2023-12-26 23:51:00
[The Epoch Times, December 26, 2023](Reported by Epoch Times reporters Xiao Lusheng, Huang Yun, and Yi Ru) On December 26, the three major mainland A-share indexes-Shanghai Index, Shenzhen Component Index, and GEM Index continued to fall, and individual stocks 4,400 fell. As of the close, the Shanghai Composite Index once once more fell below 2,900 points. After falling below the psychological mark of 3,000 points this year, the stock market broke through the important support point of 2,900 points once more.
Experts said that the stock market reflects that the entire Chinese economy has reached an unprecedentedly difficult stage and is the most dangerous period since the CCP’s reform and opening up.
The Shanghai Composite Index once fell as low as 2882 points
Since 2023, China’s stock market has been falling continuously. In order to boost confidence in the capital market and save the stock market, the CCP has intensively introduced financial policies, but the results have been ineffective.
On December 26, the A-share market opened lower and moved lower throughout the day. As of the close, the Shanghai Stock Exchange Index was at 2898.88 points, down 0.68%, with a turnover of 260.2 billion yuan; the Shenzhen Component Index was at 9157.25 points, down 1.07%, with a turnover of 349.7 billion yuan; the Chuang Index was at 1808.50 points, down 1.26%, with a turnover of 349.7 billion yuan. 145.2 billion yuan.
Generally speaking, individual stocks fell more than they rose, with 4,400 stocks in the market falling. The transaction volume of the Shanghai and Shenzhen stock markets was only 609.9 billion yuan, and the net outflow of funds from the two cities throughout the day was 22.357 billion yuan.
Recently, the Shanghai Stock Index broke through the important supports of 2923 points and 2885 points, and rebounded at the lowest point of 2882 points.
Financial blogger “Uncle Bao” left a message on the
“If it weren’t for a few Chinese prefixes and the four major banks to protect the market today, 4,400 stocks would have fallen, and I’m afraid 2,880 would have broken by now.” “Uncle Bao” said, “All the meetings that should be held have been held, and all the policies that should be issued have been issued , policy vacuum period + confidence despair period, now almost all assets of Chinese people are shrinking significantly, who will buy the bottom and who will consume?”
Wang He, an expert on China issues, told The Epoch Times that Chinese investors are seeing more and more clearly that the Chinese stock market is a place where leeks are cut, “so everyone votes with their feet. Now the Chinese stock market has fallen below 3,000 points, and has fallen below 2,900 points. It may still be If it falls below 2,800 points, the Chinese stock market will return to 20 years ago following hard work overnight.”
Expert: The stock market is regarding to start a battle to defend 2800 points
China’s stock market has been plummeting this year, making it the “worst in the world”. As of the close on December 25, the Shanghai Composite Index, Shenzhen Composite Component Index, GEM Index, and CSI 300 had fallen by 5.52%, 15.97%, 21.95%, and 13.54% respectively.
Wang He told The Epoch Times, “The quality of the entire listed companies in China’s stock market is getting worse and worse. In this process, it is those securities companies and stock listing institutions that make money and blackmail the people.”
“Even though the CCP has taken very strong measures and invested a lot of resources on a large scale, the stock market still fell. It not only fell below 3,000 points, but also fell below 2,900 points. There may be a battle to defend 2,800 points.”
In order to boost the stock market, the CCP has launched intensive policies to rescue the market, including the central bank directly holding investments to inject capital into the four major state-owned banks, and the national team holding shares to rescue the market.
Why does the CCP engage in the stock market?
In the Chinese stock market, the market value of state-owned enterprise stocks accounts for half of the entire stock market value. Wang He said, “Why does the CCP set up a stock market? It set up a stock market just to alleviate the difficulties of reforming state-owned enterprises.”
“Other stock markets in the world, such as Europe, America, Japan, and Hong Kong, are all barometers of the economy, but China’s stock market does not have this function.” He said, “It was originally a place for cutting leeks, so it has been in business for thirty years. , it still hasn’t turned into a normal stock market.”
He said that the Chinese stock market is already very large, with a market capitalization of 80 trillion yuan, but the Shanghai Stock Exchange Index has been hovering around 3,000 points for a long time. “This shows that the Chinese stock market is rotten, and it must be cleared out like garbage.” “
Many stock market experts such as Liu Jipeng and Wu Jingnian have said that the Chinese stock market is a junk stock market. Wang He said, “Liu Jipeng said that investors should not speculate in stocks because there are big problems in the system design of the stock market, and it is a trap.”
Expert on northbound capital flight: The international financial circle has given up on the Chinese stock market
At the same time, the decline in the stock market has also caused northbound funds, which represent the direction of foreign capital, to continue to “flee”. According to Choice data, as of December 25, there have been net outflows for seven months this year. Especially since the third quarter, there have been net outflows for five consecutive months.
In the past four months, northbound capital outflows have reached a scale of 178.8 billion. Among them, northbound funds reduced their positions by nearly 90 billion yuan in August, nearly 37.5 billion yuan in September, nearly 45 billion yuan in October, and nearly 8.4 billion yuan in November.
Northbound funds are significantly reduced. Wang He said that in 2021, the net investment of northbound funds was more than 400 billion yuan. In 2022, it dropped sharply to 90 billion yuan. This year’s net inflow is estimated to be only 40 to 50 billion yuan, a drop of almost 40%.
He said, “Northbound funds are called smart money, and the flow of northbound funds represents the international financial circle’s abandonment of the Chinese stock market.”
Wang He also said, “Reflected from the side of the stock market, the entire Chinese economy has reached an unprecedentedly difficult stage. It can be said to be the most dangerous time since the CCP’s reform and opening up.”
Editor in charge: Ren Zijun#
1703646360
#Shanghai #Composite #Index #fell #points #stocks #fell #shares #Chinese #stock #market
