2014-06-24

China's Zombie Stock Market

Volatility isn't only low in the U.S. stock market, treasury market, and currency markets. It is also at a 23 year record low in China; the Shanghai market opened near the end of 1990.

This raises the question of what is causing low volatility even in China's closed market?

“僵尸”行情再现 A股惊现20年来罕见信号
In the first half of the year is about to wrap up the 14 stock index amplitude of less than 10.3%, the highest in 23 years A record. Six months, only 10% of the volatility that the current A-share as "zombie" price is not excessive.

The past few trading days the market trend as it did five months, there has been a narrow range. But with the volatility index has been narrowing, A shares have discovered a rare signal 20 years: 14 years ending in the first half of the upcoming stock index amplitude of less than 10.3%, the highest in 23 years A record. Six months, only 10% of the volatility that the current A-share as "zombie" market is not an exaggeration!

But while A shares discovered "zombie" market, but it constantly exciting sector stocks. Among them, the robot , the concept of a strong rise of rare earth directly proclaimed leader of the early return of the king; addition, Gaosongzhuan continue to simmer, following days of silver electromechanical after sustained rally, Ming Jewelry Relay also way up the word limit, fully illustrated The main preference for Han Quangu; simultaneously integrated into the flight again limit, triple contrarian, it is deeply involved in the operation of the main funding fruits. The greatest potential for stocks is undoubtedly favored by the main funding significantly, the rise and continuing rebound is undoubtedly the biggest. Therefore, investors in stocks broad differentiation after the occasion, do not blindly defend the stock to be up, but should see what the current hot market is the main line in order to obtain their rightful income in weak market. According to the latest findings of stocks the main monitor, 89 stocks with the potential merger and reorganization, the main Gaosongzhuan deeply involved with these three elements, led by new investors or a faucet. Click to view the stock is in the hands of them.

In fact, from the 13-year GEM bullish start, the mainstream market funds have basically abandoned the market, and this is a limited market liquidity, the main body of last resort option. But the so-called situation improves, half the volatility in the stock index hit a new 20-year low, or are hidden historic fourth big reincarnation.

We Guangzhou Bandung ( microblogging ) believes that the current management of market-oriented reforms are moving, the stock market also registered further progress in reform, reform of the bonus will be released gradually as QFII, annuity, pension and other long-term capital is also being gradually into field. The economy and stock market reform measures, once the transition is completed, it will be quantitative to qualitative changes accumulate, A shares will also be transferred Bear cattle, ushered really big market; Furthermore, technically, in recent years, the Shanghai Composite Index is to build a large base level , the current market's ups and downs are a part of this large level at the bottom, next year will usher in 6124 fell to eighth year. Under the reform constantly advancing and large cyclically adjusted gradually completed, China's stock market rose or fourth big cycle will turn.

In the fourth large reincarnation,打响第一炮protagonist is undoubtedly Daily News Gaosongzhuan concept. This electromechanical two even from the days of the silver plate, detonating second new collective blowout can be seen. That concept in Gaosongzhuan broke down again, how to dig under a mid-year report Gaosongzhuan stocks it? We think that might be from the perspective of the layout of the following four new Gaosongzhuan leader.

First, in line with three high: that there is a high net worth, high reserve, high undistributed profits; followed by a smaller dish, preferably not more than 100 million shares, such as days of the silver plate electromechanical paltry 3 million shares; Again, low price preferably not more than 30 yuan, Niugu are up from the low price, Yingkou Port takeoff when the share price is less than 4 million; Finally, and most important, that the unit must have a main active operation in which, as in industrial capital increase in cash or fixed, will be on the market value of the management company to do some rather Gaosongzhuan industrial capital is undoubtedly the cheapest trick works.

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