We don't know whether the A-share has fallen to the edge of triggering risk, but on Wednesday, more than a number of securities media seemed to be unable to see it, and voiced their support for the A-share market. The Securities Daily also published an article entitled "standing up the backbone of a shares", saying that the recent weakness of the A-share market is an overreaction to negative factors, calling on securities companies, fund companies, social security funds and insurance funds to assume the main responsibility of leading value investment and take the initiative to maintain the stable and sustainable development of the capital market.
It remains to be seen how effective the media's encouragement is. Although the V-shaped reversal of the market on Wednesday temporarily relieved investors whose accounts have shrunk sharply since the beginning of the year, the key to determining whether the market can stabilize and get out of line with China's economic development trend lies in the attitude of institutional funds and whether funds can change pessimistic expectations and form a joint force.
Before the institutional investors are short, it is not easy to conclude. Even from the performance of some heavyweight stocks, the institutions have made some efforts, but it seems that the whole trend has the final say of several agencies.
So, what does a share need to "stand up"? We need real gold and silver to be put into the market, and we need to be full of confidence in the resilience of China's economic fundamentals, rather than blindly focusing on peripheral markets and amplifying negative factors.
In fact, many market entities have been supporting the "A-share backbone", which are the actual controllers or major shareholders who increase or buy back their own shares with real gold and silver.
From November last year to now, nearly 40 important shareholders of listed companies have issued plans to increase their holdings, and there are hundreds of millions of people who increase their holdings. The most is China Mobile, which has just been listed. China Mobile Group is expected to invest 3-5 billion yuan to increase its holdings of a shares, and there is no increase price. From the implementation of these share increase plans, it has indeed boosted the share prices of some companies. Of course, whether this increase or repurchase can play a point to area result needs to be observed.
From the perspective of supply-demand relationship in the capital market, chip supply and capital supply have always been a pair of "enemies", which is the relationship between one after another. The bull market in the US stock market in recent years is because the Fed has been giving birth to water, and of course, the capital market is also very awesome, making use of these liquidity to make the big companies such as Tesla and apple bigger and bigger, and realize the capital multiplier effect. In recent years, due to the large-scale expansion of direct financing of a shares, the IPO speed of new shares has reached the first in the world, which makes the on-site funds quite tight. While realizing the horizontal development of market value and the number of listed companies, A-Shares also indirectly restrict the space for the vertical development of index and individual stock price. Of course, we can understand that this is the inevitable process of A-share growth. There is no representative scale of listed companies. Obviously, even if the market rises, it is illusory. The A-share market needs more hard core technology companies, high-end manufacturing companies and leading companies specializing in Texin segments that represent the direction of China's economic development. Once high-quality companies form a group effect, they also have a magnet effect on global funds.
So the real gold and silver here contains two meanings. The first layer is a good company that needs real gold and silver investment in a shares, which is the original intention of implementing the registration system reform, so as to make more high-quality companies become the "guests" of a shares; The second meaning is the need for liquidity to support a good company and have a good share price. If you think about it, Tesla and apple, including NVIDIA and Amazon, can become familiar world-class enterprises. One important reason is that the growth of stock price and market value is accompanied by the continuous development and growth of the company. The virtuous circle of capital promotes the growth of enterprises, and also enjoys the dividend of investment.
