What is the reason for this sharp drop in A shares?

Mondo Health Updated on 2024-02-06

I looked at some of the strong votes in the early stage, basically all of them were A-word kills, too miserable, this wave of sharp declines, began on the day of Evergrande's liquidation, the Federal Reserve cut interest rates less than expected, first-tier cities began to relax purchase restrictions, so that the Chinese people worried about the real estate crash, plus Trump may make a comeback, Trump claimed to impose 60% tariffs on all Chinese goods. Once Trump is elected, foreign capital may accelerate the withdrawal from China, the transfer of the industrial chain will have a huge impact, and there is no hope for the recovery of real estate.

Therefore, funds flocked out regardless of the cost, coupled with the "reasonable" use of rules by short sellers, amplified the panic in the market, but we should also be soberly aware that at this current point, the significance of "cutting meat" is no longer much, in order to prevent mortgages, financing liquidation, and even induce a financial crisis, there will be more favorable measures in the future. ** After the Spring Festival, it will pick up, and even go bullish, so as to stimulate the economy and stimulate consumption, which can be said to be the general trend.

At the same time, it is suggested that at this critical time, you can make a quick decision to suspend IPOs, suspend securities lending, and prohibit quantitative trading. The bull market in 2024 will be the will of the country, and the importance of the economy out of the trough can be said to be the highest in history. Of course, improving the trading system will be the basis for a long-term bull, otherwise, the bull market will come and go quickly, and in the end it will be just a flash in the pan.

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