In some ChinA-shares, Shanghai Composite Index (Shanghai Composite Index) reached 3600 points on July 24th. Despite the upward trend of A-shares since January this year, investors have not felt the dividends of the “bull market”, lamenting, “Only earning index, not money.”
On July 24th, the Shanghai Composite Index rose by 0.65%, closing above the 3600-point mark. However, on the 25th, the three major A-share indexes showed a slight decline, with the Shanghai Composite Index closing at 3593.66 points, falling below 3600 points.
Starting from January this year, the Shanghai Composite Index has shown an upward trend, rising from around 3407 points in January to 3593.66 points on the 25th, with a year-to-date cumulative increase of about 5.5%.
But in contrast to the market performance, many investors have not felt the “dividends” brought by the market’s rise.
On July 26th, prominent mainland financial self-media person Wu Xiaobo revealed that many investors said they did not “eat the meat”. Some lamented, “Bought at 3400, lost at 3600,” and some said they were “in the bull market without knowing it,” while some even used “bull disaster” to describe their accounts that fell against the trend. On various mainland forums, the complaints of many stock market investors and investors of “only rising index, not making money” are very common.
In the perception of investors, a bull market should be a “universal celebration,” where everyone rises together. Even if they don’t time the market perfectly, they should at least be able to benefit and make a profit of 10% to 20%; if lucky enough to catch a bullish stock, they might even get a return of 100% or more.
In response, Wu Xiaobo believes that in investment, the few key trading days often determine the annual returns. For example, this year, if investors were lucky enough to position themselves in big finance and infrastructure early on, the return could be around 20%; but if they didn’t get on board in time, it’s very easy to miss out or even incur losses.
Wu Xiaobo analyzed that specifically, from June 23rd to July 24th, in 23 trading days, the Shanghai Composite Index rose from 3359.90 points to 3605.73 points. If investors held stocks in the technology sector, it meant they missed out on this round of the “bull market.”
Chen Gang, chief strategist at Dongwu Securities, said: “This round of rebound has not formed a clear trading trend but has shown a ‘fan’ rotation feature.”
After the Shanghai Composite Index surpassed 3600 points, many funds chose to “secure their gains,” indicating that with the increase in returns, fund investors do not have sufficient confidence in the market’s future emergence of a major bull market. At the same time, as the stock market continued to decline, the “national team” that intervened to support the market also consciously sold the ETFs they held.
Some seasoned investors have warned that there is a large amount of historical trapped volume near 3600 points for the Shanghai Composite Index. If the subsequent market cannot continue to increase significantly and stabilize, it is likely to trigger the risk of a high surge followed by a fall.
In response, netizen “Neighbor Old Uncle” also expressed similar feelings: “The index has risen, but most people have not made money. Funds swiftly switch between weighted sectors, and retail investors cannot keep up with the pace. Sectors like banks and infrastructure that drive the index, ordinary investors either dare not buy or cannot purchase, while foreign capital and public funds are silently profiting.”