How Does The Stock Market Rise Under The Downward Pressure Of The Economy?

It should be said that the arrival of the bull market is somewhat unexpected.

After all, the stock market is a barometer of the national economy in theory.

From the current development of China's economy, it is at a low ebb.

Taking GDP in recent years as an example, in 2010, the GDP in China was 10.3%, 9.2% in 2011, 7.8% in 2012, 7.7% in 2013, and 7.4% in 2014.

In 2015, the GDP growth rate of the "government work report" was about 7%. Whether China's economy can rise or fall at a low level is still unknown.

But in such a national economic environment, the stock market has gone a long way, which is obviously a lack of solid foundation for national economic support.

Why is the A share market going up sharply even under the pressure of economic downfall? This is actually related to the immaturity of China's stock market.

As a barometer of the national economy, the stock market must be a mature and healthy stock market, but the A share market is still one hundred and eight thousand miles away from a mature and healthy market.

Because the A share market is originally a market without investment value, and investors do not value value investing. This is a speculative market.

When investors enter the stock market, they gain the price difference in the two tier market.

So the trend of this market is not related to the development of national economy.

Although the national economy once had a "Ten Golden Year" development stage, the A share market remained "zero gain", and the Shanghai composite index did not even rise or fall.

It can be said that in this immature market, what the stock market needs most is not the performance of listed companies, but all kinds of hype themes.

As long as there are hype themes, junk shares can also be fried; as long as there are hype themes, pigs and elephants can be fried everywhere.

This is the magic charm of the A share market as a speculative market.

At present, the A share market is the most lacking in various hype themes.

Because of the huge pressure of economic downfall, as a government department, it is more necessary for the stock market to play a direct financing function and support the development of the national economy.

For this reason, the management and senior departments concerned have increased the protection of the stock market in recent years, which includes both policy support and verbal heating.

As the current round

The reason why it was able to go out was the first time it was related to the "100 release plan" launched by the Securities Regulatory Commission, thereby resolving the market's phobia of IPO.

For example, even though the stock market has gone through a big rise now,

The price to earnings ratio has even reached 90 times, but the chairman of the SFC still said that the stock market was "reforming cattle", and central bank governor Zhou Xiaochuan still said that "capital entering the stock market is also supporting the real economy".

Including the press conference of the SFC on Friday afternoon, the SFC spokesman still said that the current rise of the market "has its inevitability and rationality".

This is actually encouraging the current speculation in the market.

This "policy market" is actually the biggest theme of stock market speculation.

With the backing of policy,

Naturally, we will not let go of hype about various subjects.

Although the national economy is not booming, the themes on the macro side are brilliant.

Such as the concept of free trade zone, the concept of the reform of state-owned enterprises, the concept of "one belt and one road", the concept of the Yangtze River economic belt, the concept of high-speed railway, the concept of ecological civilization, the concept of land pfer, the concept of private banks, the concept of food and drug safety, the concept of price reform, the concept of national security, the concept of Internet +, and so on, which are dazzling.

As a listed company, it also caters to the market hype.

Mergers and acquisitions rush to the market, what is hot in the market, what the listed companies are involved in, and give investors a popular dish.

As high as sending and pferring, the proportion of high delivery and pfer is getting higher and higher, reaching 10 to 20 shares. Moreover, even garbage companies and even loss making companies have introduced high turnover. Even big Blue-chip company can not withstand the temptation of high delivery and speculation, and the high delivery pfer scheme has been introduced to cater for the market.

In the face of all kinds of subjects, the market is very happy, and therefore push the stock index step by step, and the bull market is born.

This is why the A share market has been able to get out of the bull market in the context of economic downturns.

From the market, this is a result of speculative speculation; and from the management level, this is a need.

Of course, it is precisely because the current rising market is deviated from economic development and can not be supported by the macro-economic side, so the potential risk of this bull market is huge.

As investors, it is necessary to have a clear understanding of this point.