My fintech empire.

Chapter 1320 [Living in Fear of Rising Prices Every Day]

After a good start on the first trading day of the new year, the A-share market continued its booming trend. The New Securities 50 Index rose +1.51% on Wednesday, the next day, and rose again on Thursday by +1.04%, closing at 3101.15 points, marking five consecutive positive days in the last five trading days.

Investors did not expect that after the Xinzheng 50 Index broke through 3000 points, it took only two trading days to reach the 3100 point mark.

On Friday, it closed up again by +0.49%, marking its sixth consecutive day of gains.

The hot market atmosphere of the SGX market also boosted the two neighboring markets, and the main board indices of the two cities followed suit and continued to rise. However, there is no doubt that the SGX market is stronger, and its growth rate is also leading the two neighboring markets with an absolute advantage.

During the weekend, the market once again received a piece of breaking news.

Around 10 am on the weekend, the Singapore Exchange announced a draft for soliciting opinions on the "Singapore-Hong Kong Stock Connect", which directly confirmed the previous rumors!

Sure enough, news does not appear out of thin air.

Although it is a solicitation of opinions, your opinions are actually not important and cannot have any influence on the decision. Everyone is aware of 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 the SGX market to foreign investment is a foregone conclusion, it just depends on when it will be officially implemented.

This weekend, the biggest news in the capital market is that northbound funds will be able to participate in investing in the SGX market in the future. Related news is also flying all over the place, with all kinds of rumors and analytical interpretations.

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

After all, SGX's price-to-earnings ratio is not low.

Fang Hong didn't pay attention to those analyses and interpretations that suggested letting foreign capital come in to take over. International investment institutions knew more about such matters and were more professional than the big V teachers on the Internet.

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

The A-share market continued to maintain a bullish trend. The growth of the New Securities 50 Index slowed down a lot compared with the previous week, and the trading volume continued to shrink, but it still had five consecutive positive days this week, closing up +1.38%, +0.46%, +0.78%, +0.36% and +0.31% from Monday to Friday, closing at 3220.24 points.

The New Securities 50 Index reached a new level this week, reaching the 3200 point mark. It has also recently seen 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 3400 point mark this week, also with 11 consecutive positive days, but the New Certificate 50 Index was clearly stronger, with the absolute difference between the two major indexes shortened to more than 200 points.

……

When the market opened in the third week of the new year, on Monday, January 1, the three major stock indices of the A-share market finally underwent a collective adjustment, ending the previous 15 consecutive positive trends.

The SSE 50 Index closed down -1.23% at 3180.54 points, and trading volume also increased to 6732 billion, an increase of 1700 billion from last Friday.

However, it is worth noting that the two neighboring markets showed a tragic differentiation pattern again today. Although the Shanghai Composite Index fell slightly by -0.54%, the Shanghai Composite 50 Index, which represents large-cap stocks, closed up 1 percentage point, setting a new high for the period with a 12-game winning streak.

The ChiNext Index, which represents small-cap stocks, plummeted by more than 3 percentage points, hitting a five-month low. The number of stocks that fell in the Shanghai and Shenzhen stock markets reached more than 2800.

Today's Shanghai and Shenzhen stock markets basically showed a one-sided 19:1 pattern, that is, 90% of the stocks fell sharply, and some stocks even plummeted. Only a few index stocks or theme stocks performed relatively strongly.

Although the SGX 50 Index fell more than the Shanghai Composite Index today, in fact, less than % of the stocks in the SGX market fell, and about % of the stocks were in the green, but the increases were not much.

As for the fact that the index fell by more than one point, it was mainly due to the pullback of super-large companies such as Xingyu Technology and Matrix Quantum, which have a huge impact on the New Securities 1 Index.

The market has come out of a correction today. In addition to the sharp rise in the previous two weeks and the accumulation of a lot of profit-taking, there have been a lot of negative news. First of all, M2 increased by +8.2% year-on-year, a record low.

In other words, liquidity is tight.

In addition, at the beginning of 2018, various departments of the People's Bank of China, the China Banking Regulatory Commission, the China Securities Regulatory Commission and the China Securities Regulatory Commission began to issue new industry regulations based on deleveraging and de-bubbling. They issued regulations on the governance of financial chaos, banking chaos, and the proportion of stock pledges by shareholders of listed companies.

In short, the proportion of funds is being compressed, which puts a relatively large pressure on the market.

However, these negative factors are not serious 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 index market must reach 3600 points.

There may be liquidity shortage in other places, but the SGX market is not one of them. It is precisely because liquidity is being siphoned away by the SGX market that other places are experiencing liquidity shortages.

In addition, as a pilot project of the "one share, two systems" registration system, the village actually has no control over the SGX market. Other places are de-bubbling, but here they are still inflating bubbles.

However, the SGX market is just blowing bubbles and there is no 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 come from to support the current exponential market of the SGX market?

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

……

The next day, Tuesday, August 1th.

The SGX-STD was the first to open the A-share market. After the SGX-STD 50 Index pulled back and formed a negative line, it rebounded strongly again today and returned to the 3200 point mark, not only rebounding but also setting a new historical high.

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

The small and medium-sized start-ups next door continue to be in a situation of being beaten. The liquidity of the ChiNext Index is on the verge of exhaustion, and the turnover of the entire index is only a pitiful 30 billion yuan. The stocks such as Xingyu Technology and Matrix Quantum in the SGX market can beat it if they are taken out separately.

As of the close, the SGX 50 Index rose by +2.00% to 3244.14 points, and the SGX market's total turnover for the day was 5832 billion.

On Wednesday, January 1, the New Securities 17 Index closed up again by +50%. After the correction on Thursday, it rose for three consecutive days and surged by +0.71% to close at 2.21 points, surpassing the 3339.43 point mark and setting a new historical high.

"Woc! It's rising so fiercely, it makes me panic. Don't rise so violently and so quickly. It will rise longer if it rises slowly..." A retail investor stared at the screen and saw that the New Securities 50 Index was above the 3300 point mark. He couldn't help muttering to himself.

He was excited, yet a little panicked.

He was excited because he bought the New Certificate 50 Index ETF. The faster it rose, the higher his returns were. In just two weeks, he had already gained 12 points.

What makes me nervous is that I always feel that this one-sided upward trend will collapse later. There is not even a decent adjustment. I always feel that the market is not healthy.

The Xinzheng 50 Index has been climbing up in the new year with a small step every two days and a big step every week, setting a new historical high every day. The bull market is so strong that it is astonishing.

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

It really is like the saying goes, we live in fear of rising prices every day.

……

(End of this chapter)