On July 20th, the proportion of A-share stocks with a turnover rate below 3% fell back to 68.54%, remaining in the middle of the fluctuation range since October 2024; the proportion of stocks with a turnover rate above 5% rebounded to 22.51%, ending a ten-day losing streak and remaining above the threshold. Turnover rate indicates a continued decline in market trading activity.
Note: 1. When the proportion of stocks with a turnover rate below 3% rises, especially near historical highs (dashed line in the chart, representing a reversal trend), it means the market is likely to encounter a temporary low, making a reversal or rebound more likely.
2. When the proportion of stocks with a turnover rate above 5% remains above the threshold (dashed line in the chart), a strong profit-making effect emerges in the market, making the market trend sustainable. During a bull market, this indicator will consistently remain above the threshold, leading to a broad-based market rally; while during a bear market, this indicator is mostly below the threshold, and occasionally exceeding the threshold should be viewed with caution due to the risk of a pullback after a surge.
