1. The total trading volume of the Shanghai and Shenzhen stock exchanges rebounded to 2.96 trillion yuan on July 21, still below the declining 20-day moving average of 3.05 trillion yuan, suggesting a gradual recovery in market sentiment.
2. On July 21, the ratio of margin buying to the total market capitalization of A-shares, a measure of leverage, fell to 7.25%, remaining at a relatively low level over the past year, indicating that the leverage level in the market is generally moderate.
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, 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 a bull market. A leverage ratio exceeding 15% indicates an overheated market risk, requiring caution.
