1. Total trading volume on the Shanghai and Shenzhen stock exchanges rebounded to 3.39 trillion yuan on July 10, rising above the 20-day moving average of 3.2 trillion yuan, indicating a significant improvement in market sentiment.
2. On July 10, the ratio of margin buying to A-share market capitalization, a measure of leverage, rebounded from near the low of June 12 and the lower limit of its fluctuation range over the past year, reaching 8.23%, suggesting a recovery in risk appetite.
Note: 1. Trading volume 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, A-share leverage levels have mostly remained between 6% and 10%. A leverage ratio exceeding 10% indicates high market activity, potentially approaching or in a bull market. A leverage ratio exceeding 15% indicates an overheated market risk, requiring caution.
