On June 26, 2023, at 3144 points in China's stock market, Hu Xijin, a well-known Chinese retail investor, under the guidance of many masters, thought that it was time to speculate on the bottom, and broke into the stock market with hope, and began to invest 100,000 yuan. He has experienced all the stock trading experiences that retail investors have ever experienced, and has tasted the hardships and ups and downs of retail stock trading. Profits, losses, replenishment, adjustments, but with rich experience, familiarity with the economic and political trends at home and abroad, the study of professional knowledge of the stock market, and the consultation of professionals, it is still a mess, as of May 6, Lao Hu also lost 37,825 yuan. Today, the index has surpassed the 3144 points of Lao Hu's entry into the market, and the highest has risen to 3148 points, but the index is back, and the capital has not returned.
This year is really the most painful year for stockholders, and most retail investors are far more loss-making than Lao Hu, who is close to the water.
This year, the stock market fell to 2,635 points, leaving everyone stunned and disappointed, especially when the central government repeatedly proposed to invigorate the capital market and boost investor confidence, the index is still hovering around 3,000 points under the good situation of building a financial power.
This year, the stock market was not good, and there were dozens of new measures, one good after another, but each time the good was used by the dealer to smash the market. The main force has been in a state of long-term capital outflow for many years, and its net outflow has far exceeded that of northbound funds.
This year, starting from the central government's major positive news of the active capital market, the majority of retail investors are as in the past, all of them are extremely excited, all of them are gearing up, increasing investment, and some even buy full positions, and the result is to buy a loss once, and as soon as the good news comes out, the dealer will pull up and ship.
This year, the central finance and economics bailed out the market many times and put a lot of real money into the market, but the stock market has always been difficult to get out of the quagmire of about 3,000 points, why?
A great man pointed out in his important paper that only by grasping the main contradiction can the secondary contradiction be easily solved.
What is the main contradiction, as many scholars and experts have put forward many times, the main contradiction at present is the contradiction between the imperfect system of emerging markets and the large and complete short-selling mechanism.
There is already a big gap between the strict rule of law in the regulatory system between emerging markets and established markets, causing speculators to take advantage of loopholes in the system, maliciously speculate, and seek huge profits. It has affected the normal development of the stock market, and as a result, large and comprehensive short-selling mechanisms such as margin financing and securities lending, quantitative high-frequency trading, and stock index futures have fueled these speculative short-sellers, resulting in long-term ups and downs and instability in the stock market. Securities lending and borrowing trading is to pull up today, smash the market tomorrow, and operate repeatedly to maximize profits. This reciprocating pull and smashing can only keep the index in place, hovering around 3,000 points, and stagnating. These large and comprehensive short-selling mechanisms are the main contradictions affecting the development of China's stock market, and now we must grasp this major contradiction and seriously study it and make great efforts to resolve it.