Shanghai composite index create nearly eight years new low blue chip turns plunge is irrational

The current average price-earnings ratio only Shanghai stock market 16.22 shijinglv 1.69 times

Yesterday, and Shanghai stock market could not go out of the shadow of the recent decline, both of the bottom again. Which stock index of addressee 1058.87 points, fall 1.24%, from 23 September 1997 new low since closing.　　At this point, and Shanghai stock market according to the weighted average of total capital stock price-earnings ratio of only 16.22 times, the weighted average share price of $ 4.62 shijinglv 1.69 times, reaching a new low for many years. Blue chips drop turns

In fact, this week the first four trading days, the Shanghai composite index fell however 3.67%, but the Fund to the collapse of stocks of turns to inherently fragile confidence to a larger market.

This week, receptor textile exports of tariff is about to dramatically increase the impact of the overall decline in the textile sector, Lutai A, youngor, merit-based blue-chips have also significantly decreased. Wednesday, the pharmaceutical industry because of drug prices dropped rumors and joined the ranks of mass diving, early trends better medicine units Tian Li Shi, donkey-hide gelatin are not immune. Data display, textile and pharmaceutical index at present respectively 7.05%, 5.03% decline in occupies this week in the forefront of the industry index decreases in the standings.

If the above two tectonic plates of the substantial decrease was mainly affected by some bad news, then, the recent good results because of sudden attack of Freeway plate is puzzling. Yesterday, Zhongyuan high-speed opening soon dives, turnover also suddenly zoom, high speed, fast speed, deep wantong high speed &, Guangdong, Guangdong of Jiangxi high speed, high speed, modern investment units are followed, the overall decline. At this point, most of the two cities of Shenzhen and defensive port, medicine, highway, etc have been dropped by turns.

In addition, Shanghai Airport, moutai, consistent Fund and bin distributer of good units also progressively downwards, may join the ranks of invigorating falls.

Larger non-rational components

The overall decrease in the near future, blue chip, in addition to the equity division reform triggered valuation system disorders, more also manifested as an irrational selling.

A fund company investment Director for using the "masterminds" a Word to describe the recent market trends. He believed that the current institutions can select off if the object is not in how much profit or profit, but the book losses relatively small company equity, among the many bodies of the "masterminds", stocks and shares of the Fund to refer only to select continue to decline.

Just over a week ago we organized the seminar on the settlement of shareholder structure, many fund managers are fully affirmed the stock market especially the blue-chip investment value. But as the Shanghai composite index is the result of nearly eight years since the low market indicators will also be overwritten again. Yesterday, and Shanghai stock market according to the weighted average of total capital stock price-earnings ratio of only 16.22 times, the weighted average share price of $ 4.62 shijinglv 1.69 times, reaching a new low for many years. This also means that the body again sell low has a lot of irrational components.

For the current round of sharp decline and market panic, a fund company research report references a image of children's fable — "gudong came" to describe. The report noted that stretches for several years in a bear market and market changes, making the situation of the Chinese stock market investors and screaming "gudong came" Monkey has a similar effect, any market information can be investors as unwarranted "gudong", could keep track of what is good or bad, you've been scared to do, lest refuge.

Chaos in the possession of opportunities

"In fact, the more chaotic market pattern, the more we need to keep a copy of the sober, otherwise it will be one of the ' gudong ' frightened, perhaps a tree fall is a big fruit, since we are not able to calm down and stopped to look at and think about it, but lost a great opportunity for profit. "The report said.

In a sense, the Shanghai composite index is the result of nearly eight years of closing new low also means that large distance and near the bottom, but recent indications show that the positive signal in the market is also growing: strategic investors placing listing seven trading days, the Yangtze River Plate lift power steadily, visible absorbing sales; Monday, Lutai A closing limit, while the China life insurance company asset management company has the opportunity to draw on a large scale; last month, the insurance capital investment fund reaches 890.29 billion all-time high, the current month fund investment increased 92.3 billion; Sany modifying the pilot programme share-trading reform, further to facilitate the circulation of shareholders; the garbage stocks recent declines slowed market channels for active again.

Of course, when the market truly out also to be market confidence recovers and the introduction of the relevant good or maybe it will become an important turning point. A Fund Manager said: "even if only a $ 10 billion of capital into the city, also will spur the market expanded round retaliatory rebound. ”