1. Total trading volume in the Shanghai and Shenzhen stock markets further declined to 2.41 trillion yuan on July 16th, below the declining 20-day moving average of 3.16 trillion yuan, suggesting weakening sentiment.
2. On July 16th, the ratio of margin buying to A-share market capitalization, a measure of leverage, rebounded to 9.7%, still within the lower range of the past year, indicating that the leverage level in the market is generally moderate.
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, 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.
