First of all, let's be clear: why should the country set up a stock market? I think the most fundamental purpose is to finance state-owned enterprises, which are the core of China stock market. Only by understanding this, can we understand why China is a "policy city", why it started to go 2245 a few years ago, and why it soared on Friday. It can be said that the ups and downs of China's stock market are the needs of the restructuring of state-owned enterprises, which is the core issue. As for private enterprises, they are also married maids, so just have fun. When the exchange was formally established, there were only eight stocks, the so-called old eight stocks. The price limit at that time was 1%. The index started at 96 o'clock and reached 1429 two years later. It was crazy at that time, and then it fluctuated greatly. The index dropped from 1429 to 386, a decrease of about 80%. 1992 May 2 1 laid the foundation of China's policy city. The price limit was cancelled at that time. On that day, the market opened higher, with an increase of 100%, and the index rose from 600 points to 1200 points. The issuance of several new shares has increased by about 3000% and has never been managed. This model is the same as when we discussed risk education a few months ago. Various media tried their best to sing empty words, but the index went up. Later, by speeding up the issuance of new shares, the index began to drop to 1000. Thus, in the 1990s, China has laid the foundation of a policy city, and a detail at this time is worthy of attention. At that time, the market was so crazy that the Shenzhen municipal government reduced the price limit from 1% to zero. 5%, and buyers have to pay stamp duty, resulting in a sharp drop 10 months. For example, when SDB fell from 30 yuan to 10 yuan, the government decided to prop up the market, just like why it was necessary to prop up the market on Friday. Shenzhen raised 200 million yuan to save the market by buying SDB, stabilizing the leader and the general trend. Through the top secret and orderly rescue action, SDB's share price rose slowly, from 13 to about 25 in about two months. Driven by SDB, the market gradually recovered its popularity and the government successfully rescued the market. These memories fully show that the rise and fall of China's policy city and China are both led by the government. After the government supported the market, the index went up all the way. At this time, the government began to "play" the real function of the securities market: financing state-owned enterprises. As a result, the first large-scale expansion began. 1992 There were 54 listed companies in the secondary and tertiary markets, reaching 177, and the expansion momentum was fierce. However, the point 1558 became a hurdle, which took seven years to cross. With the acceleration of the issuance of new shares, the market has entered a downturn, which is caused by several reasons. First of all, the equipment of Shanghai Stock Exchange is seriously inadequate. Second, the financial market rectification is the key factor. The index fell sharply and the government began to worry. 1994 the government issued four measures to rescue the market. At this time, there is a case to tell, that is, Shenzhen Baoan, the first listed company to start mergers and acquisitions, acquired Zhong Yan Industry. Through a series of forced acquisitions and mergers, Shenzhen Baoan became the major shareholder of Zhong Yan Industry. Of course, it turned out that Shenzhen Baoan was a failed investment, but this case must not be underestimated, because the reorganization and merger of enterprises is an eternal topic in the stock market and the biggest topic of short-term profiteering. For example, why Shuanghui has skyrocketed due to the acquisition, why Shandong Haihua has become a hot topic recently because of the acquisition, and why Xugong Technology has attracted so many people's attention is this reason. The last book mentioned that the stock market was in a downturn and the government's four measures to rescue the market were not effective. The market even said it would close the stock market, so the government once again played the role of savior. 1994, a major media published a Xinhua news agency manuscript: suspend the issuance of new shares and take measures to expand the scope of capital entering the market. The market began to get excited again, rising from 300 points to 1000 points. Since then, 300 points have become the iron bottom of China stock market. At this time, there is another case worth saying, don't go away, it will be more exciting after the advertisement. Guan Jinsheng, a deified figure, I believe many people have never heard of it, in the powder field of 1994. If the China stock market is big, Guan Jinsheng is their grandfather. 1992 the Shanghai stock exchange launched treasury bond futures trading to brokers for the first time. At this time, treasury bonds futures are not open to the public. 1993, treasury bond futures are open to the outside world, and various funds enter the market. The number of national treasury bond futures exchanges reached 14, with a trading volume of 300 million. At this time, Wang Guoren's brother became one of the biggest winners, and Wan Guo Securities. Guan Jinsheng joined forces with Liaofa and other institutions to short the 327 Treasury bond futures contract because it was widely rumored in the market at that time that the Ministry of Finance would discount interest on the 327 Treasury bonds, but Guan Jinsheng thought that the national finance was empty and there was no reason to take money to subsidize it. At this time, the Shanghai Stock Exchange did not know that Guan Jinsheng had exceeded the prescribed position. On February 23rd 1995, the Ministry of Finance really wanted to post debt interest, and by this time Guan Jinsheng had already held a huge amount of empty bills. The organization dragon headed by Zhongjingfa, although it can gain a firm foothold because of holding a large number of empty orders, his alliance organization does not talk about Jianghu morality. Suddenly, the alliance collapsed and Guan Jinsheng's gambling began to appear. Faced with huge losses, a large number of treasury bonds totaling 200 billion yuan were sold, and 327 treasury bonds were returned 147 yuan. On the same day, bulls broke out across the board, and Guan Jinsheng turned from a loss to a huge loss, but there was no margin at all. To put it bluntly, it is an overdraft transaction. That night, the Shanghai Stock Exchange cancelled the illegal transaction, and Guan Jinsheng lost1300 million yuan. Guan Jinsheng was later sentenced to 17. As a result of this incident, the first financial fire-fighting product in China was cancelled, and Wanguo Securities and Shenyin Securities merged into Shen Yin Wanguo Securities. As the treasury bond futures attracted a lot of funds and diverted the stock market, the market fell into low density. The liquidation of treasury bonds futures is good for the stock market, and a large amount of funds return to the stock market. In May 1995 and 18, within three days after the cancellation of treasury bonds futures, the Shanghai Composite Index rose by 300 points, or about 50%. This is the famous 5. 19 market, at this time, the government cracked down on the stock market again by continuing to issue new shares. After the last expansion, the market psychology was very fragile. On May 23rd, the index fell by 16%, or 5%. 19 All the institutions and retail investors whose bottom has not stabilized were quilted. At this time, there is another detail to say, which should be 5. 18 quotation, wrong writing. Five o'clock. A few months after the 18 market, there was a "unified" market. In order to meet the listing of Yihua, the main force ate up Sinopec and Maanshan Iron and Steel Co., Ltd., and in just a few days, the two votes rose by about 30%. However, after the listing of Yihua in April 1 1, the shares of Shanghai Petrochemical and Maanshan Iron and Steel Co., Ltd. fell by about 15%. Blue chips have become the mainstream of the market. 1996, the State Council wanted to use the stock market to realize the restructuring of state-owned enterprises, and issued a document asking state-owned enterprises to carry out shareholding system reform, which triggered a year-long bull market. The index rose by 200% in one year. At the beginning of 1996, SDB and Changhong had already fallen to the lowest point. With the gradual introduction of the above favorable conditions, the market started again, and SDB rose from 6 yuan to 20 yuan. The dragon coaxed it from 7 yuan to 27 yuan, and at this time the government suppressed it again. Gold medals 12, People's Daily articles, and restrictions on ups and downs 10% were also introduced one after another. During the period from 65438+February 16 to 24, the Shanghai Stock Exchange fell by 30%. During this period, the government appeased. The index began to rise again, but by April 1997, the government began to sing empty songs. During that time, the financial crisis in Southeast Asia led to a bear market for a period of time. By May 1998, the government began to support the market again, and measures such as interest rate reduction and stamp duty were introduced one after another, but the index still fell. This period is characterized by the popularity of blue-chip stocks, for example, SDB rose by 14 times. 1In May, 1995, Premier Zhu directly directed the bull market for two years, starting from the instructions of the Prime Minister and serving as a reference in China. The internal reference letter said that investors were dissatisfied with the stock market. After the Prime Minister's instructions, eight opinions were put forward, including capital entering the market and reducing stamp duty. On May 18, the CSRC held a meeting to convey the opinions of the Prime Minister. On May 19, the two cities recorded the biggest one-day increase in recent years, and the transaction volume doubled compared with previous trading days. Since then, the index has risen sharply. 5。 19 has become synonymous with bull market. Technology stocks led the gains, and network concepts such as Oriental Pearl, Shanghai Sanmao and citic guoan rose sharply. Other stocks also began to soar. At this time, the government added fuel to the fire, with an average of two days. By 2000, internet stocks, large-cap stocks and asset restructuring were staged in turn, and the index reached more than 2,000 points. The bull market ended because of the reduction of state-owned shares. In June of 200 1 year, the index reached 2245 points, and after the news of the reduction of state-owned shares was announced, it began to plummet. Although it has been repeated, it has never returned to an all-time high. As we all know in the future, the lowest index reached 998 points in 2005, and the share-trading reform of Chairman Shang opened the prelude to this bull market, and the highest index reached 4335 points.