China stock market (A shares) can be divided into primary market and secondary market. Listed companies issue shares for the first time, also called original shares. This market is a primary market. In fact, our subscription for new shares was completed in the primary market. After the original shares in the primary market are sold, shareholders will circulate their shares in the stock market, which is called the secondary market. When we talk about the stock market, we usually talk about the secondary market. This is a huge market. The trading volume and scale of the primary market are very limited. So it is also difficult for us to subscribe for new shares.

The largest number of people in China stock market are retail investors. Accounted for the vast majority. But the amount of funds of retail investors is limited. The number of institutional investors, including fund companies, is relatively small, but their funds are very large. Not as good as retail investors. In fact, institutional investors, like retail investors, buy and sell stocks in the primary and secondary markets, mainly in the secondary market. It's just that their trading methods are slightly different from those of retail investors.

First of all, take the primary market. The issuance of new shares, or the subscription of our investors, requires some conditions. For example, your average daily transaction volume in the last 30 days is generally 20,000 yuan. For ordinary investors, the probability of winning the new share subscription is relatively small. So the subscription of new shares. Is a relatively difficult thing. Once the subscription is successful, it is a stable profit. Relatively speaking, institutional investors have some advantages in the subscription of new shares, because they have a large amount of funds, so they have some priorities in some procedures.

Now let's talk about the secondary market. We just talked about it. Institutional investors are like ordinary retail investors. You also need to buy and sell stocks in the secondary market. However, their trading funds are very large. So sometimes, they will take the form of big deals. Block trading is different from our general online trading of stocks. Generally, it is conducted in a special institutional trading hall and at the trading site. Second, because of the huge amount of funds, the speed of capital entry and exit of institutions will be relatively slow. It's not like we retail investors can do it at once. Also, because of their large amount of funds, they have priority in some trading procedures. The commission will also be lower. This is the difference between them and retail investors.