Reasons for the skyrocketing: 1. In 2005, the central government and the China Securities Regulatory Commission jointly introduced the share-trading reform. The completion of the share-trading reform freed up a lot of room for the stock market to rise, providing prerequisites for the skyrocketing.
?2. The 2008 Olympic Games provided information security for the people and reduced liquidity risks.
?3. Since there are prerequisites for entering the stock market and there is also a guarantee for exit, securities firms, old funds, and insurance funds poured into the stock market in the first wave, promoting the first step of the stock market's rise.
?4. When the RMB appreciates, foreign capital entering China's financial market can reap huge benefits from the appreciation of the RMB. A large amount of foreign capital pours into the real estate market and the stock market, which was only about 1,000 points at the time, waiting for the appreciation of the RMB.
?5. QFII holds a large number of domestic securities assets, and a large amount of foreign capital pours into China, which promotes the rise of the stock market.
?6. The scale of domestic funds has expanded, a large number of new funds have been issued, and a large amount of funds raised from fund issuance have been invested in the stock market. ?7. Private savings have also poured into the stock market, driving the rise of the stock market.
Reasons for the crash: 1. The role of the law of economic value. After a surge, the stock price is seriously higher than the actual value of the stock. The decline of the stock market is a law of value. 2. The launch of stock index futures is major bad news, because stock index futures are a bearish mechanism. 3
, Inflationary pressure began to appear in April 2007. The government continued to raise the deposit reserve interest rate and deposit and loan interest rates of commercial banks, and implemented a tight monetary policy, suppressing the excessive rise of the stock market? 4. The lifting of the ban on large and small non-profit enterprises, followed by
After the IPO ban was lifted and began to circulate, coupled with the large-scale issuance of new shares, the supply of stocks in the market seriously exceeded demand, and the pressure for expansion was unbearable for the stock market? 5. After the May 30 incident, foreign investors withdrew their capital one after another and moved into the real estate market or withdrew from China's financial sector.
Market? 6. The influence of political factors such as Taiwan’s general election and external referendum? 7. Affected and dragged down by the global financial tsunami triggered by the subprime mortgage crisis, resulting in continued decline. Expanded information The development path of the securities market is not exactly the same, but generally it will
Go through 5 stages.
Dormant stage: Not many people understand the securities market at this stage, and there are few companies with publicly listed stocks. However, after a long time, investors find that even without potential capital appreciation, the dividends obtained exceed other forms of investment.
The profits they got, so they bought stocks, but they were still cautious at first.
Manipulation stage: Some securities brokers and traders have discovered that because there are not many stocks and limited liquidity, they can drive up prices by buying only a small portion of the stock.
As long as the price continues to rise, other people will be attracted to buy. At this time, the manipulator can make huge profits by selling the stock.
Therefore, they began to suppress market prices, manipulate the market, and make huge profits.
Investment stage: Some people have obtained a large amount of capital appreciation by buying and selling stocks. Whether it has been realized or is only on paper, the demonstration effect of these huge profits will attract more people to join the ranks of speculation. The speculation stage begins, and the stock price
It greatly exceeded the actual value, and the transaction volume skyrocketed.
Newly issued stocks are often over-purchased, attracting many companies to issue stocks. Shareholders who were originally reluctant to sell also sell their stocks to make profits, thus expanding the supply of listed stocks.
Collapse stage: At a certain time, the source of funds used for speculation will dry up, and fewer and fewer new stocks will be subscribed. More and more investors will calm down and begin to realize that the stock price has been raised too high.
It's so out of touch with its original value.
At this time, as long as there is any disturbance from the outside world, the stock price will fluctuate, and then the price will begin to fall.
Maturity stage: After the stock market declines, it takes months or even years for the public to regain confidence in the stock market.
The length of this period depends on factors such as the extent of the price drop, the incentive to buy new shares, the behavior of institutional investors, and other factors.
The falling market caused these people to lose a lot of money.
They only retain long-term investments, hoping that prices will rebound in the future, and the ranks of institutional investors have also expanded.
In this way, the maturity stage begins. Here the supply of stocks increases, liquidity is greater, investors are more experienced, and trading volume is more stable. Although stock prices will still fluctuate, it is not as intense as before, but as the economy and enterprises develop.
Up and down.