The turnover of gem exceeds the Shanghai stock market or repeatedly appears, and the Shanghai stock market needs to be reformed to enhance its activity

category:Finance
 The turnover of gem exceeds the Shanghai stock market or repeatedly appears, and the Shanghai stock market needs to be reformed to enhance its activity


Multiple factors boost the growth enterprise market trading volume, turnover exceeds the Shanghai stock market or repeatedly appears

Gem turnover once again exceeded the Shanghai stock market, mainly due to the investment preference of market funds. GUI Haoming, chief market expert of Shenwan Hongyuan Securities Research Institute, told surging journalists that the distribution of funds in the market has never been a simple linear distribution, but has its inherent law.

To be specific, the recent Shanghai stock market is relatively sluggish, and the market is relatively flat. In contrast, the gem, recently, individual stocks are more active, while the subject matter stocks are more distributed. Under the background of a certain degree of adjustment in the early stage, it is easier for funds to choose to do articles on the gem. GUI Haoming said.

The growth enterprise market turnover increased significantly and then exceeded the Shanghai stock market, mainly due to two factors. Chen Xianshun, Guotai Junans chief strategic analyst, told surging journalists that on the one hand, it stems from the deregulation of the regulatory system. At the same time of the implementation of the registration system on the growth enterprise market, the price limit of old stocks and new shares was relaxed from 10% to 20%. The relaxation of the limit on the rise and fall within the day brought about an increase in trading volume.

It is worth noting that Gui Haoming stressed that it is a market trend for funds to flow to plates with higher activity and greater flexibility.

Therefore, in the case that the rise and fall rate of the Shanghai stock market has not been relaxed to 20%, the situation that the trading volume of the gem exceeds the main board of the Shanghai stock market may occur repeatedly in the future. GUI Haoming said.

Institutional reform is needed to enhance the activity of Shanghai Stock Market

Generally speaking, to further enhance the activity of Shanghai stock market, we still need to start from reform. GUI Haoming said that if the main board of the Shanghai stock market also achieves a 20% rise and fall and the listing structure is adjusted to a certain extent, the trading volume of the Shanghai stock market and the GEM may change.

Referring to overseas experience, it will be the general trend to relax the rise and fall of other A-share sectors in the future. Chen Xianshun said that in terms of overseas price limits, there are no limits on the rise and fall of Hong Kong, Germany, the United States and the United Kingdom. In order to improve the efficiency of the equity market, Taiwan relaxed the intra day limit from 7% to 10% in June 2015. South Korea relaxed the intraday limit from 6% to 15% in just two years from 1996 to 1998. In June 2015, the limit was further relaxed to 30% in order to reduce price manipulation and revive the financial industry.

However, in terms of the pace of reform, Chen Xianshun believes that although the differences in various trading mechanisms between the Shanghai and Shenzhen stock markets will cause significant fluctuations in the trading volume and volatility of individual sectors, as well as frequent switching of market styles. However, at present, there is no need to rush to extend the relaxation system to other sectors. The process of relaxation still needs to be steady, so as to avoid large fluctuations in the market caused by too fast reform speed.

Secondly, it is very likely that the market volatility will rise and the style switch will be brought about by the relaxation of the rise and fall range. The gradual reform will help the market gradually digest, and the one-step reform may bring greater impact on the market. Chen Xianshun further pointed out that once again, the trading system of 20% rise and fall of gem does cause siphon effect at present, especially hot money, and hot money speculation is low-priced stocks with loss of performance or even negative news. However, with the increasing crackdown on violations of gem by follow-up supervision, the above problems will be alleviated. Chen Xianshun stressed that it is the key period of market reform transition, and short-term fluctuations are inevitable. But more importantly, compared with the past, the A-share market is much more mature. In the future, with the increase of the proportion of long-term capital of A-share, market speculation will be further reduced. Therefore, at present, there is no need to rush to extend the system of price fluctuation relaxation to other sectors. Source: surging news editor: Yang Qian_ NF4425

Secondly, it is very likely that the market volatility will rise and the style switch will be brought about by the relaxation of the rise and fall range. The gradual reform will help the market gradually digest, and the one-step reform may bring greater impact on the market. Chen Xianshun further pointed out that once again, the trading system of 20% rise and fall of gem does cause siphon effect at present, especially hot money, and hot money speculation is low-priced stocks with loss of performance or even negative news. However, with the increasing crackdown on violations of gem by follow-up supervision, the above problems will be alleviated.

Chen Xianshun stressed that it is the key period of market reform transition, and short-term fluctuations are inevitable. But more importantly, compared with the past, the A-share market is much more mature. In the future, with the increase of the proportion of long-term capital of A-share, market speculation will be further reduced. Therefore, at present, there is no need to rush to extend the system of price fluctuation relaxation to other sectors.