(Excerpted from Oriental Fortune Network) Analysts said that the reasons for the continued decline of the GEM are:
(1) The fermentation of the LeTV event made the market worry about the growth safety of GEM companies. Moreover, investors are worried that LeTV's resumption of trading will have a big impact on the GEM index, which is also the biggest factor affecting the GEM now.
(2) Wen's shares announced the performance forecast of the interim report, and the performance fell sharply, which also triggered investors' concerns about the performance of GEM companies. Moreover, Wen's shares are an important heavyweight of the GEM, and its decline brings pressure to the GEM.
(3) The recent flash crash of the Growth Enterprise Market, the frequent appearance of black swans and the Shenwu system have seriously hurt institutional investors and caused negative pressure on the Growth Enterprise Market.
(4) With the continuous rise of SSE 50, funds favor blue chips, value investors prevail, and the valuation of small and medium-sized stocks is high, which may cause the strategic transfer of funds.
However, it cannot be simply understood as being dragged down by the GEM. In fact, it is technically necessary to call back. It's just that the beautiful 50 has been forced to pull up through many deviations, covering up the requirements of technical adjustment, so the suppressed adjustment and accumulated profit-making disk were released once today. After a short period of rapid dishwashing, the market should be able to stabilize and move on with great probability.
In addition, the GEM has been at a high speed due to the issuance of new shares, and the investment style of A shares is gradually changing, so the valuation is too high, and the mixed GEM will naturally lead the decline.