The Shanghai Composite Index closed down 103%, with a net outflow of northbound funds of 154.2 billion. Our big A broke a new low today, and it will soon be 2900 points to defend again, speechless.
At present, the reason for the sharp rise is mainly due to the shortage of funds and the lack of incremental funds. In fact, the ups and downs are mainly driven by funds, most of the shareholders' funds are gone, the funds of the institutions are also the same, and the redemption tide is facing again, and the big A is seriously lacking incremental funds, and some listed companies are still waiting in line to go public at this critical node, and are also preparing to spin off subsidiaries to go public, and are also ready to raise funds from the **, blindly asking for it, without moderation.
The valuation of A-shares is not unattractive, at least more attractive than Japan**, which released economic data for the third quarter in October 2023, showing that Japan's GDP fell by 2.% year-on-year1%, two consecutive quarters of negative growth, officially entering a technical recession. This is the fourth recession in Japan since 2014 and the worst since the 2008 financial crisis, but the best is still rising.
Shanghai Stock Exchange Now there are recession expectations all over the world, but the world's ** is rising, except for the big A, of course. On today's disk, the ** plate broke and fell sharply, which is one of the reasons for today's big A plunge.
However, although the trend of big A is not ideal, it does not mean that it is bearish on big A, I said yesterday that I am not optimistic about the ** in December, because December is the most lacking month for A-share funds, and the trend in December is extremely unreasonable, and this situation will often be alleviated at the end of December.
From a fundamental point of view, from the current point of view, there is no reason to be bearish on A-shares, the world's best prosperity must decline, big A things must be reversed, from the flow of foreign capital can also see certain problems, these days is really a share trend is too bad, resulting in the outflow of foreign capital.
The above views are personal and for reference only. Good luck with your investment!