Chapter 1669 [The market index plummeted, and small and mid-cap stocks soared to the point of dizziness]
Those financial rentier groups know the logic here very well, because there is a provision in the "opinion draft" that states that the holdings of a large number of industry ETFs that will be launched will only be allocated to stocks on the SGX market.
This regulation is almost an obvious operation. For example, if the SGX market launches a semiconductor ETF in the future, and then a fund manager manages a theme fund that focuses on allocating semiconductor stocks, if the fund does not even have a semiconductor ETF by then, If the fund wins or even underperforms by a large margin, the Christians who bought this fund will not break their defense after seeing this?
After the defense is broken, I will definitely redeem the fund angrily, and I will never have confidence in these sub-fund managers again.
If they want to launch new fund products in the future, few people who have suffered losses will subscribe again, and fund-raising will fail on a large scale. So how can they use funds to acquire junk stocks at high levels?
…
The next day, Friday February 26th.
It is now 8:55. Tian Jiayi has not gone to the company yet. He is having breakfast with Fang Hong, Yu Qiu and others.
She took her mobile phone and looked at the stock market. She was surprised when she saw it. She immediately raised her eyes and looked at Fang Hong: "Why did the NSE 50 index plummet so much at the opening today? Even if yesterday's news was bad, it wouldn't open like this, right?" "
Hearing this, Fang Hong asked: "How do you say it? What's the opening price?"
Tian Jiayi immediately answered him: "It opened low at 10973.56 points, which is -5.68%. It can be said to be a plunge."
Fang Hong couldn't help but be slightly stunned: "Why so many?"
The beautiful assistant immediately handed him the phone and asked him to take a look at it.
Fang Hong took the phone and immediately glanced at the market software on the screen. It was indeed a jump at the opening, with a sharp drop of -5.68%. The main decliners were super large-cap stocks such as Xingyu Technology, Matrix Quantum, and Kyushu Blue Arrow.
This opening situation was indeed a bit beyond Fang Hong's expectation. Yesterday, his expectation was that it might fall by more than 3 points today, and it might drop to about 4 percentage points during the session. Unexpectedly, the opening price hit 5.68 percentage points. .
Fang Hong thought for a moment, then put his phone on the table. He suddenly sneered and said, "You probably know what's going on. It's the group of financial rentiers who are retaliating by smashing the market. I pulled out their blood-sucking SGX Guanzi, of course they are furious, haha..."
His guess was correct. The NSE 50 Index opened so violently today that it was clearly the financial rentiers who were retaliating.
But they are not simply smashing the market out of anger and revenge. It is also an act of withdrawal. Because they can no longer suck blood, they have allocated stocks in the SGX market and it is time to withdraw. They just smash the market in retaliation.
Tian Jiayi couldn't help but ask after hearing this: "Do you want the stabilization fund to protect the market?"
Fang Hong shook his head and said calmly: "No, the current SGX market is not that fragile. Those rentiers are not qualified enough to make any waves. They are just trying to deal with you and let the market take care of itself." Just repair it individually, and if it doesn’t work, it’s not too late to take action.”
Hearing this and seeing that he was not worried at all, Tian Jiayi said nothing more. After a while, she finished breakfast and went to work at Qunxing Group Company.
In Fang Hong's view, the vindictive behavior of the financial rentiers was an act of incompetence and rage.
However, it is best to sell out now. The NSE 50 Index will continue to rise in the future. If you leave, you will not be able to reap the subsequent dividends. Fang Hong is also happy to see this happen.
However, at this moment, the SGX market officially opened at 9 o'clock. The SGX 50 index opened lower and moved lower. The market panic intensified. The intraday low fell to 10871.80 points, and the maximum decline during the day reached -6.56%, but then it stopped falling.
It rebounded by 1 percentage point, and the decline narrowed to -5.53%.
At 9:30, the Shanghai and Shenzhen stock markets next door also saw a huge bidding surge. The Shanghai Composite Index opened lower by -5.75%, and the Shenzhen Component Index opened lower by -6.77%. After the opening, it also opened lower and plunged.
The two markets next door suffered even more sharp declines today, because there are not many retail investors playing next door, and it is basically a situation of cutting each other off with sickles. Those financial rentiers obviously know that they cannot support the two cities next door after they have their tubes removed.
The city now has a total market capitalization of over 80 trillion.
As a result, the market conditions previously promoted by the two neighboring cities came to a complete collapse today, and the two cities officially fell into a struggle for stock.
In the SGX market, the SGX 50 index once rebounded to regain the 11,000-point mark during the session, rebounding as high as 11,158.40 points, narrowing the decline to -4.09%. However, in the afternoon, the rebound failed to continue, and even
It failed to stabilize, because the two markets next door fell so fiercely that it made many people panic, and the NSE 50 Index also fell back.
As of the close, the SGX 50 Index plummeted -6.09%, closing at 10925.92 points. The SGX market transaction volume shrank to 1960.5 billion, ending the record of consecutive 2 trillion transactions.
The declines in the two cities next door were even more severe, falling directly out of catastrophic levels. Thousands of stocks in the two cities fell to the limit, and the Shanghai Stock Exchange Index plummeted -7.49%, the largest single-day decline in the past five years, second only to the plunge on August 25, 2015 -
8.49%, that was when the stock market crash 2.0 exploded.
The Shenzhen Component Index plummeted -8.23% today, which was also the largest single-day decline in the past five years. The last time it fell so hard was during the catastrophic market in 2015.
Today's A-share market is really tragic. Just looking at the main board indexes of the three major trading markets, it feels like a new round of bear market is coming. For the two neighboring cities, it is indeed a moment of bull-bear reversal.
, but most investors have not realized this yet.
However, today’s A-share market has a very unique trend. To be precise, the SGX market has staged a rare spectacle. The market index has plummeted by 6 percentage points. However, there are currently 2,107 stocks in the entire SGX market, and there are more than 2,000 stocks.
Only stocks are in the red.
This chapter is not over yet, please click on the next page to continue reading the exciting content! Moreover, small and medium-cap stocks have even performed a miracle of reaching the daily limit of 1,000 shares, which has stunned many investors. There are currently only 2,152 stocks in the SGX market.
Listed companies, more than 2,000 red stocks, more than 1,000 stocks hit the daily limit.
Open the SGX market's individual stock price increase list, and it is all 20%. In the current SGX market, since the new trading regulations were implemented, in addition to T 1 for institutions and T 0 for individual retail investors, the upper limit for the price increase and decrease of individual stocks is also 20%.
Adjusted from the original ±10% to ±20%.
Thousands of stocks hit the daily limit, and the 20cm long legs filled the screen, making stock investors dizzy.
However, the market index plummeted -6.09%. People who don't know the truth must be filled with questions when they see this situation.
Although it is very outrageous, this scene is beyond the expectations of many people, but it is also reasonable, but it is far beyond expectations.
This is because the 50 constituent stocks in the NSE 50 Index that fell sharply today are mainly super large-cap stocks, but the other 2,000 small-cap stocks and some large-cap stocks are not among the NSE 50 Index constituent stocks.
There are a lot of small and mid-cap stocks, but the total market capitalization of more than 2,000 stocks accounts for about 29% of the total market capitalization of the SGX, and the 50 super large-cap stocks account for more than 70%. Don’t be so bullish that investors can’t stand it.
I feel dizzy, but the funds required to pull it up are less and much easier than those 50 super large-cap stocks.
The "opinion draft" issued by the SGX is negative for super large-cap stocks and the SGX 50 Index, but it is actually very positive for the small and medium-cap stocks in the SGX market.
That's why the SGX 50 Index plummeted, but 2,000 individual stocks rose in the SGX market, and even small and medium-cap stocks set off a spectacle of a thousand-share daily limit.
Today, a lot of funds are flowing out of the SGX 50 Index, including funds flowing out from dozens of super large-cap stocks such as Xingyu Technology and Matrix Quantum. Some of them are institutional funds and individual investors who have the threshold to invest in individual stocks in the SGX market.
Turn around and go to small and mid-cap stocks to grab funds.
As a result, small and medium-cap stocks have been favored by funds, and everyone is rushing to raise funds and are very courageous. Anyway, when the time comes, there will be funds to take over.
The NSE 500 Index and NSE 1000 Index will be launched soon, and the corresponding NSE 500 ETF and NSE 1000 ETF will also be launched, including many industry ETFs. By then, small and medium-cap stocks will receive huge liquidity support.
When the time comes, there is no need to worry about not being able to take over. With such expectations, we will naturally dare to violently raise prices.