A-share market plunges, a dark Monday! The China Securities Regulatory Commission (CSRC) has made adjustments to the securities lending, mainly including two measures: a comprehensive suspension of the lending of restricted shares; and the adjustment of the market-oriented agreed reporting of securities lending from real-time availability to next-day availability, restricting the efficiency of securities lending. Li Daokui said that the stock market will end the bear market in 2024. The "major stock market good news" has led my fellow stock investor friends to daydream about a sharp rise in the Shanghai and Shenzhen stock markets in the new week, but the reality is that they encountered a heavy downpour of A-share market decline. At the end of the day, the Shanghai and Shenzhen stock market indexes fell across the board, with the ChiNext index plummeting by 3.49%, and the Shanghai Composite Index down by 0.92%, with more than 4,800 individual stocks falling, leaving investors in despair.
Today's stock market suffered a significant decline, once again confirming a fact that the financial commentator has always been educating his followers: the stock market good news that investors hope for, such as suspending the issuance of new shares through IPOs, restricting high-frequency trading, limiting shareholder reductions, and suspending the lending of securities, are actually bearish factors for the Shanghai and Shenzhen stock markets.
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These measures, which are considered good news for the stock market in the minds of investors, have not only failed to provide an upward impetus for the stock market but have also greatly restricted the freedom and flexibility of the securities market, making the A-share market more fragile and preventing outside funds from entering the market for investment.
For many of the financial commentator's fellow stock investor friends, the continuous decline of the A-share market, with the Shanghai Composite Index losing the 2,900 point level, has become unbearable for them. They are like drowning people in a river, desperately grasping for a lifeline, hoping to push the stock market up through various stock market good news measures to get out of their predicament.
However, in reality, these good news measures often have the opposite effect. Suspending the issuance of new shares through IPOs will deprive the A-share market of fresh blood, restricting high-frequency trading and shareholder reductions will cause the market to lose liquidity, and suspending the lending of securities will render the market's mechanism for curbing excessive stock price speculation ineffective.
After these good news measures, which are considered favorable by investors, have been implemented one after another, they have not only failed to bring sustained upward momentum to our Shanghai and Shenzhen stock markets but have also made the A-share market more fragile and unstable.Therefore, Your Finance has a sincere piece of advice for stock investors: Stop expecting any stock market benefits! Instead of pinning your hopes on bearish factors that may lead to a stock market decline, it is better to start with yourself, enhance your knowledge and technical level of securities investment, view stock market fluctuations rationally, master risk control and investment strategies, and ask yourself one question before each move: Is this stock price worth buying now? Is it worth being a shareholder for ten years?
Your Finance reminds everyone that high stock prices that far exceed their reasonable value are the root cause of stock market declines, and there is no other. Warren Buffett and other successful securities investment masters have said similar things: If you do not intend to hold the stock of this listed company for ten years, then do not hold it even for ten seconds!
Only in this way can we achieve long-term and stable investment returns in the Shanghai and Shenzhen stock markets and realize our wealth appreciation goals.