, but water does not flow, and is most vulnerable to "frozen" and " The impact of the "money shortage".

Generally speaking, In the future, if the financial industry's liquidation and rectification take market order as its major goal, then China's securities market will have the opportunity to solve problems in the process of development. The new kinetic energy segment will provide opportunities for development. Otherwise, the opportunity period for the development of the securities market will be the same as before, and it will also be passed away in a flash.