news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

recently, the a-share market has been extremely hot, investors are enthusiastic, and new entrants are also arriving in droves. some investors even shouted: "i hope we will win at 10,000 points!". looking back at the history of a-shares, crazy bull markets are not uncommon. let’s take a look at several crazy markets in the history of a-shares. if there is anything missing, please feel free to add it in the comment area!

the first mad cow incident: the index doubled in a single day

on may 21, 1992, the shanghai stock exchange announced that it would relax price limits. the market jumped directly from 616 points to 1266 points that day, an increase of 105%, and the index doubled in one trading day.

there were only 15 stocks at that time. during the day's stock market carnival, stocks such as light industrial machinery, special-shaped steel pipes, jiafeng co., ltd., and second textile machinery all rose by more than 300%. among them, light industrial machinery led the country with a 470.8% increase. field.

looking back at the market scene at that time, due to the changes in the trading system and strong market expectations, investors poured into the stock market, the business departments of securities firms were crowded, and there were long queues in front of the trading counters. in order to cope with this unprecedented trading boom, many brokerages had to urgently add counters to meet the trading needs of investors.

the second mad cow incident: 5.19 market

on may 19, 1999, as the state council released good news about vigorously developing the capital market, the chinese stock market launched the most spectacular bull market to date. the shanghai composite index started from around 1050 points and reached 1756 points a month later.

the market came very suddenly, without any warning in advance, and once it started, it had huge explosive power. among the 31 trading days from may 19 to june 30 of that year, only 8 trading days fell, and the index almost moved along the line. a 60-degree sloping upward channel climbed, and the short-term gains were astonishing.

the third mad cow incident: a bull market that lasted for one and a half years

from january 2006 to october 2007, the chinese stock market set off an unprecedented bull market. the shanghai composite index rose from 1,180 points to a high of 6,124 points in october 2007, which lasted more than a year and a half. this is also the largest bull market in the history of a-shares. analyzing from various aspects, the main reasons for this bull market are as follows:

first, the global economic prosperity has caused overheating of the world economy, and it has also driven china's large-scale exports. large-scale exports have promoted the rapid growth of china's foreign exchange reserves, led to the rapid growth of china's economy and the appreciation of the rmb.

second, the four-year bear market in the early stage laid the foundation for the market, and the share-trading reform provided an opportunity for the market. at that time, the shares of listed companies in the a-share market were divided into tradable shares and non-tradable shares. among them, state-owned shares and legal person shares could not be listed and circulated like ordinary shares. therefore, state-owned shares, legal person shares, and ordinary shares had "different rights for the same shares, and different benefits for the same shares." "the situation cannot meet the requirements of the reform, opening up and stable development of the capital market, and is not conducive to the development of the stock market.

when the shanghai composite index hit 998 points in mid-2005, regulators stated that there was no turning back. they said that if state-owned shares were to be fully circulated, they would be fully circulated. suddenly, a mysterious force entered the market, and the market rose by 3%. one day later, the shanghai composite rose again by 8.21%. this played the prelude to the great bull market.

the fourth mad bull: the leveraged bull of 2015

in may 2014, the china securities regulatory commission issued the "administrative measures for the initial public offering of stocks and listing on the gem" and the "interim measures for the administration of securities issuance by gem listed companies", which relaxed the conditions for the ipo on the gem and established a refinancing system for the gem. the loose financial environment directly catalyzed this bull market.

in july 2014, the shanghai composite index broke out of the downward trend line of more than five years, and successively crossed the 120-day line and the 250-day bull-bear line, entering a technical bull market. the market began to show a general upward trend, all sectors rose together, and the market index fluctuated and rose. especially with the continuous reserve requirement ratio and interest rate cuts since november of that year, the rapid decline in funding interest rates has had a supporting effect on market valuations. the shanghai composite index has started a blowout rise, and trading volume has begun to increase continuously. as of june 12, 2015, during the nearly one-year bull market, the shanghai composite index had risen by 152%, the shenzhen component index had risen by 146%, and the growth enterprise market had the highest increase, reaching 177%. rough statistics show that within this range, each household can earn an average of 670,000 yuan.

however, this bull market driven by leverage ended tragically. afterwards, stock market crash 1.0, stock market crash 2.0, and stock market crash 3.0 occurred. looking back now, many investors still remember it vividly.

the fifth mad cow: it may start on september 24, 2024, and is still ongoing.

looking back at the history of a-shares, it is not uncommon to see crazy bull markets, and the market's daily limit has also occurred several times. for investors, even if they make a lot of money in the bull market, only a few people can escape unscathed and lock in profits. the pattern of seven losses, two draws and one gain in the stock market has been repeated. therefore, for investors who missed the crazy bull before the a-share holiday, there is no need to worry about short-term shortfalls. investment is a long-term run, and there is no need to compete for temporary highs and lows.