The national team came back to work today, and finally did not give up completely. Looking at the ETF volume column of the CSI 300, there were two obvious intraday buys, which occurred before the lunch break and before the close. These two waves of buys obviously lifted the index, which prevented the market from experiencing a tragedy similar to yesterday.
But you have also seen that as long as the national team did not buy, the market basically fell and declined, just like a giant baby who would cry loudly as soon as the pacifier was pulled out. What can we do? What can we do?
Yesterday I released information about large-scale redemptions of public funds in the second quarter. Some people said that investors have no vision and are still selling their shares at a loss even when the market is so bad.
You don't think that only fund investors are cutting their losses, do you? They are included in the statistics only because the inflow and outflow of funds are summarized. From the perspective of user portraits in various aspects, there is basically no difference between fund investors and stock investors. Fund investors cut their losses in the second quarter, and stock investors must have cut their losses as well. The leeks are all running away, which makes the national team feel that they can't buy enough.
However, the reason behind this incident is worth thinking about, because in the past, whether it was investors in funds or stocks, most of them chose to play dead and do nothing when they were deeply trapped. It is rare to see such a large-scale active selling of stocks in the second quarter of this year, so there must be other additional motivations that prompted them to do so.
Income decline, lack of money? Pessimistic expectations, panic? I can only guess at this because there is no further data.
The national team's passive bottom-support buying has been going on for some time. As you can see, it is difficult to actively boost market sentiment. It can only buffer the intensity of the market decline, but it may prolong the bottom-seeking period.
The current situation is that apart from roughly estimating the scale of their purchases, no other information is known. We don’t know how much quota they have been authorized to obtain, nor do we know what trading tasks they have received. Everyone is like a blind man groping in the dark, guessing as they go. But common sense tells us that the bottom line of the national team is to prevent violent turbulence in the financial market and avoid systemic risks. As for the continued decline, it is estimated that there is nothing we can do about it.
Today, the market turnover was 620 billion, the median fell by 1.76%, and the net outflow of foreign capital was 2.2 billion. I have experienced two bear markets and have seen more desperate scenes than this time, but I have never encountered such a helpless and helpless situation as now.