On Friday, all three major indices of the Chinese stock market closed lower, and foreign capital outflows were over 800 million yuan net throughout the day. On Thursday, Liu He presided over a meeting of the Financial Committee of the Communist Party of China, saying “better protect the interests of investors”. In this regard, China’s well-known financial commentator Shui Pi pointed out that he was thumped by this statement and knew that the stock market would definitely fall today (Friday, April 9), because investors need protection when they are in a vulnerable position.
On April 9, the Shanghai and Shenzhen markets oscillated at a low level throughout the day, and by the end of the day, the Shanghai Composite Index fell 0.92% to close at 3,450 points; the Shenzhen Cheng Index fell 1.26% to close at 13,813 points; the GEM Index fell 1.54% to close at 2,783 points.
Wind data show that the northward capital (foreign capital) in the early market, a large net outflow, the end of the market into the sweep, net selling 807 million yuan throughout the day. Among them, the Shanghai Stock Exchange net selling 1.768 billion yuan, the Shenzhen Stock Exchange net buying 961 million yuan. Foreign investors have been net sellers for four consecutive trading days after the Qingming Festival, with the total amount exceeding 13.2 billion yuan.
Reuters reported on April 9 that foreign capital inflows into the A-share market declined, adding to the pessimism in the market. foreign buy-outs totaled 18.7 yuan ($2.85 billion) in March, much lower than the 41.2 billion yuan in February.
With Biden’s stimulus package, hopes for a strong U.S. economic recovery have raised the dollar and U.S. bond yields, which could affect capital flows into China, said Zheng Zichun, an analyst at AVIC Securities.
The mainland media “Brokerage China” reported that in the four trading days after the festival, although the index fell not much, the market popularity is lacking, the turnover of Shanghai and Shenzhen cities is less than 700 billion yuan, except for individual sectors, the money-making effect is not good.
Liu He meeting said to protect the interests of investors
On Thursday (April 8), Liu He hosted the fiftieth meeting of the Financial Stability Development Committee (Financial Committee) of the State Council of the Communist Party of China, emphasizing on the one hand that monetary policy remains unchanged, and on the other hand, emphasizing the release of water to feed the fish, while continuing to strengthen the construction of the capital market infrastructure, for the market to “build the system, non-intervention, zero tolerance”, to better protect Investors’ interests should be better protected.
In this regard, China’s well-known financial commentator Shui Pi wrote an article on April 9, said the Finance Committee met yesterday, he knew that today (April 9) the stock market will definitely fall.
Shui Pi pointed out that yesterday, many media reported the meeting, put “investor protection” in the headline. To be honest, once you see this headline heart thumping, because investors need to protect the time, must be the time of market weakness. If the market is strong, there is no need to repeatedly remind investors of the need for protection. So there was little hope for today’s market (April 9) once it opened, and unfortunately, the market did go the way it did today.
The official website of China Securities Clearing released data that new investors were 2,477,400 in March, a 31% year-on-year increase in data. By the end of March, the cumulative number of investors in China had reached 184 million, an increase of 12.62% year-on-year.
Shui Pi said that the capital market should not become a meat grinder for retail investors, there are so many investors in the market shock in March enthusiastically into the field, running into the field, really should be the greatest goodwill to these new investors, should not see investors as leeks at the mercy of others.
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