1. The total trading volume of the Shanghai and Shenzhen stock exchanges on July 8th continued to shrink for the fourth consecutive day, further decreasing to 2.56 trillion yuan, remaining below the 20-day moving average of 3.19 trillion yuan, indicating a continued cooling of market sentiment.
2. On July 8th, the ratio of margin buying to the total market capitalization of A-shares, a measure of leverage, fell to 8.92%, the lowest since June 12th, approaching the lower limit of the past year's fluctuation range, suggesting a decline in risk appetite.
-------- Note: 1. Trading volume in the two markets reflects the views of major institutions, speculative funds, and retail investors on A-shares. Volume above the moving average indicates increased total trading volume and a more optimistic market sentiment, while volume below the moving average indicates decreased total trading volume and a cooling market sentiment.
2. Since 2015, the leverage level of A-shares has mostly remained between 6% and 10%. A leverage ratio exceeding 10% indicates high market activity, potentially approaching or in the midst of a bull market. A leverage ratio exceeding 15% indicates an overheated market risk, requiring vigilance.
