388 stocks rose, and nearly 5,000 stocks are waiting to rise, which is the A-share on January 8, 2024. Just as bad as A-shares are, there are also Hong Kong stocks, with the Hang Seng Index falling 1.88%.
A-shares and Hong Kong stocks will crown the world in 2023, and they will continue to fall after the beginning of 2024, and many investor accounts have lost more than 10 points in a few trading days.
At a time when the stock markets of almost all countries, such as the United States, Europe, Japan, India, South Korea, and Vietnam, hit new highs, A-shares and Hong Kong stocks continued to fall and could not be stopped. Netizens used "corpses all over the field" to describe this kind of tragedy.
It's all like this, and there are even domestic media that ridicule the U.S. stock market: "U.S. stocks have suffered the "worst start in 20 years"", which idiom has to be used to describe this?
For example, there are problems with the trading system of the stock market, and after the opening of the registration system, new stocks continue to be listed, there are too many more than 5,000 stocks, and there is a lack of delisting mechanism.
In fact, the rise and fall of the stock market is driven by money. Capital is like water, stocks are boats, and only when the tide rises can the boat rise. All kinds of statements about the decline of China's stock market are all appearances, and the root cause is precisely because of the lack of money!
First, the outflow of foreign capital continues.
In July 2023, foreign investment banks called for a withdrawal from China's stock market, and fund companies such as BlackRock also lost money and left the market, setting off a wave of foreign withdrawals.
According to Bloomberg data, from July to November 2023, foreign institutions sold a total of 132.8 billion yuan of shares. Foreign investors withdrew from China's onshore equities for the fifth month in a row, extending record capital outflows.
While foreign capital continues to flow out, new listings are still happening on a weekly basis. This led to a significant diversion of funds, and stocks in several sectors began to fall. If there is no water, the ship will surely sink.
Second, major shareholders continue to reduce their holdings.
At the same time, major shareholders continued to reduce their holdings and sell stocks, resulting in an accelerated ebb of funds. In the first half of 2023 alone, more than 1,000 listed companies have announced plans to reduce their holdings. However, the amount of share repurchases is pitiful, with 1,370 companies repurchasing a total of 86.8 billion yuan in shares in 2023.
Foreign capital ran away, new companies went public with a pump, and major shareholders continued to reduce their holdings, which made the stock market continue to shrink. As the stock fell, the stockholders became deeper and deeper, and the more they made up for the fall, they also lost the ability to increase their positions to save themselves. Public funds and private funds suffered a net value contraction, and investors redeemed.
Third, the national team has no money to save the market.
Incremental funding has not been coming in. Why has it all fallen like this, and the national team hasn't come in to save the market?
Do you think the national team has money? Insurance and social security funds are part of the national team, and part of the money is raised by local SASACs, as well as state-owned assets such as Central Huijin.
Insurance and social security funds should be 100% safe, because when it comes to life-saving money and pension money, they must not be lost. In this round of decline, a large number of social security and insurance capital holdings have plummeted, or even halved. Therefore, insurance funds are becoming more and more cautious and do not dare to increase their positions easily.
Central Huijin and state-owned assets in various places will basically buy a little bank ETF, so we see that sometimes the stock market plummets, and suddenly the banks pull up. This is to prevent the broader market from falling too sharply.
However, this kind of "stability maintenance" method is becoming more and more difficult to use. Because as long as the banks and securities are pulled, the index is up, and the individual stocks are still falling, and there is no capital to follow. It's like a "bait", you can't catch a fish if you throw it out, so you get the bait in vain.
Moreover, the national team is now short of money! The finances of various localities are very tight, and many localities are no longer able to open the pot. Pay cuts for civil servants became the norm. In some places, they even have to raise water bills, increase paid parking spaces, and let the traffic police work until 9 p.m. to check violations and post fines to generate revenue.
The landlord's family also had no surplus food, and the funds for maintaining the stability of the stock market became precious. Previously, as long as it plummeted, the national team would take action to maintain stability, but now the national team has fewer and fewer shots.
唯一手段:尽快停止IPO!
There are a total of 5,300 A-share listed companies, with a total market value of 87 trillion yuan. There are less than 4,000 listed companies on the New York Stock Exchange and NASDAQ. How can we engage in 5,300 listed companies? And we are still issuing new shares every week, but we don't see a few junk stocks delisted.
The U.S. stock market houses global companies, and there are a large number of delistings every year. There are more than 5,300 A-shares alone, not including more than 2,600 Hong Kong stocks. What amount of capital is needed to sustain the growth of the market?
Therefore, some stock market professionals have called for reducing the number of IPOs and speeding up the pace of delisting of garbage enterprises, so that the stock market can be revitalized and attract continuous inflows of foreign capital.
Finally, a joke: no matter what sins you created in your last life, as long as you speculate in A shares, you will pay it off!