How should investors respond to the "National Nine Articles" shaking A-shares?

The impact of the latest "National Nine Articles" on A-shares has been vividly reflected in the past two trading days, with the entire market fluctuating violently, blue chips still barely fighting, and small, medium, and micro stocks falling directly to the ground.

Is the A-share reaction to such a drastic response to the "National Nine Articles" just the beginning or too radical, and how should investors respond?

First of all, we briefly analyze the "Nine Articles of the State". On the whole, the "National Nine Measures" are a series of policies to reform the A-share market, both from the starting point and most of the specific measures.

I think that if we can really do what we say, the A-share market will indeed improve greatly in the future.

However, it is precisely because the "National Nine Articles" are very heavy, so each of its policies has made the fragile nerves of the A-share market tremble. There are policies that encourage investors, tacit acquiescence to some mispractices, and a lack of severe punishment for serious misconduct. For example, if there is no severe punishment for counterfeiting, will this series of policies directly lead to this series of policies becoming a castle in the air?

Second, the market's reaction to the "National Nine Articles" is very real. The original intention of the "National Nine Articles" is to do a good job at both ends of investment and financing, to let high-quality companies go public, to let funds be invested in high-quality listed companies, to encourage value investment and long-term investment, to tolerate companies with average quality, and to clear out companies with obvious problems.

However, what kind of funds will be invested in such high-quality companies? Can A-shares really complete this transformation? Can A-shares change their physique, interests, and habits accumulated over the past 30 years?

I'm afraid it's very difficult and it will take a long time.

Thirdly, for investors, in the face of such a sharply divergent market, the best choice is to stay on the sidelines and let the market run for a while to see whether it is a new look or an old one.

It is likely that A-shares will still be the A-shares, and speculation will still be the mainstream, and after experiencing a wave of sharp declines again, investors will find that nothing has changed except that the market value of their positions has become smaller.

Finally, a few more words about the Beijing Stock Exchange, the development of the Beijing Stock Exchange is a long road, investors are attracted by the quick money effect of the 30% price limit, and they must also be prepared for a sharp decline.

While investors are pursuing high returns on the Beijing Stock Exchange, ask themselves, have they suffered it?

In addition, last year, we ran dozens of companies on the Beijing Stock Exchange and found that almost all of them were very Buddhist and had no desires. This year, we have wanted to run to the Beijing Stock Exchange many times, but we have not been able to raise our enthusiasm, and we have lost even the enthusiasm to write articles. What is the point of writing? We have fallen into such an embarrassing dilemma, how can we break it?

Disclaimer: This article (report) is based on the published information or the information provided by the interviewee, but the author of the article does not guarantee the completeness and accuracy of such information. Under no circumstances does the information or opinions expressed in this document constitute investment advice to any person.