On July 28th, the proportion of A-share stocks with a turnover rate below 3% rose for the fourth consecutive day to 70.38%, placing it in the upper-middle range of its fluctuation since October 2024. Since May, the overall trend has been slightly upward with fluctuations. The proportion of stocks with a turnover rate above 5% further decreased to 21.24%, hitting a new low for the month and the lowest since April 21st. Market trading activity is temporarily sluggish, but remains above the threshold.
-------- Note: 1. When the proportion of stocks with a turnover rate below 3% increases, 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 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.
