As of today, the A-shares closed at 4132 points, with a maximum of 4190 points. Calculating from the low of 2689 points on September 18, 2024, it has already increased by nearly 90%.
From the perspective of the index, the A-shares have undoubtedly entered a bull market. The reason for such a large increase this time is the result of a long period of policy preparation!
Counting the policies issued by government agencies that contributed to the rise of the market:
April 2024: The State Council's new 'Nine Articles' and Wu Qing's assumption of office initiate strict regulation, restricting quantitative trading!
(Mine Sweeping Period: Delisting junk stocks, restricting quantitative trading to make way for the Paw Patrol to accumulate shares)
July to September 2024: The National Development and Reform Commission announced the normalization of REITs issuance, and the China Securities Regulatory Commission released 6 merger guidelines.
(Bundling local government assets into REITs to absorb liquidity, encouraging enterprises to acquire assets and enlarge their asset packages)
September 24, 2024: Central Bank Governor Pan Gongsheng announced the official launch of securities, fund, and insurance company swap convenience (sfisf) operations.
(Through the groundwork laid in the first two phases, ultimately provide institutions with guns and unlimited bullets to shoot upwards)
The impact of policies is usually lagging, which allows the market to verify how significant the effect of the policy is, and also prepares institutions for accumulation. Any asset that wishes to rise significantly needs to go through an accumulation period. The longer this period, the more chips are held, the less resistance there is for institutions to push up, and the stronger the control ability. This logic is best verified by the recent rise in the A-shares.