A50 generally refers to FTSE A50 index, which is a trading index launched by Xinhua FTSE Index Co., Ltd. to satisfy domestic investors and qualified foreign institutional investors to invest in China. So today, Bian Xiao is here to solve the a50 accident. Will the A-share market collapse? Let's have a look!
Will A-share market plummet after a50 crash?
The a50 index includes 50 companies with the largest market value in China A-share market, and their total market value accounts for 33% of the total market value of A-shares. Its trend has a great influence on A shares. Generally speaking, its decline means that its theme has plummeted. The collapse of these heavyweights will cause panic among investors in the market, and the short-selling sentiment will rise to a certain extent, leading to an accelerated decline in the market. On the contrary, the a50 rose, indicating that the theme rose sharply, and these heavyweights rose sharply.
However, the trend of a50 has no absolute influence on the trend of A shares. The trend of A shares is also influenced by other factors in the market. For example, in the case of a50 decline, the government has introduced some loose monetary policies, such as cutting interest rates, which will increase the amount of money circulating in the market, thus increasing the liquidity of the stock market and promoting the stock market to rise. In other words, when the theme of a50 falls, a large amount of funds will flow into A shares for bargain-hunting, which will lead to a surge in other stocks in the market.
Generally speaking, stocks with greater weight, such as a50 theme, have greater influence on the broader market than stocks with lesser weight in the market. Investors can consider using the trend of a50 to analyze the trend of the market. At the same time, when a50 drops sharply, they should operate lightly or wait and see.
What does A-share diving mean?
A-share diving refers to the situation that the stock price of A-share market drops sharply when it is running. Common stock market terms include: large-scale diving, intraday diving, high diving and call auction diving.
Among them, market diving refers to the release of some policies that have an impact on the stock market, leading to the late diving of the stock market. As can be seen from the time-sharing chart of the day, the sudden downward or downward slope of the index is very large, just like the curve formed by people diving from the sky. Generally speaking, the decline of Shanghai Composite Index above 50 points can be described as diving. Generally speaking, there are reasons for stock diving, such as sudden negative factors leading to diving and high diving caused by capital flight.
Will the stock rise again after diving?
Whether the stock will soar after diving depends on the situation. For example, if there is a strong stock to make up for the decline after diving, that is, when the stock dives rapidly, if there is a lot of money to buy against the trend, and most investors have not sold the stock, then after the strong intervention of the banker, it is likely to pull up, thus pushing the stock price up and causing a big rise.
Then, if there are no strong stocks to make up for the decline, there is not much money to buy, and if retail investors come out one after another, they will buy very little money and may fall again in a short time, so it depends on the situation, mainly on whether there is a lot of money to buy and some information about the fundamentals of the stock.