The 1996 bull market can be divided into three stages: The first stage: the start-up stage.

From the start of 512 to breaking through the annual line.

At the beginning of 1996, the domestic stock market followed the cold weather of the winter of 1995. At this time, it was rare to find one or two investors in the lobby of securities companies, and the popularity was unprecedentedly low.

The index hit a bottom of 512 points on January 19. This day inadvertently became a major turning point.

This day is 76 weeks away from the starting point of the 333 market, and a major time window has opened. We can only find the precursor of the bull market start signal from the law of time cycles.

Behind the cold weather, the news that the "Fund Regulations" will be introduced within the year has been published in the speeches of famous central bank officials; the three-year clean-up and rectification has begun to bear fruit, and the judgment that the economy is expected to achieve a soft landing has also become a judgment of economists,

Government officials have a unified view on the economy in the New Year; the market has begun to hear news that the central bank may choose an opportunity to cut interest rates. Once implemented, it means that macroeconomic policy will undergo a fundamental turn from tightening to loosening, which will be a direct benefit to the stock market.

On May 1, 1996, the central bank really cut interest rates, and people had already missed the blue chip stock market in March and April amid suspicion.

The day before the interest rate cut, the Shanghai Composite Index soared to 739 points on April 29, an increase of 227 points or 40%.

The index stands firmly above the annual line, which technically confirms that the bull market has started.

When it started at the beginning of the year, Sichuan Changhong had only 7 yuan, but in 1995 the company's earnings per share reached 1 yuan.

In addition, Shenzhen Technology is only 2 yuan, and the price-to-earning ratios of Lujiazui and Shenzhen Development Bank are only 5 times. The law of value has determined that these stocks must have explosive market value.

The blue chip stock market in March and April was driven by institutions and professional investors with the ability to judge value. Shenzhen Technology rose three times, Shenzhen Development Bank rose 1.6 times, Changhong rose one time, and the total number of stocks that increased more than doubled*

**Up to 15.

We can conclude that it is the low stock price that highlights the investment value and ignites the bull market.

Macroeconomic information has played a role in fueling the situation and determining the fundamentals of the long-term bullish trend.

The second period, the general rise stage, started from 632 points on May 28 to 1258 points before the sharp drop on December 13.

After blue-chip stocks rose at an alarming rate and speed, the enthusiasm for long-term stocks quickly spread to second- and third-tier stocks, and the market was quickly heated up and quickly entered a stage of crazy general rise.

At this stage, the index nearly doubled, and entered its craziest state starting on November 22, with the index rising 300 points or 30% in just three weeks.

Starting from August, the regulatory authorities began to cool down the market, hoping to achieve the purpose of cooling down the stock market, and successively issued the famous thirteen gold medals.

However, the stock market is highly market-oriented, and its rise and fall are directly determined by the relationship between supply and demand. Policy regulation has once again shown its limitations. The stock index continues to be unstoppable, approaching 1,200 points.

On December 13, 1996, the fourteenth gold medal was awarded, and a commentator's article in the "People's Daily" caused the market to plummet.

This crash was so severe that the index fell to the limit for four consecutive days, and all stocks were locked below the limit for four consecutive days, with almost no trading.

This was unprecedented and would not happen again for the next nine years.

The reason for using unconventional means to cool down the stock market is that regulators cannot tolerate the general surge in the market, especially the surge in junk stocks, which has aroused huge suspicion.

However, the general rise in stocks is a typical feature of the bull market, and the policy obviously goes against the laws of the market.

In other words, when the policy is short, it is often in a bull market, while when the policy is long, it is often in a bear market, and the policy moves against the general trend.

The purpose of policy regulation is to prevent market forces from going to extremes and to use the visible hand to counter the invisible hand. Therefore, it is understandable that the direction of policy regulation goes against the laws of the market.

The third period, the differentiation stage, rose from 870 points on February 28, 1997 to 1501 points on May 12, 1997.

There was speculation in the market at that time that the heavy blow to the stock market was to cope with unexpected events and to leave room for the stock market for Hong Kong's return on July 1, 1997.

This speculation is not unreasonable. Especially on February 28, 1997, the chief architect Deng Xiaoping, who was deeply loved by the Chinese people, passed away. The people were immersed in deep sorrow. The stock market, which had already fallen deeply, once again fell close to the limit across the board.

thrilling trend.

But the stock market is in a bull market after all, and the fourteen bearish gold medals can only temporarily suppress the strength of the bulls. On the second day after the unexpected event caused a sharp decline, the stock market once again exerted force, and it became unstoppable from the start, going out for 12 consecutive weeks.

The positive line is as powerful as a rainbow, no less powerful than any of the rising trends in 1996.

The Shanghai Composite Index rose by 630 points in one breath, an increase of about 80%.

But behind the surge in the index, subtle changes in the stock market are often ignored.

First of all, the stock market has greatly expanded. At the beginning of 1996, the total number of Shanghai and Shenzhen A-shares was 311 stocks. A year later, at the beginning of 1997, it had reached 554 stocks, an increase of 243 stocks, which is equivalent to an 80% expansion.

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Secondly, there is obvious differentiation in stocks.

Statistics show that there are 153 stocks that have more than doubled in price during this period, accounting for 30% of the total number of listed companies.

However, most stocks did not rise as much as the index. The index rose by 80%, but more than 30% of the stocks rose by less than 40%, and many rose by around 50%.

Such a disparity in stock gains is a sign that the bull market has lost momentum.