Chapter 1641 [The market index plummeted, and small and medium-sized stocks soared to dizziness]

Those financial rentier groups are very clear about the logic here, because there is a provision in the "opinion draft" that states that the holdings of a large number of industry ETFs that will be launched will only be allocated among stocks on the SGX market.

This rule is almost an obvious operation. For example, if the SGX market launches a semiconductor ETF in the future, and then a fund manager manages a theme fund that focuses on allocating semiconductor stocks, if the fund does not even have a semiconductor ETF by then, Winning, or even underperforming by a large margin, the Christians who bought this fund saw it and still had to break their defense?

After the defense is broken, I will definitely redeem the fund angrily, and I will never have confidence in these sub-fund managers again.

If they want to launch new fund products in the future, few people who have suffered losses will subscribe again, and fund-raising will fail on a large scale. So how can they use funds to acquire junk stocks at high levels?

…

The next day, Friday, February 26th.

It is now 8:55. Tian Jiayi has not gone to the company yet. He is having breakfast with Fang Hong, Yu Qiu and others.

She took her mobile phone and looked at the stock market. She was surprised when she saw it. She immediately raised her eyes and looked at Fang Hong: "Why did the NSE 50 index plummet so much at the opening today? Even if yesterday's news was bad, it wouldn't open like this, right?" "

Hearing this, Fang Hong asked: "How do you say it? What's the opening price?"

Tian Jiayi immediately answered him: "It opened at a low of 10973.56 points, a low of -5.68%. It can be said to be a plunge."

Fang Hong couldn't help but was slightly stunned: "Why so many?"

The beautiful assistant immediately handed him the phone and asked him to take a look at it.

Fang Hong, who took over the phone, immediately glanced at the market software on the screen. It was indeed a jump at the opening, with a sharp drop of -5.68%. The main decliners were super large-cap stocks such as Xingyu Technology, Matrix Quantum, and Kyushu Blue Arrow.

This opening situation was indeed a bit beyond Fang Hong's expectation. Yesterday, his expectation was that it might fall by more than 3 points today, and it might drop to about 4 percentage points during the session. Unexpectedly, the opening price hit 5.68 percentage points. .

Fang Hong pondered for a while, and after putting his phone on the table, he suddenly sneered: "You probably know what's going on. It's the retaliatory smashing of the market by those financial rentiers. I pulled out their blood-sucking SGX Guanzi, of course they are furious, haha..."

His guess was correct. The NSE 50 Index opened so violently today, and it was clear that it was the financial rentiers who were retaliating.

But they are not simply smashing the market out of anger and revenge. It is also an act of withdrawal. Because they can no longer suck blood, they have allocated stocks in the SGX market and it is time to withdraw. They just smash the market in retaliation.

Tian Jiayi couldn't help but ask after hearing this: "Do you want the stabilization fund to protect the market?"

Fang Hong shook his head and said calmly: "No, the current SGX market is not that fragile. Those rentiers are not qualified enough to make any waves. They are just trying to deal with you and let the market take care of itself." Just repair it. If it doesn’t work, it’s not too late to take action.”

Hearing this and seeing that he was not worried at all, Tian Jiayi said nothing more. After a while, she finished breakfast and went to work at Qunxing Group Company.

In Fang Hong's view, the vindictive behavior of the financial rentiers was an act of incompetence and rage.

However, it is best to sell out now. The NSE 50 Index will continue to rise in the future. If you leave, you will not be able to reap the subsequent dividends. Fang Hong is also happy to see this happen.

However, at this moment, the SGX market officially opened at 9 o'clock. The SGX 50 index opened lower and moved lower. The market panic intensified. The intraday low fell to 10871.80 points, and the maximum decline during the day reached -6.56%, but then it stopped falling. It rebounded by 1 percentage point, and the decline narrowed to -5.53%.

At 9:30, the Shanghai and Shenzhen stock markets next door also saw a huge bidding surge. The Shanghai Composite Index opened lower by -5.75%, and the Shenzhen Component Index opened lower by -6.77%. After the opening, it also opened lower and dived.

The two markets next door suffered even more sharp declines today, because there are not many retail investors playing next door, and it is basically a situation of cutting each other off with sickles. Those financial rentiers obviously know that they cannot support the two cities next door after they have their tubes removed. The city now has a total market capitalization of over 80 trillion.

As a result, the market conditions previously promoted by the two cities next door came to a complete collapse today, and they officially fell into a struggle for stock.

In the SGX market, the SGX 50 index rebounded to regain the 11,000-point mark during the session, rebounding to a maximum of 11158.40 points, narrowing the decline to -4.09%. However, in the afternoon, the rebound failed to continue, and even It failed to stabilize, because the two markets next door fell so fiercely that it made many people panic, and the NSE 50 index also fell.

As of the close, the SGX 50 Index plummeted -6.09% to close at 10925.92 points. The SGX market transaction volume shrank to 1960.5 billion, ending the record of consecutive 2 trillion transactions.

The declines in the two cities next door were even more severe, falling directly out of catastrophic levels. Thousands of stocks in the two cities fell to the limit, and the Shanghai Stock Exchange Index plummeted -7.49%, the largest single-day decline in the past five years, second only to the plunge on August 25, 2015 - 8.49%, that was when the stock market crash 2.0 exploded.

The Shenzhen Component Index plummeted -8.23% today, which was also the largest single-day decline in the past five years. The last time it fell so hard was during the catastrophic market in 2015.

Today's A-share market is really tragic. Just looking at the main board index of the three major trading markets, it feels like a new round of bear market is coming. For the two neighboring markets, it is indeed the moment of bull-bear reversal, but most investors have not yet realized this.

However, today's A-share market is very unique. To be precise, the SGX market has staged a rare spectacle. The overall market index plummeted by 6 percentage points, but there are currently 2,107 stocks in the entire SGX market, but more than 2,000 stocks are in the red.

Moreover, small and medium-sized stocks have staged a miracle of thousands of stocks hitting the daily limit, which has stunned many investors. There are currently only 2,152 listed companies in the SGX market, more than 2,000 stocks are in the red, and more than 1,000 stocks have hit the daily limit.

Opening the list of individual stock gains in the SGX market, all of them have reached the +20% limit. Since the implementation of the new trading rules in the SGX market, in addition to institutional T+1 and retail investors' single T+0, the upper limit of individual stock gains and losses has also been adjusted from the original ±10% to ±20%.

Thousands of stocks have reached the limit, and the screen is full of 20cm long legs, which has made stockholders dizzy.

But the market index plummeted by -6.09%. People who don't know the truth must have a lot of questions in their minds when they see this situation.

Although it is very outrageous and this scene is beyond many people's expectations, it is also reasonable, just far beyond expectations.

Because today's sharp drop is mainly the 50 constituent stocks in the SGX 50 Index, and they are all super large-cap stocks, but the other 2,000 or so mid-cap stocks and some large-cap stocks are not among the constituent stocks of the SGX 50 Index.

There are a lot of small and medium-sized stocks, but the total market value of more than 2,000 stocks accounts for about 29% of the total market value of the SGX, while the 50 super large-cap stocks account for more than 70%. Don't expect the rise to make investors dizzy, but the funds required to pull it up are less and much easier than those 50 super large-cap stocks.

The "Draft Opinion" released by the SGX is bad for super large-cap stocks and the SGX 50 Index, but it is actually super good for small and medium-cap stocks in the SGX market.

That's why the SGX 50 Index plummeted, but the SGX market saw a general rise in 2,000 stocks, and there was even a spectacle of small and medium-cap stocks setting off thousands of stocks hitting the daily limit.

Today, a lot of funds flowed out of the SGX 50 Index, including funds from dozens of super large-cap stocks such as Xingyu Technology and Matrix Quantum. Some of the institutional funds and retail investors who have the threshold to invest in individual stocks in the SGX market turned around and went to small and medium-cap stocks to grab chips.

As a result, small and medium-cap stocks are favored by funds, and everyone is scrambling to buy stocks. They are very bold, anyway, there will be funds to take over when the time comes.

The New Securities 500 Index and the New Securities 1000 Index will be launched soon, and the corresponding New Securities 500 ETF and New Securities 1000 ETF will be launched at the same time, including many industry ETFs. At that time, small and medium-cap stocks will usher in huge liquidity support.

At that time, there is no fear of no takeover. With such expectations, they will naturally dare to violently pull up.

…