How to view the reason why the A-share market has remained at about 3,000 points for ten years. First of all, the delisting system is not perfect. If junk stocks in the stock market are not forcibly delisted, then these loss-making companies are also counted in total earnings, dragging down the overall index. This makes the index hovering at a relatively low level for a long time, unable to achieve an effective rise. The second is the issue of new shares. A listed new stock rose one after another, but because the first 11 trading days were not counted into the Shanghai Composite Index, they were counted after 11 days, and then began to fall, which led to the decline of the index. The third is that the IPO is too fast. If the IPO is too fast, it may lead to excessive dispersion of funds in the market and the inability to form an effective upward momentum. The fourth is that the size of the non-reduction is too fast**: if the size of the non-reduction is too fast, it may lead to excessive loss of funds in the market, so that the index cannot rise. Too few growth companies in the fifth market**: If there are too few growth companies in the market, it may lead to the inability of funds in the market to be used effectively, so that the index cannot rise.
The above factors may be an important reason why the A-share market has remained at about 3,000 points for ten years.
