As we know, the lightening of Shanghai Stock Connect refers to the behavior that non-tradable shares can be cashed out after circulation in the Shanghai Stock Connect market. So will Shanghai Stock Connect lighten its position?

First of all, understand the reasons for the lightening of Shanghai Stock Connect.

1, major shareholders and important shareholders reduce their holdings of listed companies. On the one hand, it may be because the company is short of money, so they reduce their holdings to fill the loopholes. On the other hand, they may not be optimistic about the company's future.

2. In the case of a skyrocketing bull market, major shareholders and important shareholders reduced their positions, indicating that there is a bubble, and the company's share price has been overvalued, so they can only choose to reduce their positions.

3. It is also possible that major shareholders and important shareholders are simply cashing in and just want to spend some money. As long as the company belongs to a promising industry, even if there is such fluctuation, it is short-lived and has little impact on the long-term trend.

Therefore, according to what is Shanghai Stock Connect and the reasons for investors to lighten their positions, when you see the lightening of Shanghai Stock Connect, you need to pay attention to its lightening at any time. There will be fluctuations in investment, but it will not affect the long term.

How to avoid buying lightening stocks?

1, buy new shares just listed.

Generally, companies will not reduce their positions in size until three years after listing, so there is no concern about the size of new shares listed.

2. Avoid buying high-priced stocks with heavy fund positions.

The higher the stock price, the stronger the desire to reduce its holdings. Compared with those low-priced stocks that have just stepped out of the trough of performance, the size of non-chips may not be thrown out, and there may even be buying.

3. Buy stocks that have been restructured or just capped.

Those restructured stocks have just gone through stock exchange, and major shareholders will not reduce their positions again; The share price of newly uncapped shares is generally lower than the original share price and the cost of major shareholders, and major shareholders will not reduce their positions at a loss.