Category: Money tips Release Date: 2006-03-01
Recently the market is now "28" phenomenon, large market capitalization stocks and small and medium-capitalization stocks split, the result is the index rose an increase in losses for market participants. Here, we want to analyze these three aspects of the context.
Market flows
Any stock that they do not withdraw from the market have the opportunity to Change With the rapid expansion of market scale, Qi Zhang a total fall of the market conditions will be history. Rather than complaining about what the stock up stock down more than invest a little thought might as well look at the market, there should be hope to achieve what is known in advance what the stock will go up the stock will go down. Change seems to disorderly markets, in fact, ordered. The entry point for our analysis is the volume, the plates of the volume share of total market turnover was up yes or decision of this plate is in a hot state, or upset condition.
We are from all sections of the volume share of the charts found in the beginning from September 4 large capitalization stocks continued inflow of funds have emerged the phenomenon of the collective acceleration of large-capitalization stocks rose is in the September 12, so we believe that now is in the the rising phase of large capitalization stocks. How many other stocks have had pre-show, at least for the moment the turnover share of the other plate is in the lower stage, so we think that the moment should focus on large capitalization stocks look at the performance. One thing we think we should pay attention, this money into large cap value stocks are relatively concentrated, but the rise in the stock market value of the intensity is not satisfactory. To Datong-Qinhuangdao railway, for example, the unit of time and heavy volume up time than late, September 12 to 13 the maximum amount of funds used, but the highest closing or even 7% less. Historically, the market value of new shares to start always great to arouse the popular daily limit. Good fundamentals, as a sub-shares, pre-order platform, the cost of 5.71 yuan, 28.98 percent occurred two trading days of the turnover but not limit-should be very telling. If funds are not able to further enlarge the follow-up, this big fear that collective action in the stock market continued a long time.
Task of the future market
More than the stock market over the past year mainly in the completion of share reform tasks. From the second half of this year, issuing new shares has become the market the most attention. We already know there are a number of large capitalization stocks listed in the queue is not the Industrial and Commercial Bank of China issued exhausted can breath a. The general view was quickly release large cap value stocks are bad. We think we should look at the issue of proof.
Our stock market is still a small market, not to expand the scale of international status would be impossible for so large capitalization stocks policy is unlikely to change. We all hope that the market rose, but a rise in the stock market how to slow the speed of issuing new shares then? We believe that only the market would slow down the speed the issuance of new shares, and the market decline is no one willing to accept. Now say that management has to master the speed of issuing new shares, we believe that interest groups, the real control of them. What is the interest groups, brokers, funds (including social security and insurance, as well as QFII) is also. They are like the new issue of large capitalization stocks listed on the stock if interested before, they will not not used up the amount of. They are always complaining about the quality of listed companies too small, so do not worry about the market value of newly issued shares of large unwanted. But the market value of the issuance of new shares should have a certain market-based, State-owned flats do not want cheap assets in their hands to come out. So when the market fell in times of crisis, interest groups will jointly launch an attack to maintain the market stability. This week, two against the backdrop of Hong Kong stock market broke the 17,000 points, the day before the Shanghai stock market has had 1541 points, breaking intraday rise since the trend line. To take collective action at this time for more than a stone carving.
From this perspective, the future market, it should be recognized that only stability in the market of new shares issued to complete the task, once the new shares issued to the chance of difficulty, and this opportunity is in China, the subscription is not active and the Air-breaking IPO price after listing arising in the context. We believe that similar opportunities will be many, after all, the market value of shares issued is a major long-term task, it is impossible in the short term to complete.
Shares of structural adjustment
Our market is completely open for the international preparation. And so large that the market value of tradable shares are just two steps, there is a step in general do not allow ordinary investors attach importance to, it is optimization of the structure adjustment of stock prices. And international levels compared with static positioning of large capitalization stocks may be flat, dynamic positioning slightly low. However, the majority of medium and small market shares of high static positioning, dynamic positioning are still only barely converge, from this perspective, the future market, large cap value stocks, the average price should be upward trend, while the medium and small market capitalization stocks have fallen an average price should be trend. Especially now that poor performance in the future is not bright prospects for the development company will be marginalized. The reason is simple now and in the institutions of the new approach will not care about the future of the stock is not the original on the inside of the body would gradually withdraw. So now the bad with the company's stock price also active in a variety of subjects the opportunity, once completed the withdrawal of the old main task of the new main is the inside story of the retail investors of the unknown. We are the market exit mechanism is not perfect, with the implementation of bankruptcy law, the stock market the optimum allocation of functions would also be strengthened by that time some bad companies, let alone 1-2 yuan of shares can not be maintained, but even the trade qualification can be sure of. Therefore, we should not complain about large-capitalization stocks rose at the same time most of the stocks falling, but rather in-depth look at stocks that should rise up, the stock should or should not fall down, the current Change whether the future market trends . The major trend of the problem clear, and the small issue of the trend is not difficult to deal with the.
Through the analysis of these three aspects of our advice is not to complain about the phenomenon of the market, it should be to study the phenomenon of the market and come up with their own response plans. With regard to large cap value stocks have both long-term bullish confidence must also be mentally prepared for short-term fluctuations in twists and turns. As long as the volume can not be further amplification, the current large cap value stocks will be difficult to sustain the collective rise, especially in China, Sinopec again, after the suspension, the performance of large capitalization stocks should be treated with caution. At the same time should be a good screening to find out the market value of the shares of primary and secondary long-term investment value, and if there is no value in the long-term investments should be looking for short-term fluctuations in selling high technology. In short the future market is an increasingly international marketplace, everything should be an international vision to look at the problem, rather than make their own major interests of the future lost in the eyes of a small profit and loss.
