The bears began to fight back! The three major news in the early hours of this morning are in full swing (10.3)!
1. Short-selling funds began to fight back during the A-share holiday! The triple long China index fell 3.73% in the market, while the triple short China index rose 3.88%. It seems that the arrogance of shorting the Chinese stock market seems to be arrogant again, but friends who hold shares for the holiday do not need to worry too much.
By the end of the second quarter of this year, there were only 19 ETFs left in the market and 5.957 billion yuan of refinancing bonds were lending, and in just half a year, the scale of ETF refinancing bonds had shrunk by more than 90%. Now, our focus should be on improving the quality of listed companies and strengthening investor protection, so that A-shares can usher in a real bull market.
Second, listed companies set off a new wave of mergers and acquisitions.
Since the beginning of the year, from the new "National Nine Articles" to the "Eight Articles", and then to the "Six Mergers and Acquisitions" newly released by the China Securities Regulatory Commission, the above has been cheering for the mergers and acquisitions of listed companies, trying to improve the quality and efficiency of enterprises.
I see that this year's series of regulatory actions are emphasizing the need to deepen the reform of mergers and acquisitions, and the mergers and acquisitions in our market are now "in full swing".
3. The afternoon boom of Hong Kong stocks has subsided!
On the first day of October, funds poured into Hong Kong stocks like a tide, and the market was red. Since Hong Kong stocks are T+0 trading system, some funds choose to take profits in time. In the afternoon, the enthusiasm of the market waned. At one point, the index's gains fell back from more than 10% to around 6%.
The index has now retraced its gains to around 4%, having previously exceeded 7%. However, the market soon resumed its upward trend, and so far, the Hang Seng Tech Index has risen by more than 8%. At the same time, the gains of Hong Kong stocks in the afternoon are also related to the collective downturn in the Asia-Pacific market. The Nikkei 225, for example, closed down 2.18%.
Conclusion
Multiple favorable policies have completely reversed market expectations, and the bull market has intensified. The current A-share market is mainly driven by emotions and funds in the short term, but the question is, when this frenzy passes, where will A-shares go?
With the over-the-top pessimism repaired and the profit-taking orders that have accumulated recently opted out of the market, we can't rule out a quick pullback after a rapid rally in the market.