There can be many reasons for stock declines. The decline of the entire industry sector, the decline of the entire stock market, unsatisfactory company earnings performance, negative company event news, etc., these will directly or indirectly cause the stock price to decline. of.

China’s stock market is the stock market of the People’s Republic of China. It started as a pilot project in 1989 and was established based on the concept of launching if the trial goes well and stopping if the trial fails.

So in the stock market operations before 1995, the biggest negative news was usually the news that China’s stock market pilot program would be suspended or the stock market would be closed. Later, affected by the "3.27 Treasury Bond Futures Incident", China's futures market underwent a comprehensive rectification in 1995, and China's stock market became the target of support. Only then did the stock market usher in real benefits and enter a period of great development.

The biggest feature of China's stock market is that state-owned shares and legal person shares are promised not to be tradable when they are listed. Therefore, only tradable shares of each stock are traded in the market according to the stock price. However, the index is weighted based on the total share capital, thus forming a trading The characteristic of “controlling more with less”.

Trading rules:

T+1 delivery, T+1 settlement: Both parties to the transaction complete the receipt and payment of securities and payments related to the transaction on the next day of the transaction, that is, the buyer receives the securities , the seller receives the payment. my country's Shanghai and Shenzhen Stock Exchanges both implement T+1 settlement for A-shares.

In order to curb excessive speculation and prevent excessive rises and falls in the market, the stock exchange stipulates in daily transactions that the day's securities trading price be based on the closing price of the previous trading day. The amplitude of fluctuations up and down. Today, the Shanghai and Shenzhen stock exchanges implement a 10% price limit. (The rise and fall limit for ST shares and S shares that have not completed the share reform is 5%, and the rise and fall limit after the GEM pilot registration system is 20%).

Characteristics of the stock market:

The biggest feature of the Chinese stock market is that state-owned shares and legal person shares are promised not to be tradable when they are listed. Therefore, only tradable shares of each stock are traded in the market according to the stock price. However, the index is The calculation is weighted according to the total equity, thus forming the characteristic of "controlling more with less" in trading. For example, the most obvious ones are Northeast Electric and Jilin Chemical before 1997. Since their total share capital was large and the number of circulating shares was small, only a small amount of funds were used to affect these two stocks, which could form partial control of the index.

After 2001, the China Securities Regulatory Commission gradually proposed to solve the problem of non-tradable state-owned shares and to revitalize state-owned assets, and it has introduced some plans. However, because in the initial listing and issuance stage, circulating shareholders purchased circulating shares at an ultra-high price-to-earnings ratio, and these plans introduced have more or less harmed the interests of circulating shareholders, so the market has reduced its holdings of state-owned shares in the name of a bearish trend. market response to reforms. Later, under pressure from the market, the China Securities Regulatory Commission announced the suspension of the reform of "reducing state-owned shares".

However, in 2005, the China Securities Regulatory Commission once again proposed the "share-trading reform", whose essence was still the reduction of state-owned shares. The difference is that this reform aimed at eliminating the share-trading reform, including the reduction of legal person shares. Circulation was included, which caused great disapproval in the market.

The market is still divided on the split-share structure reform.

So in 2011, the Chinese stock market entered a big bear market, which can be called the bearest in the world. It fell all the way to the starting point of 2228 points a few years ago.