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The collapse of A-share stocks highlighted the change in market structure and the rise of high-performing leaders

author:Tianyu Duge

Today's A-share market has experienced an unprecedented shock, with more than 4,000 stocks falling and 300 falling limits, such a tragic scene is shocking. However, in the midst of this plunge, it is not difficult to see that the market is undergoing a profound transformation.

The collapse of A-share stocks highlighted the change in market structure and the rise of high-performing leaders

For a long time, the A-share market has been plagued by so-called "shell resources" such as micro-cap stocks and ST shares. These stocks lack real value, but they survive on the hype and speculative atmosphere of the market. However, with the introduction of the CSRC's strict delisting system, these "zombie shells" and "black sheep" have finally ushered in the day of liquidation. Today's market plunge is a severe blow to these inferior stocks, and it is also a profound warning to investors who blindly chase up and down.

At the same time, the leading stocks of high performance have ushered in spring. Sectors such as Zhongzitou, securities, banking, and high dividends were among the top gainers, and these stocks won the favor of the market with their solid performance, good fundamentals, and clear growth prospects. Their rise not only reflects the market's recognition of high-quality assets, but also indicates a profound change in the market structure.

The collapse of A-share stocks highlighted the change in market structure and the rise of high-performing leaders

This shift is the inevitable result of the self-purification of the market, and it is also a reflection of the maturity of investors' ideas. In the past, investors often pursued short-term speculation and speculation, ignoring the true value and long-term development prospects of enterprises. However, as the market continues to mature and regulation is strengthened, investors have begun to pay more attention to the fundamentals and growth potential of companies, and high-performing leading stocks have become the darlings of the market.

While the rise of high-performing leading stocks is accompanied by some investors who are keen to speculate on inferior assets such as micro-cap stocks and ST shares. This kind of speculation not only increases the risk of the market, but also hinders the healthy development of the market. Therefore, we call on investors to treat the market rationally and not be confused by short-term speculation, but to focus on the true value and long-term development prospects of enterprises.

Today's volatility in the A-share market is a concentrated outbreak of deep-seated contradictions in the market, and it is also an opportunity for market transformation. We should meet the challenges of the market with a more open mind and more professional knowledge, seize the opportunities of the market, and jointly promote the development of the A-share market in a more mature, healthy and stable direction.

The collapse of A-share stocks highlighted the change in market structure and the rise of high-performing leaders

At this critical historical moment, we need to have the courage to face the pain points of the market and have the wisdom to grasp the opportunities of the market. We cannot lose confidence because of short-term market shocks, nor can we ignore contradictions because of short-term market prosperity. We need to have a cool head, a keen insight, a firm belief, and a pragmatic action.

We need to fundamentally solve the deep-seated contradictions in the market and enhance the attractiveness of the market from the source. We need to strengthen the removal of "zombie shells" and "black sheep" through a strict delisting system, reduce the value of "shell" resources, and at the same time, broaden diversified exit channels and strengthen investor protection for delisted companies.

We need to optimize the market mechanism to direct the flow of capital to truly valuable enterprises. We need to create a fair, just and transparent market environment by strengthening market supervision. We need to protect the legitimate rights and interests of investors by promoting the rule of law in the market.

The collapse of A-share stocks highlighted the change in market structure and the rise of high-performing leaders

We need to attract global capital and wisdom by promoting the openness and internationalization of the market. We need to meet the diverse investment needs of investors by promoting innovation and diversification in the market.

We need to improve the quality and ability of investors by promoting education and popularization of the market. We need to enhance the credibility and social influence of the market by promoting the credibility and social responsibility of the market.

We need to establish a good market ecology and cooperative relationship by promoting market cooperation and win-win results. We need to improve the vitality and competitiveness of the market by promoting competition and survival of the fittest in the market.

We need to promote market reform and innovation to achieve leapfrog development and transformation of the market. We need to shape a healthy market culture and values by promoting the culture and value building of the market.

The collapse of A-share stocks highlighted the change in market structure and the rise of high-performing leaders

We also need to be wary of large-scale northbound capital inflows. While these funds have stabilized market sentiment to a certain extent, we should also be aware of the possible risks involved. Northbound funds tend to have keen insight and strong influence, and their operations often have a profound impact on the market. Therefore, we need to pay close attention to the movement of northbound funds in order to respond to possible risks in a timely manner.

Although the volatility of the A-share market today is tragic, it also reveals for us a profound change in the market structure. In the future market, the top performers will gradually dominate, while the inferior assets will gradually be marginalized. This is the result of the self-purification of the market, and it is also the embodiment of the maturity of investors' ideas. We look forward to seeing more truly valuable stocks stand out in the future market and bring more stable and sustainable returns to investors.