God-level Trader of Rebirth

Chapter 460 Where is the bottom?

October [-], [-].

The Shanghai Stock Exchange Index jumped out to an exciting number, 6214.04 points during the session.

This is the new peak that the Chinese stock market has reached after 1990 years of ups and downs since its establishment in 17.

At the close, the Shenzhen Component Index also closed at 19358 points, reaching an unprecedented height.

Countless investors squatting in front of their computers were extremely excited and cheered.

People in the trading floor high-fived each other, as if a bright future was coming.

The numbers on their books look so beautiful that they may have forgotten that they are just a series of numbers, and there is still a gap between them and turning them into lovely RMB in their wallets.

A gap to sell and get the money out.

And it is this gap that makes these wonderful numbers and your real wealth so close to each other.
The Chinese economy during this period was in a golden age.

In 2006, the GDP growth rate was 12.7%, and in 2007, the economic growth rate even reached 14.2%!

We keep a low profile, but for some reasons, we deliberately set the economic growth rate at a lower level.

For several consecutive years, the double-digit growth rate has led to very high growth rates in fixed asset investment, industrial added value, profits of industrial enterprises, and retail sales of consumer goods.

At this time, China's economic performance can be said to be almost perfect.

The economic growth rate is high, but inflation is very low. PPI and CPI are not high. At this time, due to the exchange rate reform carried out in July 2005, the RMB has appreciated by 7% against the US dollar, and has only appreciated against the euro and Japanese yen. Bigger.

The increase in the exchange rate further boosted the rise of A shares.

Coupled with the institutional dividends released by the share-trading reform, financial capital represented by funds has officially begun to rise and compete with industrial capital in the financial market.

In 2006 and 2007, A-shares once became the best-performing stock market in the world.

During this period, the madness of stock investors was so amazing that even the subprime mortgage crisis in the United States failed to stop the crazy rise of A-shares.

Until 6124 points, the market was still extremely excited, and the view that "it's hard to buy a bull's money back" was widely circulated.

However, the intensifying financial crisis on the other side of the ocean has directly caused our export-oriented economy to be severely damaged. On the other hand, equally important, or even more important, is that there are also problems with our own monetary policy.

As our economy overheats, inflation begins to rise.

Both the consumer price index and the price index showed an upward trend.

The primary task of economic policy has become "double defense."

Prevent economic growth from turning too fast into overheating, and prevent prices from changing from structural price increases to obvious inflation.

The central bank's monetary policy has changed from "stable" to "tightening" and has raised the deposit reserve ratio ten times.

Here, we have actually made a mistake in judgment.

Starting from the fourth quarter of 2007, the global economy has clearly begun to weaken. The United States has started to loosen its monetary policy from tightening. Europe and island countries have also stopped tightening their monetary policy. Only we are tightening monetary policy.

Such a big difference in monetary policy was quickly captured by some keen financial institutions.

November [-], [-].

The Shanghai Stock Index changed its previous upward trend and began to fluctuate and fall.

This round of decline lasted for a whole month, and it did not show signs of stopping until 4800 points.

In the eyes of ordinary people, such a decline is just an adjustment after a long-term rise in the market.

So many experts said: "The short-term correction is for a better rise."

Including most brokerage institutions, they also expressed their market views and said: "4800 points is the long-term iron bottom, you can buy boldly."

However, investors have no idea that in those places where people cannot see, a large amount of funds have begun to secretly gather, waiting for a suitable opportunity to smash the market to the bottom.

Time enters January of [-].

Our monetary policy has been further stepped up. When the external environment has undergone tremendous changes, the central bank has raised the deposit reserve ratio five times in a row.

This move did not have a direct impact on the trend of the stock market.

Therefore, almost no one is wary of it.After the Shanghai Composite Index fell to around 4800 points, and after the second step back to confirm the "bottom", it seemed to have returned to its original upward trend. After a month of continuous rise, the index has recovered most of the mountain and returned to the 5400 point position.

However, just when the index was close to 5500 points, the K-line of the market closed three small cross stars in a row.

Many people believe that after the market has risen continuously for a month, the upward attack has encountered resistance. Soon the market will make the next round of upward attack and break through 5500 points in one fell swoop, returning to 6000 points.

But in fact, this is when the short sellers start to find a unified pace, greet each other, and warm up for the big moves that will follow.

On January 2, the short sellers, who had gradually adapted to each other's rhythm, suddenly exerted their strength. At the close of the market, the Shanghai Composite Index plunged directly, and the day's decline reached [-]%.

Among them, the Shenzhen Index plummeted 3.58%.

In the following two weeks, short sellers repeatedly smashed the market, causing the market to start a "sleet" decline mode. On January 22, it jumped short and opened low, strongly breaking through the "bottom" support of 4800 points.

The Shanghai Composite Index plunged 7.22% that day!

More than 1000 and [-] listed companies in the two cities fell to the limit.

In this round of epic smashing, a large number of growth stocks represented by banks were the most severe.

Industrial and Commercial Bank of China, China Construction Bank, and China Merchants Bank were once hit to the limit, which was terrible.

In the end, the Shanghai Composite Index managed to hold on to the 4500-point mark under the support of various investors.

When such a signal is released, in fact, more experienced investors will know what is going on.

As a result, many "high-end people" in the financial industry began to ship goods along with these institutions, causing the market to be violently suppressed, forming a five consecutive negative trend.

At this time, the market has formed a very clear downward trend.

As a result, the index continued to fall, and soon approached the 4000-point mark.

This position is already the starting point for the fourth round of the market's rise in 07.

Therefore, the market view generally believes that 4000 points should be the "mid-line position opening opportunity."

Even some senior economists frequently appeared on TV and said, "The market has nothing to fall."

At this time, many listed companies began to release their performance reports for the previous year, many of which were high-growth and high-profit companies, attracting more investors.

Under such favorable circumstances, a large number of investors regained their confidence and did not hesitate to take out their bankbooks and wife's books to increase or cover their locked-up stocks.

Some extreme investors began to take advantage of leverage and invest more funds into the market to hunt for the bottom, in an attempt to create the myth of getting rich overnight.

Financing stocks has become a hot topic for a while.

However, what surprised everyone was that there was no decent rebound at the 3500-point mark. It only lasted for three trading days, and was penetrated by the market's endless selling orders, and accelerated its decline until Go for [-] points.

The market at this time has completely lost its mind.

Many stocks began to fall blindly, and suddenly crashed at the slightest disagreement, hitting their daily limit in just a few minutes.

New stocks that were originally expected to gain at least five daily limits after listing began to fall below the issue price on the first day of listing.

The stock market has reached this stage, and almost all bottom-hunting investors have been trapped across the board.

The trading volume of the market has shrunk by nearly half compared to the peak of 6000 points.

Although many people don't want to believe it, the bull market seems to be gone forever.

April [-], [-].

After hitting the 20-day line high during the session, the Shanghai Composite Index took a sharp turn, plunging 5.5% by the end of the day, and the stock prices of more than [-] listed companies fell by the limit.

The market is almost suffocating.

Looking at it, in just half a year, the Shanghai Composite Index fell from a peak of 6124 points to 3100 points today, a drop of 48%.

The depth and speed of the decline are unprecedented.

At this time, not only investors were worried that all their wealth would evaporate, but even experts began to call for a bailout.

Some highly influential figures from all walks of life finally stood up at this time and shouted, "The financial market must be stabilized to avoid triggering deeper horrific consequences for the economy!"

(End of this chapter)