January 4, 2022.

The stock market opened on the first day of the new year. I originally thought that the new year would bring a new atmosphere. The traditional virtue is that the new year has a good start, which means that I will have good luck within the year. However, I did not expect that it backfired. The market index was green, many sectors were green, and all my funds were greener, greener.

No one was spared.

The Chinese 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.

Therefore, 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 and cleanup in 1995, and China's stock market became the target of support.

In this way, the stock market ushered in real benefits and entered 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 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 pattern of "controlling more with less."

"specialty.

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 and the seller receives the payment.

China's Shanghai and Shenzhen stock exchanges both implement T+1 settlement for A-shares.

Price limit: In order to curb excessive speculation and prevent excessive rises and falls in the market, the stock exchange stipulates the fluctuation range of the day's securities trading price based on the closing price of the previous trading day in daily transactions.

Today, the Shanghai and Shenzhen stock exchanges implement a 10% price limit.

(The price limit for ST shares and S shares that have not completed share reform is 5%).

Characteristics of the stock market: The biggest characteristic of the Chinese stock market is that state-owned shares and legal person shares promise not to be circulated when listed.

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 the non-tradable state-owned shares and to revitalize state-owned assets. 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". Its essence was still the reduction of state-owned shares. The difference was that this reform aimed at eliminating the share-trading structure and even included the circulation of legal person shares.

This caused great disapproval in the market.

The market's differences on the split-share structure reform are still huge.

Therefore, 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.