Recently, at an international financial conference, Chen Yulu, deputy governor of the Central Bank, stated in writing that the Chinese stock market was showing signs of bottoming and recovery, while the potential for foreign securities investment inflows was rising.
This is undoubtedly good for A shares, but a little strange.
First of all, the “academic specialty”, the central bank regulates the currency, the stock is regulated by the Securities Regulatory Commission, so in history, the central bank rarely voiced support for the stock market.
Secondly, the current round of stock market has risen for more than three months. It is only now said that A shares have bottomed out and signs of recovery. Is this reflection arc too long?
There must be a reason behind the mystery.
What drives the stock market directly? Money! The central bank is the bank in the bank, holding the biggest money bag. Now central bank executives directly speak to protect the stock market, indicating that policy support for A shares is very strong.
Prior to this, management has emphasized that “the stock market is the strategic resource of China’s economy”, which is generally interpreted in the financial industry as the strategic position of A shares in the economy has risen, and the bottom of the policy has emerged. Some financial institutions even shouted for the central bank to intervene directly in the rescue.
Although the central bank later denied the direct rescue, there must be indirect means. On the face of the market, the big financial sector is taking the lead in pushing the stock index upward. And when the Shanghai index is unstable, it plays the role of “fixing the needle of the sea god”. This is obviously not a coincidence.
The central bank executives mentioned the stock market in their written statement, as well as economic stability and structural optimization and upgrading, further confirming that the strategic position of the stock market has indeed risen significantly.
The heart of pulling the stock market is there, then does the central bank have this ability?
Of course. In the financial industry, securities are only small brothers, while banks are big brothers, not to mention policy banks and the four major banks, which are some of the larger city commercial banks, and their volume is far larger than that of the big brokers. There is more than enough strength to pull the youngest brother.
Recently, the stock market has been very turbulent, and the investors are all frightened. Now the central bank executives should give everyone a reassuring pill when they speak.
Moreover, the Shanghai Index is currently near 3200, which is described by central bank executives as “bottoming and recovery”, which also shows that this point is on the low side rather than on the high side in the view of management, so there is a great possibility of future policy support.
From the above analysis, A shares in the future period of time, the problem is not big, you can take a longe
r view, not because of the recent violent shock, catch up with the rise and fall, do not make any good.
However, we should also clearly see that if the stock market wants to get out of the bull, it is not enough to rely solely on policy support and financial support, but also need economic recovery, especially in the manufacturing sector.
Shareholders can usually pay attention to some important indicators of manufacturing industry, such as PMI (Purchasing Manager Index). The index consists of five diffusion indices: order index, production index, employee index, distribution index and inventory index. It can show the situation of manufacturing industry in a more comprehensive way.
In addition, there are PPI, CPI, GDP and other indicators, more understanding, so as to have an objective understanding of the economic situation, facilitate the layout in advance in the stock market.