Category: Money tips Release Date: 2006-03-21
Source: Soochow Securities
By the expansion of information such as the impact of speed, A-share market crash yesterday appeared, the Shanghai Composite is also plummeted 84.23 points, nearly equaled the June 7 record 89.58-point plunge. At the same time, in the collapse process, obviously the three Aspect.
Aspect 1: Put Warrants boom
Slump in the stock occurred at the same time, the early trend warrants poor species such as fabulous as there is a substantial rebound, with the Airport JTP1, Shanghai field JTP1 soared 53.93%, respectively, 33.77%, so astounding increase in re-ignited the short-term funds to warrant investment in passion.
The future is share price fall more drastically, the price of put warrants the higher the put warrants and the share price is there is an inverse of the seesaw movements in share price is down, put warrants up; are stock prices have gone up, recognition Put Warrants down, so are stock prices plummeted yesterday, also sparked a surge put warrants, so the investment has been faced with passion and even resulted in a risk of waste paper also appeared retaliatory HRP1 Vanke rebound, rose 23.02 percent. However, on the future trends of view, put warrants will continue to run in a downward spiral, on one hand because the put warrant is exercisable at a very low probability, on the other it is because Vanke HRP1 about to expire.
Aspect 2: Bank of China shares inversion
The Bank of China A shares yesterday fell more than H shares, resulting in the Bank of China A share market since the closing price the first time in A shares and H shares inversion phenomenon.
The face of such trends, optimism in the industry believe that this means that the Shanghai Composite fell again the space will be limited, partly because of the intrinsic valuation of the Bank of China to demonstrate its intrinsic value central falls between 3.5 to 3.7 yuan, On the other hand it is because the Bank of China H share price is higher than A shares, equivalent to a further decline in the Bank of China closed space. Once the Bank of China fell space is limited, then the Shanghai Composite corresponding adjustment will be relatively limited.
Aspect 3: large-scale lower limit
Yesterday A-share market crash would have begun in the morning, with the afternoon the four-wave-after-rebound came back with nothing, many funds have lost the confidence of shareholders, thus making A-share market lower limit the rapid increase in the number of companies, to the late closing, there are more than 200 stocks to drop restrictions.
Characteristics of such market conditions illustrate how the market has entered a panic selling, but investors optimistic point of view, such a large area of lower limit but allow them to see hope, because the characteristics of the bull market is slow plunge up, yesterday's plunge in the market to resolve the existence of risk-adjusted, therefore, that such stocks are expected to rebound today, thus promoting the broader market bounced up there.
