Weekend! The China Securities Regulatory Commission issued a major decision. Nex

2024-03-23

This weekend, the securities market news has once again reached a boiling point, making it difficult for stock investors to sleep with excitement! The reason is the latest decision issued by the China Securities Regulatory Commission (CSRC), which clearly indicates that future capital market reforms need to place greater emphasis on the balance between financing and investment.

It is important to understand that the stock market has two major functions: financing and investment. However, in the past, the A-share market has always followed the principle of "emphasizing financing over returns," leading to significant losses for the majority of investors. But since the CSRC issued a major decision this week, the A-share market will inevitably change its approach from emphasizing financing to valuing returns. This decision will provide significant guidance for the healthy development of the A-share market in the future and is bound to change its appearance.

The CSRC issued a major decision to respond to the country's call and released it over the weekend. The core of the decision is to place greater emphasis on the balance between financing and investment, with efforts concentrated in the following five areas:

First: Starting from the investment side, significantly enhance the investment value of listed companies;

Second: Starting from the capital side, continue to introduce more sources of fresh capital;

Third: Starting from the trading side, further optimize and improve the market regulatory mechanism;

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Fourth: Starting from the cultural side, actively cultivate the concept of long-term value investment;

Fifth: Starting from the tool side, further enrich and perfect the policy toolbox.The above outlines the five key elements of the significant decision made by the China Securities Regulatory Commission (CSRC) over the weekend. It is hoped that efforts will be made in all five areas to ensure that the benefits are effectively implemented, and detailed rules will be introduced. Only in this way can the future of A-shares be thoroughly reformed, especially balancing financing and investment. Only then can A-shares truly achieve long-term and healthy development.

Next week! A-shares are bound to experience a significant shift.

This week, the A-share market was mainly characterized by fluctuation and consolidation over the five trading days. Following this consolidation, the secondary market has shown no activity, no volatility, no popularity, and no volume. Under such circumstances, a significant shift is inevitable.

This implies that a major shift in A-shares is indeed expected next week. The key is how this shift will occur; whether it will be a downward shift breaking through the 2800-point mark or an upward breakthrough at 2900 points, both possibilities are on the table.

Considering the current position and environment of A-shares, it is believed that the probability of a downward shift next week is higher. This means that A-shares will fall below the 2800-point mark next week, quickly searching for support, and once support is found, it will mark the end of this round of phase adjustments.

The reason is that on Friday, both the Shanghai and Shenzhen markets saw record low volumes, with a combined transaction value of over 560 billion yuan. The appearance of such low volumes suggests that the adjustment is nearing its end. However, low volume does not necessarily mean the bottom price; typically, there is a rapid decline and a bottoming out after the low volume before the bottom price is reached. Therefore, it is speculated that A-shares will experience a downward shift next week.

On the other hand, even if A-shares do experience a downward shift next week and the Shanghai Composite Index does indeed fall below the 2800-point mark, investors should not be overly pessimistic. The downward space is very limited, and it could instead present a good opportunity for low-cost entry.

In conclusion,Over the weekend, the China Securities Regulatory Commission (CSRC) announced a significant decision, which will inevitably be a long-term major positive for A-shares, but its impact on the short-term A-share market is indeed limited, so do not hold too high expectations for this positive news. Despite being a major positive, it still cannot change the trend of A-shares in the upcoming week.

If A-shares do indeed undergo a trend change next week as expected, investors should formulate response measures based on the direction of the A-share market change and their own actual situations. Finally, I wish everyone a pleasant investment experience and may your stocks soar.