On July 29th, the proportion of A-share stocks with a turnover rate below 3% slightly decreased to 70.34%, remaining in the middle of the fluctuation range since October 2024, showing an overall slightly upward trend since May. The proportion of stocks with a turnover rate above 5% was 21.25%, remaining near a new low since April 21st, indicating temporarily low market activity, but still above the threshold.
-------- Note: 1. When the proportion of stocks with a turnover rate below 3% increases, especially approaching historical highs (dashed line in the chart, representing a reversal trend), it means the market is likely to encounter a temporary low point, 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.
