Mr. Bubble: Here Comes the A-Shares Propaganda Wave

Securities firms see the bottom forming. Chinese stocks have under performed, the valuations are relatively low (Although not compared to the U.S. Fortune 100 which has a P/E of 13.2 according to the one of the tables included in the article. Analysts also see the need for fundamental reform in the economy.

iFeng: A股为何跌跌不休?三大券商给出了最新答案!
1) The decline in the strong stocks in the consumer sector means that the selling has basically entered the end of a bear market, and the leading stocks in the segments we tracked were mixed, and there was no systematic lower than expected situation. It is expected to stabilize after release;

2) The Ministry of Commerce’s “early attack” in Sino-US disputes is conducive to easing short-term uncertainty. The biggest uncertainty was the measures that China would take when China’s imports to the United States were limited (about 150 billion U.S. dollars). To achieve the "equal" counter-attack of 200 billion US dollars of taxation, and now finalize the $60 billion differential tax rate list, in fact greatly eased the short-term market concerns (for example, some investors worry that China may be in the US Operating by sanctions, etc.);

3) The central bank adjusted the foreign exchange risk reserve ratio of the forward sales business from 0 to 20%, and conducted a countercyclical intervention on the RMB. From the last (2015), similar measures were taken, although this move does not affect the long-term trend of the RMB. It constitutes a substantial impact, but at least in the short term it will stabilize the expectation of accelerated depreciation.
The central bank moved to stabilize the yuan and the national team is coming.

iFeng: A股情报:央行释稳预期信号 “国家队”或局部护盘
Specifically, the People's Bank of China requires financial institutions to deposit foreign exchange risk reserves at 20% of their forward sales (including options and swaps), which is equivalent to allowing banks to prepare for risk in response to future losses. It is a transparent, non-discriminatory and price-based counter-cyclical macro-prudential policy tool to suppress the procyclical behavior of long-term foreign exchange sales through price transmission.

The exchange rate is undoubtedly one of the reasons for the current round of A-share adjustment. The central bank’s release of the stable exchange rate expectation signal will undoubtedly have an impact on the market this week. In addition, the daily economic news analysis believes that if the market wants to stabilize, the most effective one should be “ The national team entered the market.

Daily analysis said that such a support may occur locally, such as the existence of a large number of financial stocks still have a certain possibility. In addition, when the market is in a period of severe downturn, what is most needed is the management's introduction of heavy news that directly targets the A-share market , which may make the effect more obvious.
Wealthy investors are selling homes and buying stocks according to one guy writing under the name of Wealth God (Caishen).

iFeng: 富二代开始卖房抄底股市
The fourth chance is the present. I am 34 years old and I started to get financial investment when I was 19 years old. Although I didn’t make much money in the big bull market in 2008 and 2015, I mainly invested less in the principal, but in these years, I also understood the rules of the stock market. This bear market began in June 2015 and has now fallen for three years. These three years are exactly three years of skyrocketing housing prices, from first-tier cities to second-tier cities to third- and fourth-tier cities. The discerning eye is clear that the current price is very high, the price/performance ratio of the house price is not high, and the flow of funds into the stock market is a high probability, and the water flows down.

So when I fell down today, I started to sell two sets of houses, and then raised 50% of the funds into the stock market. I bought three stocks, and I firmly believe that the next big bull market leader is the artificial intelligence industry. These three stocks, I also went to a simple survey with friends, and also consulted the professionals in the industry, they said that it is not bad, have their own competitiveness.
A different article recommends some shares with hefty fund ownership.

iFeng: 这些股票被机构高度“控盘”,是喜是忧?

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