●After the "6·14" incident in 2001, the market environment has undergone major changes, and the investor structure of the securities market has also changed. That is, the market structure has changed from individual investors as the main body to institutional investors. as the main body.

●In 1999, the monthly average turnover rate of Shanghai and Shenzhen stock markets was 33.97%. By 2002, the turnover rate dropped to 20.39%. This at least reflects the tendency of investors to hold shares for the long term.

●As one of the largest institutional investors in the market, funds’ shareholdings have shifted from relatively concentrated to relatively dispersed. Over-diversified investment in funds not only fails to prevent risks, but may also fall into diversified investment risks.

●This year, mainstream brokerages have generally lowered their profit expectations, focusing more on in-depth research on market trends, listed companies, and competitors, and adopting an investment portfolio model that is moderately diversified and focuses on holding stocks with long-term investment value. And the band rolling operation method. (Analyze the true purpose of mainstream funds and discover the best profit opportunities!)

Some considerations for choosing "6·14" as the turning point

The securities market has experienced a shift from retail investors as the main body The structural transformation to institutional investors as the main body is a dynamic process. For the convenience of discussion, this article takes the "6.14" day in 2001 when the Shanghai and Shenzhen Composite Index reached its highest point at the same time as an important watershed in the transformation of the market structure, but this division is only relative.

Characteristics of market operations in the era of retail investors

1. Before "June 14" in 2001, the main body of the market investor structure was retail investors

1991-1998 , retail investors are the main force in the Shanghai and Shenzhen securities markets. Here, institutional investors such as securities companies, trust investment companies, and fund companies not only have a small number of accounts, but also invest their funds not only in the securities market, but also invest a considerable part of their funds in real estate and other fields. By 1998, management realized that a stable securities market must be dominated by institutional investors. Especially in 1999, the government allowed three types of corporate funds, including state-owned enterprises, state-controlled enterprises, and listed companies, to enter the stock market, marking the beginning of the rapid evolution of China's securities market from retail investors to institutional investors.

2. The mainstream operating characteristic of the securities market in the era of retail investors is speculation

1. Large stock price fluctuations

Shanghai and Shenzhen Securities before "6·14" in 2001 In the market, what is most talked about is institutional investors taking over as market makers, retail investors following the market makers, and stock commentators "trapping the market makers", and they are keen on studying the behavior of market makers. There are also some major institutions that manipulate the market, causing huge fluctuations in stock prices. (See Table 1 for details)

2. Strong speculative atmosphere

In a market environment dominated by retail investors, some institutional investors are market manipulators. Some institutions raise stock prices by countering or joining forces with listed companies to speculate. The key investments and stock price increases of some institutions in listed companies are not out of their original recognition of their investment value, but mainly out of the need to profit from the speculation in the secondary market and expand the scale of money trapping. Through the game between some institutional investors and retail investors, many large-scale institutional predators such as the "China Science and Technology Department" have been formed. In terms of market behavior, the market turnover rate was extremely high before "6·14". When it reached its peak in 1996, the turnover rates of Shanghai and Shenzhen stock markets were 760% and 950% respectively; it gradually declined to 126% and 132%, which are still much higher than those in developed countries. The extremely high turnover rate of the Shanghai and Shenzhen stock markets is enough to show that investors hold the stocks of listed companies for a short period of time and there is a common phenomenon of speculation (see Table 3).

3. Due to information asymmetry, illegal manipulation is more prominent.

Due to flaws in the deep-seated mechanism of the stock market at that time, information disclosure was not standardized, and fraud occurred from time to time in listed companies. Some institutions take advantage of information asymmetry, concentrate their financial advantages, and manipulate the market by virtue of their favorable trading positions and trading methods. According to statistics, among my country's listed companies, an average of two large-scale asset restructuring events have occurred within three years. The purpose of frequent restructuring of individual listed companies is to meet the needs of stock price speculation in the secondary market, meet the requirements for additional issuance and allotment, and major shareholders Taking the assets of listed companies as their own more completely, etc. Cases requiring judicial intervention include the Yi'an Technology stock price manipulation case, the Yinguangxia financial fraud case, Zhongke Entrepreneurship insider trading and stock price manipulation cases, etc.

Institutional investment has become mainstream

1. Major changes have occurred in the market and regulatory environment

After "6·14", the market and regulatory environment have undergone major changes. The investor structure of the securities market has also undergone qualitative changes, that is, the market structure has changed from individual investors as the main body to institutional investors as the main body.

From a regulatory perspective, the management has adopted strict regulatory measures on the securities market and has issued a series of policies and regulations. From a market perspective, starting from June 2001, the Shanghai and Shenzhen Composite Index began to adjust significantly. By the end of December 2001, the Shanghai and Shenzhen Composite Index fell by more than 1/3. In an environment of major changes in the market and supervision, the structure of the securities market has also quietly changed, and institutions have increasingly become the mainstay of securities market investment.