Hu Xijin entered the Chinese stock market on June 27, 2023 when the stock index was 3,144 points, and now the stock index has returned to 3,144 points in a cycle. After nearly a year of tossing, the index fell to a low of 2635 points and has returned to 3144 points, 95% of shareholders are still like Lao Hu, the index is back, but the money is losing more.
Lao Hu has increased his position many times to make up for his position, and under the guidance of many masters, he is still losing 38,800 yuan.
Many old stockholders, including old retail investors at the professional level, are becoming more and more incomprehensible to the current stock market. In the past, he could still make a little money in the multi-year 3,000-point defense battle. Nowadays, with all kinds of positive stimulus, the index is still rising, but it is true that not only can it not make money, but it is losing more and more. Wondering why?
People in Shaanxi often say that if you don't know anything, you will lose a few hundred. Theoreticians say that to resolve contradictions, we must grasp the main contradictions, and the secondary contradictions will be easily resolved.
What is the main contradiction in China's stock market at the moment? The main contradiction is the contradiction between the imperfect system and the large and complete short-selling mechanism.
Why from the central government to various ministries and commissions, especially the China Securities Regulatory Commission, have come up with so many new reform measures to save the market in a year, the good way, the stock market just did not improve and change much, and also took advantage of the good to smash the market, and also smashed the market to 2635 points, that is, did not find the main contradiction, did not grasp the idea, did not find the right medicine.
If you think about it, more than 80% of China's retail investors are non-professional investors, and quantitative trading is to design all kinds of money-making data to trade in the computer, can the human brain beat the computer? Obviously impossible, why let quantitative trading high-frequency trading exist?
Margin financing business is to provide convenient conditions for large capital short-sellers, through securities lending and shorting the stock market, why is the stock market rising today, and mostly falling tomorrow? Why do even the best high-quality stocks rise today and mostly fall tomorrow? There is no value to invest in. It is the securities borrower who is doing the trick, borrowing the stock to pull up and sell it for a profit. The next day, smash the market, sell at a low price and return the coupons, make a profit at two points, and make a profit by shorting. The money borrowed through financing helped to pull up the stock price and smash the market. This short-selling mechanism of the white wolf, which is not accessible to most retail investors, is currently opposed by experts, scholars and stockholders, and is not suitable for China's national conditions, why can't it be abolished?
It is precisely because quantitative trading, high-frequency trading, margin trading, and margin trading are the main short-selling machines that the stock index has been stagnant for more than ten years, spinning in place around 3,000 points.
The characteristic of margin financing and securities lending is to make money by borrowing bills today and smashing them tomorrow. Therefore, if it rises by 30 points today and hits 40 points tomorrow, the stock index stock price will always be in the same position.
Hu Xijin's stock speculation reflects and represents the real situation of the majority of investors, and the long-term loss of 95% of investors shows that there are serious problems in the stock market. And no matter how many measures are taken, the effect will never be too great if the main problem cannot be grasped. It is hoped that the China Securities Regulatory Commission will pay attention to the important opinions put forward by experts, retail investors and most investors on the abolition of margin trading and quantitative trading, and grasp the main contradiction to prescribe the right medicine, so that the stock market can really take off!