The main boards of the two cities are in a bullish market during this period, and on the side of the SGX market, the rise of the SGX 50 Index during this period is even more comprehensive in leading the major indexes.

Especially on August 25, stimulated by the news of the over-raising of the second phase of the wealth fund, the new stock 50 index rose +3.63% on the same day, directly breaking through the 2700 point mark in one breath, and closed up +1.86% the next day, further pushing the new stock 50 index to a record high of 2751.37 points.

After entering September, the upward momentum of the new stock 50 index slowed down and began to enter a period of consolidation, but it also once rose to a record high of 2,792 points during the session, almost breaking through the 2,800-point mark.

Since the index bottomed out in May, in just four months, its range has risen by more than 33 percentage points, outperforming the CSI 300 index by a whole position, and the cumulative increase in the annual line has also exceeded 40 percentage points.

Looking back now, the fall to 2097 points in May is a proper gold pit and historical bottom.

The new stock 50 index has also walked out of the longest exponential bull market in the A-share market in the past two decades, with the bull market in 07 lasting about a year and a half peaking at 6,124 points, while the epic leveraged bull market last about a year and reaching 5,178 points.

It has been more than a year and nine months since SGX opened in early 2016, and it is still in the bull market.

Many retail investors ridiculed that since switching to the SGX, they have lived in fear of rising every day.

Although it is ridiculous, it is also full of a sense of gain.

The emergence of SGX and the SSE 50 Index have allowed many retail investors to pick up the long-term value investing philosophy that they have thrown in the trash, and the sooner they enter the SGX and hold it for a long time, the more they will earn.

However, it is worth mentioning that the new stock 50 index has collected 50 constituent stocks since its opening, and has implemented three constituent stock adjustments.

For example, the two listed companies of ATL Technology and Ruihe Pharmaceutical have been eliminated one after another, which has also caused the stock prices of these two companies to fall sharply after that, and they are still adjusting.

In fact, both companies are excellent in their own right, but they are still eliminated.

The reason is not that there is something wrong with the company itself, but that the bottom chips are loosened and cleared, simply put, the funds participating in the SGX, especially the large amount of funds, or he has learned to be content, and he will withdraw after earning one of the profits, and he will have a force to help him clear out if he does not leave.

The new stock 50 index will get out of the real long bull market for ten years, and it is impossible for Fang Hong to let some big funds rely on not leaving for ten years to return to liquidity, all of which let a small number of early interveners eat up the premium, what do the people behind eat?

When the time comes, you can smash the plate unscrupulously with the huge profits, and the latecomers are not stupid, and it is impossible to pick up such a big plate of your throwing pressure.

ATL Technology and Ruihe Pharmaceutical, two companies, were excluded from the constituent stocks of the New Stock Exchange 50 Index because they held a large amount of funds and knew that Qunxing Capital was working the SGX to build a super long bull, so they wanted to win all the way to the end.

This is a typical ignorance.

The fact that Fang Hong or Qunxing Capital wants to build a super long bull on the SGX is almost an open secret in a sense among many large institutions in the industry.

In this case, anyone who is interested knows that it is impossible to let a single institution eat to the end, and doing so will annoy other institutions or large amounts of money waiting to get on the bus.

Let you eat it all, what else will others eat? None of the stars ate alone.

Therefore, these two companies were eliminated by the New Stock Exchange 50 Index, which is equivalent to directly cutting off most of the liquidity, and they were also smashed, and after not affecting the New Stock Exchange 50 Index, the stars also acquiesced, so they did not carry out the market, resulting in a heavy loss of funds that Lai did not want to leave

Large-scale drawdowns.

There has never been such a thing as an "invisible hand" in the world economy, and even if there is, this "invisible hand" will be controlled by a powerful force, and the same is true of the U.S. stock market.

In the SGX market, many people know that Qunxing is the "invisible hand" behind the scenes, because the knife that cuts the cake is in the hands of Qunxing, and if you want to come to this field to play, you have to accept Qunxing's plan to distribute the cake.

These are already things that insiders can't see through.

Lai in ATL Technology and Ruihe Pharmaceutical did not go to the large amount of funds, and then begged for mercy to know that it was wrong, and obediently cashed out in a large drawdown of profits.

Even if you have seventy-two changes in Sun Wukong, you can't run out of Rulai Wuzhi Mountain, no matter how vast your magical powers are, you can still fight through the opening game?

These two listed companies also have some retail investors involved, during the period of being excluded from the new stock 50 index, some retail investors made money and escaped the catastrophe, and some retail investors just stood guard on the top of the hill and followed the robbery.

It can only be said that it happened that it was unlucky to buy a quilt cover on the top of the mountain, which was purely a mistake, and it was also a skill to make a lot of money.

From the perspective of the entire market ecosystem, it is also applicable to retail investors who have been immobile for a long time, and if the number of retail investors is not large, of course, it can be tolerated and ignored, and it will not have much impact.

However, if a large number of retail investors hold for a long time and accumulate ten times or more of the income and are unwilling to withdraw their hands, the impact is not as small as a single large amount of funds, and even the negative impact is greater, because retail investors are often more likely to panic and stampede.

If such a retail investor is extremely large, and he is still unwilling to take the initiative to make a profit and clear out, there will also be a force to help clear out.

Obviously, what Fang Hong wants is to participate in the SGX This field of all kinds of funds to eat a piece of profit has to go, don't think that the whole family will be eaten, so that the people who get on the bus behind have no food and take all the risks, it is impossible, this is not sustainable.

Reflected in the market, there are funds in and out, few institutions can hold for a long time, even if they appear on the list of institutional positions for a long time, they will find that the position is decreasing.

Only in this way can the new stock 50 index rise forever and the risk is controllable, and the center of gravity of the chips can be better controlled by the continuous upward rise in order to better control the entire market, so that there is no need to worry about the holder's unscrupulous smashing, because of the rising cost, he himself will face large losses if he dares to smash the market unscrupulously.

If it is at the position of 1,000 points in the new stock 50 index, and then it has been holding still, and when it reaches 10,000 points, he can of course smash the market unscrupulously, even if it is smashed in half, there is still a 5 times the return, and there will be a systemic risk from 10,000 points to 5,000 points or even 3,000 points.

but

If he entered the market at 9,000 points, he would not dare to do so at 10,000 points, and hitting below 9,000 points means that he himself began to lose money.

Therefore, not only to distribute the cake and not let a single company eat alone, but also to dismantle the potential risks of the market, and will not allow a single institution to eat to the end, as long as someone dares to do so, he will definitely be killed.

Every rise in the market is the accumulation of short energy, and every time the profit of the previous holder is cleared, it is a release of short energy.

The amount of short positions accumulated in the past ten years is obviously fundamentally different from the accumulation of ten years of total release of ten years, and the impact on the market is obviously fundamentally different.

The former is easy and controllable, while the latter can detonate systemic risks if one carelessness is not careful.

……

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