The GEM index fell below 1,700 points, Hengke plummeted by more than 5%, and foreign capital smashed 13.1 billion

Today is a typical small stock market crash caused by liquidity, the market has lacked flow, and has been shrinking after the holiday, and today it encountered the resolute sale of 13 billion by foreign capital, resulting in a sharp drop in the index.

We have said before that around 2800 points is very critical, many financing liquidation lines, fund liquidation lines, etc. are around here, once triggered, it is a one-click clearance, coupled with shrinkage, it will inevitably lead to a collapse of the index, and the index will cause panic after the sharp fall, leading to a larger-scale follow-up sell-off, resulting in an accelerated collapse of the index, which is the self-reinforcement of the market.

Previously, we judged that the trend of large outflows of foreign capital was over, but in fact, after December last year, foreign capital buying and selling could be flattened. Moreover, from the perspective of foreign institutions in the near future, due to the low valuation of A-shares, they are not so bearish, and even began to actively look for opportunities.

No one expected that foreign capital would sell more than 10 billion in the morning alone, even in the second half of last year, when foreign capital continued to sell, it was rare to sell 10 billion in half a day.

Judging from the information that has been learned, today's sharp sale of foreign capital may be because of Trump, after the overwhelming victory in the Iowa party primary, the implied winning rate of Trump's election bet has reached 44%, 11 percentage points ahead of Biden, Trump's current policy towards China is a sweater war, and the US stock market has plummeted last night.

Foreign investors sold concentrated in the morning, the noon selling weakened, but there is already a capital explosion here, there is a picture of an investor investing in the CSI 500 index snowball products lost all their money is widely circulated, to the end of the estimated liquidation more, retail investors also follow the trend to sell, directly stampede, the index plummeted.

Specifically, as of the close, the Shanghai Composite Index fell by 2.09% to a new low, and the ChiNext Index fell by 3%, falling below 1,700 points. Hong Kong stocks were even more miserable, with the Hang Seng Index down 4% and the Hang Seng Tech Index down 5.61%. Today, more than 5,000 A-share stocks fell, and only 280 stocks rose, setting a new record for decliners.

In terms of industries, non-ferrous metals, food and beverage, social services, power equipment, commerce and retail and other industries led the decline.

Risk Warning:

The stock market is risky, investment needs to be cautious, this article does not constitute investment advice, readers need to think independently