Chapter 1320 [Living in fear of rising prices every day]

After a good start on the first trading day of the new year, Big A's market outlook continued to be booming. The NSE 50 index shrunk by +1.51% on Wednesday the next day, and rose again by +1.04% on Thursday, closing at 3101.15 points. There have been five consecutive positive days in the past five trading days.

Investors did not expect that after the NSE 50 Index broke through 3,000 points, it only took two trading days to reach a higher level and reach the 3,100-point mark.

It closed up +0.49% again on Friday, ending its sixth consecutive positive streak.

Such a hot market atmosphere in the SGX market has also driven the two cities next door. The main board indexes of the two cities have followed the rising market. However, there is no doubt that the SGX market is stronger, and the growth rate is also leading the two cities next door with an absolute advantage. .

On the weekend, the market once again received a piece of heavy news.

Just around 10 a.m. on the weekend, SGX released a draft for comments on "New Port Connect", which directly confirmed the previous rumors!

Sure enough, the news did not appear out of thin air.

Although it is a solicitation for opinions, your opinions are actually not important, let alone have any impact. Everyone knows this. The purpose of issuing such a press release is to follow a process and comply with procedural standards.

In other words, the opening of foreign investment access to the SGX market is a certainty. It depends on when it will be officially implemented.

This weekend, the biggest news in the capital market is that funds from the north can also participate in investing in the SGX market in the future. News related to this is also flying all over the sky, with various rumors and analysis and interpretations.

One of the theories that is quite popular at the moment is that the SGX market is opening up access to foreign capital at this time in order to allow them to take over.

After all, SGX's P/E ratio is not low.

Fang Hong didn't pay attention to those analyzes and interpretations that said foreign capital would come in to take over the business. International investment institutions knew better and were more professional about this kind of thing than the big V teachers on the Internet.

After the weekend weekend, the market opened as scheduled in the second week of the new year.

Big A continues to maintain a bullish market. The increase of the New Securities 50 Index has slowed down a lot compared to the previous week, and the volume and energy have continued to shrink. However, it still has five consecutive positive days this week, closing +1.38 from Monday to Friday. %, +0.46%, +0.78%, +0.36% and +0.31%, closing at 3220.24 points.

The NSE 50 Index has reached a new level this week, reaching the 3200-point mark. It has recently had 11 consecutive positive lines, setting a record for the number of consecutive positive lines.

The Shanghai Stock Exchange Main Board Index next door also reached the 3,400-point mark this week, also experiencing 11 consecutive positive days, but the NSE 50 Index was obviously stronger, with the two major indexes shortened to more than 200 points in absolute terms.

…

When the market opened in the third week of the new year, on Monday, January 15, the three major stock indexes in the A-share market finally ushered in a collective adjustment, ending the previous 11 consecutive positive trends.

The NSE 50 Index closed down -1.23% to 3180.54 points, with trading volume also increasing to 673.2 billion, an increase of 170 billion from last Friday.

However, it is worth noting that the two cities next door reappeared in a tragic differentiation pattern today. Although the Shanghai Stock Exchange Index fell slightly by -0.54%, the Shanghai Composite 50 Index, which represents large-cap stocks, closed up 1 percentage point, setting a new stage high again with a wave of 12 consecutive gains.

The GEM index, which represents small-cap stocks, plummeted by more than 3 percentage points, hitting a new low in five months. The number of stocks falling in the Shanghai and Shenzhen stock exchanges reached more than 2,800.

Today's Shanghai and Shenzhen stock markets basically show a one-sided 19-open pattern, that is, 90% of the stocks have plummeted, and some stocks have even plummeted. Only a few index stocks or theme stocks have performed relatively strongly.

Although the SGX 50 index fell more than the Shanghai stock index today, in fact, less than 20% of the stocks on the SGX market fell. About 80% of the stocks were in the red market, but they did not rise much.

As for the index falling by more than 1 point, it is mainly caused by the correction of super big players such as Xingyu Technology and Matrix Quantum, which have a huge impact on the NSE 50 Index.

Today, the market came out of the correction. In addition to the sharp rise in the previous two weeks and the accumulation of a lot of profits, there were also a lot of negative news. First, M2 increased by +8.2% year-on-year, hitting a record low.

In other words, liquidity is tight.

In addition, entering the new year of 2018, various departments of the Bank of China, the Bank of China and the National Commission of China have begun to issue new regulations for these industries based on deleveraging and defoaming. Regulations were introduced to control financial chaos, banking chaos, and the ratio of stock pledges for shareholders of listed companies.

In short, they are all compressing the capital ratio, which is a relatively large pressure on the market.

However, these negative effects are harmless and will not have much impact on the SGX market. Fang Hong’s established plan will not change because of this. The target price of this round of exponential market must reach 3,600 points.

There may be tight liquidity in other places, but the SGX market is not one of them. It is precisely because liquidity is being siphoned off by the SGX market that it causes tightness in other places.

In addition, the SGX market is a pilot project of the registration system of "one stock, two systems". The village actually has no control over the SGX. The bubble is being deflated in other places, but the bubble is still being blown here.

However, the SGX market is only blowing bubbles and not increasing leverage. Asset prices are relatively overvalued, but financial leverage is well controlled. This is also an important factor in the money shortage in other places.

Without leverage, where does the money come from? Where does the liquidity support the current index-level market of the SGX market?

The answer is also very simple. On the one hand, the second phase of the wealth fund funds of "savings moving" will soon enter the market. On the other hand, the majority of retail investors enter the SGX market through the main channel of the SGX 50ETF, so the SGX market is not short of liquidity.

…

The next day, Tuesday, January 16.

The A-share market SGX opened first. After the SGX 50 Index pulled back and formed a negative line, it rebounded strongly again today and returned to the 3200 point mark. Not only did it rebound, but it also set a new historical high.

The SGX market strengthened again, and the Shanghai and Shenzhen stock markets were also brought up. It was still a market where the elephant danced. The slogan of "big is beautiful, core assets" was shouted loudly in the market. The current market is indeed a bull market around large-cap stocks, blue-chip stocks, and white horse stocks.

Small and medium-sized start-ups next door continue to be beaten. The liquidity of the ChiNext Index is on the verge of exhaustion. The turnover of the entire index is only a pitiful 30 billion. The stocks of Xingyu Technology and Matrix Quantum in the SGX market can beat it.

As of the close, the SGX 50 Index rose by +2.00% to 3244.14 points, and the full-day turnover of the SGX market was 583.2 billion.

On Wednesday, January 17, the SGX 50 Index closed up +0.71% again. After the three consecutive positives after the correction on Thursday, it rose by +2.21% to close at 3339.43 points, standing above the 3300-point mark, setting a new historical high.

"Woc! It's rising so fiercely, it makes me panic. Don't rise so fiercely and so quickly. It can rise longer if it rises slowly..." A retail investor stared at the screen and saw the SGX 50 Index standing above the 3300-point mark, and couldn't help muttering.

He was very excited and a little panicked.

He was excited because he bought the New Securities 50 Index ETF, and the rapid rise also brought him higher returns. In just two weeks, he had already gained 12 points of returns.

He was nervous because he always felt that this unilateral rise would collapse later, without even a decent adjustment, and he always felt that the market was not healthy.

The New Securities 50 Index climbed up in the new year, with a small step every two days and a big step every week, setting a new record every day. The bull market was so strong that it was astonishing.

The first month of the new year had just passed halfway, and the annual line of the New Securities 50 Index had already achieved a cumulative increase of +14.8%, which was the highest return rate among major stock markets in the world during the same period.

It really fulfilled the joke that I live in fear of rising prices every day.

…