What Triggered The Collapse Of The Stock Market?

This round of falls and adjustments is a process of eliminating toxic assets, deleveraging and squeezing bubbles.

It is painful and even cruel for investors and the market.

But it is also hard to avoid and must be borne.

I believe that after this round of adjustment, we will lay a good foundation for the future market.

From December last year to January of this year, I have said that the spring of China's stock market has come. Last time I talked about "five cows". "Lever cow" is definitely a big problem, but I said at the time, I hope.

It was a "slow cow", but in fact it quickly became "fast bull" and became "mad cow", and it was beyond control.

So it is inevitable for me to see these problems, that is, how we can see these problems and how to deal with them.

Domestic and foreign forces unite to sell stocks.

This kind of gossip is very powerful.

Recently, Yao Gang, vice chairman of the securities and Futures Commission, had an accident. I saw a very widely circulated report, saying that the exposure of the Hong Kong media to Yao Gang was an inside story. It was a conspiracy to sell short the stock market in China.

Whether there are domestic and foreign forces to destroy China, not only the stock market, there must be some, but has it collapsed?

In addition, even if the forces at home and abroad join forces to make short selling of China's stock market, he will have to borrow the unsound system of China's stock market to do so. This is called a fly without biting the seamless eggs, so if we say the responsibility of such a fall in the previous stock market, it is actually irresponsible for itself.

The stock market crash, but not to mention the sharp rise, has risen from two thousand last year to five thousand in June this year. Is it normal? Three thousand points rose at the beginning of May and more than 5000 at the beginning of June. In fact, I analyzed the situation in June 9th, when there was a fall in May 28th, but when it reached 5100 points from then, the trend map of the 6124 points was almost the same. You see there is no difference, but the 6124 point is an inflection point. The Chinese 5100 point also started to have inflection point. But at that time, the hot spot was not good. What you said was not believed. You said nothing. The Chinese stock market ten thousand point is not a dream. It is coming soon, so it should be said that the fall is a retaliatory fall and repair to the early surge of the July. So in my opinion, what is the reason for this stock market decline?

China's economy can not support 5000 points, which is inevitable, that is, this decline is inevitable.

The specific reasons are profit taking, including illegal reduction of senior executives.

The second reason is that

Liquidation, a period of time is a lever, the OTC with a capital ratio of one to three, one to five, one to ten are leveraged operation, of course, the broker is actually making money, interest 18%, the broker is to make money, they will definitely lend you, but they have open positions.

In particular, the HOMES system must be liquidated. At that time, the government investigated strictly, so the gang ran away quickly. This is a very important reason for the decline. I do not mention it here because I have much information and I have no time to say it today.

Since these problems caused panic selling of retail investors to cause a sharp fall, the collapse should be said to be abnormal and the main responsibility is not retail investors.

It is because of the speculation of the securities regulatory authorities, the ineffective supervision, and the large investors of large investment institutions. Small retail investors are actually following suit. They are not so powerful. They are running fast.

In fact, people say that because retail investors are too fanatical, do they just want to earn some money? But in fact, they end up with retail investors and run away.

The regulatory authorities are sure to be responsible.

Including these high leverage, including these things began to be indifferent, then anxious, immediately can not do anything, including the HOMES system intervention can not be done, the problem is too big.

Other factors, including stock index futures and OTC capital allocation, are all technical factors. The HOMES securities and Futures Commission has punished them. They are not convinced that we are a software system. In fact, it violates the securities law, and punish them very quickly. What do you think of tool innovation and innovation, including stock index futures, can help to rise or fall, not the root cause of the stock market decline.