Chinese stock market bull and bear markets over the years (2009-01-17 15:31:20) ■The first big bull market: December 19, 1990 to May 26, 1992 (96.05-2 Half a year later - 1429) 1380%

After the Shanghai Stock Exchange officially opened, there were only 8 stocks listed, known as the "Old Eight Stocks". At that time, the trading system implemented a 1% price limit (later changed to 0.5%). The stock index started from 96.05 points and continued to rise for 2 and a half years. Finally, stimulated by the removal of the price limit, it reached a high of 1,429 points.

■The first big bear market: May 26, 1992 (1429-386) November 17, 1992 (half a year) - 73%

After the impulse, the market Value began to return, and the immature stock market fluctuated greatly. In just half a year, the stock index fell from 1,429 points to 386 points, a drop of 73%. Such a drop is unimaginable now, but at the time, investors They all accepted it naturally.

■The second bull market: November 17, 1992 to February 16, 1993 (386 - three months later - 1558) 303%

Rapid decline After that, things turned around and ushered in a rapid rise. The decline in half a year was fully recovered in 3 months. Starting from 386 points on November 17, 1992, to 1558 points on February 16, 1993, it only took 3 months for the market to increase by as much as 303%. This kind of market situation makes overseas investors envious.

■The second big bear market: February 16, 1993 to July 29, 1994 (1558 - 17 months later - 325) - 79%

Quick After the bull market rise was completed, the stock market's major expansion began. With the continuous issuance of new shares, the Shanghai Composite Index gradually fell, and then started a long-term tug of war at 777 points. Later, the 777 point fell, and the market once again slumped and continued to bottom out. By July 29, 1994, the stock index returned to 325 points, but the "result" of this bear market was the rapid expansion of the number of listed companies.

■The third bull market: July 29, 1994 to September 13, 1994 (325 - one and a half months - 1052) 223%

The securities market is in chaos During the recession, when people lost all confidence in the stock market, there were even rumors in the market that regulators would shut down the stock market. In order to save the market, the relevant departments issued three major measures to save the market. The stock market was once again excited. In one and a half months, the stock index rose by 200%. , up to 1052 points.

■The third big bear market: September 13, 1994 to May 17, 1995 (1052 - 8 months later - 577 points) -45%

The early stock market did not pay much attention to value investment, and it did not matter whether the performance was good or bad. The most important thing was that the circulation market should be small, so that it would be easy to speculate. However, as the stock price rose, there was always an invisible hand driving the stock market down. On May 17, 1995, the stock index had returned to 577 points, a drop of nearly 50%.

■The fourth big bull market: May 18, 1995 to May 22, 1995 (582 - three days later - 926) 59%

This bull market only Three trading days! Affected by the news that management had closed Treasury bond futures, the stock market surged across the board. The stock index rose from 582 points to 926 points in 3 days. This round of market conditions fully reflects the sensitivity of my country's stock market to relevant "policies", and the statement "China's stock market policy market" has been fully verified.

■The fourth bear market: May 22, 1995 to January 19, 1996 (926 - about 8 months - 512) -45%

Short-lived After the bull market, the stock market fell again. Starting from August 1995, Sichuan Changhong, which had a price-to-earnings ratio of only 3 times at that time, began to quietly strengthen, and performance white horse stocks gradually attracted the attention of mainstream funds. By January 19, 1996, the stock index reached a stage low of 512 points, and the stock prices of blue chip stocks were generally oversold, indicating that the conditions for a new market were in place.

■The fifth bull market: January 19, 1996 to May 12, 1997 (512 - 17 months - 1510) 194%

Advocating excellence It has begun to become the mainstream investment concept in the market. Leading stocks such as Shenzhen Development Bank, Sichuan Changhong, Shenzhen Technology, and Hubei Xinghua are all high-quality growth stocks with excellent performance. Under the leadership of these stocks, the stock index returned to 1510 points. The " "The Deification of Investment" also provided a vivid investment education to ordinary investors at that time.

■The fifth major bear market: May 12, 1997 to May 18, 1999 (1510------101-----1025) -33%

This round of major adjustments was also due to excessive speculation. After blue chip stocks were fully hyped, by May 18, 1999, the stock index had fallen to 1,047 points. In the past two years, the expansion of the stock market has continued crazily, with unimaginable expansion in scale.

The serious contradiction between supply and demand caused extreme blood loss in the secondary market, and a bear market that lasted for two years began.

■The sixth bull market: May 19, 1999 to June 14, 2001 (1047-------104-------2245) 114%

This bull market is commonly known as the "5-19" market, and most investors still remember it. The strong explosion of Internet concept stocks pushed the Shanghai Composite Index to more than 2,000 points, and hit a record high of 2,245 points. Point, along with a magnificent bull market, securities investment funds have also experienced great development that is rare in history.

■The Sixth Great Bear Market: June 14, 2001 to June 6, 2005 (2245-----199---------998) - 55.5%< /p>

After the "5-19" market, the market is most concerned about the issue of share structure. Investors generally believe that this is a negative factor, and the solution to the split of shares has also become a reason for the stock market to fall. The stock index has also dropped from 2245 points to 998 points. After the longest major adjustment in history, the price-to-earnings ratio of the A-share market has dropped to a reasonable level, and a new round of market conditions is quietly brewing.

■The seventh bull market: June 6, 2005 to October 16, 2007 (998-----118-------6214) 513%

For the correction of the stock index with rapid economic growth from 2001 to 2005, the fundamentals of listed companies have gradually improved, the expectation of China's rapid economic development, and the reduction of state-owned shares, that is, the determination of the principle of share split, is somewhat negative. With all the good news, the A-share market, which has been dormant for four years, should also have rising momentum. The Shanghai Composite Index went from 998.23 points on June 6, 2005 to 1223.57 points on September 20, 2005. After consolidating for more than two months, it almost rose all the way to 6124.04 points, performing a crazy melody, and investors were rushing to get there. Many people have entered the market one after another, but there will inevitably be "impulsive punishment" after the impulse.

■The seventh major bear market: October 16, 2007 to present (6124 --------54------1664) -73%

As of October 16, 2007, A-shares reached a crazy extreme, followed by a sharp decline. As of September 12, 2008, the A-share market index reached 2,000 points. Due to the huge early growth of the A-share market, a certain bubble has accumulated, and there is a need for a correction. In addition, the scale of refinancing in the market is huge, and the size of the share structure determined has not begun to be lifted. The linkage between the Chinese stock market and the international market has gradually increased. Under the influence of international financial The impact of the market is growing. The outbreak of the U.S. subprime debt crisis has had a certain impact on the domestic financial industry and the confidence of domestic investors.