On Tuesday, China’s stock market fell collectively, the Shanghai Stock Exchange index lost 3600 points, the rest of the stock index fell, the total market value of A shares evaporated 1.4 trillion.
On January 26, Chinese stock markets weakened throughout the day, with the Shanghai Stock Exchange Index losing 3600 points and closing down 1.51% at 3569.43 points; the Shenzhen Stock Exchange Index fell 2.28% at 15,352.42 points; the Growth Enterprise Market Index fell 2.89% at 3,258.36 points, with the total market value of A-shares falling by about 1.4 trillion yuan.
The turnover of the two cities again exceeded a trillion, the northward capital (foreign capital) is profitable flight. Data show that the actual net selling of northbound funds throughout the day was 3.541 billion yuan, of which 2.916 billion yuan was sold by Shanghai Stock Exchange.
On the plate, military stocks fell across the board, with 18 stocks in the whole sector falling by more than 9.97%, and the sector index plunged by more than 7%, with market value evaporating to 110 billion yuan. Lithium, brokerage, Medicine, liquor and other sectors were lower across the board.
Analysts believe that China’s stock market fell across the board, probably related to the CCP central bank’s continuous maintenance of ground-level reverse repo operations and the continuation of the net re-cage trend. Considering the impact of Chinese New Year cash withdrawals and other factors, the funding surface is tighter, and the bond market adjusted significantly, with interbank and exchange repo rates rising significantly, with DR001 hitting a 16-month high, triggering concerns of tight liquidity before the holidays.
In addition, a few days ago, Ma Jun, a member of the Monetary Policy Committee of the Central Bank of the Communist Party of China, said at a symposium that bubbles have emerged in some areas in China, and several major stock market indices in China have risen sharply, close to 30%, and it is impossible that such a bull market has nothing to do with the currency when the economic growth rate has fallen sharply. In addition, house prices in Shanghai and Shenzhen have risen a lot recently, and these are related to changes in liquidity and leverage.
Ma Jun said that whether this situation will intensify in the future depends on whether monetary policy is going to make a moderate turn this year. If not turned, these problems will certainly continue, which will lead to greater economic and financial risks in the medium and long term. But the monetary policy turn can not be too fast, some local governments and commercial banks believe that turning too fast will lead to project stoppage, rotten, bad debts and other problems.
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