I hope the surge in A-shares is not a flash in the pan

I hope the surge in A-shares is not a flash in the pan (Reported by Yang Qiwei, Special Correspondent in Guangzhou, The Alberta Times) On November 30, the A-share market was still plummeting in panic, but...

I hope the surge in A-shares is not a flash in the pan. (Reported by Yang Qiwei, special correspondent for the Alberta Times in Guangzhou) On November 30, the A-share market was still plummeting amid panic. In just over ten hours, the world was dead. Today, after both markets opened almost evenly, the heavyweight stocks trended strongly and the stock index continued to fall. The non-ferrous sector continued to rebound, the non-ferrous sector rose across the board, the coal sector accelerated its rise, small-cap stocks rebounded strongly, concept stocks were actively traded, and the market had a strong bullish atmosphere. The Shanghai Index made a strong move upward, regaining the 2800-point mark, with an annual decline of 14.31%. As of the close, the Shanghai Composite Index was at 2808.08 points, up 48.51 points, or 1.76%, with a turnover of 109.7 billion yuan; the Shenzhen Component Index was at 12458.5 points, up 319.66 points, or 2.63%, with a turnover of 90.83 billion yuan. Just when all investors were in despair about the European debt crisis, the governments of the world's major economies were trying to turn the tide. The Federal Reserve and five central banks including the European Central Bank, the Bank of Canada, the Bank of England, the Bank of Japan, and the Swiss National Bank announced on November 30 that they would jointly lower the U.S. dollar liquidity swap rate by 50 basis points as a response to the euro zone sovereign debt crisis. The People's Bank of China has also decided to lower the RMB deposit reserve ratio for deposit-taking financial institutions by 0.5 percentage points starting from December 5, 2011. This is the first time in three years that the central bank has lowered the deposit reserve ratio. The signal of substantial relaxation of monetary policy has been very clear, which will bring liquidity to the market and thereby ease the capital market tension. Affected by the comprehensive influence of the above-mentioned positive factors, today the two cities showed a trend of opening higher and moving higher and rebounding in volume. The total transaction volume in the two cities exceeded 110 billion yuan, and market sentiment was high. Financial real estate, which directly benefited from the reduction in the deposit requirement ratio, led the gains in the two cities, and their performance was particularly eye-catching. As of 11:00 Beijing time, the financial and real estate sectors all rose by more than 5%. Among them, China Overseas Securities rose by the daily limit early, and the four major banks all rose by 3%, while China Merchants Bank and Hua Xia Bank rose by nearly 6%. In terms of real estate stocks, many stocks rose by the daily limit, and the four major investment banks of Zhaobao Wanjin all rose by more than 7%, and Poly Real Estate hit the daily limit. However, what is worrying is whether this market trend can last for a long time. Will the surge in A shares be short-lived? At present, it seems that the European debt crisis has turned around to a certain extent, and the joint rescue actions of global central banks will bring a glimmer of hope to the investment market. However, its impact on the international market has not been completely eliminated. At the same time, the domestic central bank lowered the deposit reserve ratio for the first time in three years. The substantive signal of monetary policy easing has become clear, but this is also based on concerns about the slowdown in domestic economic growth. It is expected that after continued decline, the domestic market may usher in structural repair. According to industry analysts, due to tight credit lines at the end of the year, banks will postpone a large number of loan applications to early next year, which may lead to a credit blowout at the beginning of next year like the beginning of this year. If the above situation turns out to be true, coupled with the high level of inflation at the beginning of the year, the central bank may take measures such as raising the deposit reserve ratio and raising interest rates to control it, and the introduction of differential reserve ratios is more likely. Industry insiders believe that from the perspective of market supply and demand, the large-scale issuance of financial products such as funds and the increase in the upper limit of stock investment such as corporate annuities will help improve the financial situation of the stock market in the context that the climax of the lifting of non-profit restrictions has passed.