1. Total trading volume in the Shanghai and Shenzhen stock markets declined to 2.71 trillion yuan on July 14th, further decreasing below the 20-day moving average of 3.21 trillion yuan, indicating weakening sentiment.
2. On July 14th, the ratio of margin buying to A-share market capitalization, a measure of leverage, fell sharply to 8.59%, suggesting a decrease 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 optimistic market sentiment, while volume below the moving average indicates decreased total trading volume and 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 above 15% indicates an overheated market risk, requiring caution.
