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the past week is destined to leave an important mark in the history of a-shares.

china's assets are experiencing an epic surge, foreign capital has been bargain-hunting, and global funds are enjoying this feast.

before this round of market surge, a new investment tool was emerging at lightning speed.

01

skyrocketing! etfs become the sharpest spear in the bull market

due to the national day holiday, funds tracking the a-share index were snapped up by funds in hong kong, u.s. and japanese stock markets.

in the hong kong stock market, among the etfs tracking a-share assets, two have doubled in the past five trading days, and seven have increased by more than 50% on the 5th. in,boshi china gem index daily leverage (2x) surged 159.73%;boshi science and technology innovation 50 index etf rose 114.86%; csop science and technology innovation board 50 index etf, csop csi 300 index daily leverage (2x) product, premia china science and technology innovation 50etf, csop china growth enterprise market index etf, csop hang seng technology index daily leveraged (2x) product rose by more than 50%.

in the u.s. stock market, according to wind data, in the past two weeks, the ftse china a50 index rose by 25.5% and the nasdaq china golden dragon index rose by 38.7%. meanwhile, the ishare msci china etf rose 33.9%. what is particularly striking is thatthe 3x long ftse china etf-direcxion (yinn) surged 120.1%.

not only have a-share and hong kong stock etfs experienced astonishing surges, but there has also been a rush for funds to raise chinese assets in the japanese stock market.the a-share csi 500 index etf listed on the japan exchange rose by more than 115% in one day.it has risen by 1300.88% in the past 5 trading days, by 1572.27% in the past 7 trading days, and by 1736.07% in the past 9 trading days.

a-share etfs have also experienced skyrocketing gains!in the five trading days before the holiday, 10 etfs in the a-share market rose by more than 50%, 65 etfs rose by more than 40%, and 253 etfs rose by more than 30%. among them, the chuangda cap etf, chuang50 etf, and chuangtech etf have risen by more than 50% in the past 5 days, and the science and technology innovation chip etf south, fintech etf huaxia, science and technology 100 index etf, food and beverage etf, wine etf, and securities etf have risen in the past 5 days. over 40%.

an investor posted a firm offer of a fund on alipay, with weekly income rising by 30%+. it seems that many friends who did not buy stocks bought index funds to quickly enter the market.

02

witness history! one of the fastest rising periods for a-shares

what we have just experienced can be said to be one of the fastest rising periods in the history of a-shares.

if the heavy stimulus policy starts from september 24 to september 30, a-shares will have a total of 5 trading days, but in these 5 trading days, the shanghai composite index will rise by 21%.

the last similar surge was from november 2022 to january 2023, but the same increase took the shanghai composite index 7 months that time.

even the 2015 bull market is incomparable. in the initial period of rise that year, from june 19, 2014 to october 9, 2014, the shanghai composite rose from 2023.74 points to 2389.74 points, an increase of about 18%, which lasted for 3-4 months.

what is even more rare is that this is also one of the largest shortfalls in a-shares.

because the rise was too rapid, many people did not respond and did not get on the bus in time. however, the rise was huge and many people were seriously shorted. nowadays, social platforms are full of voices complaining about being in the air.

some people say: seeing that a-shares have risen too high, they dare not enter the market, and they are not willing to eat meat. they want to wait for a correction to enter the market, but they are not given a chance! others say: the market is rising higher and higher, and it is impossible to hold on to the chips, and they are all sold out in an instant!

you know, being short is much more uncomfortable than being stuck or even losing money!

the huge wealth effect will create a mentality called "fomo" among investors, which is the mentality of fear of missing out again. therefore, many people will subconsciously believe that the best way is to get on the bus and quickly catch up with this bull market.

of course, if the market rises too quickly, it will also give rise to another opposite mentality, that is, the fear of chasing higher prices.

some people say: i want to enter the market, but i am afraid that once i buy it, i will stand guard and take over the market! others said: i have a lot of bullets in my hand, the price is too high, but i don’t dare to get in the car anymore, what should i do?

to put it bluntly, it means that you want to make money, but at the same time you are worried about losing money. in short, you are in a dilemma. however, on the bright side, the market sentiment that has been sluggish for a long time has been completely activated.

03

“what to buy after the surge?”

in this round of epic surge, there is a big difference from the past: etfs have become an important investment tool for investors to enter the market, and hundreds of billions of dollars are rushing to raise stock etfs.

in the past five trading days, a-share stock etfs have received a net inflow of 112.3 billion yuan. since the beginning of this year, the national team has purchased a large amount of a-shares. what is different from the past is that this time the national team has purchased etfs. according to incomplete statistics, it has purchased more than 660 billion yuan during the year.

because the current round of a-share 924 market is too rapid, many investors have been short positions for a long time and are a little confused by the rise. they want to buy but are afraid of chasing the high, and if they don’t buy, they are afraid of being short.

so, “what to buy after the surge?”it has become the issue that all investors are most concerned about now, and discussions on the internet have been overwhelming. go to all the major social platforms and you will see that this unprecedented enthusiasm for buying stocks is overwhelming people in minutes.

there is no way, who told the market to rise so fast and so urgently!

the stock price kept rising without giving anyone any time to react. if you had not taken decisive action before the holiday, you would now have to watch others counting money while you just stare and worry in vain.

this is not over yet, if it is really like what economist ren said:open and close!

if everything is at daily limit, you can't buy it even if you have money. even if it is not the daily limit, the possible delays and freezes in the trading software will make the feeling of shortfall even stronger.

on major social media, everyone has come up with various tricks to deal with this unprecedented short squeeze. one of the hot topics is: if stocks are trading at their daily limit and you want to invest in a-shares, you can use etf index funds.

speaking of etf index funds, this has long been a mainstream investment tool in mature markets in europe and the united states. even the stock god warren buffett has repeatedly supported this issue over the years, recommending individual investors to buy etf index funds.

in 2008, buffett and sides made a ten-year bet on whether hedge fund managers could beat the s&p 500. ten years later, the actual annual compound return rate of the index fund selected by buffett was 7.1%, and the annual compound return rate of the hedge fund was 2.2%. the index fund significantly outperformed the hedge fund.

in other words, among the long bulls in the united states, everyone works very hard to select stocks, but in the end they find that they underperformed the index funds. even hedge fund managers who graduated from prestigious schools cannot escape this law.

because index funds not only cover multiple markets and sectors, but are also widely recognized for their high trading volume and good liquidity, they are regarded by the market as investment tools that can be used to attack and retreat to defend.

compared with the high volatility of individual stocks, index funds track an index, that is, a basket of stocks, and most of these stocks are leading companies in the sector. compared with investing in a single stock, they are usually more stable.