A-Share Record: 3.45 Trillion Trade, New Investors' Strategies
Following the significant volume increase and sharp rise in A-shares from September 24th to September 30th, many investors exclaimed "witnessing history" on the first trading day after the National Day holiday.
On October 8th, the major A-share indices opened across the board with gains, with the Shanghai Composite Index reaching as high as 3,674.4 points at one point. Nearly a thousand stocks hit their upper limit at the opening, and 5,334 stocks were in the green. The trillion-yuan trading volume was achieved in just 20 minutes, setting the record for the fastest trillion-yuan trading volume; the total turnover for the Shanghai and Shenzhen markets reached 3.45 trillion yuan for the day, setting a new historical high.
As the "bull market standard-bearer," among the securities firms, except for Guotai Junan and Haitong Securities which were suspended due to mergers and acquisitions, all others hit their upper limit shortly after the continuous auction phase began.
However, in the face of such a strong upward trend, a senior person from a securities firm told a reporter from the 21st Century Economic Report, "It's not as explosive as imagined. New accounts opened during the National Day holiday can only enter the market on October 9th, and more funds may follow."
Advertisement
The number of new accounts opened during the National Day holiday may reach millions. Among them, a single top-tier securities firm alone saw nearly 300,000 new accounts opened.
In the view of the interviewed individuals, a new wave of the market has begun. However, it is important to note that the recent speed of the rise in major indices is historically rare. For stocks that have already surged, do not blindly chase highs. For investors with less experience in the stock market, compared to investing in unfamiliar individual stocks, choosing ETFs may offer a relatively higher cost-performance ratio.
Witnessing A-shares History
Rise, rise, rise, this has been the continuous performance of A-shares since September 24th. During the National Day holiday, A-shares were closed, and Chinese concept stocks were highly sought after by funds. According to data calculated as of October 8th Beijing time, the leading indices in the global market performance during the National Day holiday were all related to China, showing a clear "east rises, west falls" characteristic. Among them, the Hang Seng Technology Index led with a 13.36% increase; the NASDAQ Golden Dragon China Index rose by 11.43%, ranking second; the Hang Seng Index increased by 9.30%, and popular Chinese concept stocks rose by 8.86%, ranking third and fourth, respectively. The increase in other global indices was all within 4%.On October 8th, under the anticipation of many, the A-share market welcomed its first trading day after the National Day holiday, with major indices all seeing significant increases in trading volume and investors exclaiming that they were witnessing history.
Witness ①: The trillion-yuan trading volume was reached in just 20 minutes, with the full-day trading volume breaking through 3.45 trillion yuan.
According to Wind data, by the close of trading, the Shanghai market had a trading volume of 1.51 trillion yuan, and the Shenzhen market had a trading volume of 1.94 trillion yuan. The combined trading volume of the two markets was 3.45 trillion yuan, setting a new record for the highest single-day trading amount in the A-share market. This also marked the second consecutive trading day that the trading volume exceeded 2 trillion yuan.
Among them, the trading volume broke through the trillion-yuan mark in just 20 minutes, setting the fastest record for breaking through a trillion-yuan trading volume. The high level of investor trading enthusiasm is evident.
Witness ②: Nearly a thousand stocks hit the daily limit at the opening.
At the beginning of the opening, 942 A-share stocks hit the daily limit, and some stocks later opened their limit boards, but by the close of trading, there were still 791 stocks at the daily limit.
Among them, the securities stocks, known as the "bull market flag bearers," except for Guotai Junan and Haitong Securities, which are currently suspended due to mergers and reorganizations, all other listed securities companies hit the daily limit shortly after the opening. By the close of trading, the daily increase for each securities company was more than 9.9%, with the highest increase being East Money, which surged by 20% on October 8th.
Witness ③: A-share main stock indices all opened up by more than 10%.
The main stock indices of the A-share market all opened up, with the Shanghai Composite Index opening up by 10.13%, at 3674.4 points; the Shenzhen Component Index rose by 12.67%; the ChiNext Index even surged by 18.44%.
By the close of trading, although the three major stock indices had contracted somewhat, they still remained at high levels. The Shanghai Composite Index closed at 3489.78 points, up 4.59%, the Shenzhen Component Index closed at 11495.1 points, up 9.17%, and the ChiNext Index closed at 2550.28 points, up 17.25%.Witness ④ Over 5000 Stocks Turn Red
Bustling and thriving, this has been the general characteristic of A-shares since September 24th. On October 8th, the red tide of A-shares continued.
At the opening, out of 5338 stocks, 5334 were on the rise. By the close, there were still 5029 stocks in the red.
Millions of New Accounts Will "Run to Enter"
Looking at the data, A-shares were booming on October 8th. However, a senior broker told a 21st Century Economic Report journalist that "the level of boom is not as high as imagined, and it may be higher later on."
The reason this person believes the level of A-share boom will rise is largely due to the fact that a large number of new accounts opened during the National Day holiday did not have stock trading qualifications on October 8th. Starting from October 9th, new investors can enter the market.
How large is the team of new investors entering the market starting from October 9th?
A top broker saw from his backend that just his firm alone, there were nearly 300,000 new accounts opened during the holiday. This person also heard that the scale of new accounts opened by all brokers during the National Day holiday was as many as several million households."From an age perspective, new account investors are mainly young people, and the probability of them rushing into the market after obtaining stock trading qualifications is relatively high. Affected by this, the trading volume on October 9th is expected to further increase. For securities firms, the pressure on the trading system on October 9th may also be greater," the interviewed person told the reporter.
On October 8th, many securities firms, including top-tier ones, experienced minor congestion in their trading systems, but overall it was controllable. Compared to the frequent blockages and congestion before the National Day holiday, the situation has significantly improved.
Newbie "Investment Strategy"
Faced with the A-share market that has been rising for several consecutive days, what should investors pay attention to?
In the view of the interviewed people, the first thing is not to chase the high. Jiang Fuwei, a professor at the School of Economics of Xiamen University, reminds: on one hand, be cautious about investing in stocks that have performed well in recent days; on the other hand, pay more attention to individual stocks that have fallen significantly in the past two years, have not risen much recently, and have a good basic outlook. These stocks often have a larger value return space.
Li Qiusuo, the chief strategist of the Research Department of China International Capital Corporation Limited, believes that the A-share market will continue to rise in the short term, but it is necessary to pay attention to the fact that the rise in major indices in the short term is historically rare. After the market has been rapidly pulled up recently, accompanied by a rapid repair of valuations and extremely short-term profit funds, historical experience shows that it is not possible to rule out a slowdown in the short-term rise or twists and turns, but there is no need to worry too much.
The interviewed people also suggest that for novice investors with relatively less investment experience, it is more cost-effective to choose ETFs than to fight in unfamiliar individual stocks. However, the rise in ETFs has also been significant recently. For ETFs that have risen significantly, it is possible to start buying them after they have appropriately adjusted.
Live a Comment