Yu Fenghui: Shanghai Index Breaks Behind 3000 Points Behind Hidden Murderer

The last time I saw the Shanghai composite index was 3000 points, or 44 months ago.

Judging from the volume of pactions, after breaking through trillion yuan last Friday, it continued to create 981 billion 100 million yuan in December 8th.

From November 24th to December 5th, just 11 trading days climbed 3000 points in a row, making domestic and foreign investors staggering.

We must see that this round of A bull market is not supported by economic fundamentals.

At present, the macroeconomic trend is still downward pressure, the real economic growth is weak, and the driving force of investment, exports and consumption is still not strong enough.

This macro economic situation is in sharp contrast to that of the United States. Behind the continuous rise of US stocks, the US economy continues to improve, unemployment rate drops sharply, prices remain stable and consumption power is strong.

From the basic performance of domestic listed companies, it can not support the stock market.

Take this round of crazy financial stocks, the traditional financial enterprises such as banks and brokerages are going from bad to worse, and are greatly affected by the new economy and new finance.

The bank's profit growth momentum has weakened, and non-performing loans have risen sharply.

Although the market has underestimated its value for a long time, it will not support this surge.

The stock market is a mystery, and China's A share "Puzzle" is even more difficult to ponder.

This round of market can be said to be a result of the central bank's currency.

From June to now, the central bank continued to discharge money and credit for the purpose of rescuing the property market and solving the problem of financing difficulties in the real economy.

However, due to excessive water and money lending, it is difficult for the depressed real estate and the continued stagnant real economy to absorb and turn into the stock market.

From the serious division of the market itself,

It is also obvious.

In the recent A stock market's crazy interpretation, the market's attention has been constantly refreshed besides the "sky sky price" caused by "elephant dance", and the "28 differentiation" is becoming more and more serious.

At present, the strong stock market is almost entirely "self directed" for financial stocks, and most other industries and stocks have become "supporting roles" and "mass actors".

Last Friday

The pattern of differentiation is particularly evident, with securities dealers, banks and military workers soaring and other sectors falling.

Only 361 stocks rose on Friday's close, while 1951 fell.

The author draws a conclusion that in the Shanghai and Shenzhen two cities, there are few listed companies in real economy.

The A share market, which is supported by the surging financial stocks, is a castle in the air, which also determines the hidden risks.

For example, a major reason for the surge in brokerage stocks is that

Fierce competition, brokerage business has withdrawn from the main business ranks, replaced by mortgage repurchase and margin trading high leverage business income.

When the A share market is hot, foreign capital flows into China's stock market.

Data from EPFR, the capital flow monitoring Institute, showed that the trend of global capital outflow of Chinese stocks continued from November 27th to December 3rd, and the scale expanded rapidly. In December 3rd, a net outflow of US $2 billion 281 million was recorded, a record high since January 2008.

How can foreign investors see the profit margin of China's A shares skyrocketing?