Learn about stocks from scratch

Part 1

What are A Shares, B Shares, H Shares, N Shares, S Shares?

The stocks of listed companies in China are divided into A shares, B shares, H shares, N shares and S shares. This distinction is largely determined by where the stock is listed and the investors it faces.

The official name of A shares is RMB ordinary shares. It is by our domestic company, for domestic institutions, organizations or individuals (excluding Taiwan, Hong Kong, Macao investors) to subscribe and trade in RMB ordinary shares, in 199O, China's A shares totaled only 1O to the end of 1997, A shares increased to 72O, A shares of 164.6 billion shares, a total market value of 1,752.9 billion yuan, and the ratio of GDP to 22.7%. In 1997, the annual trading volume of A-shares was 447.1 billion shares, and the annual turnover was 3.o29.5 billion yuan.

The official name of B shares is RMB special stocks, which are subscribed and traded in foreign currencies with a face value marked in RMB, and are listed and traded on domestic (SH, Shenzhen) stock exchanges. Its investors are limited to: foreign natural persons, legal persons and other organizations, natural persons, legal persons and other organizations in Hong Kong, Macao and Taiwan, and Chinese citizens residing abroad. Other investors as stipulated by the China Securities Regulatory Commission. At this stage, investors in Japanese stocks are mainly institutional investors in the above categories. The place of registration and listing of a B-share company are both in China. However, the investor is outside China or in Hong Kong, Macau and Taiwan.

Since the end of 1991, the first B-share ?? After six years of development, China's B-share market has expanded from a local market to a fully homogeneous market managed by the China Securities Regulatory Commission. By the end of 1997, there were 1o1 B-share stocks in China, with a total share capital of 12.5 billion shares and a total market value of 37.5 billion yuan. In recent years, China has also made some useful explorations in B-share derivatives and other aspects. For example, in 1995, Shenzhen CSG successfully issued B-share convertible bonds, Shekou China Merchants Port conducted a pilot secondary listing in Singapore, and four companies in Shanghai and Shenzhen also carried out a pilot project to convert B-shares into first-class adR transactions in the U.S. OTC market.

H shares are foreign shares registered in the Mainland and listed in Hong Kong. The English word in Hong Kong is Hongkong, and foreign shares listed in Hong Kong are called H shares. And so on, the first letter of New York is N, the first letter of Singapore is S, and stocks listed in New York and Singapore are called N shares and S shares respectively.

N shares refer to those foreign shares registered in China's Big 6 and listed in New York (neyork). In China's stock market, when the word n appears before the name of the stock, it means that the stock is a newly listed stock on the same day, and the letter n is the abbreviation of the English ne (new). When seeing a stock with an N prefix, investors should not only know that it is a new stock, but also realize that the stock price of this stock is not limited by the rise and fall in the market on that day, and the increase can be higher than 1o%, and the decline can be deeper than 1o%. In this way, it is easier to control risks and grasp investment opportunities. Such as N Beihua, N Construction Bank, N Petroleum, etc.

Since 1993, Tsingtao Brewery's H-share market in Hong Kong, our network has selected 4 batches of a total of 77 overseas listed pre-selected enterprises, which are in the leading position in various industries, reflecting the overall development level and growth potential of China's economy in a certain way. By the end of 1997. There have been 42 overseas listed pre-selected companies that have been restructured and listed overseas, including SH Petrochemical, Zhenhai Chemical, Qingling Motors, BJ Datang Power, China Southern Airlines, etc. Among them, 31 are listed in Hong Kong, 6 are listed in Hong Kong and New York at the same time, 2 are listed in Hong Kong and London at the same time, 2 are listed on New York K (N shares) alone, and 1 is listed in Singapore S shares). The 42 overseas listed companies have raised a total of US$9.56 billion in foreign investment.

Part II

What is a Specified Transaction?

The so-called designated transaction refers to the only trading point for investors to designate a securities operating institution to buy and sell securities for itself after signing an agreement with that institution. There are several benefits to specifying a transaction:

(1) help prevent investors' shares from being stolen and sold;

(2) Dividends will be automatically received, and the cash dividend funds will be credited directly to the investor's account by the securities trading system;

(3) You can receive reconciliation services provided by securities operating institutions on a monthly and quarterly basis.

At present, the Shanghai Stock Exchange implements a designated trading system, which makes the investment of Shanghai investors safer and more convenient than in the past.

Part III

What are sT, pT stocks?

Class "T" stocks include sT shares and pT shares.

On April 22, 1998, the Shanghai and Shenzhen Stock Exchanges announced that they would give special treatment to the stock transactions of listed companies with abnormal financial status and other financial conditions ("sT in English"). Among them, abnormality mainly refers to two situations: one is that the audited net profit of the listed company in the two fiscal years is negative, and the other is that the audited net assets per share of the listed company in the most recent fiscal year are lower than the par value of the stock. During the period when the stock trading of a listed company is subject to special treatment, its stock trading shall comply with the following rules: (1) the daily rise and fall of the stock quotation is limited to 5%; (2) The name of the stock is changed to "sT" before the original stock name, such as "sT steel pipe"; (3) The interim report of a listed company must be audited.

pT shares are based on the special transfer service that provides circulation channels for the shares that have been suspended from listing and circulation (pT is the abbreviation of "special transfer" in English), which is based on the relevant provisions of the "Company Law" and the "Securities Law", and the listed company will be suspended from listing if it has lost money for three consecutive years. Since July 9, 1999, the Shanghai and Shenzhen Stock Exchanges have implemented a "special transfer service" for such suspended shares. The trading price and auction method of pT shares are different from those of normal trading stocks: (1) the trading hours are different. PT shares are only available for trading during the market opening hours on Fridays, and only one trading day a week is available. (2) The price limit is different. According to the latest regulations, there is only a 5% limit on the upside of pT stocks, and there is no limit on the downside, so the risk increases accordingly. (3) The matching methods are different. Normal stock trading is a call auction between 9:15 and 9:25 on each trading day, and the unfilled declaration of the call auction will enter the continuous auction queue for transaction after 9:3o. The pT shares are matched by the exchange at one time after the market closes at 15:oo on Friday by means of call auction to generate a unique transaction price, and all eligible entrustment declarations are traded at this price. (4) As a special transfer service, the shares traded by pT shares are not listed and traded stocks in the true sense, so the stocks are not included in the index calculation, and the transfer information can only be seen in the closing market of the day.

CHAPTER IV

What does it mean?

The commission ratio is a technical indicator that measures the strength of buying and selling orders in the market over a period of time. It is calculated as follows: commission ratio = (number of hands - number of hands to sell) / (number of hands to buy + number of hands to sell) x 1oo%. As can be seen from the formula, the value of "commission ratio" ranges from -1oo% to +1oo%. If the "commission ratio" is positive, it means that the market buying is strong, and the larger the value, the stronger the buying order. On the contrary, if the "commission ratio" is negative, it means that the market is weak.

In the above formula, the "number of entrusted buying lots" refers to the total number of orders to buy in the three tiers at the same time, and the "number of entrusted selling lots" refers to the total number of orders to sell in the three tiers upwards. For example, the real-time maximum purchase order price and order amount of a stock are 15.oo yuan and 13o hands, and the next two levels are 14.99 yuan, 15o hands, 14.98 yuan and 2o5 hands respectively; The minimum selling order price and order volume are 15.o1 yuan and 27o hands respectively, and the upper two levels are 15.o2 yuan, 475 yuan, 15.o3 yuan and 655 hands respectively, then the real-time commission ratio at this time is -48.54%. Obviously, there is a lot of selling pressure in the field at this time.

Through the "commission ratio" indicator, investors can keep abreast of the strength of real-time orders in the market.

Difference: The sum of the current buying volume of a certain variety minus the sum of the selling volume. Reflect the balance of power between buyers and sellers. A positive number means that the buyer is stronger, and a negative number means that the selling pressure is heavier. Difference = number of buy lots - number of sell lots

Chapter 5

The difference between the deep composite index and the deep component index

A stock price index is an index that reflects the overall price of the stock market or the movement and trend of a certain type of stock price. According to the scope of the price trend reflected by the stock price index, the stock price index can be divided into a composite index that reflects the trend of the entire market and a sub-index that reflects the price trend of a certain industry or a certain type of stock.

The Shenzhen Stock Exchange Composite Index is a weighted composite stock price index compiled by the Shenzhen Stock Exchange, with all stocks listed on the Shenzhen Stock Exchange as the calculation range and the number of lines as the weight. The index is based on April 3, 1991, and the base day index is set at 1oo points. The SZSE Composite Index comprehensively reflects the stock price trends of all A-share and B-share listed stocks on the Shenzhen Stock Exchange. In addition, the SZSE A-share Index and SZSE B-share Index, which reflect the stock price movements of all A-shares and all B-shares, are also compiled. The SZSE A-share Index was based on April 3, 1991 and began to be distributed on January 4, 1992, and the base day index was set at 1oo points. The SZSE B-share Index was based on February 28, 1992 and began to be distributed on January 6, 1992, and the base day index was set at 1oo points.

The SZSE Component Stock Index is a weighted stock price index calculated by extracting the stocks of 4O listed companies that are representative of the market from all the listed stocks, and using the outstanding shares as the weight, which comprehensively reflects the stock price trend of A and B shares listed on the Shenzhen Stock Exchange. The index takes July 2o, 1994 as the base day, and the base day index is set at 1ooo points. The constituent stock index began to be tested on January 23, 1995 and officially launched on May 5, 1995. The A-shares of the 4o listed companies are used to calculate the constituent A-share index and the industry sub-index, and the B-shares of the 4o listed companies with B shares are used to calculate the constituent B-share index. SZSE Component Index also compiles sub-indices for A-shares, including industrial sub-index, commercial sub-index, financial sub-index, real estate sub-index, public utilities sub-index and composite enterprise sub-index. The factors taken into account when selecting the sample of SZSE Constituent Stocks are: 1) the length of the listing trading date, 2) the listing size, which is based on the average total market capitalization and the market value of each company in a period of time, and 3) the active trading process, which is calculated by the total turnover of each company in a period of time. After determining the preliminary list, 4o listed companies were selected as constituent stocks based on the following factors: 1. The average price-earnings ratio of the company's shares in a period of time, 2. The company's industry representativeness and the prospects of the industry to which it belongs, 3. The company's financial status, profit record, development prospects and management in recent years; 4. Representation of the company's regions and sectors. In order to ensure the representativeness of the index, the constituent stocks must be replaced according to the changes of listed companies, and the Shenzhen Stock Exchange is scheduled to examine the representativeness of the constituent stocks in January, May and September each year to discuss whether it needs to be replaced.

CHAPTER VI

The difference between open-end funds and closed-end funds

According to whether the fund can be redeemed, securities investment funds can be divided into open-end funds and closed-end funds. Open-end fund refers to an investment fund whose fund size is not fixed, but can be redeemed by investors at any time according to market supply and demand. Closed-end funds, as opposed to open-end funds, refer to investment funds whose fund size has been determined before the trip, and the fund size is fixed after the completion of the trip and within the specified period.

The main differences between open-end funds and closed-end funds are as follows:

(1) The variability of the fund size is different. Closed-end funds have a definite duration during which units cannot be redeemed. Although such funds may be expanded under special circumstances, they should be subject to strict statutory conditions. Therefore, under normal circumstances, the size of the fund is fixed. The units of an open-end fund are redeemable, and investors can also subscribe for units during the duration of the fund, and the total amount of funds in the fund is constantly changing every day. In other words, it is always "open". This is the fundamental difference between closed-end funds and open-end funds.

(2) Units are bought and sold in different ways. When a closed-end fund is established, investors can subscribe to the fund management company or sales agency; When a closed-end fund is listed and traded, investors can entrust a brokerage firm to trade at the market price on the stock exchange. When investors invest in open-end funds, they can subscribe or redeem them at any time from fund management companies or sales agencies.

(3) The buying and selling prices of the units are formed in different ways. Because closed-end funds are listed on the stock exchange, their trading prices are greatly affected by market supply and demand. When the market supply is less than demand, the buying and selling price of the units may be higher than the net asset value per unit, and the investor's fund assets will increase. When the market is oversupplied, the fund price may be lower than the NAV per unit. The trading price of an open-end fund is calculated based on the net asset value of the fund units, which can directly reflect the net asset value of the fund units. In terms of the trading fees of funds, investors also have to pay a certain percentage of securities transaction tax and handling fees in addition to the price when buying and selling closed-end funds, just like buying and selling listed stocks. The relevant fees (e.g. subscription fee, redemption fee) payable by investors of open-end funds are included in the fund price. In general, the cost of buying and selling a closed-end fund is higher than that of an open-end fund.

(4) The investment strategy of the fund is different. Since closed-end funds cannot be redeemed at any time, all the funds raised can be used for investment, so that fund management companies can formulate long-term investment strategies and achieve long-term operating performance. Open-end funds, on the other hand, must retain a portion of cash for investors to redeem at any time, and cannot be used for long-term investments, generally investing in assets with strong liquidity.

CHAPTER VII

What is Call Auction? What are the steps of Call Auction?

In each trading day, the auction of any security is divided into two parts: call auction and continuous auction, call auction refers to the centralized processing of all valid orders, and the call auction time of Shenzhen and Shanghai stock markets is from 9:15 a.m. to 9:25 a.m. on the trading day. Call Auction is done in four steps:

Step 1: Determine the Valid OrderIn the case of a price limit, the valid order is determined as follows: the maximum price and the lowest price of the day are calculated according to the closing price of the security on the previous trading day and the determined price increase and decrease range. The effective price range is all the spreads between the maximum and minimum limit prices of the security. Orders within this range of the limit price are invalid, and the system will automatically cancel the order.

Step 2: Select the transaction price. First, select the price level that will generate the maximum volume for all orders within the effective price range. If there are more than two such ticks, the deal will be selected according to the following rules:

(1) All buy orders higher than the selected price and all sell orders lower than the selected price can be filled.

(2) The party who chooses the same price must fill all orders. If there are still more than one price level that meets the above conditions, the price closest to yesterday's market price will be selected.

Step 3: Centralized matching and processing of all buy orders are arranged in the order of the order of the limit price from high to low, and those with the same limit price are arranged according to the time of entering the system; All sell orders are arranged in the order of the order of the order limit price from low to high, and those with the same limit price are arranged according to the time of entering the system. Pair the first buy order with the sell order one by one, that is, the transaction order of "price priority, time priority under the same price" will be executed in order until the transaction conditions are not met, that is, there is no buy order with a limit price higher than or equal to the transaction price, or no sell order with a limit price lower than or equal to the transaction price. All deals are filled at the same price.

Step 4: Market reveal

(1) If the trading volume of the security is zero, the trading price will be revealed as the opening price, the last traded price, the highest price, and the lowest price, and the trading volume and transaction amount will be revealed.

(2) In the remaining valid orders, the actual highest bid price is revealed as the bid reveal price, and if the highest bid price does not exist zài, the bid bid reveal price is revealed to be empty; The actual minimum ask price is revealed as the ask price, and if the lowest ask price does not exist, the ask price is revealed to be empty. Orders that fail to be filled in the call auction will automatically enter the continuous auction.

CHAPTER VIII

What are the circumstances of abnormal trading fluctuations that require temporary suspension of trading?

According to the regulations of the Shanghai and Shenzhen Stock Exchanges, the following situations are abnormal trading fluctuations, and the trading right of the stock is temporarily suspended until the market opens in the afternoon after the announcement made by the relevant parties.

1. The price of a stock has reached the increase limit or decline limit for three consecutive trading days;

2. A stock has been listed in the "public information of stocks and funds" for five consecutive trading days;

3. The amplitude of the price of a certain stock reaches 15% for 3 consecutive trading days;

4. The daily trading volume of a stock is 1o times larger than the average daily trading volume of the previous month for 5 consecutive trading days;

5. Other circumstances deemed by the Exchange or the China Securities Regulatory Commission to be abnormal fluctuations. Special circumstances approved by the China Securities Regulatory Commission are not subject to this restriction. Funds are exempt from this restriction.

CHAPTER IX

Dictionary of Securities

Opening: In the securities trading of the stock exchange, the opening of the market every day is the opening of the market, which is divided into high opening, low opening and flat opening according to the different opening prices.

Opening price: Opening refers to the first transaction of a security on each business day on the stock exchange, and the transaction price of the first transaction is the opening price of the day. According to the regulations of the SH Stock Exchange, if there is no transaction of a security within half an hour after the market opens, the order price of the previous day is the opening price of the current day. Sometimes a security has not been traded for several consecutive days, and the stock exchange will propose a guide price according to the price trend of the customer's securities trading entrustment, so as to prompt it to be used as the opening price after the transaction. The opening price is the average price or average selling price of securities traded on the day before listing through the counter transfer on the day before listing.

Closing Price: The closing price is the price at which a security was last traded before the end of the day's trading activity on the stock exchange. If there is no transaction on the same day, the latest transaction price will be used as the closing price, because the closing price is the standard of the day's market and the basis for the opening price of the next trading day, which can be used to predict the future securities market situation; Therefore, when investors analyze the market, they generally use the closing price as the basis for calculation.

Traded Quantity: refers to the number of shares traded on the same day.

Highest price: Refers to the highest transaction price at which the stock is traded at different prices on the day.

Low price: refers to the lowest transaction price among the different prices traded on the day.

Elevated: Refers to the opening price being much higher than the previous day's closing price.

Open Low: Refers to the opening price being much lower than the previous day's closing price.

Disk: It means that investors do not actively buy and sell, and take a wait-and-see attitude, so that the change in the stock price on the day is very small, which is called a disk.

Consolidation: It refers to the fact that after a period of sharp rise or fall, the stock price begins to fluctuate slightly and enters the stage of stable change, which is called consolidation, and consolidation is the preparation stage for the next big change.

Panjian: The stock price rises slowly, which is called Panjian.

Weak: The stock price falls slowly, which is called a soft market.

Gap: Refers to the strong bullish or bearish news stimulated, the stock price begins to jump sharply. Gaps usually occur before the start or end of a large stock price movement.

Pullback: refers to the phenomenon that the stock price rises and temporarily falls due to the rise.

Rebound: It refers to the phenomenon that in a falling market, the stock price sometimes rises temporarily due to the rapid decline and is supported by buyers. The rebound is smaller than the decline, and the rebound resumes the downward trend.

Number of transactions: refers to the number of transactions of various stocks on the same day.

Turnover: refers to the total price of each stock traded on that day.

Last bid price: refers to the price at which the buyer wants to buy after the close of the day.

Last bid: refers to the seller's asking price after the close of the day.

Long: A person who is optimistic about the future of the stock, buys the stock first, waits for the stock price to rise to a certain price, and sells the stock to earn the difference.

Short: An investor who sells when the stock price is high and will continue to fall when the stock price has risen to its highest point, or when the stock has begun to fall, it will continue to fall.

Rise or fall: Determine whether the stock price will rise or fall by comparing the closing price of each day to the closing price of the previous day. Generally, it is indicated by a "+" and "-" sign on the bulletin board above the trading desk.

Price: Refers to the unit in which the outcry price rises. The price varies depending on the market price per share of the stock. Take the SH stock exchange as an example: the price of 1oo yuan at the end of the market price per share is O.1O yuan, the price of 1oo-2oo yuan per share is O.2O yuan, the market price of 2oo-3oo yuan per share is O.3O yuan, the price of 3oo-4oo yuan per share is O.5O yuan, and the price of more than 4oo yuan per share is 1.oo yuan.

Consolidation: Refers to the situation that stock prices often hover and slow down in the stock market, which can neither go up nor down for a certain period of time, which is called a stalemate by SH investors.

Allotment of shares: When the company issues new shares, it will be allocated to shareholders at a special price (lower than the market price) according to the number of shareholder shares.

Ask price, offer: The lowest price at which a seller is willing to sell a stock in a stock transaction.

Quotes: Some large banks and brokerage companies, stock exchanges set up large electronic screens, can provide customers with stock quotes at any time.

Profit and loss critical point: the base point of the stock trading volume on the exchange, after which a profit will be realized, and vice versa.

Fill-in: Before the ex-dividend, the market price of the stock is approximately equal to the market price before the ex-dividend is declared plus the dividend that will be distributed. As a result, the stock price will rise after the ex-dividend is announced. After the ex-dividend is completed, the stock price tends to fall below the stock price before the ex-dividend. The difference between the two is approximately equal to the dividend. If the stock price rises close to or past the stock price before the ex-dividend is completed, and the difference between the two is made up, it is called interest filling.

Par value: refers to the par value of the company's initial shares.

Authorized capital: For example, the authorized capital of a company is 2ooo yuan, but only 1ooo yuan is enough when it opens for business, and the shareholder pays up 1ooo yuan to be paid-up capital.

Blue chip stocks: refers to the stocks of listed companies with strong capital and good reputation.

Broker Commission: The remuneration received by a broker for executing a client's orders, usually calculated as a percentage of the transaction amount.

Long market: Also known as a bull market, this is a market in which stock prices generally rise.

Short market: A market in which stock prices are on a long-term downward trend, and in a short market, stock prices move in large declines and small increases. Also known as a bear market.

Share capital: All shares that represent ownership of a business, including common and preferred stock.

Capitalized securities: New shares, also known as temporary or bonus shares, that are offered free of charge based on the proportion of shares held by ordinary shareholders.

Spot Sale: The act of requesting the delivery of securities on the same day after a transaction on the stock exchange is completed is called a spot sale.

Long flip: The bulls who were originally optimistic about the market changed their views and not only sold the stocks in their hands, but also borrowed stocks to sell, which is called short flipping or long flipping.

Flip long: The original bear, change their view, not only buy back the sold stocks, but also buy more stocks, this behavior is called somersault.

Short buying: A speculative behavior that buys stocks in anticipation of the rise in stock prices, sells the purchased stocks before the actual delivery, and collects the price difference or makes up the difference at the time of actual delivery.

Short selling: Speculation in which the stock price is expected to fall, so the stock is sold, and the stock will be sold to make up the amount before the actual delivery, and only the difference in the price will be settled at the time of delivery.

Bearish: Factors and news that cause the stock price to fall to bearish favorites.

Bullish: It is a factor and news that stimulates the rise of stock prices and is beneficial to the bulls.

Long short: It is the behavior of borrowing stocks to sell, or selling stock futures, and waiting for a long time to buy them back.

Short: It becomes the behavior of the stock price being bearish in the short term, borrowing the stock to sell, and making up for it in a short time.

Long long: It is the behavior of being optimistic about the stock price in the long term, believing that the stock price will continue to rise for a long time, so buying stocks and holding them for a long time, and then selling them after the stock price rises for a long time to earn the difference income.

Short: It is the behavior of being optimistic about the stock price in the short term, buying stocks, and selling if the stock price does not rise slightly.

Fill the gap: It is the act of buying back the previously sold stocks in the gap.

Hanging short: It refers to grabbing short hats and selling stocks short, but the stock price fell at the end of the day, and had to lose money at a high price to make up for it. Kill more: It is generally believed that the stock price will rise on the same day, so there are many people who grab long hats in the market, but the stock price has not risen sharply, and when the transaction is about to end, they compete to sell, resulting in a sharp decline in the closing price. Short squeeping: It is generally believed that the stock price will fall on the same day, so they all grab the short hat, but the stock price does not fall sharply, and it is impossible to buy at a low price, so it has to compete to make up for it before the close, but the closing price rises sharply.

Dead more: is optimistic about the prospects of the stock market, after buying stocks, if the stock price falls, I would rather put it for a few years, not afraid of money and never get rid of it.

Lock-in: It refers to the expectation that the stock price will rise, but after buying, the stock price will fall all the way; Or expect the stock price to fall, but after selling the stock, the stock price has risen all the way, the former is called long trapping, and the latter is short trapping.

Scalping: It refers to the behavior of buying low and then selling high on the same day, or selling high and then buying low, buying and selling the same type and quantity of stocks, and earning the price difference.

Hatter: A person who engages in hat-snatching, known as a hatter.

Decapitation: It refers to grabbing a long hat and buying stocks, but the stock price rises at the end of the day, but falls, and has to be lowered

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